Try Quests to earn cryptoUntitled Board
About question;
As recently as January 2023, Pool 872 (USDC.grv/USDC) had ~$10,000 in TVL; however, today liquidity is less than $500. What happened? Where did these LPers go? Was the precipitous drop in LP activity driven by the release/incentivization of 3-Pools?
To answer the question about the sudden drop in liquidity in Pool 872, it is important to consider several factors, such as market conditions, investor behavior, and the release or promotion of other pools.
Definition:
Liquidity Provider (LP): An individual or entity that provides capital to a market to increase its liquidity.
TVL (Total Value Locked): A metric that measures the total value of assets locked in a DeFi platform. It indicates the popularity and size of a DeFi platform.
3-Pools refer to a type of liquidity pool on the Osmosis protocol that pools together three different stablecoins, BUSD, USDT, and USDC. The idea behind 3-Pools is to provide a single pool for users to earn rewards for providing liquidity for three stablecoins, instead of having to provide liquidity for each individual stablecoin in separate pools.
Objective;
The dashboard is intended to compare two pools (872 and 877) and investigate what users have done with their assets after leaving the pool. The aim of this analysis is to uncover insights and information that can help understand why users might have chosen to leave the pool and where they have taken their assets.
To perform this analysis, a range of data and information sources might be used, such as user behavior patterns, asset movements, or other relevant data points. The goal is to gain a deeper understanding of the factors that led to the change in user behavior and asset movements.
It is important to note that the information and analysis provided in this dashboard may not be complete or entirely accurate, as it will depend on the quality and availability of the data used. Nevertheless, the dashboard can provide valuable insights and information that can be used to make informed decisions.
Method;
The osmosis.core.fact_liquidity_provider_actions table tracks liquidity provider activity in two pools (872,877)and provides insights into their investment decisions. It is used to compare the behavior of liquidity providers on a weekly basis.
The table tracks users' actions after they exit the pool, including information on swaps and transfers, with a focus on a weekly time frame.
osmosis.core.fact_liquidity_provider_actions, osmosis.core.fact_swaps, osmosis.core.fact_transfers
Lifespan;
In conclusion, the data indicates that the 3-Pool was more successful in attracting and retaining LPs compared to Pool 872. The 3-Pool was able to maintain a stable TVL despite having a relatively short lifespan and experiencing only a slight decrease in liquidity. On the other hand, Pool 872 had a rapid decrease in liquidity despite reaching its maximum TVL and having a longer lifespan. This suggests that the DeFi community has been more receptive to the 3-Pool and that it may have a brighter future ahead. The factors contributing to the success of the 3-Pool and the challenges faced by Pool 872 warrant further investigation.
Maximum TVL:
The graph showing the total value locked in both pools reveals that the 3-Pool reached its maximum TVL on January 16th, while Pool 872 reached its maximum TVL on January 15th. Despite reaching its maximum TVL, Pool 872 had a relatively low amount of liquidity compared to other pools, while the 3-Pool was able to maintain a more stable TVL.
Currently, the 3-Pool has a TVL of 70K, while the TVL of Pool 872 is not specified. Despite its modest TVL, the 3-Pool has maintained a stable TVL despite being active for only a short period of time.
Decrease in Liquidity:
The graph shows that the liquidity in Pool 872 decreased by over 90% in the next 2 weeks, while the 3-Pool had only a slight decrease in liquidity since reaching its maximum TVL on January 16th. This significant drop in liquidity for Pool 872 suggests that there were significant challenges faced by the pool, which could have been caused by a variety of factors such as a lack of interest from LPs, market volatility, or changes in the DeFi landscape.
Both pools had a relatively short lifespan, with the 3-Pool being active for about a month and Pool 872 being active for about a month and a half. Despite the short lifespan, the 3-Pool was successful in attracting and retaining a moderate number of LPs and maintaining a stable TVL, while Pool 872 struggled to attract LPs and had a rapid decrease in liquidity.
Liquidity Provider Trend:
The graph showing the number of liquidity providers for both the 3-Pool and Pool 872 indicates that the 3-Pool had a higher number of LPs per day, with a range of 1 to 6 LPs, compared to Pool 872 which had between 1 and 4 LPs per day. This suggests that the 3-Pool was more successful in attracting LPs and was able to maintain a more stable TVL compared to Pool 872.
Observing;
The distribution of users based on the amount they have exited from the pool is analyzed to understand the spread of user behavior in terms of their investments. This information helps in identifying trends and patterns that are critical for optimizing the pool's performance.
The data suggests that on January 26, 2023, a significant number of users withdrew substantial amounts from the pool. These amounts were the highest since December 15, indicating a potentially significant event or change in the DeFi landscape.
Observing;
As it is known, there was an increase in withdrawals from January 26th to 28th, which resulted in a corresponding Increase in the number of swaps during the same period. This can be seen as an indication of liquidity provision by the 872 pool users who withdrew their assets. However, it is not explicitly clear what most of these users did with their Assets after leaving the pool. Based on the total amount, it can be inferred that a significant portion of these users Swapped their assets for other cryptocurrencies or assets, but it is not possible to determine the exact actions taken by Each individual user.
CONCLUSION;
Let me summarize the key findings and conclusions from the data analysis of the 3-Pool and Pool 872.
Once upon a time, there were two pools in the DeFi world, the 3-Pool and Pool 872. The 3-Pool reached its maximum Total Value Locked (TVL) on January 16th and was able to maintain a stable TVL of 70K, Despite being active for only a short period of time. On the other hand, Pool 872 reached its maximum TVL on January 15th, but had a relatively low amount of liquidity compared to other pools and faced Significant challenges, leading to a rapid decrease in liquidity by over 90% in the following two weeks.
The 3-Pool was more successful in attracting Liquidity Providers (LPs) with a range of 1 to 6 LPs per day, while Pool 872 struggled with only 1 to 4 LPs per day. The analysis of the distribution of users based on The amount they have exited from the pool revealed that on January 26, 2023, a significant number of users withdrew substantial amounts from the pool. This resulted in a corresponding increase in the number Of swaps during the same period, indicating liquidity provision by the users who withdrew their assets.
However, it is not explicitly clear what most of these users did with their assets after leaving the pool. Based on the total amount, it can be inferred that a significant portion of these users swapped their assets For other cryptocurrencies or assets, but it is not possible to determine the exact actions taken by each individual user.
