Welcome back to our weekly LP wrap-up of the week! Price fluctuations and whales buying and selling have generated significant fees for LPs this week. This week we look at hook development, the premier DEX on Solana, and an impersonator launching a fake Poolfish token.
WETH/USDC
This asset pair remains one of the most popular, generating ~$1,465,000 fees for LPs this week. USDC is of the most widely used consumer cryptocurrency and ETH is the bedrock of all modern day crypto centric applications, even CEXs. After all the volume for this pair in the past seven days was > $2.3 billion 🤯. Want more analysis on this pair's most popular tier? Check out here.
Below is a recently created position with 264% APY with $66,270 provided in liquidity in the WETH/USDC 0.05 fee tier pool.
WETH/LINK
LINK by Chainlink is also a volatile coin. Traders and LPs love LINK, in-fact WETH/LINK had the largest share of this week's trading volume (~13 percent!) in the 0.3% fee tier. LINK is used to pay node operators who run Chainlink nodes which explains why it's so popular.
Chainlink, a widely-used oracle network that streams data into smart contracts and recently partnered with ChatGPT. Since Chainlink is so popular as software it's own token LINK is corelated with it's success and adoption.
Someone who likes to watch the world burn impersonated Poolfish and launched a fake POOLFISH token on this contract address: 0x7eaefe097F90d8924037E02fc6Ec817F935ebE5c
THIS IS NOT OUR TOKEN-THIS IS NOT AN OFFICIAL TOKEN BY POOLFISH
This is a reminder that the DeFi/crypto world is filled with scammers and sharks. We yearn for a day where such attacks on reputation are so ineffective that scammers don't even stand to gain from impersonating a known brand/figure. Until then, we must swim with caution.
Looking to break out from EVM based chains for liquidity providing? One of the most interesting projects out there is Orca, operating on the Solana network; an AMM (just like Uniswap) that has been rocking the past few days.
As of now, Orca is the eighth-largest DEX by 24 hour trading volume
We all saw Solana's $SOL this month making strides and it is up > 140% compared to last month. Consequently the DEXs on Solana also are garnering more attention reaching $3.6 billion💥of volume (past 7 days) as folks continue to trade on the Solana chain itself. This is where Orca's Whirlpool protocol, supporting much of this growth, comes into play. Orca's accounts for 35% (~$1.5 billion) of the total DEXs volume for Solana.
Orca's protocol, Whirlpool, has 1,320 pools, with SOL-USDC being the most popular. SOL-USDC pair has $5.2m in TVL and 4600 LPs.
Whirlpool has reached record numbers of TVL locked this week which eclipsing even the 2021 bull run. The massive drop in Nov 2022 was due to the collapse of FTX .
Orca works similarly to Uniswap V3, and it also features concentrated liquidity. Moreover, people laude the platform for being easy to use. You deposit concentrated (or full-range) liquidity and receive an LP token.
Orca is a good alternative for folks looking to provide liquidity on chains other than the one's based on Ethereum. Solana has a vibrant ecosystem and as adoption grows, there is sufficient activity expected which means more swaps/trades -> more LP fees. While it does not have as much of a robust community as Uniswap, Orca and Solana are rising in popularity in a multi-chain Dapp world.
Orca has recently introduced its latest product, the "Liquidity Terminal," which offers liquidity providers (LPs) access to comprehensive historical price and yield data. This empowers LPs to make well-informed decisions by leveraging insights from past data. You can sign up for the beta access here
You can check out more about Solana DEXs here
AND
You can view statics about Whirlpool and all statistics about pools on it here
Each week, we explore new developments about the upcoming Uniswap V4 hooks. @saucepoint on twitter this week created a suite of tools to help developers simulate and test their hooks more intuitively, ensuring an excellent user experience right off the bat.
@RuneKek suggested a new way to make UniswapV2 LPs more profitable this week without any added financial risk and started a discussion around the topic of renting out the rights to a pool. Hayden Adams suggested this could be a V4 hook, requiring LPs to lock up liquidity in exchange for auctioning it off to traders.
Furthermore someone has already created a V4 hook for this concept. The idea was very well received
This week we also got a shout out from Uniswap Foundation(again!). Head on over to poolfish.xyz to start playing with our calculators. You'll get a feel for how pool analytics looks like and start familiarizing yourself with different metrics.
Poolfish Features
Impermanent Loss Calculator: Know the risks tied to your liquidity position.
Yield Projections: Forecasts for your potential earnings.
Pool Analytics: Deep-dive into metrics to maximize your returns.
OVR/ETH in the exotic pairs category for the ones feeling adventurous.
FET/ETH & YFI/ETH for the balanced swimmers.
ETH/USDT in the 5bps category for the cautious paddlers.
This week in the crypto world has been a whirlwind of activity. With the rollercoaster of price movements due to trader activity and rising adoption of consumer apps, the landscape for liquidity providers (LPs) is more dynamic than ever. At Poolfish, we're committed to keeping you ahead of the curve with these fast-paced developments. Don't miss out — join us next week for the latest insights and updates in the LP arena!
The Poolfish
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The latest Poolfish Newsletter for LPs is out! What was covered: - LP fees up 50%! - A look at Solana's Dex - Hot pools of the week https://paragraph.xyz/@poolfish/dollar9million-lp-fees-poolfish-solana-dex-hooks