Introduction and methods

Liquidity providers on Thorchain can put their assets on the pools in order to generate some passive incomes. The idea is that when poolers want to add or remove liquidity, a specific fee is charged and integrated to the pool as a reward for the liquidity providers.

In this dashboard, we are gonna analyze the yield generated from block rewards vs swap fees. As well, we will take a look at how the proportions have changed over time.

Results

In terms of block rewards, it seems like the trend looks like scale. Every x time, the daily rewards jump, and then, becomes constant during a long period of time. However, in terms of fees, we can see how the daily fees seems to be increasing over time. However, the progress cannot be observed so well due to there is a extremelly high value in July 15th, just in the same day when the block rewards had a suddently drop.

If we try to compare both metrics in a scatter plot to find some relationship, we cannot observe any trend because of the extreme value observed before in terms of fees. For this reason, I have plotted the same charts avoiding the extreme values.

Taking a look at the chart obtained avoiding the extreme values, we can see here now a positive relationship between block rewards and fees. Then, we can determine that when the amount of fees is higher, the block rewards generated increases as well.

Conclusion

In this dashboard, we have studied the Thorchain pool fees and block rewards metrics over time. As well, the relationship between both have been analyzed and it has been determined that there is a postivie strong correlation between both metrics, concluding that when the fees of the LPs is higher, the block rewards generated increases as well.