📝 Introduction

One of the most important concerns of users since the beginning of cryptocurrencies was the existence of an environment for exchanging crypto assets and buying and selling them. Over time, intermediary institutions called centralized exchanges (CEXs) emerged to address this concern.

Although the problem of cryptocurrency exchange was partially solved by setting up CEXs, some of the basic concerns of users in this area, remained unanswered; Concerns such as security, decentralization, user control over their assets and privacy eventually paved the way for the emergence of a new generation of exchanges. Decentralized exchanges (DEXs) emerged from these concerns.

🟡Sushiswap

Sushiswap is one of the most famous Dex that is considered a fork of Uniswap project.

Unlike older centralized exchanges like Binance, which make their own market, Sushiswap uses users as liquidity providers based on its community-oriented nature. This decentralized exchange was created in 2020 by a person or two groups with the nicknames of "Chef Nomi" and "0xMaki".[1][2]

🟤 Uniswap

Uniswap was born from an idea proposed in 2016 by Ethereum creator Vitalik Buterin for a decentralized exchange (dex). Vitalik Buterin came up with an idea that included such an automated market maker (AMM) with special features. A year later in 2017, Hayden Adams started working to turn this idea into a functional product. After receiving several grants, including $100,000 from the Ethereum Foundation, Adams launched UniSwap in November 2018; At that time, a lot of liquidity quickly flowed towards this exchange and UniSwap experienced a large volume of transactions.

Initially, Adams created a Proof of Concept system, which included a smart contract and an initial draft on the project site. This contract had only one liquidity provider and was designed for simple swaps. This was the first step towards the concepts of automated market makers and the unlimited potential of Ethereum. Uniswap currently works using liquidity pools, and individuals invest in these pools and provide liquidity for various token transactions, called liquidity providers. These liquidity providers, in return, are rewarded and share in transaction fees. In this way, the UniSwap platform has been able to solve the liquidity problem, and this is the reason for its popularity.

⚪ Velodrome

Velodrome Finance is the liquidity base layer for the entire Optimism ecosystem. Launched in June 2022, it focuses on properly incentivizing liquidity for Defi protocols. Interestingly, Velodrome is built on the foundation put in place by Solidly. Making important tweaks and changes to the work done by Solidly to ensure that Velodrome reaches its full potential.[3]

🟢 1inch

1inch is an exchange aggregator that scans decentralized exchanges to find the lowest cryptocurrency prices for traders, and is powered by its 1INCH utility and governance token. 1INCH is used to furnish the platform's decentralized "instant governance" model, and facilitates liquidity mining through token staking.[4]

🟠 Beethoven X

Beethoven X is a community-driven DEX and DeFi power house. Governed by BEETS and living on the Fantom Opera and Optimism chain.

As the first official friendly fork and built on Balancer V2, Beethoven X leverages best in breed DeFi protocols to offer novel decentralized investment strategies. It is the first next-generation AMM protocol on Fantom Opera and Optimism.[5]

🟡 Layer 2 Solutions

Layer 2 is a term used for solutions created to help scale an application by processing transactions off of the Ethereum Mainnet (layer 1) while still maintaining the same security measures and decentralization as the mainnet. Layer 2 solutions increase throughput (transaction speed) and reduce gas fees.[6]

🔴 Optimism

Optimism is a layer 2 chain, meaning it functions on top of Ethereum mainnet (layer 1). Transactions take place on Optimism, but the data about transactions get posted to mainnet where they are validated. It’s like driving in a less crowded side street while benefiting from the security of a highway.

Optimism is the second-largest Ethereum layer 2 with a total of $1.41 B locked into its smart contracts, as of this writing, according to l2beat.

Optimism uses a technology called rollups, specifically Optimistic rollups.

They’re called rollups because they roll up (or bundle) the data about hundreds of transactions – non-fungible token (NFT) mints, token swaps … any transaction! – into a single transaction on Ethereum mainnet (layer 1). And they’re called Optimistic rollups because transactions are assumed to be valid until they are proven false, or in other words, innocent until proven guilty. [7]

📃 Purposes of dashboard

This dashboard compares the performance of different DEXs on the Optimism chain. The following metrics are considered to compare these DEXs:

1️⃣ Total number of swaps by day over the last month

2️⃣ Total number of wallets swapping by day

3️⃣ What are the most popular asset pairs to swap from and too

4️⃣ Top 10 assets swapping from

5️⃣ Top 10 assets to swap to

On the other hand, these DEXs are:

1️⃣ Uniswap

2️⃣ Sushiswap

3️⃣ Velodrome

4️⃣ Beethoven X

5️⃣ 1inch

In the first step, all these DEXs are compared in charts, then in the next step, each of these DEXs is examined separately.

✍🏻 Methodology

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

  • optimism.core.fact_event_logs→ This table was used to extract the data of Uniswap, 1inch and Beethoven X exchanges.

    The following contracts are used to call the data of each of these DEXs:

  • origin_to_address='0x1111111254760f7ab3f16433eea9304126dcd199'→ 1inch

  • (origin_to_address='0xe592427a0aece92de3edee1f18e0157c05861564' or

    origin_to_address='0x68b3465833fb72a70ecdf485e0e4c7bd8665fc45')→ Uniswap

    To extract data related to Beethoven X, the following conditions have been used:

  • event_name='Swap' and ORIGIN_FUNCTION_SIGNATURE='0x945bcec9' and origin_to_address='0xba12222222228d8ba445958a75a0704d566bf2c8' and event_index=0

  • Only successful transactions are considered → tx_status='SUCCESS'

  • To extract the data related to Sushiswap and Velodrome, the tables provided in the Flipside database for these DEXs were used:

    • optimism.sushi.ez_swaps

    • optimism.velodrome.ez_swaps

  • Time frame considered in this dashboard: last 30 days → block_timestamp::date>=current_date-30 and block_timestamp::date<>current_date

Among the DEXs that are reviewed in this dashboard, 1inch is different from other DEXs. 1inch is a DEX Aggregator. In fact, when a user decides to swap, 1inch finds the best price among other DEXs such as Uniswap.

1inch

• Most Popular Asset Pairs → 🥇WETH/USDC 🥈USDC/sUSD 🥉OP/USDC
• Most Popular Assets to "Swap to" Based on Swap Count → 🥇sUSD 🥈USDC 🥉sETH
• Most Popular Assets to "Swap to" Based on Swapper Count → 🥇sUSD 🥈sETH 🥉USDC
• Most Popular Assets ''swapping from'' Based on Swap Count → 🥇USDC 🥈sUSD 🥉OP
• Most Popular Assets ''swapping from'' Based on Swapper Count → 🥇USDC 🥈sUSD 🥉OP

Uniswap

• Most Popular Asset Pairs → 🥇WETH/USDC 🥈WETH/DAI 🥉DAI/USDC
• Most Popular Assets to "Swap to" Based on Swap Count → 🥇USDC 🥈OP 🥉WETH
• Most Popular Assets to "Swap to" Based on Swapper Count → 🥇USDC 🥈OP 🥉USDT
• Most Popular Assets ''swapping from'' Based on Swap Count → 🥇USDC 🥈WETH 🥉OP
• Most Popular Assets ''swapping from'' Based on Swapper Count → 🥇USDC 🥈sUSD 🥉Dai

Sushiswap

• Most Popular Asset Pairs → 🥇WETH/USDC 🥈WETH/USDT🥉WETH/DAI
• Most Popular Assets to "Swap to" Based on Swap Count → 🥇WTH 🥈USDC 🥉USDT
• Most Popular Assets to "Swap to" Based on Swapper Count → 🥇WTH 🥈USDC 🥉USDT
• Most Popular Assets ''swapping from'' Based on Swap Count → 🥇WTH 🥈USDC 🥉USDT
• Most Popular Assets ''swapping from'' Based on Swapper Count → 🥇WTH 🥈USDC 🥉USDT

Velodrome

• Most Popular Asset Pairs → 🥇WETH/USDC 🥈OP/USDC 🥉VELO/USDC
• Most Popular Assets to "Swap to" Based on Swap Count → 🥇USDC 🥈WETH 🥉OP
• Most Popular Assets to "Swap to" Based on Swapper Count → 🥇USDC 🥈WETH 🥉OP
• Most Popular Assets ''swapping from'' Based on Swap Count → 🥇USDC 🥈WETH 🥉OP
• Most Popular Assets ''swapping from'' Based on Swapper Count → 🥇USDC 🥈WETH 🥉OP

Beethoven X

• Most Popular Assets to "Swap to" Based on Swap Count → 🥇WETH 🥈rETH 🥉USDC
• Most Popular Assets to "Swap to" Based on Swapper Count → 🥇USDC 🥈WETH 🥉OP
• Most Popular Assets ''swapping from'' Based on Swap Count → 🥇WETH 🥈USDC 🥉rETH
• Most Popular Assets ''swapping from'' Based on Swapper Count → 🥇rETH 🥈WETH 🥉USDC

Review of Optimism DEXs

• Over the past month, about 91% of the total number of swaps have been recorded in Velodrome and Uniswap.
• In the last 30 days, among the different DEXs, the highest number of swaps was recorded in Velodrome, but Uniswap had the highest number of unique Swappers.
• Sushiswap has the lowest number of swaps among different DEXs.
• On October 25, the largest number of swaps was recorded in different DEXs.
• The highest number of swaps in each of the DEXs in the last 30 days is:

• Velodrome → Oct 25, 2022
• Uniswap → Sep 30, 2022
• 1inch → Oct 12, 2022
• Beethoven X → Oct 13, 2022
• Sushiswap → Oct 15, 2022

• On October 12, the number of unique users of DEXs on the Optimism chain has increased significantly.
• Statistical data shows that in the last 30 days, Velodrome and Uniswap performed best among different DEXs.

💡 Conclusion

In this dashboard, the performance of 5 decentralized exchanges on the Optimism chain was analyzed. The results show that in the last 30 days ==Uniswap== had the most distinct users among the different DEXs. On the other hand, the highest number of swaps was recorded in the ==Velodrome==. Among the various DEXs, ==Sushiswap== had the weakest performance. On the other hand, ==WETH/USDC== has been the most popular asset pair on various DEXs. ==Stablecoins (USDC, USDT, sUSD, DAI, …)== and ==derivatives of Ethereum (sETH, rETH, …)== and ==OP== have been the most popular tokens for ==swap to== or ==swap from== among users.

Analyst: Emanoel

***Twitter: ***

Discord: Eman#9698

Special thanks to the Flipsidecrypto 🧡