Velodrome Health

    Q10. Create at least 3 metrics on Velodrome with a description for each that showcase traction and success in a data-driven manner.

    Introduction

    Velodrome has been gaining its popularity on Optimism - it seems like people are talking about it all the time. But how successful the platform really is? This dashboard will investigate a variety of metrics, in order to assess how healthy and successful Velodrome really is. We will look at some all-time values, and also zoom in to the past few weeks to see how much traction to Velodrome there has been. We will also consider whether there has been any decrease in users’ activity on Velodrome since the wallet exploit that happened at the beginning of August. Even though Velodorme restored all stolen funds, it will be interesting to see whether the event itself had any negative effects on the ecosystem.

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    ==-- General Health Metrics --==

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    Key points:

    • The daily number of unique users interacting with Velodrome seems to be increasing overall, which is good news - meaning that users see a lot of potential in the platform. We can also see that after the funds were stolen on the 4th of August, we can see a huge decline in activity in the following days. However, we can see that this activity has returned back to normal very quickly - which implies that the exploit didn’t scare many users.
    • The daily inflow and outflow volume in USD also tells us that Velodrome is a pretty healthy protocol, as we can see that the inflowing amounts are usually greater than the outflowing amounts.
    • Users swap the most in the OP-USDC pool, which makes a lot of sense - after all OP is the native token of Optimism. We can also see that this agrees with the number of fees spent on swaps, as well as the fact that OP is one of the most swapped to and from tokens on Velodrome, and so is USDC.

    ==-- User activity on Velodrome --==

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    Conclusion

    This dashboard focused to answer the key question: how healthy is Velodrome? We have looked into some general metrics first, such as the number of transactions or the inflowing and outflowing USD volumes in order to get a general idea of how the project is doing. We have then deep-dived into which pools users mostly interact with, as well as which tokens are most popular and what are users doing, by looking at different actions. Having kept in mind the very recent exploit, we have asked the question of whether it had any negative effects on the ecosystem, and we have seen decreased activity levels - but only for a very short period of time. It was good to see that after Velodrome restored the lost funds, users came back to the project and the popularity resumed quickly. Lastly, we have seen that a lot of users locked their assets for the maximum locking period of 4 years, with the average locking period being just over three years - which only reinforces the trust users have in Velodrome, showing that overall, this is a healthy platform!

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    Key points:

    • It’s great to see that deposit actions are vastly dominating the withdrawing actions from LPs. It means that a lot of os users are staying on Velodrome, which in turn implies that the platform is healthy.
    • The action-focused chart tells us what most users are doing, and we can see that there are a lot of LP interactions, as well as swaps and claiming rewards actions. All of these actions have decreased in numbers right after the exploit, however, I think it is safe to say that after Velodrome restored the stolen funds, the activity resumed back to normal.
    • We can also see that a lot of users are locking their assets for the longest duration period, namely 4 years (graph taken from Analysis Of Velodrome Finance Locks) . If users trust the ecosystem to keep their money safe for such a long period of time, this could mean only one thing - that they believe the platform to be safe and healthy.
    • Users are also engaging in voting actions, we can see that a lot of votes have been recorded in the VELO-USDC and OP-USDC pools, both pools we have seen to be very popular on Velodrome by a number of transactions and users interacting with them.

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    • Dashboard by -nat-#4310
    • Twitter:
    • Refresh Rate - Daily
    • Data from FlipsideCrypto
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