QiDao is a decentralized finance protocol that allows users to collateralize their cryptocurrency assets in order to borrow stablecoin. For example, a user with $100 worth of WETH can create a vault, deposit their WETH as collateral, and borrow miMatic (MAI), a stablecoin pegged to $1 on the QiDao protocol. This allows users to leverage their existing crypto assets to gain access to stablecoin without having to sell their underlying assets.
With data provided by Covalent, in this article we’ll explore the following Quickswap liquidity pools on Polygon for MAI:
Pair: WMATIC-MAI
Key Insights
The number of traders or unique addresses interacting with the WMATIC/MAI pool has remained relatively stable over the course of the year, with an average of 180 traders per month. However, there was a slight decrease in the number of traders in October and November. This suggests that overall engagement with the pool has remained consistent, but there was a temporary dip in activity during those months.
The number of traders for stablecoin pools has seen a general downward trend over the course of the year, from over 400 traders per month to 325 in April. This decrease may have been due to the crypto market setback, as there was a slight increase in traders in May (380 traders) likely due to higher repayments. However, after May the number of traders continued to decline, reaching 375 in November.
The number of new traders fluctuates between 40 and 60 each month. This indicates that the trading community is consistently growing and attracting new members.
Stablecoin pools have nearly twice as many transactions as the WMATIC-MAI pool.
It's important to note that the number of traders mentioned t only reflects a portion of the trading community. Many traders use the Quickswap aggregator, and some traders are actually arbitrage bots. These factors should be taken into account when considering the overall health and activity of the trading market. Additionally, it's worth considering the impact that these factors may have on the accuracy and reliability of the reported number of traders.
Number of Traders
New users over time
Trades over time
Pool share for stablecoins
Key Insights
Between April and June most of the liquidity was removed for WMATIC/MAI pool.
For stablecoin pools, July has the highest mint-to-burn ratio for all pools seen in this article.
Mint-to-burn ratio is the ratio between tokens added to the pool divided by tokens removed from the pool.
A value higher than 1 means that there were more tokens added to the pool than removed tokens.
Key Insights
Stablecoin pools have the most volume compared to WMATIC/MAI pool.
Most Heavy Dex Traders (top 1% in volume) are arbitrage bots, while the most volume is moved through the Quickswap Router.
Less volume is represented by Heavy Dex Traders on stablecoin pools.
Considering that
Most of the swap volume for MAI goes by stablecoin pools by orders of magnitude.
Stablecoin pools have less volume done by Heavy Dex Traders, which often are arbitrage bots.
Stablecoins are more liquid because it can be easily changed for FIAT money.
USDC pool is at least 60% of swap volume for stablecoins, followed by 20% each for USDT and DAI.
I would allocate the rewards in the following way:
$60,000 in rewards for USDC/MAI pool on Quickswap.
$20,000 in rewards for USDT/MAI pool on Quickswap.
$20,000 in rewards for DAI/MAI pool on Quickswap.
Info
Report written for Data Alchemist course on Covalent.
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