Velodrome Locks
Analyze new locks created on Velodrome Finance.
Next, we identify the top 10 wallets making the most number of lock transactions, as well as the locked the highest amounts of VELO. First, by far the wallet that made the most number of locks is 0x5d5bea9f0fc13d967511668a60a3369fd53f784f (>1300 locks). Other wallets made far fewer locks, with the next most number of locks coming from 0xd5448f6ca7fca7c54e694aa6bf0b3bb9881bd49d at 121 lock transactions.
Using the same sorting rule for the amount of VELO locked, we see again that 0x5d5bea9f0fc13d967511668a60a3369fd53f784f - the wallet making the most lock transactions - has locked the highest amount of VELO at over 2.6 million VELO.
Date analyzed: 14th July 2022
Introduction
Velodrome is an automated market maker (AMM) on Optimism, allowing users to swap tokens, provide liquidity to liquidity pools (LP), and govern the protocol through votes on the LPs of their choice. Users are rewarded with the tokens VELO for providing liquidity to LPs. They can, in turn, lock their VELO to receive vesting or vote-escrowed NFTs (veNFTs) which can be used to vote on their favourite pools. The more or longer tokens are locked for, the higher the voting weight of the users. By voting, users are able to additionally earn transaction fees, emission rewards and bribes by actively participating in governance.
In this analysis, we characterize the behaviour of users on Velodrome, with specific emphasis on:
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how long users usually lock their VELO tokens for
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which users have made the most lock transactions and locked the most VELO in the last 4 weeks
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which pools were voted by users the most.
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Methods
This analysis queries the optimism.core.fact_event_logs with topics [0] :: STRING = '0xff04ccafc360e16b67d682d17bd9503c4c6b9a131f6be6325762dc9ffc7de624'
as a filter, as well as the optimism.core.fact_transactions table.
For the distribution of locked VELO, the difference between the time of the transaction and the estimated end of the lock date was used to calculate the duration of the lock period.
To identify Velodrome pool addresses being voted the most by users, I parsed the input_data
field from the fact_transactions table by segmented the data first, manually inspecting the segmented data for the location of the pool address (in arrays whose size = 7, the pool address is located at index 4), stripping the leading 0s and concatenating this string with ‘0x’. Note that this method of identifying pools is not exhaustive since it only considers users who vote for 1 pool. In fact, users can vote for more than 1 pool, but for now it is difficult to easily analyze multiple pool votes in a systematic way using the Flipside tables. This analysis focuses on the top 8 pools. The labels for the pool addresses were determined manually (with thanks to DeFi_reinds#2567).
All time periods were considered in this analysis, i.e. no time filters were used, except for the analysis of the top 10 wallets making the most lock transactions which focused on the period in the last 4 weeks from the time of this analysis.
Results
Users lock VELO to receive veNFTs that can in turn be used to vote on their favourite Velodrome pools. We first look at the distribution of lock periods of VELO by users. According to the Velodrome website, users can lock for 1 week, 1 month, 1 year or 4 years, corresponding to periods of 1, 4, 52 and 208 weeks, respectively. Consistent with this, in the histogram below of the distribution of lock periods, we see peaks in frequency at 1, 4, 52 and 208 weeks. The highest frequency (or most common) type of lock is in the following order:
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4-year locks
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1-month locks
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1-year locks
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1-week locks
Interestingly, other time periods were also possible outside of these 1, 4, 52 and 208-week locks; this may relate to different types of deposits made on Velodrome and could warrant future analysis.
Finally, we identify the Velodrome pools voted on by most users. Note that, in this analysis, we only focus on users who voted for 1 pool.
Using this analysis, the top 8 pools voted on by most users is the VolatileV1 AMM - VELO/USDC pool (address = 0xe8537b6ff1039cb9ed0b71713f697ddbadbb717d), followed by the VolatileV1 AMM - OP/USDC pool (address = 0x47029bc8f5cbe3b464004e87ef9c9419a48018cd) which comprises the Optimism native token OP, and the StableV1 AMM - USDC/sUSD pool (address = 0xd16232ad60188b68076a235c65d692090caba155) which comprises the synthetic asset sUSD.
Conclusions
- The most common lock durations were the following in descending order: 4-year locks, 1-month locks, 1-year locks and 1-week locks.
- Among the top 10 wallets making the most lock transactions, 0x5d5bea9f0fc13d967511668a60a3369fd53f784f made the most number of locks in the last 4 weeks. 0x5d5bea9f0fc13d967511668a60a3369fd53f784f also locked the highest amount of VELO.
- The pool voted on the most by single-pool Velodrome voters was the VolatileV1 AMM - VELO/USDC pool (0xe8537b6ff1039cb9ed0b71713f697ddbadbb717d).