analyzing-liquidity-pools

# Analyzing Liquidity Pools ## Overview Analyze DEX liquidity pools to understand TVL, trading volume, fee income, and impermanent loss risk. Compare pools across protocols (Uniswap, Curve, Balancer) and chains to identify optimal LP opportunities. ## Prerequisites Before using this skill, ensure you have: - Python 3.8+ installed - Internet access for subgraph/API queries - Understanding of liquidity providing concepts (IL, fee tiers, TVL) ## Instructions ### Step 1: Analyze a Specific Pool Analyze pool by address: ```bash python {baseDir}/scripts/pool_analyzer.py --pool 0x88e6a0c2ddd26feeb64f039a2c41296fcb3f5640 ``` Analyze by token pair: ```bash python {baseDir}/scripts/pool_analyzer.py --pair ETH/USDC --protocol uniswap-v3 ``` ### Step 2: Calculate Impermanent Loss Calculate IL for a price change: ```bash python {baseDir}/scripts/pool_analyzer.py --il-calc --entry-price 2000 --current-price 3000 ``` Project IL for various scenarios: ```bash python {baseDir}/scripts/pool_analyzer.py --il-scenarios --token-pair ETH/USDC ``` ### Step 3: Estimate LP Returns Calculate fee APR: ```bash python {baseDir}/scripts/pool_analyzer.py --pool [address] --detailed ``` Project returns for position size: ```bash python {baseDir}/scripts/pool_analyzer.py --pool [address] --position 10000 ``` ### Step 4: Compare Pools Compare same pair across protocols: ```bash python {baseDir}/scripts/pool_analyzer.py --compare --pair ETH/USDC --protocols uniswap-v3,curve,balancer ``` Compare fee tiers: ```bash python {baseDir}/scripts/pool_analyzer.py --compare --pair ETH/USDC --fee-tiers 0.05,0.30,1.00 ``` ### Step 5: Export Results Export to JSON: ```bash python {baseDir}/scripts/pool_analyzer.py --pool [address] --format json --output pool_analysis.json ``` Export comparison to CSV: ```bash python {baseDir}/scripts/pool_analyzer.py --compare --pair ETH/USDC --format csv --output pools.csv ``` ## Output ### Pool Analysis Summary ``` ============================================================================== LIQUIDITY POOL ANALYZER 2026-01-15 15:30 UTC ============================================================================== POOL: USDC/WETH (Uniswap V3 - 0.05%) ------------------------------------------------------------------------------ Chain: Ethereum TVL: $500.5M 24h Volume: $125.3M Fee Tier: 0.05% FEE METRICS ------------------------------------------------------------------------------ 24h Fees: $62,650 Fee APR: 4.57% Volume/TVL: 0.25 TOKEN COMPOSITION ------------------------------------------------------------------------------ USDC: $252.1M (50.4%) WETH: $248.4M (49.6%) Current Price: $2,450/ETH ============================================================================== ``` ### Impermanent Loss Report ``` IMPERMANENT LOSS CALCULATION ------------------------------------------------------------------------------ Entry Price: $2,000/ETH Current Price: $3,000/ETH Price Change: +50% IL (%) -5.72% IL ($1000 LP): -$57.20 Value if HODL: $1,250.00 Value in LP: $1,192.80 BREAKEVEN ANALYSIS (0.05% fee tier) ------------------------------------------------------------------------------ Daily Fees: $0.63 (at $500M TVL, $125M vol) Days to Break: 91 days Monthly Fees: $18.90 ============================================================================== ``` ## Error Handling See `{baseDir}/references/errors.md` for comprehensive error handling. Common issues: - **Pool not found**: Verify address and chain - **Subgraph timeout**: Uses cached data with warning - **Invalid pair**: Check supported protocols ## Examples See `{baseDir}/references/examples.md` for detailed usage examples. ### Quick Examples **Analyze top ETH/USDC pool**: ```bash python pool_analyzer.py --pair ETH/USDC --protocol uniswap-v3 --chain ethereum ``` **Calculate IL for 2x price increase**: ```bash python pool_analyzer.py --il-calc --entry-price 100 --current-price 200 ``` **Compare Uniswap fee tiers**: ```bash python pool_analyzer.py --compare --pair ETH/USDC --fee-tiers 0.05,0.30,1.00 ``` **Export all ETH pairs**: ```bash python pool_analyzer.py --token ETH --format json --output eth_pools.json ``` ## Configuration Settings in `{baseDir}/config/settings.yaml`: - **Default chain**: Primary chain to query - **Cache TTL**: How long to cache subgraph data - **Subgraph endpoints**: URLs for each protocol - **Fee tier defaults**: Common fee tier options ## Resources - The Graph: https://thegraph.com/ - Subgraph queries - Uniswap Info: https://info.uniswap.org/ - Pool explorer - DeFiLlama: https://defillama.com/ - TVL data - Impermanent Loss Calculator: https://dailydefi.org/tools/impermanent-loss-calculator/