Thor 17 - Pool Depth

    What is the current depth of each pool based on the number of LP-ers currently providing liquidity? By Zook#2707, November 7, 2021

    Number of Liquidity Providers by Pool on November 6, 2021.

    The Thor-Rune pool currently dominates the count of liquidity providers. This is most likely due to recent initial DEX offering (IDO) from Thorchain. There is a lot of excitement in the community as Thorchain is releasing their new Thor governance token. This token has just begun appearing on liquidity pools. Thorchain users are now able to obtain Thor by contributing Rune to the Thor-Rune asymetric pool. Rune deposited to an asymectric pool is rebalanced 50/50 into Thor-Rune. The large number of addresses currently providing liquidity to Thor-Rune is likely coming from people using this mechanism to obtain Thorchain's brand new governance token Thor.

    We have seen in previous submissions for Thorchain that Binance pools are very popular with swappers. Now we see that they are also quite popular with liquidity providers. Binance pools rank #2 and #4 by the number of liquidity providers.

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    How to read the names of liquidity pools.

    As explained in DavinRio's submission for Thor 5 : > "Each pool consists of 1 connected asset, for example Bitcoin, and THORChain's own asset, RUNE. They're called Continuous Liquidity Pools because RUNE, being in each pool, links all pools together in a single, continuous liquidity network."

    The pool names in our dataset are identified with names such as 'BTC.BTC' and 'ETH.THOR'. The first set of characters in the pool name identifies the blockchain where the asset originates. For example: BTC for the Bitcoin blockchain, ETH for Ethereum and BNB for Binance. The second set of characters is the name of the token or coin. Because Rune is included in each pool it is excluded from the name of the pool.

    The 'BTC.BTC' liquidity pool is comprised of Bitcoin from the Bitcoin blockchain and Rune. The 'ETH.Thor' liquidity pool is comprised of Thor from the Ethereum blockchain and Rune.

    We also observe that a number of pools have very few liquidity providers with five pools having only a single liquidity provider.

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    Daily Pool Depth - Last Two Weeks

    Let's observe the depth of pools during the last two weeks. We want to see if our November 6 observation is an outlier.

    On page 24 of our dataset we see the November 2nd launch of the Thor-Rune pool. 854 addresses contributed to that pool. There were 196 liquidity providers on November 3 and 417 on November 4. Therefore our November 6 observation seems consistent with previous data. There is a strong interest in the Thor-Rune pool.

    note: the Thor-Rune pool is indicated in green.

    The launch of the Thor-Rune pool has not enticed existing providers to migrate away from their current pools. The total number of liquidity providers has increased after the launch of the Thor-Rune pool. The Thor-Rune liquidity pool currently offers an attractive yield of 635% as of the time of this writing. It remains to be seen if the new liquidity providers will stick around or leave with their newly acquired Thor tokens.

    Takeaways

    1. All liquidity pools consist of a base asset and Rune, Thorchain's native coin;
    2. The November 2nd launch of Thor, Thorchain's governance token, has attracted a lot of new liquidity providers;
    3. Thorchain users can obtain Thor by contributing to the Thor-Rune asymetric liquidity pool;
    4. The Thor-Rune pool dominates the depth ranking on November 6th, with 248 liquidity providers; and
    5. On November 6th, some pools had very little addresses contributing to them, with five pools having only a single liquidity provider.