Liquidity Provisioning Strategies Data Challenge
Dive into the world of decentralized exchanges (DEXs) in our latest Ocean Protocol data challenge.
Are you ready for an exciting Ocean Protocol data challenge? Dive into the world of decentralized exchanges (DEXs) and analyze the impact of different liquidity provision strategies using historical data.
From automated market makers (AMMs) to order book-based exchanges and liquidity pools, explain how liquidity provisioning strategies and incentive structures affect the performance of DEXs over time. Collect and clean data from various DEXs, analyze trading volume, price volatility, liquidity depth, and other key metrics to support your analysis and conclude which liquidity provision strategies work best.
Some example questions that could be analyzed for this data challenge include the following:
- For the top 10–20 ERC20 tokens trading by market cap, what are the liquidity strategies used by the best places to trade that have the lowest fees and slippage?
- How do the prices of governance tokens for DeFi protocols correlate to fundamental business metrics such as protocol fees, TVL, # of unique participants, etc.
- How has the transition from Uniswap V2 to V3 affected the profitability for individual LPs/affected total liquidity?
These are a few examples, and participants are free to choose their own liquidity strategy analysis for this challenge.
You can also investigate the relationship between liquidity provision and other DeFi-specific phenomena, like flash loans and yield farming strategies.
There’s an ocean of data out there to analyze!
Your analysis is invaluable to DeFi developers and market participants looking to optimize their liquidity provision strategies and improve the efficiency of DEXs. So get ready to crunch some data and discover the secrets of successful liquidity provision in the exciting world of decentralized exchanges!
For the scoring breakdown and competition details, check out the challenge page below.
Data challenge page: http://bit.ly/3ZbGuDg
Deadline: March 16, 2023 at 11:59 PM UTC
Prize Pool: $6,000 USD (payable in $OCEAN)
1st place: $3,000
2nd place: $2,000
3rd place: $1,000
Have questions? Here’s the Ocean Protocol #dev-support channel on Discord. For updates from the Ocean team, follow us on Twitter!
