Solana is in Danger!

• Solana blockchain was one of the most affected by the FTX/Alameda crash, because during the crash FTX starts to sell over 11% of the total Suppy of SOL since 2020.
• So FTX/Alameda starts to sell SOL tokens to compensate their outflows of money which results in the SOL price reaching a new floor price over the period of the events, affecting all the projects in Solana.
• Serum was a popular DEX in Solana but sadly their true power rested with FTX Group which hold the program update authority keys.
• After The hack of FTX in November 12, Serum developers starts to work intensive in a project that doesn’t have ties to FTX.
• Days After finally behind a github organization across multiple solana teams including Serum, launch a new project called Openbook.
  • Open Book is a community-led fork of the Serum V3 program. The CLOB formerly known as Serum V3.

What’s the deal with FTX? - Important Events

• After an article from coindesk regarding Alameda balance sheet, besides that the highest amount in the report was from FTT, the token from FTX Exchange, their “sister company” there was a question which wasn’t answered:

  • Where is the source of the company’s 8 billion dollar loan?.

• Caroline, the CEO of alameda published a twitter regarding this article, but wasn’t enough and Binance CEO starts tweeting about liquidate their FTT.

  • The answer from both CEO’s of Alameda and FTX was that they were going to buy that FTT.

• The main reason for the actions of Binance CEO was to avoid another Luna incident, and because of these tweets, and the fear from another Luna Crash, people starts to withdraw their funds, which led to Alameda and FTX crashing into the ground.

  • FTT token value plummeted down, which led to FTX to sold their SOL plummeting down their price.
  • All the cryptoworld was suffering a big downtrend in prices during the fall of FTX and a lot of investors start to leave.

• In the end FTX declares their bankruptcy in November 11, and their CEO Sam Bankman-Fried steps out.

  What Happened now then?

• In November 12 FTX wallets suffer a hack, ETH and SOL was transfer to new accounts created in Ethereum and Solana, it seems that this wasn’t an external attack and more that some from the inside stole the remaining customers money that were in the wallets

• There was a lot of activity for the new accounts and a lot of Meme tokens where moving to the heist wallets and the FTX wallets.

• FTX Group has established Kroll as its claims agents.

  There is a lot of articles about what happened but you can read here the interview to SBF, in the end it doesn’t matter who’s right or wrong, the damage is already done, and we hope that blockchains can regain the people trust again, after all the incidents from this year.

Openbook and Serum Metrics

Openbook Activity starts to increase really fast, November 15 the growth ratio was over 755% in comparison to November 14, and since then the transaction activity seems to be more lower on Weekends (Friday 18 to Sunday 20) but then on Monday 21 the transaction activity reach a new spike again

Everyday the new users reaching openbook are higher than the existing users, with a good percentage of New users which increases after weekends.

• Cumulative Transaction vs Active Users seems to correlate really well, both are increasing at the same ratio.
• Active Users and Transactions seems to be more correlated in Weekdays such as Monday but in the Weekend this correlation starts to broke.

Openbook liquidity reach the spike in growth ratio on November 15 with more than 825% of Liquidity over the previous day, it’s seems that their liquidity reach a spike in Sunday, with most users looking to provide liquidity before Monday when market activity starts to move.

Overall the Growth Ratio of Liquidity is really good.

• Transactions and Liquidity flow both suffer the most decrease over the FTX events.
• Serum Transactions were at their highest before and during the Twitter Drama.
• Serum Users were the most active When FTX starts crashing.
• Liquidity was at their highest during the Tweet drama between Binance and FTX.
• Liquidity DoD Growth Ratio during the crash was -36% on November 8, -54% on November 9, and then it goes lower until -95% during the FTX Hack on November 12.
• As daily users starts to uptrend, transactions starts to downtrend but after November 9 both correlates in a Downtrend.

Transactions were at their highest during the twitter drama, User activity was at their highest during the crash, after the crash transactions reach a lower floor and user activity seems have a bit less of activity than before the FTX events.

DeFi and DEX in Solana

The worst Growth Ratio in Transactions was -68% From November 11 to November 12, New users spiked on November 9, Overall the percentage of new users stays over 40%.

DeFi/DEX Liquidity Growth Ratio starts to decrease after November 7 (Day when the liquidity was at their highest) reaching their worst growth rate of -87% in November 12, after that the growth rate starts to rise again to positive numbers and falls again in November 18 reaching a growth rate of -87% Again.

The Daily Liquidity After November 12 is really low if we compare it with the Liquidity in November 9 (almost invisible if not for the Growth rate)

Methodology

• Using Flipside data tables of Solana
• I claimed this question 3 hours before so i was rushing most of the queries.
• thanks to Alik110 and Adriaparcerisas for some queries i used to finish this ASAP

Summary

• Liquidity and transaction suffer the worst damage being less than 10% of what they were before the Events of FTX
• User activity seems to mantain overall.
• Openbook Project have a lot of influece in the last days
• Serum Activity was really important in Solana and the crash affected a lot this project and the Solana Ecosystem in general.

Openbook Presence is really visible after the eventes of FTX Crash, Serum was the most affected overall.