Introduction

Stablecoins play a crucial role in the DeFi ecosystem on the blockchain. Users rely on them to exchange tokens to and from fiat equal tokens. In addition, arbitrageurs use stablecoins for arbitrage. While earlier stablecoins such as USDT and USDC were pegged to a fiat currency, recent stablecoins are algorithmic, crypto collateral-backed, or commodity-backed.

Commodity-backed stablecoins, are pegged to assets like gold, providing stability and value. These stablecoins offer stability by having a tangible asset backing their value, and they provide investors with a way to gain exposure to commodities within the crypto ecosystem, merging traditional finance with digital assets. Examples of these commodity-backed stablecoins include AGX and AUX, which are coins that are 100% backed by one-milligram of 99.99% investment-grade silver and pure gold, respectively.

Aims

This dashboard examines the swaps of these AGX and AUX on the Avalanche blockchain and provides user analysis on what type of users are buying this asset class. It also looks at whether AGX and AUX buyers participate in DeFi, own NFTs, or onboard liquidity from a centralized exchange (CEX).

Finally, the dashboard determines if users are using these assets anywhere else on the chain or if they are simply holding them.

Method and Data

To analyze the data presented in this analytic dashboard, the following methodology was employed:

Data: Relevant data regarding the swaps, transaction volumes, user characteristics, and NFT actions of commodity-backed stablecoin (CbSc) users and average users on the Avalanche blockchain were collected from Flipside's avalanche.core schema. This data includes information such as swap volumes, transaction sizes, user interactions with different sectors (DeFi, DEXes, NFTs), and trandfers from CEXes.

Price Analysis: The prices of gold and silver, were tracked over a six-month period using BullionByPost. This analysis provides insights into the price movements of the commodity-backed stablecoins in relation to their underlying assets.

Swap Analysis: The net volume of AUX swaps and AGX swaps was calculated by subtracting the volume of commodity-backed stablecoins swapped for other assets from the volume of commodity-backed stablecoins swapped for those assets. The average swap size, daily, weekly, and monthly swap volumes, and overall swap trends were examined to understand the popularity and usage patterns of AGX and AUX.

User Characteristics: User analysis was conducted to compare the transaction behaviors and funding sources of CbSc users and average users. The average number of transactions, transaction sizes, and the percentage of users funded through centralized exchanges (CEXes) were analyzed to highlight the differences between the two user groups.

Sector Breakdown: Transactions were categorized based on the sectors users interacted with, including DeFi, DEXes, NFTs, and dApps using table dim_labels. The percentage of users engaging with each sector and the distribution of transaction volumes across sectors were analyzed to identify the preferences and trends among CbSc users and average users.

NFT Analysis: The NFT actions of CbSc users and average users were compared. The number of NFT sales and the volume of NFT sales were examined to understand the involvement of CbSc users in the NFT market. A specific focus was placed on the last 90 days to identify recent trends in NFT sales.

More about the Author

Twitter: @SocioCrypto

Discord: SocioCrypto#1741

Flipside Profile: https://flipsidecrypto.xyz/SocioCrypto