Hello there Nansen Explorers,
Today, we're excited to announce several updates to Smart Money! With these new updates, we aim to help you find more alpha across the board, but particularly with the NFT and liquidity provision space. See what we've got in store for you below!
Updates to Smart LP
Smart LP works by evaluating the profits made from an address providing liquidity on Uniswap and SushiSwap. In the metric, we also include profits made from yield farming UNI tokens and SUSHI tokens, gained by staking LP tokens. We currently only consider liquidated LP positions.
Today, we're releasing a couple of improvements to our Smart LP logic:
- When calculating the profit of the address, we now account for (im)permanent loss
- We've changed our token prices provider, enabling us to support more tokens and even more precise prices
- Removed the $100,000 in profits hard limit, and replaced it with making the 1% of liquidity providers in terms of profit and return on investment
These updates will be visible through the new "Smarter LP" label available from today. To summarize the differences:
Our current "Smart LP" addresses have proven to be a good predictor of alpha, and as such we don't want to depreciate these addresses from our set of Smart Money as of now.
We've got several new and exciting Smart Money segments in the works that will "eat" into the current set of Smart LP addresses, giving them new and more precise labels in the future.
New Smart Money segments for NFTs
Furthermore, we're happy to announce that we're introducing four new Smart Money segments related to NFTs.
The NFT Smart Money dashboard is now available for all Nansen users!
Smart NFT Trader
- The top 100 addresses in terms of NFT profits (see Profit Leaderboard below) and top 100 addresses based on our internal trader score metric
- Profits for traders are calculated by looking at the realized ETH gains from NFT sales, minus the cost spent on gas and purchasing of NFTs. Note that the cost here includes all purchases, even those the address has not yet sold
Smart NFT Hodler
- The top 100 addresses in terms of NFT estimated profits and top 100 addresses based on our internal hodler score metric
- Profit for hodlers are calculated by taking the estimated portfolio value of the NFTs the address is currently holding, minus the cost spent on purchasing the NFTs currently being held
For example, here you can see there are 21 Smart NFT Hodlers and 14 Smart NFT Traders for CryptoPunks.
Smart NFT Early Adopter
- The top 100 addresses that have invested in selected blue-chip projects before a specified date and are still holding an NFT from the project
- The ranking is based on the number of these blue-chip projects the address is still hodling in and the estimated portfolio value
For example, here you can see there are 1 Smart NFT Early Adopter, 6 Smart Hodlers, and 3 Smart Traders for Wolf Game.
Smart NFT Minter
- The top 100 addresses that have at least ≥ 5x profits on multiple collections that were minted in the last 60 days
- Addresses are ranked by the number of collections that have been multi-baggers for them, followed by realized profit within said timeframe
Lastly, we've decided to remove Whales from Smart Money. The reason is that as we've been increasing our number of Smart Money addresses and segments, we see that whales don't necessarily earn similar returns as our other segments.
We've got more exciting updates to Smart Money coming soon, so make sure to follow us on Twitter to get all of our latest updates!
For an overview of the common labels and emojis in Nansen, please check out this page.