Whale dependency index
In this dashboard, we will take a look at the current liquidity provided on Loop DEX pools. We will divided the work in several parts:
- Global liquidity provided on each pool
- Liquidity provided by each wallet on each different Loop DEX pool
- Loop DEX pool share per wallet
- Analysis of whale dependency index
THen, we will start with showing the total liquidity provided and removed on each Loop DEX pool, as well as its current liquidity provided. I will show you as well a bar plot of liquidity added vs removed and the area distribution chart of the current liqudity in each pool to see which are the most important pools in terms of liquidity.
As we can see, there is a amjor pool which is the bluna-ust pool with more than 30M, it seems like there is an error on the data so we will need to take a look on it. But it is ok for the analysis because of the rest of the pools are in similar terms like Loop DEX page. As well, we are on Terra ecosystem and seems that bluna-ust could be one of the most attractive pools. We can see as well that the second important pool is the aust-ust, which indicates that users are more comfortable with stablecoins. Other important pools are halo-ust and loop.ust among others.
Now, in the table below you can see which contribution have made each user in each Loop DEX pools. I have put the total provided and removed volume and their current provided liqudiity.
Now, we will see the previous results in terms of pol share in each pool in order to see if there is some whale dependency or not. Then, I have determined the whale dependency as the percentage of pool-share provided by the top 10 liqidity providers of each pool.
The results are there, however it is not easy to search in the table. For this reason, I selected some of the most important pools and I plotted a donut distribution chart to see the pool share comparison of top 10 liquidity providers against the rest of the loopers. The pools analyzed are:
- LOOP-UST
- LOOP-LOOPR
- ANC-aUST
- aUST-UST
- HALO-UST
As a conclusion of these concrete pools, we can say the following:
- HALO-UST pool has a lot of whale dependency because of there is a big whale providing more than 79% of the total pool share!
- LOOP-LOOPR and ANC-aUST should have a high whale dependency index because of the top 10 liquidity providers have more than 50 % of the pool share.
- For the other pools there is no a whale dependency because the top 10 liquidity providers have less than 35% of the total pool-share.
Finally, to get a global whale dependecy index (WDI) for all the pools, I select the following formula to obtain a symbolic value to be able to determine if there is a whale dependency on the pools or not: sum(top10 pool share)/total pool share. Then, the result should be a number between 0 and 1. I have put as well a categorical result to provide if a pool has a high whale dependency index, moderate or low. The categorical correlations are:
- WDI <0.3: Low
- WDI >=0.3 and <=0.6: Moderate
- WDI >0.6 and <0.8: High
- WDI >=0.8: Too high
As we can see, there are only one pool with a low whale depedency index. The major of the pools have a high or too high whale dependency index. It could be because of Loop needs to attract more investors and liquidity providers to the pool in order to grow the TVLs in order to be able to reduce the whale dependency index of the pools.