Sushi's contribution to Polygon growth

    Since Sushi-swap introduced polygon, many have adopted polygon to either swap or use other services. With this in mind, what is the contribution of Sushi to the growth of Polygon user base?

    Introduction

    In this dashboard, I will investigate how much Polygon has grown thanks to SushiSwap. I will look into the TVL of both Polygon and SushiSwap and try to see if there is any correlation between them - i.e., how much SushiSwap has affected Polygon. I have done this analysis in Python and not SQL here on Flipside, as I wanted to get up-to-date on-chain data from both Polygon and SushiSwap. I will also look into the transactional volume of SushiSwap since its launch.

    It's clear that Sushi is an appealing choice for many users, as it offers not only very cool names but also interesting products, such as Kashi, Bento and MISO.

    Source: Polygon x Sushi incentives

    Total Value Locked

    Firstly, let's look at the TVL for SushiSwap and Polygon. I have sourced my data from DefiLlama to plot the two charts below.

    What we can see is that Polygon has a much greater TVL compared to Sushi. The first graph does not show much correlation, due to the fact that Polygon has a much bigger TVL and it makes it harder to see any major spikes in Sushi. Due to this reason, I have rescaled the y-axis and made it logarithmic instead, which is shown on the second graph.

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    Pools since launch

    Let's now have a look at the total transactional volume of Sushi since its launch.

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    This is much better! We can see that first of all - Sushi has been going downhill lately... However, I think there is still some correlation, which can definitely be seen at the beginning of Sushi. During the first months since its launch, that is between June and July 2021, there has been a big spike in Sushi's TVL, followed by a proportional in magnitude spike in Polygon. What this makes me think is that initially, the launch of Sushi contributed to the growth of Polygon. However, I don't think this growth has been sustained later down the line, as there is very little correlation in the later months of the year. We can see some small correlation between October and December 2021, however, it's not clear to me whether this is a direct correlation. Either way, Sushi definitely onboarded some new users onto Polygon, especially in the early months, and that's all that matters!

    What we can see here is that the biggest transactional volume on Sushi comes from SushiSwap WMATIC/ROLL pool! This confirms that Sushi definitely did contribute to the growth of Polygon - if their most popular pool is the Matic pool, with the total transactional volume being almost 350k $ then the answer to this bounty is pretty clear!

    This visualisation also shows that users like to contribute to the SUSHI/WETH pool, as well as the USDC/Other pool. The rest of the pools, such as the FRAX/FXS pool, SUSHI/USDC pool or the LINK/WETH pool are not as popular, with their transactional volume all being less than 100k$.

    Conclusion and further work

    Even though the TVL graphs don't show a lot of clear correlation between the growth of Sushi and Polygon, the last graph of this dashboard, the visualisation of the total transactional volume per each pool within the Sushi ecosystem, has shown that there is a direct correlation. I'm glad to see that Sushi's most popular pool is the Matic pool and that since the launch of Sushi Polygon has grown. It would be interesting to see how many wallets have been interacting with Polygon and Sushi only on a daily basis - but I think that's for another bounty! :)