#RaiseTheCaps: What’s Happening On THORChain Liquidity Pools?

If you’ve spent time on CT, you’ve seen #RaiseTheCaps, the plea from THORChain liquidity providers to increase the size of liquidity pools on the platform.

Given the rewards provided to THORChain LPs, including swap fees and system rewards, it’s probably no surprise that folks are eager to provide liquidity on the platform. 

Today, @mintingfarms gives us a closer look at liquidity pools on THORChain, including the size of liquidity pools and the average weekly APY for LPs.

THORChain pools reach new depths in November

The first submission from @mintingfarms dives deep into THORChain pools, exploring the TVL and swap volume of various pools on the platform. 

As we can see in the graph above, TVL has reached new heights in recent weeks, with TVL for the most popular pools peaking at more than $80 million. The BTC-BTC pool led the way, even after falling to $68.9 million at the time of analysts. That’s more than $20 million more in TVL than the next largest pool — ETH-X_RUNE at $45.9 million.

Swap volumes, meanwhile have been more variable, with a notable gap arising between late-July and mid-September due in part to the downtime for the protocol. In November, however, as @mintingfarms points out, “volume spiked up to $50 million and reached a new high.”

Weekly APY spikes in the summer, then stablizes

But what of the rewards coming to liquidity providers? How have they fared through these ups and downs in pool and swap volume?

As @mintingfarms notes, the rate of returns for LPs remained rather consistent from July to September outside of an outlier on July 12. This is the case despite the absence of swaps — and thusly, swap rewards — during the network’s downtime. 

More recently, APY has been on a gradual increase, peaking at nearly 75% before settling between 60-70% at the time of analysis.

@mintingfarms also provided a look at the weekly annualized APY of THORChain pools. “Given that the APY calculation compounds yields daily, pools with high APR (note 18th Oct) has exceptionally high APY, of upward of 100k%,” as can be seen in the data below. “Most of the pools yielded between 10-50% APY on the week of analysis.”

Do more with THORChain data 🔍

Thanks to everyone who submitted such great data dashboards. Check out our open THORChain bounties here.

Want to get more involved with the Flipside community and see your own submissions on our blog? Join us on Discord to get started.

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