Profit for AMMs
Q63. What is the total profit (in dollars) per day that is generated from swaps out of the liquidity pools in 2022?
Introduction:
Automated market makers (AMMs) are part of the decentralized finance (DeFi) ecosystem. They allow digital assets to be traded in a permissionless and automatic way by using liquidity pools rather than a traditional market of buyers and sellers. AMM users supply liquidity pools with crypto tokens, whose prices are determined by a constant mathematical formula. Liquidity pools can be optimized for different purposes, and are proving to be an important instrument in the DeFi ecosystem source.
These automated market makers are gained profit by taking into account many metrics but huge part of their came from the swaps fee.
In this dashboard, the daily profit of Ethereum blockhain from all of the AMMs is determined since start of 2022. Also, the Sushuswap and Uniswap are two of the most used AMMs on Ethereum blockhain and their profit are calculated and compared with each other, too.
This figure demonstrates the daily profit generated from swaps out of the whole liquidity pools since start of 2022. As shown in this figure, the daily profit was high at the first month of 2022. Also, it can be seen that the daily profit is dropped from the last days of January and the trend of it is downward, accordingly.
In this figure, the daily comparison of profit from swaps out of Sushiswap and Uniswap liquidity pools is done since start of 2022. As shown in this chart, the daily profit of Uniswap was dominant all the time. From the both of the lines it can be seen that, the movement of daily profit is decreased. The maximum amount of daily profit for Sushiswap and Uniswap happened on and Jan 17 and Jan 14, respectively.