User Behavior (redux)

    Introduction

    • In this analysis, You will read about one of the most popular DEXs in the Crypto world called Uniswap. We want to know How is user behavior different on Optimism compared to the Ethereum chain?

    • I went through Uniswap on Optimism and Ethereum chain and analyzed these parameters:

    • Swaps

    • Swappers

    • Swap Volume in USD

    • Users Breakdown

    • New Users

    • Swap Fees


      Analyzed By Hess - Reading Time Almost 8 min.

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    Method

    Ethereum:

    • We have an EZ DEX table on Ethereum and all swap activities are recorded on that table per platform. I only filtered the Uniswap to show only that platform.

    Optimism:

    • As you may know, We don’t have an exact Swap table for Optimism ( We only have a Sushiswap and Velodrome Dex table ). So I needed to find from existing tables and actually create a custom table.
    • So, I used optimism.core.fact_event_logs and extracted all tx hashes that include Swap in their event name. I filtered the DIM contract table with the DEX label and uniswap as a project name.
    • After that, I needed to find From and to tokens and amounts. I tried the Fact event logs table again and set origin from address equal event_inputs: from and select my finding tx in the first place. The result shows all from activities. Again I used the Fact event label and set the origin from address equal event_inputs:to. Now we have To activities too. The last thing I needed was Token’s name. This part was easy. I joined my finding to the DIM label and extract token names. I created a custom Uniswap table on Optimism and started to analyze my result.
    • In the end, I joined my findings to Token Hourly prices for swap volume.
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    Users Breakdown on Uniswap

    • On both blockchains, Uniswap users had only one swap. Their swap volume on Optimism was 10-100 US dollars and 100-1000 US dollars. There are 14K users that swapped more than 100K US dollars on Ethereum while only 123 users swapped more than 100K on Optimism. Also, Uniswap has 43K users that swapped more than 5 times while 1.4K Users swapped more than 5 times on Optimism.
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    Swap Fees on Uniswap

    • One of the biggest differences between Ethereum and Optimism is Fees. Fees on Optimism are much lower than transactions on Ethereum. Because of that, Users paid less cheap on the Optimism chain in comparison to Ethereum. Users spent 50M US dollars on Ethereum while only 87K was spent on Optimism.
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    What is Uniswap?

    • It allows users anywhere in the world to trade crypto without an intermediary. Definition. Uniswap is the largest decentralized exchange (or DEX) operating on the Ethereum blockchain.

    Layer 1 Vs. Layer 2

    • The main difference between layer-1 vs layer-2 scalability solutions lies in their role and focus on the blockchain. Layer-1 is here to improve the blockchain architecture, while layer-2 is here to build third-party networks on top of the main blockchain

    A Summary of the Most Important Findings

    • Uniswap had 56K Unique swappers on Optimism and 798K unique swappers on Ethereum in the last 90 days.
    • 92% of swaps were on the Ethereum chain and only 8% of swaps were on Optimism.
    • In the last 90 days, Users swapped almost 87B US dollars on Ethereum and 1.4B US dollars on Optimism.
    • The average swap volume on Optimism is 2.2K US dollars and 9.4K US dollars on Ethereum.
    • The Large group of users had only 1 swap on Ethereum and Optimism.
    • The large group of Uniswap users on Ethereum swapped between 100 and 1000 US dollars and Optimism swapped 10-100$.
    • Uniswap had 387K new users on Ethereum and 43K New Users on Optimism.
    • Users spent 50M US dollars for fees on Ethereum and only 82K US dollars on Optimism.
    • The average swap fee on Ethereum is around 5 US dollars and Optimism is 0.13 US dollars.
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    Full Analysis

    Users and Transactions on Uniswap

    • In the last 90 days, Uniswap had 56k unique swappers on the Optimism chain and 798K Unique swappers on the Ethereum chain. Uniswap swappers on Ethereum are almost 14x more than uniswap users on Optimism.
    • Based on daily swapper shares, The highest share of Uniswap on Optimism late July. The Share of Uniswap swappers on Optimism was around 11%. But after that time, The share of Uniswap on Optimism dropped to 2% until September 19. Again, After September 19, The daily share of Uniswap users increased up to 11%.
    • Based on Swap transactions, 92% of Uniswap swaps were on the Ethereum chain, and 7.9% of Optimism. Swaps had so many ups and downs but, More swaps happened on their Optimism chain. After September 19, The total number of swaps increased up to 2x in comparison to July and August. Overall, The total number of swaps on Ethereum had a huge difference with Optimism chains.

    Swap Volume

    • Like other parameters, The total Uniswap swap volume on Ethereum had a huge difference with Optimism. Uniswap users swapped 87B US dollars on Ethereum and only 1.4B US dollars on the Optimism chain. Over time, The total daily swap volume on both chains dropped.
    • The Average swap volume on Optimism is 2.2K and 9.4K US dollars on Ethereum. An interesting finding is that between August and September When the average swap on Ethereum decreased, The average swap volume on Optimism increased. Since late July, when the average swap volume on Ethereum was around 20K, The average swap volume on Ethereum dropped by more than 70%.

    Number of Tokens

    • One of the main reasons that Uniswap has more swaps, Swappers, and volume on the Ethereum chain is that Uniswap supports more than 3K tokens on Ethereum, or I can say there are more tokens on Ethereum in comparison to Optimism while Uniswap supports only 23 tokens on Optimism. These tokens are extracted from the DIM label and hourly price tables. Maybe there are more tokens but there isn’t any more data on those tables. Usually, Uniswap users on the Ethereum chain swap 1.3K tokens each day while only 15-20 tokens swap on Optimism.
    • Between July 31 and August 6 and Also, from September 21 until now, Uniswap attracted more new users On Optimism. However, The total number of new users on Ethereum has a huge difference with Optimism. Uniswap had 387K New users on Ethereum and only 46K new users on optimism.
    • Because of the lower transaction fee, The average number of swaps per user on Optimism was higher than on Ethereum. Especially between August and September 20, when the average number of swaps per user on Optimism increased significantly. From 5 swaps increased to 20 swaps. Over time, The average number of swaps per user on Ethereum didn’t change.
    • The average swap volume on Optimism increased between July and August but over time, The average volume decreased again and increased on the Ethereum chain. In the last 90 days, The average swap volume per user on Ethereum was 32K and on Optimism was 10K.

    Conclusion

    • There are so many tokens and projects on the Ethereum chain. Due to the variety of tokens on that chain, The total number of swaps, swappers, and volume on the Ethereum chain is much higher than Optimism. Optimism still is new to the Crypto world but lastly, Due to the swaps fee or transactions fee, Users prefer to user Layer2 chains more and Layer1 less. It is true that all parameters on Ethereum had a huge difference with Optimism But still numbers for Optimism is HUGE!

    THANK YOU FOR READING!

    ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

    :bird: Twitter: @hessaminanloo

    :t-rex: Discord: hess#0890

    :calendar: Analyze Date: 2022/OCT/27