LP er Retention

This dashboard looks at the Thorchain liquidity providers and accounts for the months of adding liquidity and sees if they do the same now. Furthermore, the Whales in LP providers are also checked to see the trend.

Introduction

Assets are provided by liquidity providers to the THORChain liquidity pools. Swap fees and system awards are used to compensate them. A variety of parameters relating to the pool and the status of the network influence compensation. Liquidity providers commit capital to pools that have exposure to underlying assets, allowing them to get exposure to assets with free-floating market values.

Methodology

As a first step, the LP users who had ever provided liquidity to the Thorchain ecosystem are accounted and their first month of adding liquidity is charted from the liquidity actions section. Then the number of addresses that have added liquidity is grouped on monthly basis and checked how many are still providing the liquidity by analyzing the count for the current date. In addition to this, The users who had provided more than 10000$ as liquidity to the ecosystem are considered and a similar analysis of sustainability in liquidity providing is also analyzed.

The users who have provided liquidity in the Thorchain ecosystem is charted here on monthly basis, where the x-axis accounts for the months numbered in the order from 1 to 12 and the y counts the users.

This chart shows which month of the year counts the highest liquidity providers. It's seen that January holds the most. But the year is not accounted for here, which may indicate that the data is maybe considerably summed for both 2021 and 2022 in the initial months but February shows that the chances are less.

The chart of the people who provides liquidity even currently are listed on monthly basis.

The percentage of people who provide liquidity even now is considered here and their percentage are accounted for each month.

Now the WHALES of the ecosystem people who had added more than

10000$

as Liquidity .

The trend of the people who had added big value as liquidity into the pools of the Thorchain ecosystem is listed here and is aggregated on monthly data. The chart here shows the initial liquidity provide by the users mentioned here per month.

The chart of people who still provide liquidity among the whales of the ecosystem is bar-graphed on monthly basis.

The percentage of the monthly analysis of the users who provides more than 10000$ as Liquidity into the pools and still repeat the same of providing even in the current dates are listed here.

Conclusion

While they are paid block rewards and liquidity fees, they are dynamic and may not be enough to offset "Impermanent Losses," which occur when price shifts occur. When liquidity providers deposit, they should not expect to receive a fixed amount of their assets back; instead, they should expect to receive their fair portion of the pool's profitability and ultimate asset balances.

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