Saber and daoSOL
Saber is the leading cross-chain stablecoin and wrapped assets exchange on Solana. As we learned in the scavenger hunt last week, you can create a liquidity pair with staked SOL from the MonkeDAO created DAOPool with SOL to earn an additional yield on Saber.
Introduction
Saber is the leading cross-chain stablecoin exchange on Solana. Saber provides the liquidity foundation for stablecoins, which is a type of cryptocurrency whose value is pegged to another asset, like the US dollar or bitcoin.
As Solana’s core cross-chain liquidity network, Saber helps facilitate the transfer of assets between Solana and other blockchains. Users deposit crypto into a Saber liquidity pool to earn passive yield from transaction fees, token-based incentives, and eventually automated DeFi strategies.
Summary of Findings
We have introduced readers to Saber and its role in the Solana ecosystem. We analyzed metrics of the daoSOL-SOL liquidity providers including unique wallets and the number of provisions over time. We also analyzed the amount of daoSOL being provided and here is the summary of our findings:
- There are 1203 unique liquidity providers so far since February 1, 2022.
- The average number of liquidity provisions per day stands at 75.
- There has been as low as 1.56 daoSOL provided, to as high as 9,950 daoSOL provided as liquidity on a single day.
- There is no correlation between provision frequency and total liquidity provided on any day.
Our first metric is the number of unique wallets that have provided liquidity to the daoSOL-SOL pool. These unique wallets are proxies for unique users seeking to earn more yield by providing liquidity. A large number of unique wallets in a short time is a strong indicator of adoption.
There are about 1203 new unique liquidity providers providing for the daoSOL-SOL pool since the start of February. It is February 16 now at the time of analysis, which means that there are at least 75 new liquidity providers daily.
The next metric coming up is daily unique liquidity providers as we want to see how providers have changed over time. Showing this metric helps to narrow down into specific events at a particular time that could have influenced provisions.
As you can see, we had an average of 75 but the detail does not have an even distribution across days. Generally, there are less than 30 unique wallets daily but we have some outliers on February 10, and February 11, with 695 and 433 unique wallets respectively. These exceptional days are responsible for increasing the average.
Let's dig deeper into the actual amounts provided as liquidity on these various days. The next metric is about the amount of daoSOL provided as liquidity on the daoSOL-SOL pool in February 2022.
The day with the highest provision amount of daoSOL February 1, 2022, was February 5 (9,900 daoSOL), although there were only two liquidity provision events on the day. February 11, which recorded the second-highest number of provisions was the day with the least amount of liquidity provided (1.56 daoSOL).
In all of this, is there a correlation between the number of daily unique wallets and the amount of liquidity provided? The scatter diagram below will answer this question.
Any attempt to draw a straight line through all the points above will not be possible, and thus, we know that there is no correlation whatsoever between unique wallets and liquidity amounts provided.