Introduction and Methodology

In this dashboard, we'll look at the retention of liquidity pool providers for Thorchain. For each month, we'll look at how the number of new liquidity providers and see how many of them are still actively providing. This was done in the following way:

1. First month of providing: First, we find the month each liquidity provider first started providing. This was done using the thorchain.liquidity_actions where we filter for lp_action = 'add_liquidity' and retrieve the start month and the user address. Then we calculate how many new providers there were per month.
2. Find active providers: Next, we need to find the users that are currently providing. This was found again using the thorchain.liquidity_actions table where we use total_rune_provided - total_rune_withdrawn to determine the current liquidity balance of each users. If the liquidity balance is positive, the user is still actively providing since less was withdrawn than provided.
3. Find start month for active providers: Then, we need to find the month current active providers started providing. This was done by joining the table from step 1 with the table from step 2 by address. This results in a table where we have the starting month for each active liquidity provider.
4. Calculate retention: Finally, we count the number of active users by starting month and use the number of new providers for each month to calculate the percentage of providers that are still providing per month.

Results

Provided at least $10k

Next, we'll look if the number are different if we only look at users that provided at least $10K in liquidity.

Key findings

• April 2022, the month with the highest number of new providers, saw the lowest retention rate at just 6.7%
• The average retention rate across all months was 36%
• Above $10k, November 2021 saw the highest number of new providers along with a high retention rate at over 54%
• For liquidity providers of at least $10K the retention rate was much higher at 46.8%

In the graph above, we can the number of new liquidity providers for each month, the number of liquidity providers that are still active for that month, and the retention percentage for each month. What stands out is that April 2022 saw a large number of new liquidity providers but a very low number of providers that are still active. This results in a very low retention rate for April at just 6.7%.

If we take the average retention rate across all months, we get an average retention rate of 36%.

We can see that April 2022 did not see a dramatic increase in new liquidity providers above $10k. Above $10k, we can see that November 2021 saw the highest number of new liquidity providers.

For liquidity providers that provide at least $10k, the average retention rate is much higher at 46.8%.