Velodrome Health

    Introduction

    In this Analysis, You will Read about Velodrome health on Optimism. I went through Velodrome and analyzed some parameters to understand how Healthy Velodrome is.

    What is Velodrome?

    Velodrome Finance, at its core, is a solution for protocols on Optimism to incentivize liquidity for their use cases properly. Building on the groundwork Solidly laid out, our team has addressed that first iteration's core issues to realize its full potential.

    Analyzed by Hess - Reading Time Almost 10 Min.

    Method

    • Recently, Velodrome tables were added to Flipside. So I used Velodrome tables which are available for each Velodrome activity. I extracted these parameters:
      • TVL
      • Daily Deposits and Withdraw from LPs
      • Velodrome Swaps
      • Velo Daily prices
      • Swaps to and from $VELO
      • Daily Lock on Velodrome
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    Swaps on Velodrome

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    $Velo Token

    Locks on Velodrome

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    Velodrome TVL

    The Velodrome TVL shows how fast Velodrome grew in the last 2 Months. In the first few days of Velodrome, The TVL was negative, but day by day, The Velodrome TVL increased and reached 104M between July 30th and August 8th. In the last 30 days, The TVL dropped by 50%.

    Daily Deposits, withdrawals, and TVL changes

    • Most Users’ activities have started in the last 30 days. The total number of deposits reached more than 2.5K daily. Between July 7th and August 1st, The TVL changes were positive. August didn’t start very well for Velodrome. Because the total number of withdrawing and withdrawal amounts increased, TVL changes were negative and caused a 50% drop. The highest deposit amount happened on July 27th, which was 15.7M in USD, and the highest withdrawal happened on August 4th with 17.5M amounts.

    Top 10 Liquidity Pools Based on Volume of Deposits and withdrawals

    • sAMM-USDC/sUSDC is the most deposited USDC pool on Velodrome. More than 2.5K deposits happened on that pool. Also, This pool is in the top withdrawal pool.
    • vAMM-VELO/USDC has more than 23K deposits but based on Volume, it’s in fourth place with 15M deposited amounts.

    One of the key metrics important to the pool and a platform is the number of days users hold their position. The highest group of Users withdraw their deposits on the same day as the deposit. The second group of users holds their positions between 10-20 days. It is good that nearly 400 users hold their positions for more than 20 days.

    Daily Swaps

    • All metrics increased significantly between July and the beginning of August. The total number of users reached 1K in daily swaps. In only a few days, The total number of swaps increased more than 1000% from July 11th until July 29th. Like the other parameters, all metrics have decreased since the beginning of August. The daily average swap volume is 180-200$. Also, the number of pools and pairs increased from 30 to more than 70 pairs.

    OP/USDC is the most popular pool on Velodrome. About 46% of total volume went through that pool. The second popular pool is WETH/ISDC with 16% of total volume.

    Breakdown swaps by Users

    Usually, users have 1-5 swaps since June 15th, 2022. The second group of users has 6-10 Swaps. More than 350 users had more than 50 swaps.

    • Interestingly, the largest group of users have 1K-10K$ swaps. The second group of users swapped 100-250$. 72 users swapped more than 1M dollars on Velodrome.

    • $VELO token

    The price of VELO is not hight but the growth of that is not bad. When the TVL was at the highest amount, The price of VELO reached 0.085$. The pattern almost followed the OP token.

    Swaps to and from $VELO

    • There are two parameters. One is the number of swaps, and two is the swap volume.
    • The total number of swaps from VELO was higher than Swaps to VELO in the daily chart.
    • But, The swap volume from VELO is lower than the swap to VELO.
    • The highest volume of swaps to VELO was 6M dollars on July 29th.

    Lock Types on Velodrome

    Daily Locks Parameters

    • Since June 12th, The total number of Locks and unique users has increased significantly. The highest number of Lock happened on July 27th.
    • The average amounts of VELO have too many ups and down. The highest average amount of VELO was locked on June 15th with 300K.
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    Unlock Date:

    • Users can declare the total number of days they want to lock their VELO amounts. By Locking the VELO token, Users get Voting power. More than 2290 users locked their amounts for more than 3 years.
    • These users are 52% of users that locked in their amounts.
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    Conclusion

    By looking at this dashboard, You can understand that velodrome is doing well. All analyzed parameters have significant growth.

    The VELO token prices follow OP token pattern.

    Users trusted Velodrome and locked their VELO tokens for more than 3 years.

    I can say that Velodrome is healthy and doing well.

    THANK YOU FOR READING!

    ALL CODES AND CONTENTS PROVIDED BY HESS.

    Twitter: hessaminanloo

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