Terradash Part 3: Development

    Question in detail:

    Construct a dashboard that displays the number of new contracts deployed and the total number of contracts deployed each week over the past several months. Your dashboard should also chart the development of stablecoins, including any supply trends.

    Overview of analysis:

    This dashboard divided into the following parts:

    • Contract deployment on Terra
    • Development of stablecoins (USDC and USDT)
      • Transfer
      • Swap activity
      • Liquidity providing actions

    About Terra:

    After the sudden and horrific collapse of the Terra network, many investors are worried about the future of the stablecoin Terra and the Luna Classic blockchain. Although Terra Network was completely destroyed, the founders quickly launched a new version called Terra 2.0.

    Terra 2.0 is the new version of Terra Classic blockchain. This version relaunches Luna cryptocurrency. In fact, the new Luna coins replace the old ones. Terra 2.0 is completely different from the old Terra platform, now known as Terra Classic. Now that the network is up and running, the new Terra will be officially released under the original brand. The main difference between these two networks is that it will not be supported by Terraform Labs or Do Kwan (the founder of Terra Classic). This means Terra 2.0 is fully community controlled.

    The technical name of this chain is Phoenix-1 and the name of its test network is pisco-1. The previous network will continue to work with a new name; This network will be called Terra Classic chain and all its tokens will have the classic extension. Therefore, Luna will be called Luna Classic or LUNC, and Dollar Tera and other stablecoins of this network will have the suffix C added to their tokens (USTC, KRTC, EUTC, etc.). Some centralized exchanges that have listed the new network and its tokens have used the name LUNA 2 for the new network token and LUNA for the older network currency.

    Methodology:

    The data provided by Flipside has been used to handle this analysis. To handle this investigation the following steps have been passed as below:

    • The contacts deployment on Terra
      • How to find contracts→ tx:body:messages[0]:contract from terra.core.fact_transactions
      • Metrics→
        • Weekly and cumulative count of new contracts
        • Share of sectors (DEX, DeFi and …) on new contracts
        • Application of contracts by count of transactions and users
    • Development of stablecoins (USDC and USDT)
      • Address of tokens→
        • USDC: 'ibc/B3504E092456BA618CC28AC671A71FB08C6CA0FD0BE7C8A5B5A3E2DD933CC9E4'
        • USDT: 'ibc/CBF67A2BCF6CAE343FDF251E510C8E18C361FC02B23430C121116E0811835DEF'
      • Applications of stable coins→
        • Transfer: Count of transfers, Senders, volume, transfer in and out of Terra
        • Swap: Swap and swapper count, volume, popular swap paths
        • LP action: LP providers and transactions, volume, average size of LP actions
    • Conclusion: By aggregating the outcomes of the previous parts and deep dive into the contracts deployment and stable coins applications, draw a conclusion about the Terra blockchain.

    Part 1: Contract deployment on Terra

    Part 2: Development of stablecoins (USDC and USDT)

    Findings:

    This sections presents the contract deployment on Terra blockchain and the outcomes are as below:

    • The weekly and cumulative count of new contracts on Terra blockchain reveals the increasing pattern of adding new contracts on ecosystem.
    • The highest count of new contracts have been deployed on the last week of July 2022 with 107 new contracts.
    • About 70% of new contracts on Terra belong to tokens and the DEXs takes the second rank of new contracts sectors.
    • Now lets focus of the application of contracts on Terra by usage count of application by Terra users.
    • The Astroport has been dominated the contracts on Terra in count of application and users as can be seen. The highest usage of Astroport occurred on the second week of June 2022.
    • Terra poker token has the second highest count of Terra users among contracts of ecosystem.

    Part 2-1: Swap activity of stablecoins on Terra

    Findings:

    • The transfer action has the highest number of applications on stable coins but in term of volume, the swap activity and transfer action have very close shares together.
    • USDC has higher volume for all of the three actions compared to USDT token.
    • The liquidity providing actions by stable coins shown that the USDT has larger average action size than USDC.

    Part 2-3: Liquidity providing actions by stablecoins on Terra

    Part 2-2: Transfer of stablecoins on Terra

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    Findings:

    Among the applications of stable coins on Terra, first lets focus on the swap activity by stable coins on Terra ecosystem:

    • The count and volume of swaps by stable coins reveal the domination of USDC over USDT token .
    • From the volume of swap point of view, the second week of June 2022 has the highest swap volume for stable coins and on that date USDC has over 128 million tokens as swap volume.
    • The average swap size by stable coins shown that the USDT token has higher average swap size compared to USDC most of the times.
    • The cumulative analysis provides the superiority of USDC token on Terra blockchain.
    • The most popular swap path by stable coins on Terra ecosystem is LUNA→ USDC path with 6615 unique swappers and 341 million USDC tokens.
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    Findings:

    • The USDC token has higher volume for transfer action compared to USDT token on Terra.
    • The volume of stable coins transfers out of Terra blockchain was more than transfers into Terra over the time frame of investigation.
    • The cumulative analysis shown that over 262 million stable coins transfers out of Terra accordingly.
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    Findings:

    • The LP actions on Terra blockchain has dominated by USDC token with about 71% of LP volume.
    • Also, USDC has higher count of LP actions and unique LP providers compared to USDT.
    • The USDT token has higher average LP size then USDC and the highest average LP size for USDT occurred on October 3-10, 2022.

    Conclusion:

    According to the consequences of the previous parts related to new contracts on Terra and stable coins application, the following conclusion could be drawn:

    • The trend of launching new and intelligent contracts in the Terra blockchain is increasing and most of these contracts are related to tokens.
    • Stablecoins are a type of cryptocurrency that is price stable over another asset. These assets could be backed up with Fiat currencies including USDC and USDT. These currencies are used to evaluate the overall status of the network.
    • The application of stable coins validate that the swap and transfer are two of the most popular actions.
    • Note that over the investigation period, the outflow of these stable coins from the Terra blockchain has been increasing.

    Author:

    Credited by MZG

    Discord handle: m.zamani#0361

    Twitter handle: @GargariZamani

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