Introduction

Russian President Vladimir Putin launched a full-scale invasion of Ukraine in the early hours of February 24, sparking the biggest war on a European state since World War.

This dashboard discusses the impact of the Ukraine war on swap volume in decentralized exchanges like Sushi and Uniswap.

Methodology

To get the results, we obey the following path:

• Getting the exact start date of the war based on the news.
• Use the Dex_swaps table to get the swap volume.
• Some data is wrong; delete them by applying a filter.
• By adding more graphs, analyze the results.

Analysis

As mentioned in the introduction, the war started on February 24. We discuss the swap volume using the data available in Velocity and query them with SQL.

According to the chart, if we categorize the results weekly, it's clear that the maximum volume is swapped in the middle of weeks, and the lowest volume is swapped at the end of weeks. On February 24 - the start of the war - a significant increase in swap volume was observed. On this date, the volume of swaps has increased by 134% compared to the previous day. Also, in the next week, the volume of daily swaps is higher than its average in the last weeks, which shows the impact of the war and related news.

In general, Uniswap's volume is much larger than Sushi's. But if we want to compare the percentage increase, the volume of swaps in Sushi has increased by 161.7% compared to the previous day, while Uniswap has grown by 118%.

The number of transactions can also show interesting points of activity and the average volume of each transaction, so the number of transactions for swaps from February 14 to March 4 in Uniswap and Sushi can be seen in the chart below.

As the chart shows, Wrapped Ethereum, StableCoins, and Bitcoin are the most in-demand.

Studying the price of Bitcoin and Ethereum is also helpful in analyzing the overall market reaction. The chart below shows the price of Bitcoin and Ethereum over the same time.

Now Let's take a look at the coins that were most in demand during the ten days before and after the start of the war.

Usually, when negative news or events, such as war news, are reported, the financial markets react negatively, and the prices of some assets, including cryptocurrencies and stocks, fall. As the chart shows, on February 24, the price of Bitcoin and Ethereum fell sharply following the announcement of the war and reached their lowest level in 20 days.

Also, the correlation between bitcoin price, swap volume, and war is interesting.

As the chart above shows, the largest swap volume occurred on the first day of the declaration of war and at the lowest bitcoin price.

Conclusion

According to the points mentioned above, the following results can be presented:

• Increasing the volume of swaps in both DEXs such as Sushi and Uniswap. Fear of war causes some people to swap their high-risk assets such as Bitcoin and Ethereum to Stablecoins, which have lower risk, and some people use these conditions and begin to swap at a floor price to high-risk assets.
• The price of bitcoin and the negative news about the war are inversely related; The more negative news, the more risky assets such as Bitcoin fall in price.
• Swap volume and war news are directly related; In other words, the more negative news, the more users swap their high-risk assets into low-risk assets.