Introduction:

Launched on 1 June, Velodrome is a fork of Solidly, a decentralized exchange built by Yearn Finance founder Andre Cronje on the Fantom blockchain. Velodrome is an AMM modeled on Solidly and designed to be a public good that provices deep liquidity and low slippage to token pairs critical for the growth of the Optimism ecosystem.

Recently, the decentralized exchange Velodrome TVL has increased dramatically. This total value locked signaling a fast-growing demand among DeFi users and puts it in the running against dominant rival exchanges like Uniswap on the network. While Uniswap has roughly double the trading volume of Velodrome on Optimism, the newer upstart sees more than twice as many transactions and now has a larger TVL. In fact, it now has the second-largest TVL of all applications on Optimism. The main reason behind the surge in TVL is that users have locked their tokens to earn weekly rewards. Velodrome relies on a vote-escrowed (VE) protocol, which incentivizes users to stake the VELO governance token. On Velodrome, one can stake VELO for veVELO, another token that gives holders the right to receive VELO rewards and a share of the protocol fees.

Simply, Velodrome works as follows. veVELO voters choose which pools get emissions. veVELO voters receive the trading fees / bribes collected by the pairs they vote for. LPs receive the emissions directed to their pools. veVELO lockers receive anti-dilutive weekly rebases.

Velodrome (We will see its impact on the below results)

On Aug. 4, one of Velodrome’s high-worth wallets, dedicated for operating funds such as salaries, was drained off $350,000 before it could be transferred to the company’s treasury multi-sig wallet. A subsequent internal investigation revealed the attacker’s identification, which allowed the company to recover the entire loot. Velodrome’s official statement revealed:

“Much to our disappointment, we learned the attacker was a fellow team member Gabagool.”

However, on 13th August, Velodrome finance announced the recovery of $350,000 stolen funds. 4. However, the occasion turned bittersweet when internal investigations pointed out the involvement of a prominent team member, who goes by the pseudo name Gabagool.

(This recovery of stolen funds in almost one week can be a satisfying result of Healthy Security of Velodrome protocol performance.)

On the below, We can see some raw numeric data for different factors of swap transactions on Velodrome protocol.

On the left chart as we see the total number of swaps on Velodrome has increased dramatically over time especially from mid-july till late-july (the same time when Optimism ecosystem grown significantly).

After 29 July ( the highest spike of number of swaps on Velodrome) we can see an almost low decreasing trend over time especially after 4th August (the hack day) till mid-October, but again afted mid-october we can see increasing activity on Velodrome which shows the good recovery of this protocol.

Swaps per second, swaps per minute and swaps per hour is a valid Health factor for analysing a platform or blockchain.

As we see on the left chart, the overal trend for these metrics on Velodrome is increasing over time. the impact of hack on 5th August is clearly visible on this chart.

On the left chart, we can see the difference between older unique users and new users on Velodrome is increasing over time and this means most Velodrome daily users are old-loyal ones.

the highest number of unique and new users interacted with Velodrome have achieved on 16th August.

totally, the overal trend line for this metric is satisfying because there is increasing number of users (both old unique and new) on Velodrome over time.

In terms of swaps volume, we can also see the highest spikes on 28th and 29th July and after that the decreasing trend is visible on the chart especially after the hack date (4 - 5 August).

Similar to the number of swaps, we can see huge decreasing trend of swaps volume on Velodrome till Mid-October but again after this timespan, we can see increasing trend of swaps volume on Velodrome which is a good health factor for this protocol.

The growth rate of swaps volume on Veldorome have overtaken the growth rate of its number of swaps and they have a very close compete with each other during the recent weeks.

Totally, the impact of high spikes on these charts is clearly visible as the sharp slope of their growth rate trend line and its getting sharper over time.

As like as volume, we can see a similar trend line for generated fees by swap transactions for Velodrome finance protocol. the highest generated fee was on 28th and 29th July (same as volume) and the cumulative line (growth rate) is lightly positive (getting lighter over recent days because of decrease in volume and number of swaps)

Based on the above charts we can see the most number of swaps and swappers on Velodrome are worth between 10 and 1000 USD and a very low number of these metrics are worth more than 10k USD.The satisfactory existence of different volume type of swaps shows can be considered as a good healthy factor.

On the left we can see almost an equal share of each volume-distribution-type of swaps over time on Velodrome finance and these arranged colored bars can be a positive result for existence of different type of swaps on this platform.

As like as previous chart, we can also see the regular share of each volume-type-swaps on the bars of the chart.

We can obviously see the increasing number of swappers over time and this means more and more ppl are registering on this protocol and this is really good satisfying healthy factor.

11th November (Yesterday) was the day with the highest number of active swappers on Velodrome.

Votes

Swaps

On the above chart we can see quite the increasing trend of voting activity on Velodrome over time.

there are more and more high spikes on number of votes (and unvotes) done by users over time and the time difference between these high spikes is also getting decreased over time.

even after hack activity, there is other high and highest spikes of voting acitivy on Velodrome finance.

Based on the above chart, the most number of lock transactions are used for Creating locks, claiming and also increasing the amount and duration of lock transactions.

We can see a low share of Withdraw transactions on all charts (maximum 9.68%) which we can conclude users who are locking in Velodrome are less likely to withdraw their locked amount and tend to hold it for a long time. obviously, this can be a positive healthy factor for this platform.

Lock

for lock transactions, First I have exctacted the function name of each deposit type on Velodrome:

Deposit Type 1:Create Lock

Deposit Type 2: Increase Amount

Deposit Type 3: Increase Lock Duration

Deposit Type 4: Merge

Then, I have analysed the data as below (there are 2 total actions : Deposit and Withdrawal)

(a Custom lockout period can be choosen in the Velodrome platform (up to maximum 4 years)

Above data and high average USD volume of creating lock transactions (comparing to the withdraw ones) can be a good factor for a healthy platform like Velodrome.

Moreover, we can see the average lock duration in Velodrome platform is 1170 days (almost 3 years) which is a very satisfyin result.

Moreover, the average locked volume per day is 92.4k USD and per user is 2220 USD which are also satisfying results.

On the left chart we can see the daily cumulative value of locked assets on Velodrome over time and as we see, this amount and also the total slope of trend line is increasing more and more over time and obviously this is a positive health factor for Velodrome platform.

The interesting result on the left chart is that the number of new users who are locking on Velodorome is getting increased more and more over time especially before 27th July. after this date, we can see more number of unique-old-users who are performing lock transactions on Velodrome.

In terms of volume, as we see, the highest lock volume has occured on 27th July (almost the same time that we have the highest number and volume of swap transactions on Velodrome).

After mid-August, the volume of lock transactions is decreasing over time.

And in terms of growth rate, we can see deposit lock transactions by far have a higher slope and growth rate than withdraw ones. the impact of huge spike on 27th July is clearly visible as a step on the chart.

As we see on the above chart, most of the lock transaction (in all terms of volume, number of users and number of transactions) contributed more in the locked period of 4 years or less.

This is because the more you lock your asset, the more you will be rewarded:

1 VELO locked for 4 years = 1.00 veVELO

1 VELO locked for 3 years = 0.75 veVELO

1 VELO locked for 2 years = 0.50 veVELO

1 VELO locked for 1 years = 0.25 veVELO

So, people tend to lock their assets for more and more durations in order to receive more and more rewards.

This trust of users can be a good healthy factor for Velodrome finance.

As we see on the above charts the number of users who are locking their asset for 4 years or less are more than all other types over time.

Moreover, we can see the increasing number of users who are performing this long-time lock transactions over time and also the number of short-term lockers is getting less and less over time.

In terms of volume we can also see the highest spike of lock transaction on 27th July and we can see it is mainly because of 4 years or less lock transactions.

Totally, we can see decresaing volume of lock transactions which are related to the short-term locking over time and it is a good healthy factor for Velodrome.

Andon the left chart, we can see the growth rate of 4 years or less lock transacation have overtook other type of lock transactions after 27th July and its now growing more and more and faster and faster than other type of lock transactions.

Staking

On the above chart we can see the number of stake transactions and also the number of users who are staking their assets on Velodrome is getting more and more over time and it has a high difference than withdraw transactions.

Moreover, there is total positive trend over time and also we can see the impact of 4 and 5 august hack on Velodrome on the chart, but even after that, the recovery of stake transactions on this platform is quite satisfying which is a good healthy result.

On the left chart, we can see the increasing number of unique and new users for Staking on Velodrome over time especially after 20th September which we can see there are way more number of new and active users on Velodrome comparing to the previous months.

And on the left chart, obviously the growth rate of deposit stake transactions is way more than withdraw ones.

LP Actions

Based on the above charts, the number of LPs, LPers and also their volume for Deposit transactions is more than withdraw ones. but the average volume of withdraw LP transactions is way more than deposit ones.

Based on the above charts, the number of LP actions and also LPers is increasing clearly on the above chart. on the right chart we can see the numer of LPs and also LPers has increased dramatically after September 2022.

In terms of volume, we can see the increasing trend of total LP volume on Velodrome over time.

the increasing volume of withdraw transactions during the recent weeks is clearly visible on the chart.

On the left, we can see the increasing number of both unique and new users on the Velodrome LPs over time which is quite a good health related factor.

And on the left, despite the increasing volume of withdraws during recent days, we can still see the growth rate of deposit LP transactions is way more than withdrawals.

As we see on the above charts, the most number of LP transactions are worth less than $10 but the most number of LPers have performed between $10 and $100 LPs.

overally, there is a good share of each LP volume type distributed between these 5 categories and this can be a good reason of helthy performance for Velodrome.

On the left we can see the most number of LP actions during the recent weeks are between $10 - $100 while the share of LPs with less than $10 was higher than all other types before September.

Also in terms of number of LPers, we can see the most number of them during the recent weeks are LPing for between $10 and $100.

Reward Claiming

based on the above charts, the most number of claiming reward activities are related to the voter_rewards.

the number of reward claiming transactions on Velodrome is increasing more and more over time especially before the hack day.

After the hack day, we have less number of rewards claminig on Velodrome but it is recovering in a good rate over time.

as like as number of reward claming transactions, we can also see the increasing number of users who are attempting to claim their reward from Velodrome over time.

The most number of these claimres are claiming their voting rewards.

And in terms of volume, we can see the highest volume related to claiming rewards is for voter_rewards and the most volume of them have achieved between 27th July and 3th August (before the hacking attack)

As we see on the left, during the recent days the acitivty of old (non-new users) for claiming rewards is increasing over time.

Based on the left chart most number of claimers and claiming transactions is related to the rewards with less than $10 or $100 value .

And based on the above charts, we can see the increasing number of claimers and also their claiming activity during the recent months.

Conclusion

Above analysis showed us that Velodrome platform is doing well in terms of “Healthy” actions in all type of transactions such as Swaps, LP Actions, Staking Actions, Voting Activity and Lock Transactions).

• There is quite increasing trend in all terms of activities on Velodrome (volume, users, transactions) especially comparing with before mid-July.
• The increasing number of whale activity is visible in most number of charts.
• The recovery rate of transactions and users on Velodrome after the 4th August hack attack is satisfying.
• Highest volume and number of transactions have achieved during the late-July, almost the same time when Optimism ecosystem has grown well and we can see the impact of Velodrome finance activities on Optimism growth.
• Long-Term lock transactions on Velodrome show us the trust of users to this platform and its reward distributing system.
• After September, we have seen significant increasing activity of LP actions on Velodrome .
• Also, we have seen that Velodrome has well performed during the past week (FTX and Alameda Collapse timespan).

Discord: Ali3N#8546 Twitter: Alik_110 Tweet Link For This Dashboard:

Methodology:

In this dashboard and using the new flipside tables for Velodrome, we are going to check some “Health” related factors for this platform and also other factors which also can indirectly be related to the Healthy behaviour of Velodrome.

The data that we are going to analysis are in different categories of Velodrome platform (Swaps, Vote Actions, Lock Actions, Stake Actions, LP Actions & Rewards Claiming)

(Note: The data for Velodrome platform on Flipside tables have started since 15th June 2022, the below analysis is from that time on. Moreover, the queries are set to get refreshed once a day, So, you can also check later and later for an updated results, However, my description and other written stuff are valid for the analysis day (12 November 2022).

As we see on the above charts, the number of lock transactions on Velodrome is increasing more and more over time and there are more and more high spikes during this chart. we can see way more deposit transactions than withdraw ones over time.

The impact of 4-5 August hack on Velodrome is visible on the chart but even after this attack, we can see quite positive trend for increasing number of lock transactions on Velodrome which is quite a positive healthy factor.

We can see some activity metrics of users on Velodrome finance on these above and left and right data.

the minimum number of 28 votes per day and also the average satisfying result of votes per user and day, can be considered as a good positive healthy results for voting activity on Velodrome.

on the left chart (as like as swap) we can see less and less “New Voters” on velodrome finance over time. most number of voters on Velodrome are old users who have voted at least once before.

there was almost an equal number of new and unique old voters on Veldorome finance protocol during the first half of the chart.