Question:

Create at least 5 metrics on Velodrome with a description for each that showcase traction and success in a data-driven manner.

Most importantly, your insights should help our readers answer the question "How healthy is this project?"

Overview of study:

This analysis is divide into the 3 major parts:

• The trade analysis on Velodrome finance
• The LP actions on pools of Velodrome finance
• The Lock actions on Velodrome finance

Used Metrics and approach:

To handle this investigation, the Data provided by Flipside community has been adopted, accordingly.

The data related to Optimism network have been shown by optimism tables on Flipside. The sub-parts of this mentioned table have been utilized by its application:

• The Velodrome swaps handle by velodrome.ez_swaps table.
• The LP on Velodrome handle by velodrome.ez_lp_action table.
• The Velodrome locks uses velodrome.ez_velo_locks table.

Used Metrics are:

• Count of actions
• Users
• volume
• Newcomers

Part 1: Swaps and related analysis

Notable findings:

The notable findings related to the swaps on Velodrome have been summarized as below:

• In the day after attack, the usage of swap program reduced dramatically but it recovers very fast by the help of community.
• The breakpoint on Cumulative volume reveals the occurrence of an unfortunate incident on August 4th.
• The count of distinct swappers dropped from 2519 to only 255 wallets on August 4 and its the warning alert for every protocol.
• As one of the most significant tools, the count of newcomers have been utilized to underestimate the health of project.
• According to the graph related to newcomers, Although the number of new users decreased significantly on August 4, but after that date, it was recovered to community after returning the stolen amount.
• Now lets concentrated on the recent crisis due to the FTX platform.
• As can be seen from various aspects the Velodrome finance remain healthy after these recent events.
• The number of newcomers did not reduced dramatically and the application of Velodrome finance trade tool remain at its pervious level in that period.
• The average swap volume during various events like attack or recent FTX crisis reveals that the Velodrome finance has the same level of average trade volume as it had on the other days.

Part 2: LP actions

Findings:

Additionally, use LP actions to determine the impacts of attack and underestimate the health of Velodrome:

• The count of deposit is far more than withdraw in the daily basis.
• The usage of LP on the week after the attack reduced significantly but the recent events related to FTX did not affected to much.
• As a side effect of attack on Velodrome LP actions, the trend of withdrawal on Liquidity pools enhanced after attack but the deposit action dominated the process even after attack.
• The USD value of deposit and withdraw on liquidity pools reveals the huge withdrawal about 17.5 million USD and deposit about 9.9 million USD. The net balance change is about -7.6 million USD withdraw on August 4 and its mainly because of attack on that date.
• Also as can be seen after the recent FTX crisis the volume of withdrawal increase dramatically.

Part 3: Velodrome Locks

Findings:

The locks on Velodrome finance summarized as below:

• The lock action dominated the process in the total time period.

• On August 4, the amount of unlock was more than lock and after that date locking action the amounts have been dominated.

• The domination of locking action from various points like count of actions and volume in USD have been shown that the Velodrome finance remain healthy even after attack on August 4 or even recent FTX crisis.

• The highest volume of lock on Velodrome finance happened on the week connected July 25 to August 1, 2022 with over 2.08 million USD deposit.

Useful links:

• Velodrome DOCs
• Reports on Attack
• Recent FTX crisis

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani

About Optimism:

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 or transactions. In this solution, Ethereum network transactions are processed in the second layer and only the information of that transaction will be stored on the main Ethereum network. As a result, the security of this solution is provided by the Ethereum main network, which increases the reliability of this method.

About Velodrome finance:

The Velodrome finance is a decentralized exchange (DEX) based on the Optimism blockchain. Since the Velodrome decentralized exchange is based on the Optimis blockchain, it offers all the features of this blockchain to its users. In fact, this exchange allows digital currency market participants, users and traders to exchange their cryptocurrencies with each other using this exchange.

This decentralized exchange also functions as an automated market maker or an AMM based on the Solidity programming language.

Attack on Veldrome finance:

On Aug. 4, one of Velodrome’s high-worth wallets — dedicated for operating funds such as salaries — was drained off $350,000 before it could be transferred to the company’s treasury multisig wallet. A subsequent internal investigation revealed the attacker’s identification, which allowed the company to recover the entire loot. Velodrome’s official statement revealed:

> “Much to our disappointment, we learned the attacker was a fellow team member Gabagool.”

Recent Events on crypto universe:

The issue started a week ago when several researchers began looking deeper into SBF's finances, specifically its trading company Alameda Research, to determine that there was a funding risk due to the overrepresentation of the FTT token on its balance sheet.

The crypto community is braced for the FTX crisis. Up until this point, most of the bearish crypto market was the result of macroeconomic conditions.

Conclusion:

• From the outcomes of this investigation it can be seen that the application of Velodrome finance from various aspects remain healthy after experiencing Attack on August 4 or even recent FTX crisis in the crypto universe.
• The main concern related to the health of protocol is its popularity and public trust. In the day of attack and the following day, the usage of Velodrome greatly reduced but after returning money and announcement from attacker, the trust among investors has been enhanced. Also, the FTX crisis did not affect the Velodrome finance considerably.