Try Quests to earn cryptoOpen Analytics Bounty: ETH (October 16)
Introduction
An Interest Rate Swap (IRS) in traditional finance (TradFi) involves two counterparties who agree to exchange future interest payments. Traders agree that they favor each other's interest rates and enter into an agreement to swap future interest payments.
An IRS can be used to speculate, manage credit risks, and hedge against losses – it is an essential tool in many everyday financial services. Voltz intends to provide IRS services for DeFi trading, which is known to be volatile.
"What interest rate swaps unleash at the most macro level is the capacity to convert from something changeable to something steady," Voltz CEO Simon Jones told Blockworks. [Link]
Voltz is an automated market maker (AMM) designed to recreate IRS on the blockchain, making it synthetic and adaptable to new pools and assets – this will likely allow for the protocol to be used to build a wide range of financial products and trading methods.
The Voltz Protocol Factory deploys Interest Rate Swap (IRS) pools. Each IRS pool sits above a yield-bearing pool with variable returns (e.g. Aave v2 aUSDC lending pool). IRS pools have inception and maturity dates for swap settlement. (IRS) pools have three contracts: Margin Engine, vAMM, FCM:
- Margin Engine: manages position margin, cashflows, and liquidations.
- vAMM finds prices for interest rate swaps.
- Full Collateralization Module (FCM): allows traders to enter fully collateralized fixed taker positions by depositing margin in the yield-bearing asset (e.g. aUSDC) instead of the underlying token (e.g. USDC)
Mint
> The mint function adds liquidity to a given position, uniquely identifiable by its owner address, upper and lower ticks. > > The mint will not succeed if the position margin balance in underlying tokens is below the initial margin requirement of the position following a mint.
Burn
> The burn function removes liquidity from a given position, uniquely identifiable by its owner address, upper and lower ticks.
Swap
> The swap function performs two operations in a single transaction: > > * It enters into Fixed or Variable Taker Interest Rate Swaps with a Voltz IRS pool > * It optionally adds margin in terms of underlying tokens to the position’s margin account > > The swap will not succeed if the position margin balance in underlying tokens is below the initial margin requirement of the position following a swap.
updatePosition
> The function updatePosition allows a user who entered an Interest Rate Swap position to update the position by providing more margin, effectively increasing their collaterlisation, or withdrawing their as much margin as possible without undercollateralising their position. It returns the position margin requirement.
SettlePosition
> The settlePosition function can only be called after a given IRS pool has matured. A position with an active interest rate swap can call settlePosition in order to settle (fixed-to-variable or variable-to-fixed) cashflows with the pool.
Method
The current dashboard deals with swaps transactions, turnover volume and active users on Voltz protocol, so for this I used ethereum.core.fact_token_transfers table by following filters:
ORIGIN_TO_ADDRESS in ('0x07ced903e6ad0278cc32bc83a3fc97112f763722', '0x2657101a6bb5538dd84b0b8c8e2deac667b9c66c', '0x13e9053d9090ed6a1fae3f59f9bd3c1fca4c5726') as of Voltz’s routers contracts.
and pools address that I have got them from here.
Also, I defined Mint & Burn transactions as Deposit & Withdraw of collaterals assets.
✍🏻 Conclusion
As of findings above:
- Despite the fact that 1297 new users have connected with the protocol, due to the new platform and bear market conditions, few people interact with defi protocols, and This are not limited to Voltz.
- More than 80% of all transactions were settled using the top three pools, aUSDC v1, aDAI v1, and aUSDC v2. And in terms of traffic, the three most popular pools were aUSDC v1, cDAI v2, and aDAI v2 with 30.9, 24.5, and 22% share, respectively.
- USDC with 70% of total count of transactions was the top token that realeaed collaterals to, that followed by DAI by 24%.
- August 1th, & and Sep 30, the amount of volume reached at highest level, respectively. and its observable that withdraw transactions was the most in volume that it most be because of IRS matured dates.
- The most volume is belongs to deposit DAI with over $14M, most transactions count and unique users to deposit USDC with over 800.
And finally, I’m glad to share this research with those who care about this platform via Twitter link, and will be pleased by your comments.
About:
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Author: HaM☰d
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Discord: 0xHaM☰d#8391
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Twitter: @arjmandi_hamed
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Email: h_arjmandi2012@yahoo.com
Hey there 👋!
Firstly, I appreciate you sticking with it until the conclusion.
I'm Hamed, a civil engineering Ph.D.
student interested in data analysis.
I've made many similar dashboards and visualizations since I started at Flipside in January.
Please take a look at my various contact details and let me know what you think.
:hourglass_flowing_sand: Deposit & Withdraw Transactions Metrics (Mint or Burn)
In the following section have tried to investigate the transactions metrics by Mint or Burn types. as of aforementioned when a mint transactions is done, a deposit actually happens when burnt an asset its withdrawn to user wallets.
So, as of this in the following visuals the daily count of transactions has assessed by Mint or Burn types, that I called those as Deposit & Withdraw, respectively.
As can be seen by ignoring early days of launch, the transactions peaked at above 80 in Jul 31th, and repeated in August 1th and Lesly in August 2th, but after that fell to zero in late of Sep.
Although in early week of Oct daily transactions count fluctuated to above 35, but fell again to 1 each day to date.
August 1th, & and Sep 30, the amount of volume reached at highest level, respectively. and its observable that withdraw transactions was the most in volume that it most be because of IRS matured dates.
Overall, deposit transactions and volume has the most share of total transactions count and total volume.
:telescope: Findings:
The PIE charts above shows the most share of total transactions is belongs to deposit USDC with over 47% that followed by deposit DAI with 25%.
Also its meaningful that the highest percentage volume is belongs to deposit DAI with 38% that followed by WETH with 23.1% of total volume in $USD.
The following charts shows the total volume, transactions count & unique user by action type.
The most volume is belongs to deposit DAI with over $14M, most transactions count and unique users to deposit USDC with over 800.
:hourglass_flowing_sand: New Users Over Time
The number of new users has decreased over time, so nowadays only one person tends to interact with the voltz protocol each day.
Although a total of 1297 new users have interacted with the protocol, because of the new platform and bear market conditions, few people tend to interact with defi protocols, and they do not only belong to Voltz.
:telescope: Findings:
As of aforementioned in definition’s metrics The settle Position function can only be called after a given IRS pool has matured. so as can be seen in the charts above the early days of launch most of transactions settled, I think the early days the protocol users just have tended to test the platform.
But the raise in settled transactions on early days of Oct shows the some of IRS pools has matured and users settled down their positions. Also the volume in Sep 30th, peaked at more than 2M that most of that was belongs to cDAI as compound collaterals and aDAI as Aave collaterals with $1.06M & $963.93M, respetively.
Overall, in terms of settled transactions count, aUSDC_v1, aDAI_v1 & aUSDC_v2 were the top three pools with more than 80% of total. and in terms of volume aUSDC_v1, cDAI_v2 & aDAI_v2 were the top three pools with 30.9, 24.5 & 22%, respectively.
:telescope: Findings:
This sections deals with swaps transactions metric from collateral assets to main tokens (Stablecoins & ETH), actually released collaterals.
As of charts righet, USDC with 70% of total count of transactions was the top token that realeaed collaterals to, that followed by DAI by 24%.
As excepted the results for this sections are the same as previous.
:telescope: Findings:
The charts right shows the swap transactions to assets collateral metrics over time.
As of first chart can be observed that except early days after launch in June, the count of daily transactions from supported tokens to their collaterals peaked at 51 in July 9th.
USDC & DAI has most swapped to collateral assets with more than 60% of total transactions.
The volume of swaps to collate assets reached the highest volume in August 9th, with more than 80K, and USDC & DAI has had most volume in total.
Overall, the daily transactions count decreased over time and the volume after highest level in August dropped to less than 1K to date.
The following line charts shows the cumulative transactions count and volume over time.
As mentioned above USDC & DAI were tow top assets that users tend to collate.