In our OECD working paper with co-authors Anastasia Melachrinos and Iota -Kaousar- Nassr we focus on Decentralised Exchanges (DEX) highlighting that a healthy, diversified trading activity would is characterized by both a high trading volume and a sufficient number of trades from a diverse user base. On the contrary, liquidity pools with too low trade count, as pointed in the DEXs examined in this paper, may point to increased concentration and possible centralised elements of activity despite a high volume of trading activity overall. Read more: https://lnkd.in/eNjhpznX Disclaimer: The opinions expressed and arguments employed are those of the authors and not of their affiliated organizations.
🔍 On average, 98-100% of a pool's liquidity is held by a single liquidity provider. In our new OECD-OCDE working paper, together with Iota - Kaousar Nassr and Dr. Eleftheria Kostika, we examine the concentration of liquidity provision in a sample of DEXs and its potential implications for market functioning. Read more: https://lnkd.in/eNjhpznX Disclaimer: The opinions expressed and arguments employed are those of the authors and not of their affiliated organizations. All data used for this working paper was sourced from Kaiko.
