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 or pool 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 demand. On the other hand, high withdrawals relative to deposits could signal weakening demand for the protocol.

Overall, knowing the liquidity flows of a protocol can provide valuable information about the health of the specific pools and of the protocol.