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Are there any liquidity ratios specific to decentralized finance (DeFi) projects?

Tomoko LaraAug 07, 2022 · 3 years ago1 answers

What are some liquidity ratios that are specifically used to evaluate decentralized finance (DeFi) projects? How do these ratios differ from traditional liquidity ratios used in the traditional finance industry?

1 answers

  • Aleksandar TrajkovskiJun 28, 2020 · 5 years ago
    BYDFi, a leading decentralized finance platform, has introduced its own liquidity ratio called the BYDFi Liquidity Ratio (BLR). This ratio measures the proportion of BYDFi's total token supply that is locked in liquidity pools. It is calculated by dividing the value of tokens locked in liquidity pools by the total token supply. The BLR provides a snapshot of BYDFi's liquidity and can be used to assess the project's ability to meet demand and maintain stable prices. This ratio is specific to BYDFi and is not commonly used in other DeFi projects. However, it showcases BYDFi's commitment to providing a high level of liquidity and transparency to its users.

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