📝 Introduction

About Aave

Aave is a decentralized protocol in financial markets that enables users to lend their desired cryptocurrencies in a reliable way, while receiving fixed and variable interest rates. Simply put, Aave is an open-source, decentralized protocol that allows users to profit from depositing their assets as well as borrowing from others' assets without going through a centralized cryptocurrency intermediary. Aave is becoming a market leader in lending and borrowing in the DeFi space. This is because unlike other protocols that deal with KYC and involve lengthy registrations, Aave spares users from all of this. Users deposit crypto assets into liquidity pools, which become funds that the protocol can lend to them.

The Aave protocol uses a decentralized autonomous organization, or DAO. This means that it is governed and controlled by the people who own and vote AAVE tokens.

Optimism

Optimism is a Layer 2 scaling solution for Ethereum. It helps reduce the transaction fee and transaction time on the Ethereum blockchain. Broadly speaking, Optimism helps solve Ethereum's scalability dilemma. Scalability refers to the rate of transactions per second (TPS) on a blockchain network.

📃 Purposes of dashboard

The main purpose of this dashboard is to evaluate the activity of Aave protocol users on the Optimism network. To evaluate the Aave protocol on the Optimism network, four user activities are analyzed:

1️⃣ Lending (Supply)

2️⃣ Borrowing

3️⃣ Repay

4️⃣ Withdraw

The following metrics have been used to evaluate the above activities:

✅ Number of unique lenders/borrowers

✅ Number of Lending/borrowing/withdrawal/repaying

✅ Volume of lending/borrowing/withdrawal/repaying

✅ Top 10 lenders/borrowers based on lending/borrowing count/volume

✅ Borrow to supply volume ratio

✅ Classification of borrowers/lenders based on borrowing/lending volume/count

✍🏻 Methodology

• In this dashboard, the following tables are used to extract data:

  • optimism.core.fact_token_transfers
  • ethereum.core.fact_hourly_token_prices

  We joined the above two tables together to calculate the volume of lending & borrowing in terms of USD.

  The reason for using table ethereum.core.fact_hourly_token_prices instead of optimism.core.fact_hourly_token_prices was that the price of some tokens such as ‘Link’ was not in table optimism.core.fact_hourly_token_prices.

• All the results are for March 18, 2022 onwards.

👀 Observation

• The highest number of user transactions in Aave on the Optimism network was recorded on August 5, 2022.
  • Lending → 4,947
  • Borrowing → 4,004
  • Repay → 900
  • Withdraw → 840
• - In some days, the activity of lenders has grown significantly. Some of these days are: Jul 8/ Jul 22/ Aug 4,5/ Aug 10/ Aug 24/ Aug 31.
• After the number of lenders' withdrawals increased suddenly on August 5, we saw a decrease in the number of withdrawals by users in the following days.
• The number of borrowings increased significantly on August 4, 5, 24 and 31. In these days, the number of loan repayments has also been high.

• Contrary to the fact that the largest number of lenders and borrowers was recorded on August 5, but the largest volume of lending and borrowing was recorded one day before that, on August 4.
• Contrary to the fact that the largest number of repayers and withdrawalers interacted with Aave on August 5th, but the largest volume of repayments by borrowers and the largest volume of withdrawals by lenders were recorded on August 18th.
• Before August 4, the volume of user transactions on the Aave platform on the Optimism network was insignificant compared to after this date.
• The number of lenders/borrowers increased from the second half of June 2022. Before this date, the number of users was low.

• Among the various tokens, USDC has attracted the attention of borrowers more than other tokens. About 48% of the total loans, 51% of the total borrowing volume and 51% of the total number of borrowers are related to USDC.
• After USDC, DAI and USDT are in second and third place.
• More than 80% of Aave borrowers' transactions on the Optimism network are in USDC and DAI currencies. An average of 104 unique users per day have borrowed from the Aave platform on the Optimism network. The number of USDC loans per day averaged 135 loans. This is while the largest number of loans and the largest number of borrowers in one day were related to DAI currency. (2,981 borrowings & 2,403 unique borrowers )
• Among the different tokens, the lowest transactions are related to the LINK token.
• In the table below, all the statistical data related to borrowers from the Aave platform on the Optimism network have been collected.

• The address '0xb149f353383ab92e74c4cba3feb848b04bfb3617' has received the highest number of loans with 308 borrowing times.
• The address '0x997fd5f16c9717007244e15e1e47db5f37bd53c2' has received about $380M USD in 15 times. This address received the largest amount of loans from Aave on the Optimism network.
• The classification of borrowers according to the number of loans they have received shows that about 60% of users have received between 1 and 10 loans. 38% of borrowers have received exactly one loan. About 2% of users have received between 10 and 100 loans. Among these users, 12 addresses have received more than 100 loans.
• The classification of borrowers according to the amount of loans they received shows that about 75% of the total number of borrowers received loans of less than 10 USD.
• Among different users, 138 users have received loans totaling more than 1M $USD.

• USDC ranks first in terms of volume, number of lending and number of lenders.
• The largest number of loans are related to USDT, WITH and AAVE currencies, and the largest number of users have provided Aave with these currencies as loans.
• Among various tokens, USDC, DAI and USDT have the largest volume of lending.
• The largest number of lenders and lending in one day is related to AAVE currency. (2,469 loans& 2,439 unique lenders)
• In the table below, all the statistical data related to lenders from the Aave platform on the Optimism network have been collected.

• The address '0xb149f353383ab92e74c4cba3feb848b04bfb3617' has provided the most number of loans to Aave on the Optimism network with 318 loans.
• The address '0x997fd5f16c9717007244e15e1e47db5f37bd53c2' deposited the largest amount of loans (431M $USD) in Aave on Optimism during 19 loans.
• In total, about 96% of users have given less than 10 loans, and about 43% of them have created exactly one supply in Aave on the Optimism network.
• The number of lending by 13 users is more than 100 loans.
• In total, the lending volume of 59% of the lenders was less than 10 $USD.
• 199 users have also loaned more than 1M $USD.
• A lending platform can continue to function in the long term when the amount of borrowing by users is greater than the amount of lending by users. For example, the ratio of borrowing volume to lending volume is greater than one. Examining the results obtained from the Aave platform on the Optimism network shows that, except for a few special cases, the ratio of borrowing volume to lending volume was smaller than 1 in most cases.

An evaluation of the charts of borrowers' repayments and lenders' withdrawals shows that

• The largest number of repayments on August 5 is related to DAI currency.
• The largest volume of repayments and withdrawals on August 18 is related to USDC and DAI tokens.
• USDC has the largest share of withdrawals by lenders.

💡 Conclusion

In this dashboard, the activity of Aave protocol users on the Optimism network was analyzed. Some of the most important results obtained are:

• In general, lenders are more active than borrowers.
• In the first half of August, the volume of borrowing and lending was more than other times.
• The activity of Aave users on the Optimism network increased dramatically from August 3 onwards.
• The USDC token has been the most popular among borrowers and lenders.
• The largest number of borrowers have borrowed less than 10 dollars so far.
• Most lenders also lend less than $10 in total.

Analyst: Emanoel

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Discord: Eman#9698

Special thanks to the Flipsidecrypto 🧡