pufETH
Summary
LRT Market Cap
$1.3B
Up 1.60%
# of Holders
45.9K
Up 0.40%
Average Daily Volume - 90D
$4.9M
Historical Tracking Error
We consider this LRT’s historical tracking error to be risky. Even when accounting for ETH’s volatility over the last 90 days, the market price has consistently been +/- 1% the underlying NAV. Ideally, we’d like to see market price consistently remain within 1% of NAV over a longer period of time.
High Risk
Onchain Liquidity
Using the slippage curve below and this LRT’s average daily volume, we consider the liquidity depth to be moderately risky. A trade matching ADV does not create price impact more than 5%, which is a good sign, but if liquidity is depleted by 30%, we can still see price impact greater than 5%. For an LRT with this amount of trading volume, liquidity depth should be improved. We estimate price impact by multiplying slippage by 2.5 and reduce by a factor of 6 if withdrawals are enabled.
Moderate Risk
Whale Concentration
We consider the current whale concentration for this LRT to be high. The largest whale holds more than 5% of the LRT’s total supply. We increase the threshold by a factor of 6 if withdrawals are enabled.
High Concentration