Blog ·
Reading skew
Skew is up-depth over down-depth. A pool with more liquidity above the price than below it is easier to buy into than to sell into: sellers move the price further than buyers for the same size.
That asymmetry is invisible in TVL and is exactly the kind of thing a position sizer should know before trading. Whether it has predictive value for short-term moves is something we intend to measure once real depth data exists; for now it is shown because it is cheap to compute and easy to read.
The explorer shows skew as a bar on every row and in the series view.