Introduction

In this dashboard, we'll look at the relationship between swap volume and LP rewards. Swap volume is defined as the total amount of money (in USD) that was transferred in a given timeframe. LP rewards are defined as the rewards liquidity providers receive for providing liquidity. The LP rewards are usually comprised of swap fees and incentives. Because most LP rewards come from swap fees, we can expect LP rewards to be high when swap volume is high.

Methodology

1. In order to get the swap volume data, the table thorchain.daily_pool_stats was used. This table contains the column swap_volume_rune_usd, which contains the total swap volume in USD for each pool per day. We then sum over all pool per week to get the total swap volume on Thorchain per week.
2. To get the LP rewards data, the table thorchain.daily_earnings was used. This table contains a column called earnings_to_pools_usd. This columns represents the total daily LP reward per pool per day in USD. We again summed over all pools per week to get the total weekly LP rewards on Thorchain.

Result

In the chart above, we can see the weekly swap volume in the bars in green and the weekly LP rewards as a line in black.

As can be expected, there seems to be a clear correlation between swap volume and LP rewards. LP rewards come largely from swap fees. This means that if the swap volume increases more revenue is generated from the swaps.