The Merge

    The massive overhaul of Ethereum known as the Merge has finally happened, moving the digital machinery at the core of the second-largest cryptocurrency by market value to a vastly more energy-efficient system after years of development and delay. The Merge represents the Ethereum network’s shift to proof-of-stake (PoS), its new system (also called a “consensus mechanism”) for authenticating crypto transactions. The new system will replace proof-of-work (PoW), the more power-hungry mechanism pioneered by Bitcoin. for more information see here and here.

    in this dashboard we look into the behavior of the users in the weeks leading up to the merge over three protocols…SUSHI, AAVE and UNISWAPV3

    > # AAVE:

    Loading...
    Loading...
    Loading...
    Loading...
    Loading...

    in the charts above we looked into ==ethereum.aave.ez_borrows== table and found the number of transaction and number of wallets participating in these transactions and the usd amount of all tokens and together and ETH separately on a daily basis. for all the charts the data was limited to the last 50 days since the merge happened on september 15th and this would cover the last seven weeks leading up to the merge. the charts on the left (the line charts) are limited to ETH and the charts on the right have no limitation regarding the type of the token used in the transactions.

    Loading...
    Loading...
    Loading...
    Loading...

    the data for the charts above was obtained through ==ethereum.aave.ez_withdraws== table and the line charts have been limited to ETH and the charts on the right have no limitation based on the tokens. all the data was limited to the last 50 days AKA the last seven weeks.

    Loading...
    Loading...
    Loading...
    Loading...
    Loading...

    in this section we used the ==ethereum.aave.ez_repayments== table and obtained the daily number of payers and borrowers and transactions and the mount in USD for the last 50 days. the line charts on the left are limited to ETH and the charts on the right have no limitation of the token type.

    Observations:

    in the charts above we see that:

    • looking at the number of borrows and deposits, we see that the number of transactions slowly goes down until the last couple of weeks and with a major spike in near the end. however we see the oppossit in the case of ETH. the number of borrows starts going up slowly and there is drastic fall near the end. in the case of the number of deposits, the number of transactions starts going up and then down and near the end it starts going up again. and for ETH, there are some ups and downs along the way but mostly stays in the same level until the last week and then we see the same shapes only in last week while we saw it in a extended version for multiple weeks.
    • regarding the number of users making these borrows and deposits, we see the exact same trends as we saw earlier in the charts of number of users which tells us that the average number of transactions per user is pretty stable.
    • looking at the USD amount of the borrows and deposits, we see that the amount of borrows is quite highe for the entire time for all the tokens while for ETH, the levels is low for most of the time but there is one major two weeks before the merge and then the level goes back down. regarding the amount of the deposits, we see the same trends for all the tokens but the trends for ETH is very different. in the case of amount of ETH deposited, we see there is a higher level in mid august and then goes back down until two weeks before the merge when the amount goes back up
    • 35 percent of the entire amount of deposited and borrowed is taken up by WETH deposits and then 19.9 percent is USDC deposits and these two take the most of the shares.
    • regarding the number of users and transactions of withdraws, we see the same trends for all tokens and ETH. in both cases we see an increases in the number of users and transactions.
    • the trends for the amount of withdraws is similar for ETH and all the tokens and even though there some small spikes earlier, the amount goes higher before the merge.
    • regarding the repayments, the number of transactions and borrowers and payers for all the tokens increases in the days leading up to the merge but here are some spikes before that too. however, in the case of ETH, there are increases in the last days but there aren't any spikes before that.
    • regarding the amount we see that there are a lot of similarities between the chart of ETH and the chart of all the tokens and in both cases there are two major spikes one of them two weeks before the merge and one just before the merge.
    • also 44.6 percent of the repayments is the share of WETH and USDC has a share of 23 percent in the second place.

    > # SUSHI:

    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...

    in this section we used ==ethereum.sushi.ez_borrowing== table and ==ethereum.sushi.ez_lending== table to obtain the data used and we limited the visualizations on the right to only data related of ETH. all data is limited to 50 days before september 16th.

    next we look into ==ethereum.sushi.ez_lswaps==.

    Loading...
    Loading...
    Loading...
    Loading...
    Loading...

    in the charts above we can see the number of users making swaps and number of swaps and the amount of the tokens swapped in the USD on a daily basis. the charts on the left are based on data limited to ETH and this limitation does not exist in the charts on the right.

    Observations:

    in the charts above we see that:

    • regarding the amount of borrowings the majority of the ETH are classified as remove collatral and then add collateral and in the case of all the tokens we see that there are some significant amounts of repay and borrow. in both cases we see that the activty decreases near the merge.
    • regarding the number of borrowers, in both cases of ETH and all the tokens, we see that the number of users goes down in the last days leading up to the merge and the same is true for the number of transactions. although the numbers for ETH are pretty low to begin with.
    • we see the same trends for lending as well. in fact there has been only one event of lending for ETH and the amount was pretty low (3.19 USD)
    • regarding the swaps, both charts of ETH and all the tokens start going down as the days start going by and the merge gets closer.
    • regarding the number of swaps and the number of users participating in the swaps, start goin down until two weeks before the merge but starts going slightly back up after that.
    • the majorty of the swaps which is 23 percent is from WETH and then 22.8 percent is to WETH.

    > # UNISWAPV3:

    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...
    Loading...

    in the charts above the data has been obtained using the ==ethereum.uniswapv3.ez_lp_actions== table. the charts on the left have been limited to ETH and this limitation has not been applied to the charts on the right. now we use ==ethereum.uniswapv3.ez_swaps== table for the charts below.

    Loading...
    Loading...
    Loading...
    Loading...

    Observations:

    in the charts above we see that:

    • regarding the amount of liquidity in the pools, we see the same trends in the case of ETH and all the tokens which is two major increases in the liquidity weeks before the merge and the entire increases and decreases of the liquidity going down later on.
    • regarding the number of transactions of increase and decrease of liquidity, in the case of all of the tokens, for the transactions of decreasing the liquidity, we see some small spikes but the numbers stay the same over all but for ETH, the numbers go down in late august and go back up around ten days before the merge. for transactions of increasing the liquidity, we see the same shapes and trends for all the tokens. however, in the case of ETH, number of transactions keeps going down until the day of the merge where there is drastic rise.
    • regarding the total amount of the liquidity in the pools, we see the same behavior for ETH as we see for all the tokens which is one major spike on august 26th and the rest of the days we see a slight decrease in the amount as we get closer to the merge.
    • looking at the number of swaps and number of users participating in the swaps, we see a similar process in both cases of ETH and all the tokens. the number of users is quite stable and there is a slight increase in the last days before the merge and in the case of number of transactions we see that there are also an increases in the last days before the merge only the increase is a bit bigger than it was with the number of users.

    Conclusion:

    AAVE:

    in AAVE, we see that the number of users drops before the merge but the amount of the transactions goes up which tells us that the merge has encouraged some users to stay out of the network while encouraged others to become more active as in move more tokens around (mostly ETH)

    SUSHI:

    in sushi all activity has gone down in the days leading up to the merge.

    UNISWAPV3:

    in uniswapv3 we see that the merge does not any significant effect when we are looking at all of the tokens but has had a positive effect when looking at ETH alone. the positive effect can be seen in the increase of the number of users participating in the actions but not so much in the increase of the amount of the tokens in the transactions.