Pool Analytics and Details
The Pools tab provides users with a detailed overview of all the liquidity pools associated with the selected token. Each row represents a pool where the token is paired with another asset, enabling users to assess pool-specific data, evaluate potential returns, and gauge liquidity conditions. The key metrics displayed in this section offer insight into the pool's performance and market dynamics.
Data Points Explained
Pool (Token Pair)
This column shows the token pair within the pool. Liquidity pools are made up of two tokens, and this pairing is displayed along with the associated fee tier.
TVL (Total Value Locked)
TVL represents the total amount of liquidity - in dollars, locked within the pool. It is a measure of the combined value of both tokens in the liquidity pool and provides an indication of the pool’s depth and ability to handle large trades with minimal slippage.
Larger TVL typically signifies more liquidity, leading to more stable pricing for trades within that pool.
APR (Annual Percentage Rate)
The APR gives users an estimate of the annualized return for liquidity providers in the pool, expressed as a percentage. The APR is calculated based on trading fees earned by liquidity providers and may vary depending on the pool's trading volume and liquidity.
High APR values indicate potentially higher returns, though they also come with risks such as impermanent loss.
1D Vol (1-Day Volume)
This column displays the total trading volume in the pool over the last 24 hours.
High trading volume indicates active trading within the pool, which can lead to higher fee revenues for liquidity providers.
7D Vol (7-Day Volume)
Similar to the 1D Vol metric, the 7D Vol provides the cumulative trading volume over the past 7 days.
This metric helps liquidity providers evaluate the sustained activity of the pool over a longer period and can be more indicative of the pool’s average activity compared to short-term spikes in trading.
1D Vol/TVL
This metric is the ratio of the 1-Day Volume to the Total Value Locked in the pool. It provides insight into the pool's efficiency in generating trading fees relative to its liquidity.
A higher ratio suggests that the pool generates substantial trading activity relative to its size, which can be an attractive metric for liquidity providers looking for active pools.
Interpreting the Data
Each of these data points serves as an important indicator for liquidity providers and traders when evaluating the attractiveness of a pool. For example, a pool with high TVL but low 1D Vol/TVL might indicate a lot of locked capital but less trading activity, potentially leading to lower returns from trading fees. On the other hand, pools with high APR and 1D Vol tend to be more active, offering higher returns but potentially exposing liquidity providers to impermanent loss if the prices of the tokens diverge significantly.
The user can interact with this tab to explore the pools related to the selected token, understand the dynamics of liquidity provision, and make informed decisions about entering or exiting specific pools based on their goals—whether it's earning trading fees, contributing to market stability, or simply trading the token.