Liquidity Migration Analysis

IXS/ETH: UniswapV2 → Arrakis-Managed UniswapV4

A comprehensive on-chain analysis evaluating the liquidity migration for the IXS/ETH pair from Uniswap V2 (constant product AMM) to an Arrakis-managed Uniswap V4 position (concentrated liquidity).

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Overview

This project analyzes the migration of IXS/ETH liquidity to determine:

1. Execution Quality — How does trade slippage compare before vs after migration?
2. LP Performance — How has the Arrakis vault performed vs alternatives (HODL, full-range LP)?
3. Capital Efficiency — What are the benefits of concentrated liquidity management?

Contract Addresses

Contract	Address
UniV2 Pool	0xC09bf2B1Bc8725903C509e8CAeef9190857215A8
UniV4 Pool ID	0xd54a5e98dc3d0a90a058d4e46b2db9e7d92dbf50598833035e1f27eac4f23a4f
Arrakis Vault	0x90bde935ce7feb6636afd5a1a0340af45eeae600
IXS Token	0x73d7c860998CA3c01Ce8c808F5577d94d545d1b4
WETH	0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2

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Key Findings

Execution Quality Improvements

Trade Size	UniV2 Slippage	UniV4 Slippage	Improvement
$1,000	~0.17%	~0.00%	~100%
$5,000	~0.84%	~0.08%	~90%
$10,000	~1.67%	~0.70%	~58%
$50,000	~7.83%	~5.90%	~25%

LP Performance

• Concentrated liquidity provides significant capital efficiency gains
• Slippage reduction of ~40% on average post-migration
• Active management by Arrakis has outperformed passive strategies

Migration Timeline

Phase	Period	Description
Pre-Migration	July – Oct 2025	UniV2 pool active, 90 days of slippage data collected
Gap	Oct – Dec 2025	Liquidity removed from V2, V4 infrastructure deployed
Post-Migration	Dec 2025 – Present	UniV4 pool live with Arrakis management

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Project Structure

Liquidity-Migration-Analysis/
├── Liquidity_Migration_Analysis_min.ipynb  # Main analysis notebook (self-contained)
├── requirements.txt                        # Python dependencies
├── README.md                               # This file
└── .gitignore                              # Git ignore rules

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Installation & Setup

1. Clone the Repository

git clone https://github.com/yourusername/Liquidity-Migration-Analysis.git
cd Liquidity-Migration-Analysis

2. Create Virtual Environment

python -m venv venv
source venv/bin/activate  # On Windows: venv\Scripts\activate

3. Install Dependencies

pip install -r requirements.txt

4. Configure Environment

Create a .env file in the project root:

INFURA_URL=https://mainnet.infura.io/v3/YOUR_PROJECT_ID

Note: You need an Ethereum RPC endpoint. Infura offers a free tier.

5. Run the Analysis

Open Liquidity_Migration_Analysis_min.ipynb in Jupyter Notebook/Lab and run all cells:

jupyter notebook Liquidity_Migration_Analysis_min.ipynb

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Methodology

Data Collection

• RPC Queries: Direct on-chain data via Web3.py
• Historical Sampling: Daily data points for trend analysis
• Price Oracles: Chainlink ETH/USD for USD conversions

Slippage Calculation

Slippage = |Spot Price - Execution Price| / Spot Price × 100 - Fee%

Performance Metrics

• HODL Baseline: Simply holding initial token amounts
• Full-Range LP: Theoretical UniV2-style position (x·y=k)
• Arrakis Vault: Actual on-chain concentrated LP position

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Dependencies

Package	Purpose
web3	Ethereum RPC interaction
pandas	Data manipulation
numpy	Numerical calculations
matplotlib	Visualizations
seaborn	Statistical plots
scipy	Statistical tests
python-dotenv	Environment variables
jupyter	Run the notebook

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Limitations

1. Quote Approximations: UniV4 slippage uses state-based estimates
2. Deposit/Withdrawal Effects: Vault metrics may include LP flows
3. Price Oracle Lag: Chainlink may have slight delays vs spot
4. Historical Data: Archive node availability may vary

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Author

Aladin Bouddat

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License

This project is for educational and analytical purposes.