Try Quests to earn cryptoVelodrome Health (Redux)
Introduction
What is Velodrome Finance?
Velodrome Finance is an AMM (automated market maker) adapted from Solidly, but with several modifications:
- a trading fee of only 0.02%
- near-zero slippage on uncorrelated or tightly correlated digital assets
- route trades through stable and volatile asset pairs
- no-upkeep, flash loan-proof, 30-minute time-weighted average price (TWAP) with direct quoting support
It uses its native token $VELO and distributes them to liquidity providers on a weekly basis. $VELO can be staked for $veVELO to receive trading fees, rewards, and more.
Source: Medium
Methodology
In this dashboard, we will analysis the health status of the Velodrome platform using the Optimism database tables that are available on Flipside.
Technical:
> Optimism Tables: > optimism.velodrome.ez_swaps > optimism.velodrome.ez_staking_actions > optimism.velodrome.ez_pool_details > optimism.velodrome.ez_lp_actions > > Stealing Velodrome Date: 2022-08-05
Findings
In the graphs of this section, we can see the number and volume of swap transactions and the number of Velodrome swappers on a daily and cumulative basis.
In the “Daily Number of Swap and Swappers“ diagram, we can see that the number of swap transactions and the number of swappers are normal from June 1 to June 15, but since June 15, we are facing an increase in swap transactions. The interesting thing to note is that on June 15, the news of an increase in the inflation rate was announced by the Federal Reserve, which caused a sharp fall in the market, and almost all platforms were affected by this news. But here we see that it did not affect the velodrome platform. And even since June 15, we have an increase in the number of swap transactions and the number of swappers.
In the chart of the volume of swap transactions, we can see that the largest volume of swap transactions is on July 29, 2022. On this date, more than 94 million dollars of swap transactions have been made by 3025 swappers. The main reason for this increase can be the increase in the price of the OP token since July 26.
Findings
In the charts of this section, we analysis the situation of liquidity providers. From June 1 to September 20, the number of deposits and withdrawals of liquidity providers is around normal. Since September 21, we can see that the number of withdrawals has almost reached the same number of deposits. On August 4, one day before the news of theft from Velodrome's wallet, the number of deposits was 609 and the number of withdrawals was 407. On August 5, when the news of the stolen wallet was announced, the number of deposits decreased by almost 20% and reached 485, and the number of withdrawals also reached 265. On August 6, the number of deposits was 382 and the number of withdrawals was 250. In the following days, the number of deposits and withdrawals is the same. But the most important parameter is the volume of transactions, which we can clearly see in the "Daily Volume of Liquidity Providers on Velodrome" diagram, the impact of the news of theft from the wallet on liquidity providers transactions. On August 4, the volume of deposit transactions is 10.7 million and the volume of withdrawal is 22.35 million dollars. On August 5, the volume of deposit transactions was 10.9 million dollars and the volume of withdrawals was 5.22 million dollars. On August 6, the volume of deposit transactions is 2.3 million dollars and the volume of withdrawals is 3.5 million dollars. As we can see, the news of the theft from the Daily Volume of Liquidity Providers on Velodrome platform has had a negative impact on the liquidity providers, and since August 6, we are facing a noticeable decrease in the volume of deposit transactions. On November 11, the news of the collapse of the FTX exchange was announced, which we can see did not have a significant impact on the Daily Volume of Liquidity Providers on Velodrome platform.
Findings
In this section, we examine the status of liquidity pools. In the charts, we see the number and volume of transactions and fees received in each pool on a monthly basis. The number of liquidity pool transactions in August is more than the previous and subsequent months. And in June we see the lowest number of transactions. The volume of liquidity pool transactions in September is higher than the previous and subsequent months. Almost more than 2.5 billion dollars is the volume of liquidity pool transactions in September. In the months of October and November, we see a decrease in the volume of transactions. Considering the hopeful news in October, which caused a relative increase in cryptocurrencies such as Bitcoin and Ethereum, we see that it did not affect the Voldromo platform. However, in November, one of the worst things happened to the world of cryptocurrencies, the news of the collapse of one of the largest exchanges, FTX. which has caused the cryptocurrency market to fall sharply in recent days and is still at the top of cryptocurrency news.
WETH/OP pool is in first place with 811,681 transactions with a transaction volume of 3.4 billion dollars. The VELO/USDC pool is in second place with 905,515 transactions with a volume of $2.3 billion. VELO/OP pool is the third most popular pool among Velodrome users with 610,954 transactions with a volume of 1.3 billion dollars. The highest fee received is related to the OP/USDC pool. About $222,829 has been received for the OP/USDC pool.
Findings
One of the most important events that can happen to a platform is news of hacking or theft from the platform, which can cause the collapse of the platform. On August 5, 2022, it was announced that $300,000 was stolen from one of Velodrome's wallets. which caused Velodrome users to panic, considering the events of the Terra network that happened in May 2022, users show great sensitivity to this news because billions of dollars of users' capital were destroyed in the collapse of Terra. In the charts of this section, we examine the situation 2 months before and after the theft of Velodrome's wallet. 2 months before Velodrome's wallet was hacked, 94,3039 transactions with a volume of 1.03 billion dollars were made by 66,847 swappers. 2 months after the Velodrome wallet hack, 1.4 million transactions with a volume of $1.16 billion have been made by 153,008 swappers. As we can see, the number of transactions and especially swappers on Velodrome has increased, but the most important parameter, which is the volume of transactions, has not increased significantly and has only increased by 5% compared to before. In the daily charts, we can also see that the news of the wallet being stolen on August 5 did not have such an impact on the performance of the Velodrome platform, the main reason of which can be attributed to the management of the Velodrome team in the news published by the platform's official Twitter channel. On August 6, Velodrome announced that the stolen money had been returned.
Conclusion
In this dashboard, we analyzed the health status of the Velodrome platform using Optimism database tables. We observed that the number of swap transactions and the number of swappers have increased compared to previous months, but the volume of swap transactions has decreased since August. From June to November 2022, the number of swap transactions reached 3.4 million with a volume of $2.7 billion. The number of swappers has also reached 393170. We saw that theft from Velodrome's wallet did not affect the volume of swaps on Velodrome, but it had a great impact on reducing the volume of staking transactions.
Some of the items we reviewed in this dashboard:
> Total Number of Swap Transaction: 3.48M > > Total Number of Swappers: 116.1k > > Total Volume of Swap Transaction: 2.71B > > Average Volume of Swap Transaction: $155.8 > > Total Paid Fee On Swap Transaction: $521k > > Average Paid Fee On Swap Transaction: $0.03 > > The largest volume of swap transactions is on July 29, 2022. On this date, more than 94 million dollars of swap transactions have been made by 3025 swappers. > > The number of liquidity pool transactions in August is more than the previous and subsequent months. And in June we see the lowest number of transactions. > > The volume of liquidity pool transactions in September is higher than the previous and subsequent months. Almost more than 2.5 billion dollars is the volume of liquidity pool transactions in September. > > WETH/OP pool is in first place with 811,681 transactions with a transaction volume of 3.4 billion dollars. > > The VELO/USDC pool is in second place with 905,515 transactions with a volume of $2.3 billion. > > VELO/OP pool is the third most popular pool among Velodrome users with 610,954 transactions with a volume of 1.3 billion dollars. > > The highest fee received is related to the OP/USDC pool.About $222,829 has been received for the OP/USDC pool.