What is Burrow?

Burrow is a decentralized, non-custodial, pool-based interest rate market protocol built on NEAR that allows users to supply assets and earn passive interest, and borrow against them to utilize liquidity. Users are also able to deposit a token as collateral and then borrow another one to create a leveraged position. In general, it is similar to other pool-based protocols such as Aave and Compound. The smart contracts of Burrow are written In Rust and run natively on the NEAR blockchain.

$BRRR is the native token of Burrow. by staking $BRRR, holders benefit from boosted APY. This token is for users, the community! At least 50%-70% of the supply will be distributed to active Burrow users and community members.

Methodology

In this dashboard, Firstly, We are going to perform a deep analysis of Burrow platform on NEAR Protocol since its launch date (Late-March 2022) till today. Then, We are going to compare this protocol vs Ref Finance (a DeFi marketplace for NEAR native tokens that leverages the power of NEAR's low fees, ultra-fast finality, and WebAssembly-based runtime. The platform allows users to trade tokens using its Automated Market Maker exchange, stake LP token into farms, and provide liquidity to the system)

The main tables that we are going to use for Burrow analysis are NEAR’s fact_transactions and fact_actions_events_function_call and also the fact_prices table for calculating the USD Volume of actions. The Burrow contract address on NEAR is contract.main.burrow.near. The contract addresses related to different operations on the platform and their subsequent method name on the tables were determined by directly interacting with the protocol. Each action registers a different type of transaction with a different set of method names and arguments. For each action, three indicators of the number of transactions, number of users, and transaction volume were calculated. The first two were measured using the tx_hash and the tx_signer columns. For the calculation of the volume, different approaches had to be made for each action. A major challenge in the calculation of the volume was the proper decimals of each token. In NEAR tables, the transferred amount of each transaction registers in its raw form. Surprisingly, the decimals of some of the tokens differed in different actions, i.e. deposits vs borrows. As a result, the decimals of tokens had to be hardcoded for each action.

Based on the above and left data, the total net flow on Burrow is negative and it is not a good news for this protocol. The net flow is -81.4M USD.

Moreover, we can see the highest flow activity on this platform during the first months of its release till June 2022 but suddenly after this date, we can see too low activity of both inflows and outflows on Burrow over time till today.

Burrow has experienced the highest inflow and outflow during the Week 11th - 18th April.

Net flow is calculated by (Deposits + Repayments) - (Borrow + Withdrawals)

On the left chart, we can see the net flow of most of tokens is almost negative.

The most negative outflow belong to the USDC and USDT while these 2 tokens seems are by far the most popular tokens on Burrow because they include high volume of inflow and outflow on Burrow.

Actions Analysis (Deposit, Borrow, Repay and Withdrawal)

Based on the above charts, Borrow transactions on Burrow have the highest share of transactions and also volume on this protocol. But, obviously, the total number of unique depositors is more than other type of actions.

Totally, the difference between share of different actions on this protocol is not so high. moreover we can see the number and volume of repayments on this protocol is more than withdrawal which can be good news.

As mentioned above, in terms of number of transactions and also volume, USDC and USDT are the most popular tokens on Burrow protocol and the majority of transactions on them are Deposits and Borrows. Also, we can see wNEAR has the most number of users on this protocl

Based on the left chart, almost in all actions, the number of transactions with $100 - $1000 volume is more than other types.

On the above charts, we can see quite decreasing activity of deposits to the Burrow protocol over time and this can not be good news at all.

Also, we can almost see increasing share of transactions with $10 - $100 volume as time goes on while on the other hand the share of transactions with higher volumes (such as $1000 - $10000 or $100 - $1000) is decreasing over time.

Similar to the Deposits, we can also see quite decreasing activity of Borrows on Burrow protocol as time goes on. also we can see increasing share of Borrows with $100 - $1000 volume as time goes on and on the other hand the share of Borrows with less than $10 is decreasing over time .

Similar to the deposits and borrows, we can also see decreasing Repayment activity on Burrow protocol as time goes on but the decreasing rate on this action is les than other actions. Moreover, we do not see an increasing or decreasing trend of distribution of transactions by their volume over time.

And obviously the Withdrawal activity on Burrow is also decreasing. We can also see there is quite increasing share of withdrwals with less than $10 as time goes on and on the other hand the share of withdrawal with more than $10000 volume is decreasing over time.

Based on the left chart, as discussed above, USDC and USDT have the most withdrawal, borrows, repayments and deposits volume amond all other tokens on the Burrow.

on the next ranks we can see DAI and wNEAR.

On the above charts we can see quite increasing share of wNEAR activity on all actions over time especially during recent weeks. On the other hand, despite first months of release, we can see the share of USDC and USDT transactions on Burrow actions is decreasing over time.

Depositors

According to the left charts, nbiv.near has by far deposited the most volume into the Burrow protocol and the majority of its deposited tokens is DAI, USDC and USDT.

On the other hand, Thankyouser.near is by far the most active depositor on Burrow with more than 2000 deposits with DAI, USDT, USDC and USN.

Most number of burrow depositors on almost all tokens have performed only 1 deposit transaction.

Also, we can see different volume-type of transactions on different tokens on this protocol.

Borrowers

nbiv.near is also by far the top borrower of Burrow protocol with the highest volume (more than $300M) while thankyouser.near is also the most active borrower.

Similar to the deposits, the Most number of Burrow borrowers on almost all tokens have performed only 1 deposit transaction but the share of borrowers with 2-5 transactions is also high.

Also, we can see different volume-type of transactions on different tokens on this protocol.

BRRR Stakes

According to the above data, there were total 4760 stake transactions with BRRR token made by 1516 unique wallets and total 227M BRRR volume.

The BRRR token staking activity is decreasing dramatically as time goes on. But, we can still see some high volume of stakes with BRRR on Burrow especially with the highest all-time spike during October 2022 with more than 3.63M staked BRRR. Considering the decreasing number of stakes and stakes, we can say that a fewer number of addresses has been responsible for a higher staked volume.

Based on the left charts, most number of BRRR stakers have totally performed 1 stake transaction and the majority of stake transactions were done with 100 - 1000 volume.

Nurrochman.near have performed the most number BRRR stake transactions while Thisismine89.near has by far performed the most volume of BRRR staking.

Burrow vs Ref Finance

On below, since the activity and use-case of Burrow and Ref Finance are different from each other, I have decided to compare Transactions Per Minute, Active Users and New First-Time Users on these 2 platforms over time.

Considering that Ref Finance is much bigger, more popular and older than Burrow. Also, for a fair comparison, I have decided to set timespan of this comparison from 1 April till today (~launch date of Burrow) since before this date we could only see Ref Finance activity and there was no data on Burrow to compare with Ref Finance.

Based on the left chart, the volatile of Ref Finance active users and also number of transactions is more than Burrow.

The total trend of users and transactions on both protocol is decreasing as time goes on but the decrease rate of Burrow is way more than Ref Finance. We can still see some high spikes of high activity and active users on Ref Finance while these metrics are barely visible on Burrow protocol.

According to the left charts, the daily number of new users who are using these protocols for the first-time on Ref Finance is more than Burrow.

Moreover, we can see the growth rate total unique users on Ref Finance is way more than Burrow while these metrics was so close to each other since May.

And on the left chart, we can see the failure rate of transactions on Ref Finance is way more than Burrow.

It is correct that Ref Finance has very more activity than Burrow but this difference between their transactions’ failure rate is way too high.

Performane During FTX Collapse

During the recent days, Cryptocurrency market has experienced one of its darkest weeks because of FTX and Alameda collapse and bankrutcy. We can almost compare the volatiles of these days to the Terra & Luna collapse timespan during May.

As a another health-checking method, I have decided to analyse the performance of these protocols before and after FTX collapse to see how they have managed the volatiles during the collapse timespan.

According to the left chart (can also get confirmed by data from messari), the current TVL of Burrow protocol is 17.3M USD and this metric is decreasing more and more over time.

As we see, The highest TVL on Burrow was achieved on May with total 413M USD which is very high amount compared to today’s TVL.

This decreasing TVL is not a good news for Burrow at all.

On the left chart, we can see the liquidity and collateral is also decreasing over time on Burrow protocol which is not good news for this platform.

Also, we can see high volatiles on Utilisation ratio on both TVL and collateral over time. These metrics have positive correlation together while from Septemer, Collateral growth has overtaken TVL ratio’s growth.

Based on the left charts, Although the total failure rate of Ref Finance is way more than Burrow but we can see quite increasing failure rate of transactions on Burrow after the collapse comparing to the days before that. However, on Ref Finance also the failure rate of transactions has increased but not as high as Burrow failure rate.

Based on the left chart, we can see both platforms have experienced signifanct increasing activity after the FTX collapse timespan and we can not say one has beaten another in this case.

According to the left chart, we do not see very high spikes of new-users on these protocols after the FTX collapse compared to the days before that and we can not say one has beaten another in this case but anyway, we can see there are way more number of new-first time users on Ref Finance compared to the Burrow protocol.

Summary and Conclusion

• The NET flow on Burrow is currently negative and also the total inflow and outflows activity on this protocol is decreasing dramatically over time and is very low compared to the first months of its launch before June 2022.
• Also the TVL of this protocol is decreasing dramatically over time. This metric has decreased from more than $400M on May to 17.3M USD on today !
• USDC and USDT are the most popular token in terms of number and volume of transactions but wNEAR is the most popular token in terms of number of users.
• Borrow actions on Burrow have the most share of transactions and volume while the Deposit has the most number of users. Also, the number and volume of Repayments on this protocol is more than withdrawal which can be good news.
• The number of high-volume transactions on Burrow is decreasing as time goes on while there is increasing share of low-volume transactions on this protocol especially during recent weeks.
• The share of wNEAR is increasing significantly on all actions on Burrow as time goes on.
• nbiv.near (in terms of volume) and thankyouser.near (in terms of number of actions) are the top Burrow users.
• Staking activity with BRRR token on Burrow is decreasing over time but there is still high spikes of volume of stakes with this token as time goes on. Thisismine89.near have by far staked the most volume of BRRR.
• The number of transactions and active users on both Burrow and Ref Finance protocol was decreasing over time but the decreasing rate of Burrow is way more than Ref Finance especially after May 2022.
• The number of new first time users on Ref Finance is also more than Burrow while the growth rate of these protocols were so close to each other till May but after this date, Burrow's growth significantly declined as time goes on.
• The success rate of transactions on Burrow is way more than Ref Finance.
• Ref finance has managed the volatiles of FTX collapse timespan better than Burrow. The growth rat of Burrow transactions' failure rate after the FTX collapse was too high compared to the Ref finance.
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