Introduction
Smart Money wallets are wallets with a proven history of making savvy investment decisions and being one step ahead of the game.
As mentioned in a previous Nansen article on why Smart Money matters more in Crypto :
“In a world deluged by irrelevant information, clarity is power.” -Yuval Noah Harari
To provide clarity and uncover more actionable insights on our Smart Money Wallets, the Nansen Team has further segmented Smart Money wallets and arrived at the following labels:
| Nansen Wallet Label | Criteria |
|---|---|
| Smarter LP | Top 1% of addresses providing liquidity and mining liquidity by staking pool tokens on any traditional AMM (constant product pools)Uniswap V2 type of DEX in terms of profit and ROI. Profit calculations include impermanent loss. |
| First Mover LP | The top 200 addresses that have been the fastest to enter the most liquidity pools of a certain size. To be considered “first movers” in a given pool| they had to be among the first 100 addresses to enter it. The top 200 are ranked by the number of liquidity pools they have been “first movers” in. |
| First Mover Staking | The top 200 addresses that have been the fastest to enter the most staking pools of a certain size. To be considered “first movers” in a given pool| they had to be among the first 100 addresses to enter it. The top 200 are ranked by the number of staking pools they have been “first movers” in. |
In this report, we’ll be going through findings on Smarter LP from data aggregated across 1000+ Smarter LP labels on Ethereum, 350+ on Fantom, and 590+ on Polygon. We’ll also be going through aggregated findings of over 40+ First Mover wallets that are labeled as both First Mover LP and First Mover Staking. Lastly, we will go through on how users can use Nansen Dashboards to do a deep dive into wallets for further exploration.
Smarter LP
Smarter LP wallets are the Top 1% of addresses providing liquidity and mining liquidity by staking pool tokens on any traditional AMM (constant product pools) in terms of profit and ROI. We’ve identified some Smarter LP wallets with recent transactions for an aggregate study to get a sneak peek into the general behavior of Smarter LP wallets and potential areas to look out for.
Further, diving into Smarter LP historical transactions can give us a better view of historical strategies they have employed over the lifetime of their wallets. We will provide some Smarter LP Nansen links and run through the steps breakdown of how users can do a deep dive into the wallets using Nansen Dashboards at the end of the report.
Aggregated Findings over the lifetime of Smarter LP wallets
Nansen Smarter LP labels are currently tracked on Ethereum, Fantom and Polygon chains, with Ethereum seeing the highest number of active Smart LP addresses. We round up some aggregated findings below.
| Smarter LP | Active Addresses* | Total Invested | Total Profits | ROI |
|---|---|---|---|---|
| Ethereum | 2067 | $317,817,648 | $714,507,593 | 44.5% |
| Fantom | 821 | $133,591,762 | $126,296,721 | 105.8% |
| Polygon | 848 | $6,990,123,249,862 | $15,969,666,961,620 | 43.7% |
*based on a sample size of 2166 unique Smarter LP wallet addresses
Most Smarter LP wallets are not actively interacting with LPs in 2022 In Q1 2022, less than 50 out of the total 2166 Smarter LP wallets have interacted with LP farms. This significant decline in LP activity from previous years seems to suggest that the Smarter LP segment has increased its OpSec sophistication. It also suggests that the Smarter LP segment was preparing ahead of a slowing market.
LP opportunities on new chains are worth noticing In this dataset, the top profitable wallets on Fantom (105.8%) are on average much more profitable than the ones on Ethereum (44.5%) and Polygon (43.7%). Given the additional liquidity incentives on Fantom over the last quarter, this is not surprising.
Smarter LP wallets are active cross-chain A significant number of Smarter LP wallets are active on more than just a single chain. Out of 2166 unique labeled Smarter LP wallets, 2067 are active addresses on Ethereum, 821 are active addresses on Fantom, and 1848 are active addresses on Polygon. 705 wallets, or over 30% of Smarter LP Wallets, are active across all three chains.
More cross-chain activity does not mean more profits Successful multi-chain farming is not commonplace on Smarter LP labeled wallet addresses. Although many Smarter LP wallets are active on more than a single chain, they tend to be the most profitable on 1 chain only.
Out of the total 2166 labeled Smarter LP wallets across Ethereum, Fantom and Polygon, 1219 of them farm on Ethereum, 360 of them on Fantom, and 593 of them on Polygon. Out of the 2166 total, only 3 are Smarter LP wallets across both Ethereum and Fantom, and only 1 wallet is labeled a Smarter LP across Fantom and Polygon.
Profitable Smarter LP come in different wallet sizes This is a non-exhaustive list of some of the most profitable Smarter LP wallets and the LPs they have been involved in over their wallet’s lifetime. The myth is debunked that only the largest LPs make the most profits. In fact, smaller sized wallets tend to outperform larger wallets. A Smarter LP wallet started with $28k and netted $187k over the course of a year! That’s 660% in % ROI terms just from LPs which is much higher than the average across the three chains (43%-105%).
Here are some of the high-performing wallet addresses of different sizes over the Smarter LP Wallet’s lifetime showing how smaller-sized Smarter LP wallets tend to outperform on ROIC terms:
Larger wallets
| Nansen Wallet Profiler Link | LP_Invested_USD | Profits_USD | ROI |
|---|---|---|---|
| Larger Smarter LP Wallet 1 | 2,708,609.41 | 6,765,448.67 | 250% |
| Larger Smarter LP Wallet 2 | 42,684,772.10 | 16,282,108.20 | 38% |
| Larger Smarter LP Wallet 3 | 13,112,968.17 | 4,856,218.48 | 37% |
| Larger Smarter LP Wallet 4 | 5,553,020.82 | 2,684,073.12 | 48% |
| Larger Smarter LP Wallet 5 | 1,872,051.27 | 2,231,774.68 | 119% |
Smaller wallets
| Nansen Wallet Profiler Link | LP_Invested_USD | Profits_USD | ROI |
|---|---|---|---|
| Smaller Smarter LP Wallet 1 | 48,819.37 | 297,691.17 | 610% |
| Smaller Smarter LP Wallet 2 | 50,018.54 | 245,901.10 | 492% |
| Smaller Smarter LP Wallet 3 | 43,933.89 | 204,945.05 | 466% |
| Smaller Smarter LP Wallet 4 | 55,697.96 | 199,451.71 | 358% |
| Smaller Smarter LP Wallet 5 | 28,379.22 | 187,590.88 | 661% |
What have Smarter LP wallets been up to in 2022?
Below is a list of 28 Smarter LP wallets that have interacted with LPs as of March 2022. Activity by Smarter LP wallets have been low in 2022. Out of the LP farms Smarter LP wallets that have interacted with in 2022, Stargate and Shibaswap stand out with the most recent interactions and among the largest ongoing activity among Smarter LP wallets in 2022.
Stargate Stargate allows swaps for native stables between chains seamlessly, and any application that deals in liquidity transfer can wrap Stargate and be instantly omnichain. The implementation of Stargate has seen strong Smart Money inflows in LP pools earning STG tokens. The rising price of STG has made it even more lucrative for early farmers.
Shibaswap Shibaswap is the cheapest DEX to get SHIB and to interact with Shibaswap’s ecosystem consisting of tokens SHIB, LEASH and BONE through LPs, staking, NFTs, voting and DAO activities.
We can view the interactions of Smarter LP wallets with Shibaswap’s & Stargate’s router for instance here via the Nansen Wallet Profiler and filtering for “Smarter LP” under “Counterparties” tab and Top Interacting Wallets Widget. Shibaswap’s example is shown below.
More details on how to use Nansen to dive in further can be found in the later sections of this report. We’ve shared additionally here a List of 28 Smarter LP wallet addresses that had interactions with LP pools in 2022.
First Mover LP & First Mover Staking
The steep decline in activity of Smarter LP wallets in 2022 makes it more challenging for users to follow up-to-date LP strategies and transactions.
To look into potentially lucrative LPs and Staking pools, the Nansen team has defined two new sets of labels: First Mover LP, and First Mover Staking. These addresses are among the fastest to move into new LPs and staking pools and new pools tend to provide good earning opportunities. Their tendency to be first suggests they may have superior information and better yield opportunities.
There are currently over 40+ wallets on Nansen that hold both the First Mover LP & First Mover Staking labels. For the purpose of this report, these wallets will be termed “First Mover wallets”. We’ve identified First Mover wallets with recent transactions for an aggregated study to spot potential areas to look out for.
Similarly to Smarter LP wallets, diving further into First Mover wallet transactions can give us a view of strategies they have employed. We will provide some First Mover Wallet Nansen links and run through the steps of how users can do a deep dive into the wallets using Nansen Dashboards at the end of the report.
Aggregated Findings over the lifetime of First Mover wallets
First Mover wallets are seeing good activity in 2022 Unlike Smarter LP wallets, First Mover wallets are actively participating in LP activities well into 2022.
From the sample of 40 First Mover wallet addresses, we’ve collected the LP contracts with the highest volumes and among the highest activity that have interacted with the previously identified addresses over their lifetimes below. |Nansen Wallet Profile LP link|Total Contract Volume| |:----|:----| |OlympusDAO: Staking|17,797,054,338.52| |Tokemak: WETH Staking Pool|9,015,698,264.08| |Convex Finance: CVX Staking Proxy|8,997,082,435.31| |Convex Finance: stkcvx3Crv-abra Token|8,262,239,716.30| |Redacted Cartel: BTRFLY Staking Pool|5,932,290,754.49| |Synthetix: Staking Rewards sUSD Curve|5,493,522,590.79| |SushiSwap: MasterChef|5,476,516,439.22| |Convex Finance: Staking Wrapper Abra|5,259,739,087.57|
What have First Mover wallets been up to in 2022?
Below is a list of some of the LP addresses with good volumes that First Mover wallets have interacted with in 2022. Again, Stargate stands out among the protocols First Movers have interacted with. Other interesting LPs include Mirror Protocol, IMX, Heroes NFT Game, and so on. We’ll take Stargate as an example to walk through steps on how to Nansen these addresses in the next section of this report.
How to Nansen: Example
This section walks through the basics of how to use Nansen to investigate a wallet in the context of this report, using Stargate USDC LP Token (Fantom) as an example.
Summary of Steps The steps outlined in this section are summarized below:
- Nansen Wallet Profiler a. Wallet Profiler Overview i. Breakdown of wallet profile including LP wallets b. Wallet Profiler Counterparties i. Breakdown of other interacting wallets ii. Filtering for Smarter LP/First Mover Wallets
- Nansen Wallet Pair Profiler a. Transactions between Address A & Address B i. Track interactions, for instance, whether a wallet is adding/removing LPs from an LP pool ii. Track bridging activity with a wallet and a bridge address
- Nansen Bridge Builder a. Track bridging activity via Dashboard
- Nansen Wallet Profiler for Token a. Overview of a Token’s Movement in a Wallet i. Track a wallet’s token movement, for instance, if a wallet is buying or selling farmed tokens
- Nansen Smart Alerts a. Track Wallet Addresses i. Receive alerts when a wallet moves a token
The same steps can be repeated for other LP pools identified above for a deep dive.
If you’re not familiar with Nansen yet, the team has prepared detailed walkthroughs of How-to-Nansen for you in Hot Contract Workflows and Token Flow Discovery .
1-1 Nansen Platform Sessions can also be booked with our Analysts here !
How-to-Nansen Example Walkthrough: Stargate USDC LP Pools We’ll walk through a quick example here with some of Nansen’s Dashboards and tools.
1. Nansen Wallet Profiler
The LP addresses above can be found via the Nansen wallet profiler. Stargate’s USDC LP Token (Fantom) for instance, can be found here:
Stargate USDC LP Token (Fantom) Wallet Profiler
To follow the First movers who’ve entered Stargate USDC LP pools:
- Head to Top Depositors Dashboard
- Filter by “first” and refer to “First In” to see if the first movers were actually early into earning yields
- In this case, First Mover Wallet Address C is an early wallet and have been in FTM USDC pool 20 days ago.
In this example, here are the wallet links for Smarter LP that have entered Stargate’s USDC LP Token (Fantom) pools.
| Nansen Wallet Profiler Links: First Movers in Stargate USDC LP Token (Fantom) Pools |
|---|
| First Mover Wallet Address A |
| First Mover Wallet Address B |
| First Mover Wallet Address C |
2. Nansen Wallet Pair Profiler
To investigate further what each of these First Movers are doing in Stargate’s USDC LP pools, we can use Nansen’s wallet pair profiler to enter both the First Mover’s address and the LP pool’s address. In this example, we can see that this First Mover wallet has added over $1.4M into Stargate’s USDC LP Token (Fantom) pools 5 days ago, and pulled out 2 days later.
The Nansen wallet pair profiler links are provided below:
Nansen Wallet Pair Profiler Links: First Movers in Stargate’s USDC LP (Fantom) Pools First Mover Wallet Address A X Stargate USD LP Token Wallet Address Pair First Mover Wallet Address B X Stargate USD LP Token Wallet Address Pair First Mover Wallet Address C X Stargate USD LP Token Wallet Address Pair
For users who want to find out whether a wallet is bridging outside of Ethereum, we can head to the Counterparties tab in the wallet profiler and filter for “bridge”.
Alternatively, we can use the wallet pair profiler with bridge addresses. The bridge addresses can be found under bridge builder.
The Top Bridges address links are accessible via Nansen Bridge Builder and accessing the Bridge’s URL. Some examples are provided below:
| Bridge Name | Bridge Link |
|---|---|
| Avax Bridge | Avax Bridge |
| Wormhole: Token Bridge | Wormhole Token Bridge |
| Multichain: Fantom Bridge | Multichain: Fantom Bridge |
| Synapse L1 Bridge Zap | Synapse |
3. Nansen Bridge Builder Aside from using the Nansen wallet pair profiler, Nansen Bridge Builder is a useful dashboard to get a view of overall bridging activity. In this dashboard, we can see the bridges that are most active by volume, activity, and smart money activity. We’re also able to view the bridge’s address via URL.
4. Nansen Wallet Profiler for Token
In the example of Stargate, users may be curious whether First movers are selling their farmed $STG tokens. To do so, we can use Nansen’s Wallet profiler for the token to see the interactions between the wallet and the STG token. We see here that this wallet is holding on to a token balance of $253k and has not started selling off.
The Nansen wallet pair profiler for STG token links are provided below:
5. Nansen Smart Alerts
For users who may be interested to track when these First mover wallets are selling STG to defend their positions can leverage Smart Alerts. We can do so by tracking the wallet’s address below.
Tracking by a segment’s labels, for instance, Smarter LP/First Mover LP/First Mover Staking can also be done via Smart Alerts.
Other tools to make your farming routine better
We find some of these tools useful for farming and have added them for reference here:
Wallet Management
Vault Aggregators for high yield farms
Removing Permissions for rekt farms
Impermanent Loss Calculator
Closing thoughts: What’s Next?
Smarter LP, First Mover LP, and First Mover Staking wallets can be worth diving into for a deeper look into strategies that have been executed in the past, and LPs and staking pools that are early and potentially worth entering. The curated lists in for the Smarter LP and First Mover segments serve as a starting point to dive deeper potentially into airdrop farming wallets, early bridgorrrrs, NFT flippers and more.
An early heads up - the Nansen Team has also newly added the private sale investors label for addresses that have received at least $100,000 from investor distributor addresses across a significant number of different tokens! More information on Nansen labels can be found here .
Have an idea? Reach out to us via our feedback & feature request page !
Stay tuned for the next update!
