Two-thirds of 'liquidity pulled' DeFi alerts are wallet rebalances, not exits
A developer analyzing 335 on-chain liquidity removal alerts of $100,000 or more found that 66.6% of the time the same wallet returned funds to another pool within six hours. Of those returning events, 57.9% were rebalances back into the same pool, while 5.7% were migrations to a different pool. The study used CoinMarketCap's DEX API, specifically its maker-level filter, to track wallet behavior across multiple pools and EVM chains without requiring a paid API key. The developer built a classification system that labels an event as an EXIT only when data retrieval was fully complete, deliberately preventing false alarms caused by missing or throttled data. The findings suggest that most automated liquidity alerts misrepresent market-maker behavior, causing unnecessary concern in trading communities.
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