Introduction

In this dashboard, You will read about Supply and withdrawal on AAVE in the Optimism chain. I went through the AAVE platform and analyzed these parameters:
Weekly and Total Users
Weekly and total transactions
Weekly and total volume in USD
Weekly Net
Users Breakdown
Days of holding
Top Users
Top assets based on transactions and volume

Analyzed by Hess - Reading Time Almost 8 min

Full Analysis

A Summary of The Most Important Findings

Over time, Since March 2022, The total number of users on AAVE increased from weekly 200-300 unique wallets to 4000-5000 unique wallets.
AAVE has 24K depositors on the Optimism chain and 10K withdrawers.
68% of transactions on AAVE are supplied and 32% of them are withdrawn. Deposit transactions are almost 2x than withdraw.
24K users deposited 814M US dollars on Optimism and 10K users withdrew 1.1B US Dollars.
The average deposited volume was 15K US dollars and the average withdrawn was 41K Us dollars.
The large group of users had only one transaction on AAVE and spent up to 1 US dollar.
The average days of holding position are nearly 30 days or 1 month.
Stablecoins like USDC, DAI, and USDT are top assets on AAVE.

Method

In order to understand how AAVE supply and withdraw work, I made a sample transaction on AAVE in the Optimism chain.
I examined my transaction and looked into the Fact event table. I understood that each supply transaction and withdrawal initiate an event name called Mint and Burn and interacted with the AAVE contract address which is 0x794a61358d6845594f94dc1db02a252b5b4814ad.

I extracted the transaction hash of Mint and Burn, Then joined my findings into the fact event table again with the Transfer event and origin_to_address equal

0x794a61358d6845594f94dc1db02a252b5b4814ad.
The contract address is token_address here. So I extracted token_address and the amount of deposit or withdrawal. Now I have a custom table for AAVE Supply and Withdraw activities. Still, one thing is missing. I needed Volume in USD. I Joined my table with Fact hourly token price and calculated the price of assets. By multiplying the amount by the price, I calculated the volume in USD.
Repay and Borrow have a similar event name. How do I eliminate those transactions? When a user borrows from AAVE, there is an action on Log called numTokensReceived. When tokensreceived be equal to 0 then the transaction is related to Deposit. When tokensreceived, do not equal 0 then transactions are borrowing.
Repay has a difference from withdrawal. There is a member action on the Log event which is equal to Ethereum null address.
event_inputs:member = '0x0000000000000000000000000000000000000000’. This action determines the Repay activities.

Users Breakdown

When we examined the average number of transactions, I mentioned that it seems most users deposited only one time on AAVE. As you can see a large group of Users deposited and withdrew only one time on AAVE. This number of users spent up to 1 US dollar. The second large group of users had two transactions and spent 1-10 US dollars.

Top Users and assets on AAVE

A user on AAVE and Optimism chain deposited nearly 400 times. However, this user wasn’t in the top 10 users based on volume. The second place has a huge difference and with 132 deposit transactions is in the second place.
Based on Volume, All top 10 users deposited more than 10M US dollars. The first place deposited 61M US dollars on AAVE. The second top user deposited 41M US dollars and the third place deposited 27M US dollars.

Deposit and Withdraw

Over time, The total number of depositors on the Optimism chain increased from weekly 200-300 unique wallets to 4000-5000 wallets. Overall, There were more depositors on AAVE in comparison to withdrawers. Since August 2022, The total number of depositors increased by almost 100%. However, There were so many ups and downs recently. Also, I can see the total number of withdrawers are increasing in the last weeks. The highest number of withdrawers was in September when 6K wallets withdrew their assets.
About 68% of transactions were deposited and 32% of transactions were withdrawn.
The weekly share of transactions shows that the deposit share was 70-80% but over time and especially in the last weeks, The share decreased to 40-50%. However, There were some ups and downs.

Deposit and Withdraw NET

The weekly Net volume in USD shows that After August 2022, More Volume withdrew from AAVE in comparison to Deposits. In some weeks, The Net reached 300M US dollars. But before August and after September, The deposited volume was higher than the withdrawn volume.

Average Days of Holding

The average number of days holding the position is 29.6 days. It means when a user deposits an asset on AAVE After 29 days withdraw it. Until August, The average days of holding was 47 days but in August dropped to 10-11 days. Again, The average days of holding increased and reached 50 days.

Conclusion

It is true that the total withdrawal volume on AAVE was higher than the deposit Volume over time but In my opinion, We can call AAVE a successful and top platform on Optimism. The Inflow and outflow to AAVE are huge and prove that this platform is Live and healthy. However, There were some unusual activities. Based on transactions, Most transactions were deposited and their growth in the last weeks shows AAVE is moving in the right path. Remember that we are in Bear Market and AAVE grew during Bear Market.

THANK YOU FOR READING!

ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

:bird: Twitter: @hessaminanloo

:t-rex: Discord_id: hess#0890

:calendar: Analyze Date: 2022/OCT/21

What is AAVE?

Aave is a decentralized finance (DeFi) protocol that lets people lend and borrow cryptocurrencies and real-world assets (RWAs) without having to go through a centralized intermediary. When they lend, they earn interest; when they borrow, they pay interest.

What is Optimism?

Optimism is a fast, stable, and scalable L2 blockchain built by Ethereum developers, for Ethereum developers. Built as a minimal extension to existing Ethereum software, Optimism's EVM-equivalent architecture scales your Ethereum apps without surprises.

Until August, The weekly volume of deposits and withdrawals on Optimism was around 1-2M US dollars. But after August, The volume increased significantly. The increases were up to 200-300X. From weekly 1-2M US dollars reached 200-300M US dollars. The highest volume of deposits was 385M US dollars and happened in the first week of August. Overall, The withdrawal volume was higher than the deposit volume.

The average deposit volume in USD on Optimism is 15K and the average withdrawal volume in USD on Optimism is 41K US dollars. Between August 2022 and September 2022, The average withdrawal volume increased up to 333K US dollars. The average deposit volume increased too.

The average number of deposit transactions per user is 1.2 transactions and The average number of withdrawing transitions per user is 1.6. It is interesting because Deposit transactions had more users and these number proves that most users had only one deposit transaction. Between July 25 and September 12, The average number of withdraw transactions increased to 2.5 transactions.

Some Keywords Definition:

Deposit/Mint: AAVE has a feature that user can supply their assets to earn rewards or make them as collateral to borrow assets. Deposit in this dashboard means Supply.
Withdraw/Burn: When users withdraw their supply, a Burn or withdraw action happens. In this dashboard withdraw means users withdraw their supplies.

Median/MAX volume in USD

Based on the Median and Max Deposit and withdrawal volume, The withdrawal volume was higher than the deposit. The median Deposit volume is 0.49 US dollars and the median withdrawal volume was 5 US dollars.
The max deposited volume was 20M US dollars and the max withdrew volume was 60M US dollars. Almost all two parameters increased after August 2022.

Based on transactions, The weekly deposits had a better condition. More Deposit transactions were on AAVE in comparison to Withdew transactions. In only one week the total number of withdraw was higher than deposits. In other weeks, Deposit was higher than withdraw.

Stablecoins like USDC, DAI, and USDT are top assets based on the number of transactions and volume in USD. Following those assets, I can mention WBTC, WETH, and sUSD. The one and the only token is USDC with 23K deposits and 328M US dollars.

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