Sushiswap - Liquidity Pools Analytics

Liquidity providers facilitate trade between assets. They do so by providing liquidity on both sides of a market. In traditional finance this role is filled by large institutions called Market Makers. Decentralized Finance allows anyone to combine two assets into a trading pair and become a liquidity provider.

Sushiswap is a protocol that uses liquidity providers. Sushiswap is used to trade one asset for another. Traders pay a small fee (0.3%) on every swap. This fee is sent to liquidity providers to reward them for facilitating trades.

In this post I present the volume of trades for the ten largest liquidity pools on Sushiswap. I also show the amount of fees collected by liquidity providers. Finally, I estimate the forward yield of each pool based on the earnings collected from fees in the last 365 days.

The chart above shows the ten largest liquidity pools on Sushiswap. Pools are ranked based on their Total Value Locked (TVL) in Sushiswap on Ethereum Mainnet.

Above are the seven-day swap volumes of the ten largest pools measured by TVL. Also shown are the total swap fees collected by liquidity providers during the period.

All amounts are in USD and the data is collected on Ethereum Mainnet.

The forward yields above are an estimation of a year's fees expressed as a percentage of the current liquidity. The year's projected fees are measured based on all fees collected in the last 365 days. The forward yield is calculated by dividing a year's worth of future fees by the pool's current liquidity. Since all fees are collected by liquidity providers, it is an estimate of the annual percentage yield that liquidity providers may receive.

Swap Volumes and Fees

Shown above are the one-day swap volumes of the ten largest pools measured by TVL. Also shown are the total swap fees collected by liquidity providers during the period.

All amounts are in USD.

Forward Yield

How profitable is it to become a liquidity provider? Profitability is based on the following factors:

The amount of trading volume on the pool for which you are providing liquidity, and
Your share of the liquidity.

It should be noted that there are more profitable pairs on Sushiswap. In this analysis I am only comparing the ten largest pools ranked by liquidity.

The profitable pools are not necessarily the ones with the highest swap volumes. It pays more to hold a larger share of a small pool. Don't be a small fish in a large pool.

Takeaways

Liquidity providers facilitate trades by providing liquidity on both sides of a market. They collect a 0.3% fee on the swapping of assets.
There are large differences in the yields generated by different liquidity pools. Some pools collect less than 1% annual yield from fees, while others can generate over 100%.
Returns to liquidity providers are a factor of trading volumes and size of the liquidity pool.

Shown above are the last 365 days of swap volumes of the ten largest pools. Also shown are the total swap fees collected by liquidity providers during the period.

All amounts are in USD and the data is from on Ethereum Mainnet.

Thank you for reading this analysis. I hope you enjoyed it.

(The chart refreshes every six hours.)

(The chart refreshes daily. The results measure yesterday's swap volumes on Ethereum Mainnet.)

Technical Notes

The swap volumes measured using Flipside data are different from the swap volumes found on https://analytics.sushi.com/pairs.

I am confident in the quality of my SQL code, but I don't know which data provider has the most accurate data on swap volumes.