Question:

How is user behavior different on Optimism compared to L1?

Specifically, create a comparison between swaps and transactions on ETH mainnet vs Optimism, looking for things like daily swap volume, daily active users, and average volume swapped (use a single DEX for your comparison, either Uniswap or Sushiswap).

L2 is far cheaper, but by how much? What are the average fees for a swap on Optimism compared to ETH Mainnet? 

About Optimism:

Due to the high density of transactions in the Ethereum network, second layer technologies have come to the aid of this network to reduce the transaction time and also the transaction sending fee in this popular network. Optimistic is one of the Ethereum layer two solutions that uses Rollup technology to provide its security from the Ethereum network, but it will reduce the transaction cost in the Ethereum network by 100 times.

Optimistic is one of the most famous second layer solutions of Ethereum, which is provided with the aim of making Ethereum more scalable. This second layer solution increases the speed of transactions in the Ethereum network and significantly reduces the cost of transactions.

About Sushiswap:

Sushiswap is the newest liquidity pool platform in the field of DeFi. This platform is a community-based decentralized exchange and automatic market operator that people can participate in its management through voting. Using this platform, people can add their tokens to liquidity pools (liquidity providers) and earn rewards in return. The platform allows anyone to provide liquidity and in return, these people are rewarded with tokens.

Now lest track the application of Sushiswap on Ethereum and Optimism networks.

Methodology:

The data provided by Flipside has been used to handle this analysis.

In this analysis, the following topics have been covered:

• Swap related metrics→ Swap number, swapper count, volume of swap
• Fee analysis→ Total fee, average fee, average fee per swapper, 7-Day moving average
• Purchaser distribution→

  • By volume of swap→

    WHEN (AMOUNT_IN_USD) <= 10 THEN 'a.below 10'

    WHEN (AMOUNT_IN_USD) > 10 and (AMOUNT_IN_USD) <=50 THEN 'b.10-50' WHEN (AMOUNT_IN_USD) > 50 and (AMOUNT_IN_USD) <=100 THEN 'c.50-100' WHEN (AMOUNT_IN_USD) > 100 THEN 'd.above 100'

  • By frequency of usage→

    when no_swaps=1 then 'One time swapper' when no_swaps>1 and no_swaps <5 then '1-5 times swapper' when no_swaps>5 then 'More than 5 times swapper'

• The default time period is set to the past 90 days.

The outcomes and observations are done for the past 90 days.

Part 1: General stats of Sushiswap application on Optimism and Ethereum

Findings:

• Sushiswap has far greater application on Ethereum network rather than Optimism.
• According to the highest application of Sushiswap on Ethereum, some of the metrics could not be compared in the reasonable manner but metrics that has average tags could be useful.
• Average paid fee for swaps of Sushiswap on Optimism is smaller than Ethereum tremendously.
• The average paid fee per swapper on Ethereum is 30x more than Optimism network.
• As we expected, the Optimism is very cheap in comparison with Ethereum network.

Part 2: Daily usage of Sushiswap application on Optimism and Ethereum

Findings:

• The domination of Ethereum network can be seen from the daily swap stats of Sushiswap on various networks.
• Daily paid fee for swaps of Sushiswap on various network reveals how Optimism cheaper than Ethereum by far.
• Daily average paid fee and 7-day moving average paid fee for swaps of Sushiswap on various networks validate the cheaper transactions belong to Optimism network.
• The average swap volume in USD shown the high rate usage of Sushiswap on Ethereum compared to Optimism as L2 chain.

Part 3: Sushiswap swappers behavior on Optimism and Ethereum

Findings:

• Most of the swaps of Sushiswap on Ethereum happened on bucket over 100 USD about 80% of swaps.
• But for Optimism, about half of the swaps of Sushiswap belong to the swaps with volume under 10 USD.
• The congestion of buckets affected the average paid fee on networks and as can be seen the most paid bucket on Optimism is swaps with under 10 USD volume.
• Now lets see the frequency of usage of Sushiswap on various network.
• According to the results, 62% of swappers of Sushiswap on Ethereum are one-time swapper and it s the largest group of users.
• On Optimism most of the users, swapped between 1 to 5 times.

Conclusion:

• The usage of Sushiswap on Ethereum network is higher than Optimism as expected due to the popularity and historical background of Ethereum.
• The Optimism which introduced as L2 chain for scalability solution of Ethereum, has the lower transactions fee compared to the Ethereum network.
• The Most of swaps on Ethereum has larger volume (in USD) compared to Optimism.

Useful links:

• Optimism DEXs
• Sushiswap on Optimism
• Sushiswap on Ethereum

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani