Uniswap Pools on Optimism

    Open Analytics Bounty: Optimism (August 21)

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    Introduction

    Uniswap

    Uniswap is an automated liquidity protocol powered by a constant product formula and implemented in a system of non-upgradeable smart contracts on the Ethereum blockchain. It obviates the need for trusted intermediaries, prioritizing decentralization, censorship resistance, and security.

    Optimism

    Optimism is a Layer 2 scaling solution for Ethereum. It helps reduce the transaction fee and transaction time on the Ethereum blockchain. Broadly speaking, Optimism helps solve Ethereum's scalability dilemma. Scalability refers to the rate of transactions per second (TPS) on a blockchain network.

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    Conclusion

    In this dashboard, the status of Uniswap pools on the Optimism network was examined. Some of the most important results obtained are summarized below:

    ✅ Although in the daily time frame, the number of liquidity providers is more than the liquidity removers, but the amount of liquidity removed from the pools is more than the amount of liquidity added to the pools.

    ✅ The top liquidity provider has added about $4M USD to Uniswap pools, while the top liquidity remover has withdrawn a total of $5.2M USD from the pools so far.

    ✅ The volume of liquidity moved by the largest number of users (both liquidity providers and liquidity removers) with pools was less than $10 USD.

    ✅ Almost since the end of July, the number of liquidity providers was more than the number of liquidity removers.

    ✅ The largest number of liquidity providers are users from ‘OP-USDC: 0.3%’ pool.

    ✅ The largest number of liquidity providers have added the USDC token to the pools.

    ✅ So far, the largest volume of liquidity has been added to the ‘WETH-USDC: 0.05%’ pool.

    ✅ USDC has the largest share of liquidity volume added to the pools.

    ✅ The largest number of users have removed their assets from the ‘OP-USDC: 0.3%’ pool.

    ✅ The largest number of users have removed the USDC token from Uniswap liquidity pools.

    ✅ The largest volume of liquidity removed by users is also related to the ‘WETH-USDC: 0.05%’ pool.

    ✅ Among the assets removed from Uniswap pools, the WETH token has the largest volume.

    ✅ The OP price has not had much impact on the activity of liquidity providers in Uniswap pools on the Optimism network.

    ✅ BTC price, as the most important factor determining the trend of the crypto market, has not had much impact on the activity of liquidity providers in Uniswap pools on the Optimism network.

    Analyst: Emanoel

    ***Twitter: ***

    Discord: Eman#9698

    Special thanks to the Flipsidecrypto 🧡

    The purpose of this dashboard

    Analysis of Uniswap liquidity pools on the Optimism network based on the following metrics:

    • Number of liquidity providers/removers
    • Volume of liquidity provided/removed
    • Top liquidity providers/removers
    • Categorizing liquidity providers/removers based on $USD volume
    • Daily liquidity rate (The ratio of the volume of liquidity provided to the volume of liquidity removed)
    • Correlation analysis of OP price and the volume of OP liquidity provided
    • Correlation analysis of OP price and number of OP token liquidity providers
    • Analysis of the impact of BTC price (as a determining factor of the crypto market trend) on the amount of liquidity provided and the number of liquidity providers (calculation of the correlation coefficient)
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    Methodology

    • In this dashboard, the following tables are used to check the data related to Uniswap liquidity pools on the Optimism network:
      • optimism.core.fact_token_transfers

      • optimism.core.fact_hourly_token_prices

        We joined the above two tables together to calculate the volume of liquidity in terms of USD.

    • On the other hand, the address list of Uniswap pools on the Optimism network that were analyzed in this dashboard are:
      • address='0x85149247691df622eaf1a8bd0cafd40bc45154a9' →'WETH-USDC: 0.05%'
      • address='0x73b14a78a0d396c521f954532d43fd5ffe385216' → 'WETH-WBTC: 0.3%'
      • address='0x68f5c0a2de713a54991e01858fd27a3832401849' → 'WETH-OP: 0.3%'
      • address='0x03af20bdaaffb4cc0a521796a223f7d85e2aac31' → 'WETH-DAI: 0.3%'
      • address='0x98d9ae198f2018503791d1caf23c6807c135bb6b' → 'USDC-FRAX: 0.05%'
      • address='0xf334f6104a179207ddacfb41fa3567feea8595c2' → 'WETH-LYRA: 1%'
      • address='0x100bdc1431a9b09c61c0efc5776814285f8fb248' → 'USDC-DAI: 0.05%'
      • address='0xac6705bc7f6a35eb194bdb89066049d6f1b0b1b5' → 'THALES-WETH: 0.3%'
      • address='0x535541f1aa08416e69dc4d610131099fa2ae7222' → 'WETH-PERP: 0.3%'
      • address='0x0392b358ce4547601befa962680bede836606ae2' → 'WETH-SNX: 0.3%'
      • address='0x730691cdac3cbd4d41fc5eb9d8abbb0cea795b94' → 'WETH-OP: 1%'
      • address='0x1c3140ab59d6caf9fa7459c6f83d4b52ba881d36' → 'OP-USDC: 0.3%'
      • address='0x6fcb3b6eccba19693fade13366b5aa0da37ee43f' → 'WETH-FIRN: 1%'
      • address='0xadb35413ec50e0afe41039eac8b930d313e94fa4' → 'sUSD-DAI: 0.05%'
      • address='0xb589969d38ce76d3d7aa319de7133bc9755fd840' → 'WETH-USDC: 0.3%'
      • address='0xbf16ef186e715668aa29cef57e2fd7f9d48adfe6' → 'USDC-DAI: 0.01%'
      • address='0x819ff7911fcc218665ecd6faad61730af544b3e1' → 'EST-DAI: 0.3%'
      • address='0xf1f199342687a7d78bcc16fce79fa2665ef870e1' → 'USDC-USDT: 0.01%'
      • address='0x8eda97883a1bc02cf68c6b9fb996e06ed8fdb3e5' → 'USDC-sUSD: 0.05$'
      • address='0x827f0a2a4376bc26729f398b865f424dc8456841' → 'USDT-DAI: 0.05%'
      • address='0xbd93951d2e9ec615f9940887559b4317032d98d0' → 'STG-USDC: 0.3%'
      • address='0xad4c666fc170b468b19988959eb931a3676f0e9f' → 'WETH-UNI: 0.3%'
      • address='0x381af0787add5bbbfa6ff88bd1284449a486372b' → 'DAI-XCHF: 0.05%'
      • address='0xc858a329bf053be78d6239c4a4343b8fbd21472b' → 'WETH-USDT: 0.05%'
      • address='0xf3f3433c3a97f70349c138ada81da4d3554982db' → 'USDC-USDT: 0.05%'
      • address='0x85c31ffa3706d1cce9d525a00f1c7d4a2911754c' → 'WETH-WBTC: 0.05%'
      • address='0xe62bd99a9501ca33d98913105fc2bec5bae6e5dd' → 'WETH-KROM: 0.3%'
      • address='0x6f32061f59a21086c334d0d45f804089ce374aaf' → 'OP-USDC: 1%'
      • address='0x790fde1fd6d2568050061a88c375d5c2e06b140b' → 'WETH-AAVE: 0.3%'
      • address='0x665d8d87ac09bdbc1222b8b9e72ddcb82f76b54a' → 'WETH-AELIN: 1%'
      • address='0x6168ec836d0b1f0c37381ec7ed1891a412872121' → 'WBTC-USDC: 0.3%'
      • address='0x2e80d5a7b3c613d854ee43243ff09808108561eb' → 'WETH-sUSD: 0.3%'
      • address='0xaefc1edaede6adadcdf3bb344577d45a80b19582' → 'WETH-rETH: 0.05%'
      • address='0xdd0c6bae8ad5998c358b823df15a2a4181da1b80' → 'WETH-USDT: 0.3%'
      • address='0xc50958e82c36b8d6d0baf555f90b76b0a28ceeeb' → 'THALES-USDC: 0.3%'
      • address='0x3202c46666e774b44ba463eafaa6da9a968a058f' → 'LINK-WETH: 1%'
      • address='0x25e412992634b93a025e2a538c53222a8c62e2d6' → 'SNX-sUSD: 1%'
      • address='0x2df05e4cdbd758cb1a99a34bb0d767e040d6b078' → 'WETH-USDT: 1%'
      • address='0x1d751bc1a723accf1942122ca9aa82d49d08d2ae' → 'OP-USDC: 0.05%'
      • address='0x815ae7bf44dda74ed9274377ed711efc8b567911' → 'WETH-DAI: 1%'
      • address='0x8f477a5d632b5691a10a571575d55dc9c3d86d7c' → 'WETH-rETH: 0.03%'
      • address='0x61eaa7be020d086aff1a75402a90e73f374db276' → 'WETH-SPANK: 0.3%'
      • address='0xe870bfe4aacb6e234b645e535d26c53790d50e78' → 'CRV-WETH: 0.3%'
      • address='0x95d9d28606ee55de7667f0f176ebfc3215cfd9c0' → 'WETH-DAI: 0.05%'
      • address='0x926c2aeed9b4c10a025c3605dbc2953834ba2a8a' → 'MNYe-USDC: 0.05%'
      • address='0xb018e5955c561a8af0f49faf60d587b7f8f1687b' → 'THALES-USDC: 1%'
      • address='0xae2d9288be0587c2097ec46db7686ac2481f896e' → 'OP-DAI: 1%'
      • address='0x94ad9a19126ebb02dda874237e5820fd4943f5de' → 'WETH-USDC: 1%

    The percentages written next to the names of the pools show the interest paid by those pools.

    • All data is from June 15, 2022 onwards.

    Data Analysis

    Observations

    • In the last three months, the volume of liquidity added by users and the number of liquidity providers have been increasing.
    • In the past months, the number of users who withdraw their liquidity from Uniswap pools on the Optimism network has also been increasing.
    • In total, the number of users who added liquidity to Uniswap pools was more than those who removed liquidity. But the volume of liquidity removed from the pools in the past months was far more than the volume added.
    • Examining the addresses that have added liquidity in the largest number of different pools shows that the address '==0xb1101c790731f62bd06cc5e91551fa523a20330d==' has provided liquidity in a total of 17 pools. After this address, a user with the address '==0xceff98a045a3732f3e26247a29ba5e7d52fe84b2==' is ranked second by adding liquidity in 15 different pools. The next two addresses are ranked third and fourth with 11 and 8 pools, respectively.
    • Among the top 10 liquidity providers in terms of liquidity volume, the address '==0x44196adfb6c845d1eb129eb93cf0542be5f3a808==' is ranked first with about $4m USD of liquidity.
    • Among the top removers, the address '==0x8568ab8c33a17a906d6b1c1724728ddf32cad60d==' is on the first place with about 5.2m $USD liquidity removed.
    • Reviewing the amount of liquidity that users add to the pools each time shows that the largest number of users have added less than $10 to the Uniswap liquidity pools on the Optimism network. (more than 5.9k addresses)
    • Most of the users have withdrawn less than 10 $USD from the pools so far. → 850 Users
    • About 13 users added more than 1m $USD to the pools. About 12 users have also removed more than 1m $USD each from the pools.
    • About 181 addresses have also removed amounts between 10k $USD and 100k $USD from Uniswap pools.
    • The daily liquidity rate chart shows that only on two days (June 21 & Jul 11), the amount of liquidity provided by users was more than the amount of liquidity removed, and on other days, the amount of liquidity removed was always more than the amount of liquidity provided. But unlike the volume of liquidity, the number of liquidity providers in Uniswap pools has been more than the number of liquidity removers almost on most days.
    • In some days, the number of liquidity providers has increased dramatically. Some of these days are:
      • Jul 4, 2022 → 769 liquidity providers

      • Jul 24, 2022 → 3,258 liquidity providers

      • Aug 2, 2022 → 1470 liquidity providers

      • Aug 5, 2022 → 4045 liquidity providers → Maximum amount

      • Aug 10, 2022 → 951 liquidity providers

      • Aug 20, 2022 → 3401 liquidity providers

    • In the months of June and July, almost on most days, the number of liquidity removers was more than the number of liquidity providers. But from the end of July, the trend changed and the number of liquidity providers increased sharply on some days.

    Examining the graphs related to the number of liquidity providers in Uniswap pools on the Optimism network shows that:

    • The minimum and maximum number of users who have added liquidity in one day are 23 and 4050 unique users, respectively.

    • More than 142 unique users have added liquidity to various Uniswap pools in half a day.

    • On average, about 410 users add liquidity to Uniswap pools on the Optimism network daily.

    • Since July 24th, many liquidity providers are users who have added their liquidity to the 'OP-USDC: 0.3%' pool. (The jumps that can be seen in the graph on July 24 (1175 users) and August 20 (1610 users) are related to these users)

    • The reason for the sudden jump in the chart on August 5th is because on this day 1899 users added their liquidity to the 'WETH-SNX: 0.3%' pool.

    • The 5 pools with the largest number of liquidity providers are:

      1️⃣ OP-USDC: 0.3%

      2️⃣ USDC-USDT: 0.05%

      3️⃣ WETH-SNX: 0.3%

      4️⃣ USDC-DAI: 0.05%

      5️⃣ WETH-USDC: 0.05%

    • About 64% of liquidity providers in Uniswap pools on the Optimism network are users who add USDC and OP to the pools.

    • The lowest and highest liquidity added to Uniswap pools in one day is $12.91k USD (July 9) and $2.69M USD (August 6), respectively.

    • More than 0.7M $USD liquidity has been added to various pools in half of the days.

    • An average of 0.83M $USD of liquidity has been added to the pools daily.

    • On some days, we see sudden jumps in the volume of liquidity added to Uniswap pools:

      • On June 27 and July 11, a large amount of liquidity was added to the pool 'USDC-DAI: 0.05%'.
      • On June 29 and July 24, a large amount of liquidity was added to the 'WETH-USDC: 0.05%' and 'USDC-sUSD: 0.05%' pools.
      • On July 30, the volume of liquidity added to the pool 'WETH-USDC: 0.05%' is impressive.
      • On August 25th, a lot of liquidity has been added to the 'USDC-DAI: 0.05%' and 'USDC-sUSD: 0.05%' pools.
    • The 5 pools to which the most liquidity has been added are:

      1️⃣ WETH-USDC: 0.05%

      2️⃣ USDC-sUSD: 0.05%

      3️⃣ USDC-DAI: 0.01%

      4️⃣ USDC-DAI: 0.05%

      5️⃣ OP-USDC: 0.3%

    • About 52% of the liquidity in Uniswap pools on the Optimism network is in USDC currency. After USDC, DAI and OP currencies also have a large share of liquidity.

    • Most of the liquidity in the pools is related to stablecoins.

    • The minimum and maximum number of users who have removed their liquidity from Uniswap pools on the Optimism network in one day are 41 (July 10) and 400 users (August 5), respectively.

    • In half of the days, more than 159 users have removed their liquidity from the pools.

    • On average, 176 users remove their liquidity from Uniswap pools per day.

    • The 5 pools that have the largest number of users removing liquidity are:

      1️⃣ OP-USDC: 0.3%

      2️⃣ USDC-DAI: 0.05%

      3️⃣ USDC-USDT: 0.05%

      4️⃣ sUSD-DAI: 0.05%

      5️⃣ USDC-sUSD: 0.05%

    • The largest number of users withdraw USDC, WETH, OP, DAI and USDT tokens from liquidity.

    • The minimum and maximum amount of liquidity removed from Uniswap pools on the Optimism network in one day was 283k $USD (July 9) and 9.3M $USD (August 19), respectively.
    • A total of over 2.93M $USD has been removed from various pools in half of the days.
    • On average, about 3.35M $USD is withdrawn from Uniswap pools on the Optimism network daily.
    • A total of 67% of the liquidities removed are related to the pools 'WETH-USDC: 0.05%', 'WETH-DAI: 0.3%' and 'WETH-OP: 0.3%'.
    • On the other hand, about 83% of the removed liquidity included WETH, USDC and DAI tokens.
    • WETH has the largest withdrawal volume from Uniswap pools.

    In the next step, the relationship between the OP price and the volume of liquidity of OP is provided, and the relationship between the OP price and the number of liquidity providers of OP is analyzed using the correlation coefficient.

    To obtain the correlation, we used the relationship shown on the right. If we wish to label the strength of the correlation, for absolute values of r, 0-0.19 is regarded as very weak, 0.2-0.39 as weak, 0.40-0.59 as moderate, 0.6-0.79 as strong and 0.8-1 as very strong correlation. On the other hand, the correlation coefficient can be positive or negative. A positive correlation coefficient means that as the value of one variable increases, the value of the other variable increases; as one decreases the other decreases. A negative correlation coefficient indicates that as one variable increases, the other decreases, and vice-versa.

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    The results show that the correlation coefficient between the OP price and the amount of liquidity provided is equal to 0.24. This obtained value shows a positive and weak correlation between these two variables. On the other hand, the correlation coefficient between the OP price and the number of liquidity providers was equal to 0.17, which indicates a very weak correlation between these two variables. Therefore, the price of OP has not had much effect on the decision of users to add their liquidity to Uniswap pools. On the other hand, the activity of liquidity providers has not had much effect on OP price.

    In the final step, for a more detailed investigation, the impact of BTC price as the flagship of the crypto market on the activity of liquidity providers in different pools of Uniswap on the Optimism network was analyzed.

    The correlation coefficient between the price of BTC and the amount of liquidity provided in different Uniswap pools on the Optimism network is equal to ==0.2.== On the other hand, the correlation coefficient between BTC price and the number of liquidity providers was found to be equal to ==0.18.== These results show that the trend of the crypto market does not have much effect on the activity of liquidity providers.