Try Quests to earn crypto📝 Introduction
🟡 Layer-1 blockchain
A Layer-1 blockchain is the base level of the blockchain architecture.
Layer-1 blockchains validate and execute transactions without support from another network, and reimburses transaction fees with cryptocurrencies.
Ethereum runs transactions without depending on an external system and has its own native cryptocurrency, Ether.
Every blockchain network needs to have three properties:
- Decentralization:== The chain runs without depending on centralized actors. In other words, no organization or government runs it, and a distributed network of computers (nodes) manages everything.
- Security:== The chain can resist an attack from at least 51% of the participating nodes.
- Scalability: The chain can support an increasing load of transactions. [1]
🟡 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.[2]
🟡 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".[3][4]
🟡 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 $1.41 B 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]
📃 Purposes of dashboard
In this dashboard, the activity of Sushiswap users on the Ethereum chain is compared with the Optimism layer 2 chain. In general, the main purpose of this dashboard is to compare the performance of the Ethereum network with Optimism.
The metrics that are analyzed in this dashboard are:
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Number of swaps
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Number of users
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Volume of swaps
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Statistical data such as average, median, maximum and minimum for the number and volume of daily swaps and the number of Sushiswap users per day.
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Average swap count/volume per user
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Average fee per transaction
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Top 10 users based on swap volume/count
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Daily swap volume/count of top users
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Classification of users based on total swap volume
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Distribution of swaps count
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Total amount of fee per week
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Average transaction fee
All these data are obtained once for Sushiswap on the Optimism chain and again for this dex on the Ethereum network.
✍🏻 Methodology
- In this dashboard, the following tables are used to extract data:
optimism.sushi.ez_swaps→This table has been used to extract data related to Sushiswap on Optimism.optimism.core.fact_transactions→ This table has been used to find transaction fees related to Sushiswap swaps on the Optimism network.- For more detailed analysis, only successful transactions are considered →
where status='SUCCESS' ethereum.sushi.ez_swaps→ This table has been used to extract data related to Sushiswap on Ethereumethereum.core.fact_transactions→ This table is used to calculate Sushiswap transaction fees on Optimism.
Time frame considered in this dashboard: From May 9, 2022 onwards
💡 Conclusion
In this dashboard, the performance of Sushiswap on the Ethereum chain (L1) is compared with the Optimism chain (L2). The results show that the amount of user activity on the Ethereum network is much higher than the Optimism chain. But the trend of some indicators such as the number of swaps and the number of unique users for the Optimism network is upward. The much lower fees of this network compared to the Ethereum network can attract more and more users to the Optimism second layer chain.
Analyst: Emanoel
***Twitter: ***
Discord: Eman#9698
Special thanks to the Flipsidecrypto 🧡
🧐 Observations
- The number of swaps and the number of Sushiswap users on Optimism has been on the rise in recent weeks. Checking the top addresses also confirms this issue. But checking these values for the Ethereum network in the past weeks shows a downward trend.
- The volume of swaps of the top Sushiswap user on the Optimism network has been around 269k $USD so far. This address has recorded 1,418 transactions on Sushiswap on the Optimism chain so far. But Sushiswap's top user on the Ethereum network has recorded 37k transactions so far. The volume of transactions of this address has been equal to 141M $USD so far.
- The largest number of Sushiswap users on the Optimism network had a total swap volume between 10 and 100 dollars (37.4%). On the other hand, only 10 users have ever had a total swap volume of more than 10k $USD.
- The largest number of Sushiswap users on the Ethereum network had a total swap volume between 100 and 1000 USD. On the other hand, 21k unique addresses have had a total swap volume of more than 10k USD.