Try Quests to earn cryptoVelodrome and Quix Activity During FTX & Alameda Collapse!
Open analytics bounties are all about deep dive dashboards into one specific topic.
Introduction
Velodrome
Velodrome Finance is the liquidity base layer for the entire Optimism ecosystem. Launched in June 2022, it focuses on properly incentivizing liquidity for DeFi protocols. Interestingly, Velodrome is built on the foundation put in place by Solidly. (Read More…)
Quix
Quix (former Quixotic) is the largest NFT marketplace on Optimism founded in 2021 by Mark Dawson. Quixotic is an NFT Marketplace project focusing on Digital Cards Collectibles, bringing these conventional items from the traditional world into the crypto space. (Read More…)
FTX & Alameda Collapse
During the past week, the Cryptocurrency market has experienced one of its darkest weeks in history because of the FTX & Alameda collapse that resulted in FTX's bankruptcy and the loss of millions of dollars assets and also dropping the price of almost all tokens (including Bitcoin that its price has been reduced to 15000 !).
This crash has impacted several platforms in the cryptocurrency market that We have analyzed some of them before (you can check them in my Flipside profile).
Now on this dashboard, We are going to analyse the impact of this collapse on 2 of the largest Optimism platforms, Velodrome Finance and Quix NFT Marketplace.
Methodology
For this Analysis, First I am going to split our timespan into 2 categories:
1- Before Collapse: Since 1 Month (30 Days) Ago Till Before 8th November 2022 (The date when the cryptocurrency market began to crash)
2- During and After FTX & Alameda Collapse: Since 8th November Till Today.
First, We are going to check the activity on Velodrome Swaps and LP actions using optimism.velodrome.ez_swaps & optimism.velodrome.ez_lp_actions tables.
Then, We are going to check the activity on Quix NFT sales using optimism.core.ez_nft_sales.
Also, I am going to calculate the average daily values of swaps,LPs and sales for the 2 mentioned timespans in order to get more clear results for comparing data on these timespans.
Swaps
Liquidity Providing (LP) Actions
Based on the above charts, The swap activity on Velodrome has increased dramatically during and after FTX & Alameda collapse especially in Volume.
Before this dark week , we can see there was less activity in both terms of volume and number of swaps and swappers over time but since 8th November, we can see sudden high spikes of swaps on this platform. During the collapse, the average and total LP fee generated by swaps have also increased dramatically as well as swaps.
Also, the increasing average volume of swaps is visible on the chart meaning that swaps during this collapse timespan are more heavier.
And on the left chart, it is clearly visible that both number and volume of swaps and also volume of generated LP fees have increased dramatically during FTX & alameda collapse.
Based on the above charts, we can see the number of high-volume swaps (more than $1000) has increased slightly during FTX & Alameda collapse compared to the days and weeks before this week.
Moreover on the other hand, we can see light decreasing trend of low-volume swaps (less than $10) during this dark week.
On the above charts, we can also see constant number of swaps and swappers to/from stablecoins during the days on the chart.
But in terms of volume, we can see increasing share of Swaps FROM stablecoins to the other asset during the FTX & Alameda collapse meaning that the traders on Velodrome are trying to buy at the dip instead of fleeing and changing their assets to the stablecoins! what a brave move!
And on the left charts, its more clear that the volume of swaps FROM stablecoins have increased during collapse timespan.
During the days before collapse, we can see the share of swaps TO stablecoins was more than other types and seems the traders were getting ready to buy a t the dip !
On the left charts, I have categorized pools into 2 types (non stablecoin pools and stablecoin pools).
As we see and mentioner earlier, the volume and number of swaps on non-stablecoin pools have increased slightly during the collapse timespan.
As mentioned above, on the left chart and with a more clear view, we can see that the volume and number of swaps on non-stablecoin pools have increased slightly during the collapse timespan compared to the days and weeks before the collapse.
On the left charts, we can see the top 10 assets of each day during the past 30 days based on the number and volume of swaps FROM them.
As we see, during the FTX & Alameda collapse (since 8th November till today) the share of swaps from stablecoins and especially sUSD and LUSD have increased significantly .
We can also see slight increasing share of swaps from USDC (as the top asset) but not sharp as sUSD and LUSD.
On the other hand, On the left charts, we can see the top 10 assets of each day during the past 30 days based on the number and volume of swaps TO them.
As we see, during the FTX & Alameda collapse (since 8th November till today) the share of swaps to stablecoins and especially sUSD and LUSD have also increased !
maybe we can say users were gaining profits from volatiles by trading their assets to/from stablecoins in short timespans.
And on the left charts, we can see top 10 pools of each day based on their volume and number of swaps.
As we see, especially in volume, after the collapse (especially after 10th November), there is huge increasing share of swaps on sAMM-USDC/sUSD pools to the extent that currently on today, this pool is the most traded pool (in terms of volume) on velodrome finance.
On the above charts, we can see the majority of LPers have withdrawn their asset from liquidity pools on Velodrome after and during FTX & Alameda collapse. This can be because they wanted to be ready to sell or swap out their asset as soon as possible or when the market was going to crash more and more so users would be able to save their money from losing value and also be ready to re-buy their sold asset in the dip !
On the above and left charts, we can see increasing activity of LPs on Velodrome finance during the collapse timespan especially in the average volume.
And on the left chart, it is clearly visible that number and especially volume of swaps have increased significantly during and after collapse timespan.
On the left chart, we can see the increasing share of both number of deposits into the Stable pools as time goes on. similar to the swaps that users were investing on the stable pools, in here, LPers are also depositing their assets into the stable pools.
But in terms of volume, the result is different. We can see there is increasing share of deposits to the Volatile pools during the FTX & Alameda timespan (after 8th November) despite increasing number of deposits to the stable pools !
And on the left chart, we can clearly see that number of deposits to the stable pools have increased after collapse but the volume has decreased .
On the left charts, we can see top 10 liquidity pools of each day by their number and volume of deposits over time.
We can see share of some pools such as sAMM USDC/DAI is or sUSD/LUSD is increasing as time goes on (on volume especially)
And the left charts, we can see top 10 liquidity pools of each day by their number and volume of withdrawals over time.
we can clearly see increasing share of withdrawals from pools such as sAMM-WETH/stETH as time goes on.
Based on the above charts, as mentioned, We can clearly see the decreasing trend of sales, buyers, sellers and both USD and ETH volume of sales on Quix NFT marketplace during collapse. This was predictable because on these timespans and during high volatiles, ppl less tend to trade NFTs.
On the left charts, It is clearly visible that number and volume of sales and also number of buyers and sellers and also traded NFTs have decreased dramatically on the days during and after FTX & Alameda collapse compared to the days and weeks before that.
On the left charts, we can see increasing share of swaps with less than $10 USD especially during 8th and 9th November (the first days of collapse) on the Quix marketplace.
On the other hand, we can see increasing share of sales with more than 1 ETH volume especialy during recent days !
As we see, despite decreasing volume of sales during collapse timspan, we have seen that share of trades with high volumes (more than 1 ETH or 1000 USD) has increased significantly during collapse and this means ppl were going to buy expensive tokens while their USD Value as decreased (because of the market price crash) and maybe sell them on higher USD Prices later when the market has recovered in price !
And on the above charts, we can see the top 10 NFT collections of each day on Quix marketplace based on their sales, buyers, sellers and volume of sales over time.
During these timespans, we can see the increasing share of some projects such as Optichads, Project Galaxy, and Uniswap v3 Positions.
Summary and Conclusion
- The swap activity on Velodrome has increased dramatically in both terms of number and volume of swaps and also the swaps during collapse days were more heavier than the days and weeks before.
- The volume of swaps FROM stablecoins to other assets has increased significantly during the collapse timespan, this means that the traders on Velodrome are trying to buy at the dip instead of fleeing and changing their assets to the stablecoins! what a brave move!
- On the other hand, During the days before collapse, the share of swaps TO stablecoins was more than other types and seems the traders were getting ready to buy at the dip !
- The Number and volume of swaps on Stable pools have increased dramatically during collapse timespan especially in volume.
- The number and especially volume of withdrawals from Velodrome Liquidity Pools have increased dramatically after and during collapse timespan. This can be because users wanted to be ready to sell or swap out their asset as soon as possible or when the market was going to crash more and more so they would be able to save their money from losing value and also be ready to re-buy their sold asset in the dip !
- The sales activity and the number of buyers and sellers and traded tokens and also the volume of sales on Quix NFT marketplace has decreased significantly during and after FTX collapse which shows the normal reaction of users because during these dark days (as we have experienced before on May Terra Collapse) ppl tend to stay out of NFT marketplace and tend to perform trading and swaps activity more than NFT trading.
- But despite decreasing volume of sales during collapse timspan, we have seen that share of trades with high volumes (more than 1 ETH or $1000) has increased significantly during collapse and this means ppl were going to buy expensive tokens while their USD Value as decreased (because of the market price crash) and maybe sell them on higher USD Prices later when the market has recovered in price !
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On the left chart, I have classified pools by their type (Volatile and Stables). The pools starting with s% are Stables and the pools starting with v% are volatiles.
So, We can see the huge increasing (especially in volume) activity of swaps on the Stable Pools during and After Collapse especiallya after 10th November.
And as a more clear visualization, we can clearly see the increasing share of Stable Pools during and After FTX & Alameda collapse on the left charts compared to the days and weeks before this timespan.