Try Quests to earn FLOWWho's Escaping FTX?
Introduction
What is margin trading? How can I use leverage?📈
> Margin trading is trading with borrowed money, resulting in leveraged payouts. > > *Let’s assume you buy 1 ETH at a price of 100 USD. The next day, you sell your ETH at the price of 110 USD and therefore pocket a 10% profit. Easy.*💰 > > Now let’s leverage your trade ***with a leverage of 2 ***to take home double the profit. > > You take your own 100 USD and borrow an additional 100 USD from a friend (or from a bank, exchange, lending pool etc.) and buy 2 ETH (for 200 USD). > > *The next day you sell 2 ETH at 110 USD/ETH, give back 100 USD (usually plus additional interest) to pocket 120 USD, a 20% profit.*💰💰 > > Et voilà, you margin traded with a leverage of 2x. The borrowed 100 USD is the ‘margin’ and is used to lever your profit [1]. > > Obviously, leverage can work against you!😐
Margin trading also leverages your loss📉
> Let’s assume, in our example above, the ETH price drops to 90. Now, you might be forced to sell 2 ETH and give back 100 USD margin. That leaves you with 80 USD: A 2x loss. > > Therefore, we should note that the more money you borrow, the more risk you take.😈 > > However, for many people it is still interesting to trade on margin as it helps to increase potential gains in markets with low volatility or in the short-term [1].
FTX
> A cryptocurrency exchange headquartered in The Bahamas that caters to countries outside the U.S. Within the U.S., customers use FTX.US. Founded in 2019 by Sam Bankman-Fried and Gary Wang, FTX gained prominence when it acquired the Miami Heat's basketball stadium in 2021 and renamed it FTX Arena. In the same year, FTX acquired naming rights to the TSM e-sports organization, which was renamed Team SoloMid FTX.
dYdX
> dYdX is the top decentralized Ethereum trading platform. Our exchange offers custom-leveraged loans, borrowing, and margin trading. dYdX allows bespoke short and long positions with 4x leverage. dYdX automatically borrows funds from lenders during margin trading. You can trade on dYdX without leaving the platform. Margin trading collateral earns interest, maximizing your capital's return. dYdX deposits receive interest. Deposits and withdrawals are always possible. Automatic and dynamic interest rates mean you'll always earn market rate without establishing rates. You can borrow from dYdX's Ethereum wallet. Any supported asset can be borrowed with 1.25x initial/1.15x minimum collateral. Borrowed cash might be utilized as working capital or for third-party trading [2].
> is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades. > > Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees and leverage trading. > > Dynamic pricing is supported by Chainlink Oracles and an aggregate of prices from leading volume exchanges.
Gains Network is creating gTrade, a liquidity-efficient, powerful, and user-friendly decentralized leveraged trading platform. the unique synthetic architecture makes gTrade more capital efficient than any other platform, allowing cheap trading fees, and a large selection of leverages and pairs (up to 150x on cryptos, up to 1000x on forex, and up to 100x on stocks).
Method
In the current dashboard I’m going to trace users who escaped from FTX/Alameda to find their interacted with dapps after escaping. I am trying to see drastic changes trading volume on dydx, gmx, and gns to show how people are exiting ftx and entering margin trading dapps. The data for this dashboard will come from the ethereum.core.ez_token_transfers, ethereum.core.dim_labels, in Flipsidecrypto’s database and filtered those by WHERE label iLIKE any ('%alameda%', 'ftx').
In the first section I evaluated the change marging trading in dydx, GMX and GNS, then in the next part tracked the escapers behaving from FTX in dydx , Uniswap and 1inch paltforms.
The 1inch can be changed to other platform by header tape if you would like to track other platform that is your desirable.
✍🏻 Conclusion
As of Findings Above:
- When FTX and Alameda Research went bankrupt, it was clear that trading volume and transactions would increase across all exchanges.
- Trading volume on dydx, gmx, and gns by people who are exiting ftx and entering margin trading dapps are increased on margin trading platforms and dydx allocated the most volume and new users to itself than other two margin platforms (GMX & GNS).
- In comparison to other platforms like Uniswap and 1inch, less volume has been attracted to margin platforms like Dydx.
Overall, in my opinion margin platforms have potentially ability to attract considerably huge volume of crypto market and can be an appropriate alternative to aurrent cexes.
And finally, I’m glad to share this research with those who care about this issue via Twitter link, and will be pleased by your comments.
About:
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Author: HaM☰d
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Discord: 0xHaM☰d#8391
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Twitter: @arjmandi_hamed
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Email: h_arjmandi2012@yahoo.com
Who's managing to escape from the FTX debacle mostly unscathed?
The aims of dashboard:
Create a single chart showing trading volume on dydx, gmx, and gns to show how people are exiting ftx and entering margin trading dapps.
Are they off-boarding through any other methods? Are any particular exchanges, chains, or dapps seeing large increases in new users or trading volume?
Note any trends or outliers you see. \n
Hey there 👋!
Firstly, I appreciate you sticking with it until the conclusion.
I'm Hamed, a civil engineering Ph.D.
student interested in data analysis.
I've made many similar dashboards and visualizations since I started at Flipside in January.
Please take a look at my various contact details and let me know what you think.
:mag_right: Findings:
Percentages of all assessed metrics for Uniswap is more than others two, and dydx have had lower percentages in all metrics.
The chart below right shows the average transferred volume to all platforms over time since Nov.
Except some days (Nov 2, 6 & 11th for Uniswap) the transferred volume are equal for three platforms.
In Nov 11th dydx passed 1inch with $154.2K in average, but finally at the moment (Nov 16th, 2022) 1inch has the most average volume with $74.4K.
:mag_right: Findings:
The current section visuals show the new user, transactions, active users and transferred volume on GMX, Gains Network and dydx platform since current Nov (2022).
As of shown graphs, its observable in all three platform the assessed metrics increased in Nov 7th, till 10th.
New users count increased over 2x in Nov 7th, rather than 6th.
Transactions count and active users dramatically increased in all three platforms, too. but growth in dydx was sharply that others two.
:mag_right: Findings:
The charts above show the transferred volume($) to platforms.
As can be seen the volume in all platforms increased since Nov, but dydx has exploded and peaked at $46.7M in Nov 10th, that was about 6x more than Nov 9th.
$174M transferred to dydx, while transferring to GMX and Gains Network is $2.7 & $1.4M, respectively.
Average transferred volume to platforms over time are shown in the chart right. as can be observed average volume to dydx is dramatically more than others two.
:mag_right: Findings:
New users count in three platforms increased till Nov 10th, then decreased to before FTX bankruptcy.
transactions count, active users and trading volume considerably increased in all three platforms.
changes in 1inch was too dramatically than others two, so that can be seen in Nov 9th, the volume on 1inch passed Uniswap and reached to $11.7B in total, while the volume in Uniswap is $8.12B and on dydx is only $833.17M.