Introduction

    • In This Dashboard, You will read about some popular DEXs in different chains.
    • We want to track their changes before and after the FTX crash. Because so many users are seen, DEXs are safer than CEXs after the FTX meltdown.
    • So, I chose 6 DEXs from three chains:
      • Uniswap-v2 and Balancer on Ethereum

      • Sushiswap and Velodrome on Optimism

      • Juppiter and Raydium on Solana

    I examined some key parameters on these DEXs like Swappers, Swaps, Volume and New Users

    Analyzed by Hess - Reading Time Almost 8 Min.

    What are DEXs?

    • A decentralized exchange (or DEX) is a peer-to-peer marketplace where transactions occur directly between crypto traders. DEXs fulfill one of crypto’s core possibilities: fostering financial transactions that aren’t officiated by banks, brokers, or any other intermediary. Many popular DEXs, like Uniswap and Sushiwap, run on the Ethereum blockchain.

    • Unlike centralized exchanges like Coinbase, DEXs don’t allow for exchanges between fiat and crypto — instead, they exclusively trade cryptocurrency tokens for other cryptocurrency tokens. Via a centralized exchange (or CEX), you can trade fiat for crypto (and vice versa) or crypto-crypto pairs — say some of your bitcoin for ETH. You can also often make more advanced moves, like margin trades or setting limit orders. But all of these transactions are handled by the exchange itself via an “order book” that establishes the price for a particular cryptocurrency based on current buy and sell orders — the same method used by stock exchanges like Nasdaq. 

      Decentralized exchanges, on the other hand, are simply a set of smart contracts. They establish the prices of various cryptocurrencies against each algorithmically and use “liquidity pools” — in which investors lock funds in exchange for interest-like rewards — to facilitate trades. 

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    Users and Sales Growth per Platform

    Before DEX analysis, Let’s review DEXs and their chains to understand charts better. Balancer and Uniswap on Ethereum, Velodrome, Sushiswap on Optimism, and Jupiter and Raydium on Solana.

    • Among these DEXs, Balancer and Jupiter had the highest growth in swap volume in the last 30 days. Raydium and Sushiswap had the lowest growth.
    • Based on Users, Sushiswap and Balancer had the highest growth, and Raydiym and Uniswap had the lowest growth.
    • The below numbers are in percentage.
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    Swappers and Transactions per platform

    • After the FTX crash, Uniswap and Jupiter's swappers increased more than other DEXs. The interesting finding is that Sushiswap, Balancer, and Velodrome swappers didn’t change after the FTX crash. The total daily number of swappers decreased on all chains three days after the FTX meltdown.

    • Only Raydium had higher swappers after the FTX crash. Other DEXs had more users before the FTX crash.

    • Based on swap transactions, Numbers are a little different. Jupiter, Sushiswap, Balancer, and Velodrome had more swap transactions after FTX compared to their swaps before the FTX meltdown.

    • Due to Alameda and its relation to Solana, The total daily number of swaps on Solana increased significantly. The difference between Jupiter and other DEXs was too high, and we can not compare Jupiter with other DEXs.

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    New Users Per Platform

    • Optimism DEXs, Velodrome, and Sushiswap had more new users after the FTX crash in comparison to the days before FTX. The average number of swappers on Velodrome was 866 swaps before the FTX crash, but after FTX, the average number of swaps was 1.3K unique wallets.

    • For two days after the FTX crash, DEXs Faced more new users in comparison to other days. But after two days, The total daily number of new users decreased over time.

    • Uniswap had the highest number of new users before and after the FTX crash.

    • Overall, Uniswap had 131K new users before FTX, while after the FTX meltdown had 86K new users.

    • Among these DEXs, Sushiswap and Balancer had the lowest number of new users before and after the FTX crash.

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    What is Uniswap?

    • Uniswap is a cryptocurrency exchange which uses a decentralized network protocol. Uniswap is also the name of the company that initially built the Uniswap protocol. The protocol facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts

    What is Balancer?

    • Balancer: The Most Versatile Automated Market Maker. Balancer's (BAL) algorithms manage interactions between liquidity providers, liquidity pools, and traders to rebalance assets and find advantageous prices for users. By Fernando Martinelli, Co-Founder & CEO, Balancer Labs. 

    What is Velodrome?

    • Velodrome is an AMM designed as the central trading and liquidity marketplace on Optimism Network. It is the next evolution of theSolidly Exchange model introduced by Andrew Cronje.

    What is Sushiswap?

    • SushiSwap is a software running on Ethereum that seeks to incentivize a network of users to operate a platform where users can buy and sell crypto assets. Similar to platforms like Uniswap and Balancer, SushiSwap uses a collection of liquidity pools to achieve this goal.

    What is Jupiter?

    • Jupiter is the key liquidity aggregator for Solana, offering the widest range of tokens and best route discovery between any token pair.

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    What is Raydium?

    • Raydium is an Automated Market Maker (AMM) and liquidity provider built on the Solana blockchain for the Serum Decentralized Exchange (DEX). Raydium has first-mover advantage as an AMM within Serum and it will be an integral part of bringing new and existing projects and protocols into the ecosystem.

    Full Analysis

    Swappers and Swaps Per chain

    Before I examined DEXs, I looked at DEXs per chain.

    • As you may know, FTX crashed on November 7. The total daily number of swappers increased a day after the FTX crash on all chains. It seems Solana had the higher growth in the number of swappers. The reason is that FTX has a direct relation to Solana. FTX's mother company, Alameda, is one the biggest investors of Solana. After four days, The total daily number of swappers decreased in all chains.
    • Overall, The average number of users on Ethereum and Solana before FTX was higher than After the FTX crash. Only DEXs on Optimism were a little higher after FTX.
    • Like the Number of swappers, The total daily number of swaps increased too. The total daily number of swaps on Solana increased significantly, Almost became 7x higher than normal days, and it takes almost two weeks back to the normal days.
    • The total number of transactions on Optimism and Ethereum increased, too, but it wasn’t too much.
    • The average number of transactions on Solana after FTX crash was much higher than before FTX. Also, Optimism was a little higher after FTX but Ethereum DEXs had more transactions before FTX compared to After FTX.
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    Swap Volume per chain

    So Far, I have examined the total daily number of swappers and swap transactions and compared their changes before and after FTX.

    • The total daily swap volume increased a day after the FTX meltdown significantly, Especially on the Solana chain. The total daily swap on Ethereum and Optimism increased almost 2x, but on Solana, the total daily swap volume increased from 30-35M daily up to 269M US dollars. After a short time, Their swap volume backed to the normal days.
    • Overall, The total swap volume on all chains after FTX was higher than before the FTX crash.
    • It is interesting that the average swap volume on Optimism didn’t change too much. On Solana, The average swap volume decreased after one day. Ethereum had the highest growth in Average swap volume. The average swap volume on Ethereum increased from 1.7K to 7.3K US dollars.

    New Users Per chain

    • Remember that, These numbers are based on 6 DEXs on these chains that I mentioned in the introduction.

    • Solana DEXs had the highest growth in the number of New swappers compared to other chains. Unline Solana, The total daily number of new users decreased on Ethereum and Optimism.

    • However, The highest number of new users on Optimism that used DEXs was four days after the FTX crash.

    • Overall, Ethereum and Solana chains had a higher number of new users before FTX, but on Optimism, after FTX was higher than before FTX.

    Swap Volume Per platform

    • It seems the FTX crash impacted on DEXs Swap volume the most. Almost all platforms had more volume after FTX than the days before the FTX meltdown.

    • Two days after the FTX crash, The swap volume on Balancer, Uniswap, and Jupiter increased more than other DEXs. However, After a short time, The total daily swap volume backed to the normal days before the FTX crash.

    • Based on the average swap volume, Numbers on Balancer changed completely before and after FTX. Before the FTX crash, The average swap volume on Balancer was 51M US dollars per day, but after FTX became 2x higher.

    • Jupiter is another DEX that FTX impacted the most. The average swap volume before FTX was 20M US dollars, but after FTX was 36M US dollars per day.

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    Top swapped Tokens per platform

    I analyzed the top tokens that users swapped from and to based on total unique swappers before and after the FTX crash.

    • It seems the top tokens didn’t change before and after FTX. For example, WETH and USDC are popular tokens that users swapped from before and after FTX. The interesting change was USDC on Raydium. Before FTX, The total swaps from USDC was 2.5K before FTX, but after FTX increased up to 10K.
    • You can see Other tokens that users swapped from and to.
    • I don’t want to repeat my findings. The top tokens that users swapped to were similar to swaps from tokens.

    Conclusion

    • The main question of this dashboard was whether DEXs users and volume changed after FTX. Because users have less trust in CEXs. Based on the findings, I can not say that swappers and volumes changed too much.

    • Based on swappers, more users swapped their tokens before the FTX crash compared to the days after FTX.

    • But based on Volume, I can say that changed. More volume went through DEXs after the FTX crash. Especially a day after FTX. So, Based on volume, I can see some changes but based on swappers not. However, It seems these users had more activities because the total number of swaps changed after FTX. Especially DEXs on Solana.

    THANK YOU FOR READING!

    ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

    :bird: Twitter: @hessaminanloo

    :heavy_heart_exclamation: Discord: hess#0890

    :calendar: Analyze Date: 2022/DEC/07