Sun Zu Lab, a leading provider of quantitative research on liquidity, has produced the November report on the liquidity of Trakx Top 10 DeFi. The overall liquidity of the index as well as the index constituents have been analysed, through measures of capacity and slippage.
Top 10 DeFi gives investors an exposure to the biggest DeFi projects by market capitalisation by simply buying a single token. Investors get a broad exposure to this rapidly growing industry through a selection of varied core DeFi protocols (Dex, NFT, Lending….).
Liquidity is a measure of the ease at which an asset can be bought or sold without affecting its price. Globally, since May, the drop in volume on all components has reduced Top 10 DeFi's liquidity but the index remains liquid for multi-million transactions per day.
The full paper is available here.