Grand Cayman, Cayman Islands, July 7th, 2023, Chainwire
ApeSwap strives to become a pioneer in establishing best practices for liquidity health, tokenomics, and treasury diversification. ApeSwap aims to simplify these complex concepts for the public, while also developing the first-ever credentialing system for the entire industry. The tools ApeSwap has developed are grounded in three core values: objectivity, uniformity, and user-friendliness. This begins with a laser-like focus on liquidity as the primary building block to comprehend, and expands from there.
In pursuit of those values, ApeSwap has created new opportunities for users and projects to evaluate crypto assets for themselves, and is proud to announce the launch of the Liquidity Health Dashboard.
Liquidity Health Dashboard
ApeSwap’s Liquidity Health Dashboard (or “LHD”) is a groundbreaking tool that aims to make crucial on-chain liquidity information easily accessible to everyone. Initially focused on well-known crypto projects across major EVM-compatible chains, this dashboard will expand its coverage to include more chains and tokens in the future. It is an educational tool designed to simplify the complexities of DeFi liquidity, making them easier for users to understand.
The LHD fills a crucial gap in the DeFi market by providing comprehensive risk ratings for different crypto assets using valuable on-chain data. As DeFi evolves, it’s important to learn from TradFi and incorporate fundamental analysis alongside technical analysis. This will bring a higher level of maturity and understanding to the DeFi ecosystem. By promoting transparency and knowledge-sharing, ApeSwap empowers participants in the industry and creates a more secure and informed environment for everyone involved.
ApeSwap has been working for months to aggregate and synthesize liquidity data from over 1500 crypto projects around the world. Contributors across ApeSwap have collaborated to create a metric by which users can assess the status of a project’s liquidity: the Liquidity Health Score.
The formula that dictates the Liquidity Health Score consists of three primary factors: Liquidity Strength, Liquidity Ownership, and Liquidity Concentration. Each score is measured on a scale of 0–100, with 0 representing the weakest and 100 representing the strongest.
Finally, ApeSwap utilizes a custom-built formula to assign weights to these three category scores to create a Liquidity Health Score, which serves as the primary metric displayed when sharing information from the Liquidity Health Dashboard.
How to Use the Liquidity Health Dashboard
For users who are new to the concept of liquidity and liquidity health, the Liquidity Health Dashboard is an excellent starting point. It offers easily understandable information about whether a specific project has sufficient and high-quality liquidity to support its token.
It is important to note that the Liquidity Health Dashboard is not intended to advise users on which tokens to purchase. As always, ApeSwap does not and never will provide financial advice. Instead, it serves as a tool for users and projects to evaluate the long-term health of a token. It is most effective when used alongside other independent research about a project.
With that said, the scores obtained from the Liquidity Health Dashboard can certainly help steer your research in the right direction. Consider them as risk ratings, where a lower score indicates a potentially riskier token to hold, while a higher score suggests a token that is likely more stable and sustainable.
With the Liquidity Health Dashboard, users are now able to access and act on liquidity information about crypto projects that have been hiding in plain sight on the blockchain. By leveraging the LHD, users can gain a deeper understanding of whether their favorite projects have been making liquidity decisions that align with the long-term interests of their users, token holders, and the tokenomics data shared on their site or documentation.
If the user is a crypto project owner or contributor, they are encouraged to explore their project’s Liquidity Health Score on the LHD and provide ApeSwap with their feedback using the Feedback feature. ApeSwap is actively seeking thought leaders to join in improving this system. If the user appreciates this product and wishes to contribute to advancing industry credentialing and fundamental analysis in the crypto space, they can reach out to collaborate.
Accessing the Liquidity Health Dashboard
All users will need a password to access the beta launch for the LHD. When users visit the URL, a popup module will display asking for the password.
Users are welcome to try the LHD beta using this password: LHDBeta
For a more comprehensive and technical explanation of the Liquidity Health Dashboard and how the metrics are prepared, please refer to the documentation.
This is just the beginning of ApeSwap’s renewed commitment to liquidity education! users who are eager to expand their knowledge further, please don’t hesitate to reach out on Twitter, Discord, or Telegram.
ApeSwap is a decentralized finance platform offering a full suite of tools to explore and engage with the future of wealth building. With products ranging from a decentralized exchange, a bonding protocol, and the new Liquidity Health Dashboard, ApeSwap empowers users to access DeFi in a secure, transparent, and globally accessible way.