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Uniswap Report

Covering September 24 - 30, 2019

PROTOCOL STATS

THIS WEEK

LAST WEEK

W/W

Liq. Reserves, ETH 53,987 46,641 +16%
Trading Volume, ETH 41,936 29,230 +43%
Traders 1,533 1,745 -12%
Trades 8,149 8,011 +2%
Liquidity Providers 2,007 1,965 +2%
Dear reader,

I am happy to finally share Pools.fyi, which went live recently. The tool helps Uniswap Liquidity Providers research historic returns and see a complete trading history for each pool. I have been using the development version of this tool each week to help write this report. Please try it out and tell me about your experience.

Kind regards,
Caleb


---

Liquidity deepens. Uniswap liquidity is up +7,346 ETH w/w. Pools benefiting from this increase include sETH (4,151 ETH), USDC (1,169 ETH) and DAI (912 ETH).

Bancor airdropping Pool ownership tokens in December. The Defiant published an interview with Bancor's co-founder. The bottom line is that there will be more competition for liquidity providers and more innovation in Peer-to-Contract exchanges. The Ethereum community response has been tepid, echoing a negative sentiment about the Bancor ICO and utility of the BNT token.

What makes _ETH pools attractive? Pools like sETH and WETH attract deep liquidity despite collecting relatively meagre trading fees. One reason is that LPs get full exposure to ETH. The other reason has to do with minimizing the impact of impermanent loss (assuming the peg remains stable).

Compare WETH and DAI returns. WETH (top image) has low returns but little-to-no impermanent loss. DAI (bottom image) has high returns but is susceptible to impermanent loss.

WETH Pool annualized returns, 30-day SMA (Source: Pools.fyi)

DAI Pool annualized returns, 30-day SMA (Source: Pools.fyi)

Entry/exit points determine impermanent loss. DAI Liquidity Providers are exposed to impermanent loss but only realise it when exiting a pool. The charts above calculate impermanent loss based on entering each pool exactly 30 days prior. In practice, each LP will be exposed to and realise impermanent loss with different entry/exit points. These entry/exit points matter.

Visualizing bonding curves. Markus tweeted a video visualizing bonding curves using cadCAD. Great!

Ignoring bonding curves. Hackathon project UniswapEx recently launched. The third-party Uniswap interface provides the familiar UX of limit orders.

Today's edition by
 
Caleb Sheridan
Co-founder, Blocklytics
Twitter
 

Trends

Over the last eight weeks

 

Top Exchanges

Ranked by volume

 

EXCHANGE

VOL. (ETH) ▼

TRADERS

LIQ. (ETH)

--- DAI
View on Pools.fyi ↗︎
21,081 768 7,217
--- MKR
View on Pools.fyi ↗︎
5,722 235 11,423
▲ 4 USDC
View on Pools.fyi ↗︎
3,345 186 2,584
▼ 1 sETH
View on Pools.fyi ↗︎
2,691 55 11,694
▲ 1 WBTC
View on Pools.fyi ↗︎
1,859 110 2,473
▼ 1 SNX
View on Pools.fyi ↗︎
1,395 101 843
▼ 3 BAT
View on Pools.fyi ↗︎
1,280 75 2,037
▲ 2 cDAI
View on Pools.fyi ↗︎
854 71 621
▲ 2 WETH
View on Pools.fyi ↗︎
531 47 5,431
▼ 1 ZRX
View on Pools.fyi ↗︎
451 56 288
▲ 2 LINK
View on Pools.fyi ↗︎
393 52 269
▲ 2 REP
View on Pools.fyi ↗︎
337 48 466
▲ 5 XCHF
View on Pools.fyi ↗︎
172 12 661
▲ 7 FUN
View on Pools.fyi ↗︎
149 15 239
--- TKN
View on Pools.fyi ↗︎
148 17 1,278
Uniswap Factory: 0xc0a47dfe034b400b47bdad5fecda2621de6c4d95