Sushi and the Merge

    Introduction

    • In This Dashboard, You will read about Liquidities on Sushiswap after and before the merge. I went through the Sushiswap platform and analyzed Add liquidity and Remove Liquidity two weeks before and after the Ethereum Merge. We want to know if It got many market makers (MM) to remove liquidity from defi to lower their risk. After the merge, some have redeployed the liquidity, and some haven't. I analyzed these parameters:
    • Add/Remove Liquidity Before and after the Merge
    • Daily Net
    • Top Pairs

    Analyzed by Hess - Reading Time Almost 10 min

    Method

    • First, I extracted pair addresses, and tokens from ethereum.core.dim_dex_liquidity_pools the table. Then joined my findings into ethereum.core.fact_event_logs the table with Mint, Add, Burn and remove event names filter. Also, I put the Sushiswap contract address as origin_to_address which is 0xd9e1ce17f2641f24ae83637ab66a2cca9c378b9f.
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    Remove Liquidity

    • About 101 LP providers removed their liquidity a day before the Ethereum Merge. After merge day, The daily activities are back to normal like before the merge. 712 LP providers removed their liquidity before the merge and 548 LP providers removed their liquidity after the merge.
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    Add and Remove Liquidity

    • These two charts perfectly show how LP providers removed and added liquidity before and after the merge. I calculated the daily number of add and remove liquidity transactions and volume together.
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    Pools

    As I mentioned, The Top pool based on volume in USD was USDC → WETH in add and remove liquidity. A huge volume was removed from USDC → WETH before the merge and a day after again a huge volume was added to USDC → WETH Pool.

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    A summary of the most important Findings

    • The short summary is most users removed their Liquidities and most of them added their liquidities again right after the merge.
    • The total number of added liquidity transactions, Lp providers and especially volume in USD increased after September 15 ( The Merge Day ).
    • The total number of removed liquidity transactions, Lp providers and especially volume in USD increased before September 15 ( Before the merge day).
    • 30M US dollars were removed from liquidities on September 14 and 28M US dollars were added to liquidities on September 15.
    • Most volumes were removed and added from the USDC → WETH pool.
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    Full Analysis

    Add Liquidity

    • A couple of days before the merge, the Total number of LP providers decreased and after the merge day, Lp providers increased. More Lp providers added liquidity after the merge in comparison to the before merge. Almost There were 675 Lp providers after the merge and 539 Lp providers before the merge.

    Conclusion

    • I can surely say that Market makers wanted lower their Risk. About 47M US dollars were removed a day and hours before the Ethereum Merge and immediately added again to pools. However, It seems some of them didn’t come back and didn’t add liquidity.
    • Charts say everything. overall, Remove Liquidity was higher before the merge and Add Liquidity was higher after the merge.
    • It seems market makers used the USDC → WETH pool. Because they removed a huge volume in USD and added again to that pool after the merge.
    • We can see LP providers added more liquidity after the Merge. Those 675 Lp providers added 1001 Liquidity after the merge and 539 LP providers added 759 Liquidity before the merge.
    • A huge volume of liquidity was added on September 15. September 15 was the Ethereum merge day. Nearly 29M US dollars were added right after the merge day. 57M US dollars were added after the merge and 5.7M US dollars were added before the merge.
    • Those 101 LP providers removed almost 30M US dollars a day before the merge. This chart has daily time frame. I am hundred percent sure that 17M US dollars removed on September 15 was hours before the Merge.

    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/04