Developer finds popular DEX flow metric flawed, builds wallet-concentration tool instead
A software developer set out to create a new metric for analyzing decentralized exchange (DEX) trading patterns, only to discover mid-build that the formula reduced to a figure already captured by existing data. The flaw lay in net flow, a widely used indicator that sums buy and sell volumes but cannot distinguish between a single large desk and thousands of retail traders when both sides appear balanced. Using CoinMarketCap's DEX API, the developer shifted approach and built a tool that identifies the largest wallet's share of trading volume on each side of a swap. In a live test on AUSD on Ethereum across 800 swaps, net flow showed a near-balanced +2.1%, while the new tool revealed one wallet accounted for 62% of sell-side volume across just 12 transactions. The open-source project, released under the MIT license, requires no API key, no signup, and no additional dependencies.
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