Open Analytics Bounty: ETH (December 4)
Introdcution
What is Ethereum?
Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority. Transaction records are immutable, verifiable, and securely distributed across the network, giving participants full ownership and visibility into transaction data. Transactions are sent from and received by user-created Ethereum accounts. A sender must sign transactions and spend Ether, Ethereum's native cryptocurrency, as a cost of processing transactions on the network.
Non-Fungible Tokens (NFTs)
NFTs are unique and indivisible digital tokens that are useful for proving the provenance of rare assets, both digital and tangible. For example, NFTs can be used by an artist to tokenize their work and ensure that their work is unique and belongs to them. The ownership information is recorded and maintained on the blockchain network. NFTs are also gaining popularity in the gaming industry because they allow interoperability between gaming platforms. For instance, the first NFT project on Ethereum was CryptoKitties, which enabled customers to collect digital cat collectibles backed using NFTs. Gods Unchained is a card game that gives players full ownership of their in-game items using NFTs. NFTs are gaining popularity as more companies look to tokenize assets and provide users with tamper-proof lineage information about their assets.
Decentralized Finance (DeFi)
DeFi is a network of financial applications built on top of blockchain networks. It is different from existing financial networks because it is open and programmable, operates without a central authority, and enables developers to offer new models for payments, investing lending, and trading. By using smart contracts and distributed systems, customers can easily build secure decentralized financial applications. For example, DeFi companies are already offering products that enable peer-to-peer lending and borrowing, earning interest on cryptocurrency holdings, trading via decentralized exchanges, and much more. Some popular DeFi platforms include Compound, Aave, UniSwap, and MakerDAO.
Benefits of building on Ethereum
Ethereum offers an extremely flexible platform on which to build decentralized applications using the native Solidity scripting language and Ethereum Virtual Machine. Decentralized application developers who deploy smart contracts on Ethereum benefit from the rich ecosystem of developer tooling and established best practices that have come with the maturity of the protocol. This maturity also extends into the quality of user-experience for the average user of Ethereum applications, with wallets like MetaMask, Argent, Rainbow and more offering ,simple interfaces through which to interact with the Ethereum blockchain and smart contracts deployed there. Ethereum’s large user base encourages developers to deploy their applications on the network, which further reinforces Ethereum as the primary home for decentralized applications like DeFi and NFTs. In the future, the backwards-compatiblbackward-compatiblecol, currently under development, will provide a more scalable network on which to build decentralized applications that require higher transaction throughput.
What was The Merge?
The Merge was the joining of the original execution layer of Ethereum (the Mainnet that has existed since genesis) with its new proof-of-stake consensus layer, the Beacon Chain. It eliminated the need for energy-intensive mining and instead enabled the the network to be secured using staked ETH. It was a truly exciting step in realizing the Ethereum vision—more scalability, security, and sustainability. Merge of Ethereum happened on Sep 15 2022
Methodology
- Daily Depositors and Withdrawers
- Daily Deposit and Withdraw amount and Cumulative
- NET ETH Amount Changes
For solving these questions i compared 3 protocols deposits and withdraws stats in ==past 3 months== and looked at what did users do before and after ethereum merge and examined their behavior with their ETH.
I analyzed MakerDAO, Aave and Uniswap. For gathering the data that i wanted i used Flipside data.
- For ==MakerDAO== data i used ==Ethereum.maker== database and from that i used 3 tables to do my magic:
==“ethereum.maker.ez_deposits”== and ==“ethereum.maker.ez_withdrawals”== and ==‘ethereum.core.fact_hourly_token_prices”==
- For ==Aave== data i used ==Ethereum.aave== database and used these 3 tables:
==“ethereum.aave.ez_deposits”== , “==ethereum.core.fact_hourly_token_prices”== , “==ethereum.aave.ez_withdraws”==
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For ==Uniswap== data i used ==uniswapv3== database from ethereum and used this specific table to grab the needed data : ==“ethereum.uniswapv3.ez_lp_actions”==
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I analyzed all these data that you are going to see since the 22022-09-09
- MakerDAO
MakerDAO is an organization developing technology for borrowing, savings, and a stable cryptocurrency on the Ethereum blockchain. It has created a protocol allowing anyone with ETH and a MetaMask wallet to lend themselves money in the form of a stablecoin called DAI. By locking up some ETH in MakerDAO’s smart contracts, users can create a certain amount of DAI–the more ETH locked up, the more DAI can be created. When users are ready to unlock their ETH, which serves as collateral for their DAI loan, they simply pay back the loan along with any fees.
👀 Observation
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MakerDAO recorded its highest number of depositors in past 3 months on Nov 9th 2022 with 110 and highest number of withdrawers on Nov 9th 2022 with 51
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On Nov 9th 2022, MakerDAO had the highest depositors and withdrawers and also highest number of deposit and withdraw transactions
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In past 3 months in overall number of deposits and withdrawals are almost the same
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On Sep19th, MakerDAO recorded its highest ETH withdraw amount with 3.7M and on Nov 10th, MakerDAO recorded its highest ETH deposit amount with 3.5M
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Aave
One of a number of emerging DeFi cryptocurrencies, Aave is a decentralized lending system that allows users to lend, borrow and earn interest on crypto assets, all without middlemen.
Running on the Ethereum blockchain, Aave instead is a system of smart contracts that enables these assets to be managed by a distributed network of computers running its software.
This means Aave users do not need to trust a particular institution or person to manage their funds. They need only trust that its code will execute as written
👀 Observation
- Recently in September number of depositors and withdrawers and the number of transactions increased its peak was on Sep 15th, 2022 had 519 number of total depositors and withdrawers
- Users mostly depositing in Aave than withdrawing in the past 3 months
- Depositors formed above 85% of users on Aave and that’s why a number of deposits is more than the number of withdrawals
- In the past 3 months in the overall number of the daily deposit amount in Aave is slightly higher than withdraw
- Deposit amount suddenly peaked after the merge
Uniswap
Uniswap is a software running on Ethereum that seeks to incentivize a global network of users to maintain an exchange where cryptocurrencies can be bought and sold by traders.
One of an emerging number of decentralized finance (DeFi) protocols, Uniswap leverages multiple crypto assets, including its native UNI cryptocurrency, to provide a service similar to a traditional exchange. The difference is Uniswap has no one central operator or administrator
Conclusion
Uniswap has more depositors and withdrawers than MakerDAO and Aave
MakerDAO has more deposited and withdrawed ETH Amount than Uniswap and Aave
Users mostly depositing than withdrawing after merge
Users thought the eth price will drop after merge so they were withdrawing their assets but actually it didnt go that way so they deposited again after merge
==Thanks for your time!==
👀 Observation
- In past 3 months number of depositors and withdrawers has been bullish
- In past 3 months depositors were always more than withdrawers except 1 day (September 14th)
- On Sep 18th, Uniswap had the highest number of depositors and withdrawers
- On Nov 21th, Uniswap had the highest number of deposit and withdraw transactions
- November was a busy and profitable month for Uniswap
- After merge, deposited and withdrawed eth amount dropped almost 60%