Introduction

According to the docs, Velodrome Finance, at its core, is a solution for protocols on Optimism to properly incentivize liquidity for their own use cases. They have their own token called $VELO, which users can lock for some time and gain voting power.

There are two type of liquidity pools in Velodrome Finance:

Stable Pools

Stable pools are designed for assets which have little to no volatility. This means that the formula used for pricing the assets allows for low slippage even on large traded volumes.

> x³y + y³x ≥ k

Variable Pools

Variable pools are designed for assets with high price volatility. These pools use a generic AMM formula.

> x × y ≥ k

In this Dashboard, we are going to:

• Analyse the daily activity of Locks, we take a look on how many locks are created daily and how much VELO is locked each day
• Take a look at the most common durations to lock
• Find the top wallets in past 4 weeks by the number of locks made and the volume locked
• Find the top pools that users voted for
• Look for top voters

Approach

In this study, in addition to the code provided and optimism.core.fact_event_logs table, the optimism.core.fact_transactions table is also used to find the pool voting data.

To better understand the duration of each lock, an approximate range is used instead of displaying exact numbers.

In order to vote, users had to interact with a contract with the following address : 0x09236cff45047dbee6b921e00704bed6d6b8cf7e .

Signature for vote method is ORIGIN_FUNCTION_SIGNATURE = '0x7ac09bf7'.

The following piece of code is used to extract pool address from transaction input data:

CONCAT('0x', SUBSTR(INPUT_DATA :: STRING, 291, 40))

The name of the pools was extracted by ==c2ctrader== on discord, It is necessary to credit their efforts.

Top Voted For Pools

The following chart shows the pools that wallets vote for with their locked tokens most often.

It can be seen that:

• VELO/USDC pool had the most votes (almost 36%), followed by OP/USDC with 23% of the votes.
• 6 out of top 10 pools belong to Variable Pools, and 4 of them belong to Stable Pools.
• The share of stable pools from votes are far less than variable pools.

Top Wallets by Value Locked

The following chart shows the top wallets by the amount of VELO token they have locked.

It is interesting to note that almost none of the top wallets that have locked the most tokens are on the list of the top tokens that have created the most locks.

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The following charts show the top wallets by the number of locks created, excluding Velodrome Finance wallets to get a better perspective.

Top Wallets By Number of Lock

The following chart, shows the top wallets by number of locks created during last 4 weeks. A quick glance shows that a particular wallet has a disproportionate value compared to other wallets. By looking further, It can be understood that this wallet actually belongs to Velodrome themselves. In order to get a more reliable result, we are going to exclude every wallet that belongs to Velodrome Finance, these wallets can be found here :

The next charts show the top wallets with exclusion of these wallets.

Most Common Lock Durations

The graphs below show the most common durations for locks. Interestingly, Users are more interested in longer durations. locks longer that 3 years account for more than ⅔ (or 66%) of all lock durations. Currently more than 1900 locks were created with 4 years or more of lock duration.

Can this result mean that most users are confident in the future of Velodrome Finance? Let's, in the next section, take a look and see the total value of locks that have duration of more than 3 years and compare their value to other locks.

Top Voter Wallets

The following graphs show the top voters.

• 0xe247340f06fcb7eb904f16a48c548221375b5b96 has voted more than 100 times, 3 times more than the next voter.
• The top voter wallet is also the top lock creator wallet.
• This wallet is also active in Fantom ecosystem.

Useful Resources:

Learn more about types of liquidity pools here, there are some visual representation of the formulas mentioned in the Introduction section →

Daily Analysis

The chart below show the daily number of locks created, the next chart shows the amount of $VELO token used each day to create these locks.

These charts show the information of the last 4 weeks.

It can be seen that:

• The number of locks created has increased over the past few days.
• The amount of tokens locked has also increased in past few days.
• On July 17th, although a relatively large number of locks were created, the amount of locked tokens is relatively low.

Comparison of The Value of Longer Locks with Shorter Locks

In the last section, we saw that the number of longer duration (3 years or more) locks is much more (almost 66%) than the rest of the locks, we also asked if the value of longer duration locks is higher or not, in this section we are going to answer this question.

The charts below depict the value and the ration of longer duration locks (more than 3 years) versus shorter duration locks. It can be seen that

• Only 12% of the value locked belong to the longer duration locks.
• the value locked in shorter duration locks is more than 7 times than longer duration.

Summary

• The number of locks created and the amount of tokens locked has increased over the past few days.
• More than 66% of all lock are longer duration locks, with a duration of 3 years or more.
• These longer duration locks, account for only 12.5% of the value locked.
• VELO/USDC pool had the most votes.
• 6 out of top 10 pools are variable pools and 4 of them are stable pools.
• The share of stable pools from votes are far less than variable pools.
• The top voter wallet is also the top lock creator wallet. This wallet is also active on Fantom Network.