Net Liquidity Flows
Overview
The Net Liquidity Flows metric shows the inflows, outflows and supply netflows (deposits minus withdrawals) of liquidity into the protocol or a specific pool.
How can I use it?
Knowing the liquidity flows that come into a protocol can be useful in making decisions.
This can provide insight into the overall health and stability of the protocol. In the case there is a steady flow of liquidity coming into the protocol, it could signal that the protocol is thriving and has a strong borrowing demand. On the other hand, high repayments relative to borrows could signal weakening demand for debt in the protocol.
Overall, knowing the liquidity flows of a protocol can provide valuable information about the health of the protocol.
Last updated