Methodology

We will try to analyze the following tokens in Aave V2:

1. LINK

2. USDT

3. WETH

4. USDC

5. WBTC

6. UNI

7. DAI

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Through this dashboard, we will try to reach the following goals:

1. Daily Supply, Stable borrow, and Variable borrow rates
2. Daily total liquidity in USD
3. Average of Supply, Stable borrow, and Variable borrow rates
4. Daily Supplied WBTC amount and USD amount
5. Maximum and Average amount of supplied WBTC
6. Correlation between USDC stable and variable borrow rates and total WBTC supplied

The period will be set from January 2022.

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What is Aave?

Aave is a decentralised non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralised (perpetually) or undercollateralised (one-block liquidity) fashion.

Depositing and borrowing in Aave

After depositing your preferred asset and amount in the Aave, you will earn passive income based on the market borrowing demand. Additionally, depositing assets allows you to borrow by using your deposited assets as a collateral. Any interest you earn by depositing funds helps offset the interest rate you accumulate by borrowing.

Source 1,2

There is a rate for each token per hour in flipside_prod_db.aave.market_statstable. By finding the average rate per day for all tokens, we can compare them easily in the case of supply and borrow rates.

From the following chart it is clear that USDT, on most days, has the highest supply rates among other tokens.

There was a spike in UNI supply rate between June 12 and June 18 and also we had a smaller spike in USDT after then

Since April, total liquidity started to decline due to the market crash and there are so many sudden drops since then.

The below chart shows the average borrowing rates for mentioned tokens.

USDT had the highest average rate per day for lending on the most days.

Also, same with supply rate chart there is a spike in UNI borrow rate followed by a smaller spike in USDT rate.

The noticeable point is that spike in the variable chart is sharper than the stable borrow rate chart.

Also, In the following pie charts, we can confirm what was said before about the rate comparison, which shows that the USDT had the most significant total average amount in all kinds of the rate.

The below chart shows the WBTC supply amount per day since January 2022. There is no noticeable daily trend, but there are some spike which will be mentioned in the following.

On May 12, about 4.8K WBTC were supplied , and it was the highest amount of WBTC that was supplied in a single day since January 2022.

The following chart shows WBTC supply by USD amount.

We can see the highest USD amount of a WBTC supplied in a single day was 169.8M dollars on May 12.

Also, there are the most noticeable points that can be achieved from the above chart.

The last information we are going to achieve is the correlation between USDC borrow rates and total wBTC supplied.

The comparison shows that both stable USDC and variable borrow rates positively correlate with WBTC supply which means by increasing WBTC supply, the borrow rates also increased.