DEX Pool Concentration

Overview

This indicator quantifies the percentage of liquidity provided by the largest addresses (whales) into USDe liquidity pools. By assessing the proportion of liquidity stemming from these major holders, it offers essential insights into the dependence of a pool on whales to provide liquidity depth.

The indicator calculates the total amount of liquidity contributed by the identified whale addresses in USDe pools. It then divides this amount by the total liquidity in the pools to derive the percentage of liquidity provided by these large addresses.

How can I use it?

Knowing the extent to which a liquidity pool relies on whales can help market participants, including traders, investors, and liquidity providers, understand the potential risks and stability of the pool. High reliance on whales might signal vulnerability to sudden liquidity withdrawals or changes in the behavior of large holders, possibly leading to increased slippage and price volatility.