Sushi vs Uni on L2

    Sushiswap

    πŸ“ Introduction

    With the expansion and development of DeFi, the number of decentralized platforms and exchanges in this field is increasing. People's acceptance of these platforms depends on their facilities and capabilities.

    🟑Sushiswap

    Sushiswap is one of the most famous Dex that is considered a fork of Uniswap project.

    Unlike older centralized exchanges like Binance, which make their own market, Sushiswap uses users as liquidity providers based on its community-oriented nature. This decentralized exchange was created in 2020 by a person or two groups with the nicknames of "Chef Nomi" and "0xMaki".[1][2]

    🟑 Uniswap

    Uniswap was born from an idea proposed in 2016 by Ethereum creator Vitalik Buterin for a decentralized exchange (dex). Vitalik Buterin came up with an idea that included such an automated market maker (AMM) with special features. A year later in 2017, Hayden Adams started working to turn this idea into a functional product. After receiving several grants, including $100,000 from the Ethereum Foundation, Adams launched UniSwap in November 2018; At that time, a lot of liquidity quickly flowed towards this exchange and UniSwap experienced a large volume of transactions.

    Initially, Adams created a Proof of Concept system, which included a smart contract and an initial draft on the project site. This contract had only one liquidity provider and was designed for simple swaps. This was the first step towards the concepts of automated market makers and the unlimited potential of Ethereum. Uniswap currently works using liquidity pools, and individuals invest in these pools and provide liquidity for various token transactions, called liquidity providers. These liquidity providers, in return, are rewarded and share in transaction fees. In this way, the UniSwap platform has been able to solve the liquidity problem, and this is the reason for its popularity.

    🟑 Layer 2 Solutions

    Layer 2 is a term used for solutions created to help scale an application by processing transactions off of the Ethereum Mainnet (layer 1) while still maintaining the same security measures and decentralization as the mainnet. Layer 2 solutions increase throughput (transaction speed) and reduce gas fees.[3]

    πŸ”΅ Arbitrum

    Arbitrum is the first-largest Ethereum layer 2 with a total of $2.38β€ŠB locked into its smart contracts, as of this writing, according to l2beat. Arbitrum is a type of technology known as an Optimistic rollups. It allows Ethereum smart contracts to scale by passing messages between smart contracts on the Ethereum main chain and those on the Arbitrum second layer chain. Much of the transaction processing is completed on the second layer and the results of this are recorded on the main chain drastically improving speed and efficiency.[4]

    πŸ”΄ Optimism

    Optimism is a layer 2 chain, meaning it functions on top of Ethereum mainnet (layer 1). Transactions take place on Optimism, but the data about transactions get posted to mainnet where they are validated. It’s like driving in a less crowded side street while benefiting from the security of a highway.

    Optimism is the second-largest Ethereum layer 2 with a total of $1.41β€ŠB locked into its smart contracts, as of this writing, according to l2beat.

    Optimism uses a technology called rollups, specifically Optimistic rollups.

    They’re called rollups because they roll up (or bundle) the data about hundreds of transactions – non-fungible token (NFT) mints, token swaps … any transaction! – into a single transaction on Ethereum mainnet (layer 1). And they’re called Optimistic rollups because transactions are assumed to be valid until they are proven false, or in other words, innocent until proven guilty. [5]

    🟣 Polygon

    Polygon also offers a solution to increase the scalability of Ethereum, but with a different approach compared to other projects. Perhaps the most important feature of Polygon is that it supports most scaling methods and helps different chains work together. This protocol tries to solve some of Ethereum's major limitations, including its throughput, poor user experience, and lack of community governance, using a new on-chain solution.

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    πŸ“ƒ Purposes of dashboard

    In this dashboard, the market share of Sushiswap and Uniswap on the L2 chains such as Polygon, Arbitrum, Optimism is evaluated and compared. The following metrics have been used to compare Sushiswap and Uniswap on layer 2 chains:

    1️⃣ Number of swaps

    πŸ”Ή Statistical Data related to the Number of Swaps

    πŸ”Ή Total Number of Swaps

    2️⃣ Number of Traders

    πŸ”Ή Total Number of Unique Traders

    πŸ”Ή Statistical Data related to the Number of Traders

    3️⃣ Average Swap Count per Trader.

    4️⃣ Distribution of the Number of Swaps.

    5️⃣ Top 10 Addresses Based on the Number of Swaps

    πŸ”Ή Number of swaps Recorded by Top Addresses.

    6️⃣ Timing of Swaps.

    First, by setting the time frame from the "Date" section, you can see the results in daily, weekly and monthly time frame.

    ✍🏻 Methodology

    In this dashboard, the following tables are used to extract data:

    • arbitrum.core.fact_event_logs β†’ This table is used to find information about the number of swaps and the number of traders in Sushiswap and Uniswap on the ==Arbitrum== chain.

      The following contracts are used to retrieve the data related to Uniswap and Sushiswap:

      • origin_to_address='0x1b02da8cb0d097eb8d57a175b88c7d8b47997506' -- SushiSwap: Router
      • origin_to_address='0xe592427a0aece92de3edee1f18e0157c05861564' -- Uniswap V3: Router
      • origin_to_address='0x68b3465833fb72a70ecdf485e0e4c7bd8665fc45' -- Uniswap V3: Router 2

      Only successful transactions are considered in the reviews β†’ tx_status='SUCCESS'

    • optimism.core.fact_event_logsβ†’ This table is used to find relevant data on the ==Optimism== chain.

      Here, the following contracts are used to find data related to Sushiswap:

      • origin_to_address='0xbe811a0d44e2553d25d11cb8dc0d3f0d0e6430e6' --sushiswap1
      • origin_to_address='0x40e223295f6f216feede416d6b9e198368ed663a' --sushiswap2
      • origin_to_address='0x35f048853b59400fbec80748592904f66374cfc0' --sushiswap3
      • origin_to_address='0xe52180815c81d7711b83412e53259bed6a3ab70a' --sushiswap4

    The same previous contracts (on Arbitrum) are used to extract Uniswap data on Optimism.

    • polygon.core.fact_event_logs β†’ This table has also been used to extract data on the Polygan network. The previous contract was used to receive Uniswap data, and the origin_to_address='0x1b02da8cb0d097eb8d57a175b88c7d8b47997506contract was used to receive Sushiswap data.
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    🧐 Observations

    • The highest number of swaps was recorded on Sushiswap and Uniswap on August 31, 2022.
    • In the last week of August, the number of swaps in Sushiswap and Uniswap increased significantly.
    • The maximum number of swaps recorded in one day on Sushiswap is more than Uniswap. (The same goes for the number of traders.)
    • The average number of daily swaps in Uniswap is more than Sushiswap. (The same goes for the number of traders.)
    • In half of the days, the number of swaps on Uniswap was more than 5k. This amount for Sushiswap is 3.7k.
    • The lowest number of swaps recorded in Uniswap in one day is 2,082 swaps. This value for Sushiswap is equal to 1,101 swaps.
    • The total number of swaps in Uniswap is more than Sushiswap.
    • The highest number of traders were recorded on Sushiswap and Uniswap on September 7 and 8, 2022, respectively. In half of the days, the number of Uniswap traders was more than 2,105 traders. This amount for Sushiswap is equal to 1,827 traders.
    • The lowest number of Sushiswap and Uniswap traders in one day is 972 and 609 traders, respectively.
    • The average number of transactions per user in Uniswap is 7 transactions and Sushiswap is 6 transactions.
    • Uniswap has more unique traders than Sushiswap.
    • The highest number of swaps is recorded in Sushiswap and Uniswap at 13:00.
    • About 70k Uniswap users and 49k Sushiswap users have done just one swap so far.
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    🧐 Observations

    • The number of swaps and the number of unique traders in Uniswap is far more than the number of swaps in Sushiswap.
    • The average number of daily swaps on Uniswap is more than 4.9k transactions. Meanwhile, the average number of daily swaps recorded in Sushiswap is 465 transactions.
    • The average number of swaps per user in Uniswap is 16 and for Sushiswap it is 8 swaps.
    • Most of the swaps on Sushiswap are done at 12 pm. Meanwhile, the largest number of swaps in Uniswap is done at 13:00.
    • The highest number of swaps were recorded on Uniswap and Sushiswap on June 1 and July 29, respectively.
    • The general trend of the number of swaps registered in Uniswap has been upward. However, since the beginning of August, the number of swaps in Sushiswap has been decreasing.
    • About 74k Uniswap users have done just one swap. This value for Sushiswap is about 2.6k.
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    🧐 Observations

    • Since December 2021, the number of swaps and the number of daily traders on Sushiswap has been decreasing.
    • Since the beginning, the number of swaps and the number of daily traders in Uniswap have been increasing.
    • On November 29, 2021, the largest number of users and the largest number of swaps were registered on Sushiswap. Meanwhile, the highest number of swaps recorded in one day on Uniswap was on September 23. On September 15th, there was the highest number of unique traders on Uniswap.
    • The total number of swaps recorded in Sushiswap is more than Uniswap.
    • Almost from the end of April 2022, the number of daily recorded swaps on Uniswap surpassed Sushiswap.
    • The average number of swaps per trader is 12 in Uniswap and 8 traders in Sushiswap.
    • Most of the swaps made by traders in Uniswap and Sushiswap are recorded at 2 and 4 pm, respectively.
    • The interesting point is that the number of traders who have recorded 2 swaps in Sushiswap is more than the number of traders who have done only one swap.
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    πŸ’‘ Conclusion

    In this dashboard, the performance of Sushiswap and Uniswap on layer 2 chains such as Arbitrum, Optimism and Polygon was analyzed in terms of metrics such as the number of swaps and the number of traders .

    Some of the most important results are:

    • The total swaps count of Uniswap in Arbitrum and Optimism chains is more than Sushiswap. But the total swaps count of Sushiswap in the Polygon chain is more than Uniswap. (The same goes for the number of traders.)
    • Sushiswap in the Optimism chain has the worst performance compared to other chains.
    • The number of swaps and the number of traders in Uniswap on Optimism and Polygon chains have been on the rise.
    • The number of swaps and the number of Sushiswap traders in the Polygon has been decreasing.
    • …

    Analyst: Emanoel

    ***Twitter: ***

    Discord: Eman#9698

    Special thanks to the Flipsidecrypto 🧑

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