The Best Liquidity Pool Tracking Software (Metrix Finance)

Summary

This video introduces Metric Finance, a powerful liquidity pool tracking tool. The presenter, who is the founder of Metric Finance, explains how it offers unmatched data accuracy for analyzing liquidity positions. The software is mostly free, with only a few paid features, and supports various exchanges like Uniswap V3 and others. By showcasing a real wallet example, the video dives into profit analysis, liquidity, and strategies for maximizing earnings in concentrated liquidity pools. Viewers are encouraged to explore the software and vote on desired features for future updates.

Takeaways

• 💻 Metric Finance is a highly accurate and comprehensive liquidity pool tracking software.
• 🚀 The software is primarily free, with a few pro features available, offering significant analysis capabilities.
• 📈 The example wallet being analyzed has $430,000 in liquidity pools, with a notable Ethereum to USDC position on Uniswap.
• 💡 The user profiled in the example is generating a 36% APR and has a total profit of around $115,000 over the last few months.
• 📊 Metric Finance displays a range of data, including deposits, withdrawals, earnings, and current liquidity across positions.
• 🏆 The Divergence Loss feature is unique to Metric Finance, showcasing how a position performs against different metrics like holding USDC or Ethereum.
• 📉 The example demonstrates how fees can offset divergence loss, with the user earning $67,000 in fees, leading to a net profit despite market depreciation.
• 🔄 The user in the example frequently compounds about 70% of their earnings while taking the remaining 30% as profit.
• 🌍 Metric Finance supports several platforms (Uniswap V3, PancakeSwap, SushiSwap) and most networks, with more integrations on the way (Avalanche and Binance Smart Chain).
• 📊 Users can vote on future features like historical position data, position grouping, or tracking for other platforms like Solana.

Q & A

What is Metric Finance, and how is it used?

Metric Finance is a tracking software that provides detailed data on liquidity pools, making it crucial for analyzing positions and profits in DeFi investments. It tracks liquidity, earnings, deposits, withdrawals, and performance metrics of different assets.

Who is the founder of Metric Finance, and did they develop the software?

The founder of Metric Finance is the person speaking in the video. Although they played a significant role in building the software, they are not a developer.

What kind of data does Metric Finance display for liquidity pools?

Metric Finance displays liquidity across open, closed, and all positions. It also shows deposits, withdrawals, overall profits, current earnings, and pending claims.

What are some of the key metrics the software tracks?

The software tracks liquidity pool holdings, total profits, earnings, current APR, and divergence loss, along with the asset compositions and performance of different strategies.

What does the speaker mean by 'divergence loss,' and how does Metric Finance help with tracking it?

Divergence loss refers to the loss incurred from changes in asset prices when providing liquidity versus just holding assets. Metric Finance helps by comparing profits and losses based on holding assets and providing liquidity, helping users understand whether they outperform or underperform by providing liquidity.

What is the example provided in the video about the liquidity pool and its performance?

The speaker examines a random wallet with $430,000 in liquidity pools, mainly an Ethereum to USDC pool on Uniswap. The wallet has earned approximately $882,000 in closed positions and $33,000 in open positions with an APR of 36%, generating about $113,000 per month.

What is the wallet's overall strategy mentioned in the video?

The wallet's strategy seems to involve dollar-cost averaging into Ethereum as the price drops, continuously earning fees as long as the price moves within a certain range, and compounding a portion of their earnings while taking profit on the rest.

How does the asset composition of the wallet change over time, and why?

Initially, the wallet deployed 50% USDC and 50% Ethereum, but over time, the ratio shifted to 75% Ethereum and 25% USDC. This shift occurred because the USDC was used to buy more Ethereum as its price decreased, indicating the wallet's strategy of averaging into Ethereum during a downturn.

How does the software compare performance against different holding strategies?

Metric Finance compares the wallet's performance against holding assets in the market, holding 50/50 ratios, or sticking to just one asset (e.g., Ethereum or USDC). It shows how the liquidity pool strategy outperforms these metrics by considering the fees earned.

What networks and platforms does Metric Finance currently support?

Metric Finance currently supports Uniswap V3, QuickSwap, PancakeSwap, and SushiSwap. It works with all networks except Avalanche and Binance Smart Chain, which are planned for future support.