LP Size Distribution
This dashboard here looks into the Liquidity Pools of the Thorchain ecosystem and see the volume of the Liquidity that is held by the pools.
Introduction
THORChain employs continuous liquidity pools instead of limit-order books (CLP). The characteristics are as follows: All assets in its system have "always-on" liquidity. Allows consumers to exchange assets without depending on centralized third parties at transparent, fair rates. Serves as a reliable source of on-chain pricing feeds for internal and external use. Democratizes the possibility of arbitrage. Allows for the convergence of pool pricing to genuine market values. Fee money is collected in a fair manner for liquidity providers. Responds to changing liquidity demands.
Methodology
Here only the Net liquidity available in the pool is calculated by reducing the volume of removed liquidity from the added liquidity in each of the Thorchain pools and the data are aggregated for each pool from the Liquidity actions.
The table of the Liquidity pools that shows the volume held by them with the net content of the reducted volume neglected is shown.
The chart of the Volume size and the distribution of the amount in USD is displayed here.It is seen that the highest volume of the Liquidity is held by BTC.BTC pool with 80.37M worth in USD. There are also negative values seen in the graph,This shows that the Removed liquidity is higher than the added ones which resulted in surplus quantity of the Liquidity removed.
The shares in the distribution of the total available liquidity with the active pools are such that BTC.BTC pool holds 28% of the total liquidity and the rest many shares the rest of the liquidity.
Conclusion
Because THORChain is decentralized and community-owned, all network earnings are distributed directly to node operators and liquidity providers. Traders pay slip-base fees, which are awarded to THORChain network participants. Early ChaosNet participants are finding excellent results. LP sales returns Returns are 10 times greater than UniSwap. Due to slip-based fees and network rewards, there is a low danger of irreparable loss.