Levana Stats Page Update for LPs (Part 1)
Intro
Levana Perps launched a public beta on Osmosis mainnet roughly 2 weeks ago.
Since then we have received feedback from dozens of early adopters regarding the metrics they would like to see displayed to help more effectively use the platform.
In this post, we will walk you through the updated Stats page for the ATOM market on Levana Perps.
You can find the stats page for the ATOM market here: https://trade.levana.finance/stats/ATOM_USD
Stats Page Updates
We currently have 11 snapshot stats, which we will be expanding over the next few weeks.
Trade Volume
We break down trade volume by total trades, and a rolling trading volume by 24 hours.
Total Fees collected
Fees are currently set at a minimum to prevent spam attacks, and will be optimized as the platform attracts more traders. Fees are paid out to long and short traders, and liquidity providers, with a 30% protocol tax on payouts to LPs.
Total Users
This tracks how many traders have interacted with the ATOM market
Open Interest
This is broken down by long and short positions, in these screenshots you can see that the market is bearish.
Funding Rates
The long and short funding rate is probably the most valuable addition to the stats page. Now you can see the APR that is either being paid, or being received by the traders on the platform.
This information is critical to performing an effective Cash and Carry strategy, which we outline in a blog post here https://blog.levana.finance/cash-and-carry-trading-strategies-on-levana-perpetual-swaps-atom-market-6cff5783a07b.
In the stats below you can see that because the market is bearish, traders are being paid 38.66% APR to open a long position, and the short traders are paying out 28.9% APR to maintain a short position.
Trader’s PnL
We started tracking the general success and failures of traders on the platform. Because Levana is zero sum, trader profits must come from counter trades (longs vs shorts) or from LPs. If more traders are actualizing losses than gains, that means LPs are in general profiting from these losses, in addition to the APR they are being paid in borrow fees.
While the numbers are small due to only a couple hundred traders, We see that traders have lost a bit more money leverage trading than they have gained, which means LPs have profited in addition to their APRs.
Liquidity and Utilization Ratios and LP APRs
Levana does not use stablecoins. Liquidity is provided in the platform in the same asset as each market. LPs deposit ATOM to collateralize the ATOM market, or wBTC to collateralize the wBTC market.
The current LP caps are set to the equivalent of $150K USD. Because LPs are exposed to the price fluctuation of the asset they deposit, we have seen market movements create wide swings from $30K to $150K in deposited liquidity into the liquid LP pools, currently sitting around $70K of ATOM token.
The more liquidity, the larger positions that can be opened, and the higher the APR can be realized by LPs. Fees adjust based on the utilization ratio of the market pool work similar to a PID controller, with fees increasing as utilization increases.
Currently APRs are calculated on a rolling 7 day basis, but the next release of Levana’s Osmosis mainnet beta will increase this sensitivity.
While bootstrapping a liquidity pool is challenging, we are excited to experiment with fee structures and PID sensitivities to create a compelling feedback loop that encourages a healthy and growing liquidity pool for each market.
Levana markets have two types of pools, LP and xLP. LP has no unbonding period, and xLP has a 45 day unbonding period.
You can learn more about the impact of utilization and bonding on LPs here https://docs.levana.finance/position-size-locked-collateral
Summary
The new improved stats page marks a significant improvement in providing LPs and traders with information to make an informed decision on how best to interact with markets on the Levana Perps protocol.
In the future there will be line charts added, and users will be able to filter stats by network and market.
We will continue to improve the platform based on feedback from users and market data and will release a part 2 of this update in the coming weeks.
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