Impact of FTX on Solana DeFi

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    Solana Introduction

    Solana is a blockchain platform created to run scalable, decentralised apps. It was established in 2017 and is an open-source project that is now managed by the Solana Foundation in Geneva. The blockchain was created by a San Francisco-based company Solana Lab.

    OpenBook Introduction

    1. Serum, the OG order book on Solana, had to be forked (replaced) as a result of the key control risk following the FTX breakdown.
    2. The objective of the community-led project OpenBook is to create and preserve a basic environment for spot trading.

    Dashboard Introduction

    1. Over the past week from November 7th, rumours started to circulate that FTX & Alameda Research will soon go insolvent.
    2. Therefore in this dashboard, we will look at the activity on Serum, OpenBook and Solana DeFi since the start of November.
    3. Decentralised Staking and Decentralised Exchanges (DEX) are two of the DeFi sectors that will be examined in this dashboard.
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    Approach

    1. solana.core.fact_events, solana.core.dim_labels, solana.core.fact_stake_pool_actions, solana.core.fact_swaps

    2. Start Date = November 1st, 2022

    3. I used the dim_labels tables and the DeFi and DEX filters to determine Solana's DeFi and DEX platforms.

    4. OpenBook Program ID = srmqPvymJeFKQ4zGQed1GFppgkRHL9kaELCbyksJtPX

    5. Serum Program ID = 9xQeWvG816bUx9EPjHmaT23yvVM2ZWbrrpZb9PusVFin, EUqojwWA2rd19FZrzeBncJsm38Jm1hEhE3zsmX3bRc2o, 4ckmDgGdxQoPDLUkDT3vHgSAkzA3QRdNq5ywwY4sUSJn, BJ3jrUzddfuSrZHXSCxMUUQsjKEyLmuuyZebkcaFp2fg

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    Topics

    1. Serum & OpenBook
    2. Solana DeFi Overview
    3. Liquidity Flows on Decentralised Staking Pool
    4. Liquidity Flows on Solana DEX

    Solana DeFi Overview

    Liquidity Flows on Decentralised Staking Pool

    • The metrics above depicts the details of Solana DeFi activity since the start of November.
    • As can be seen, the number of transactions & wallets on Solana DeFi surged during the collapse of FTX & Alameda.
    • The number of transactions peaked on November 7th with more than 9 million transactions executed in a single day.
    • However, the transactions plummeted since November 13th with less than 1 million transactions a day.
    • On the other hand, the number of active wallets saw an increase after the collapse of FTX & Alameda.
    • Prior to the collapse, around 13.33k wallets were active on average. After the collapse, 15.05k wallets were active each day.
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    Transactions on DeFi

    Wallets on DeFi

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    Liquidity Flows on Solana DEX

    • The metrics above depicts the details of liquidity flows on Solana decentralised staking pools since the start of November.
    • We can see that since November 8th, there were significantly more SOL that were unstaked.
    • This demonstrates that Solana users are moving their funds elsewhere rather than staking it.
    • Next, majority of the SOL staked and unstaked were from Lido pool, with more than 90% SOL.
    • Consequently, we could infer that Lido seemed to be the program that was most impacted in the decentralised staking sector.
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    1. Serum & OpenBook:
      • Since OpenBook's launch, it has absorbed majority of Serum's transactions.

      • However, compared to OpenBook, Serum has been gaining more new users on a daily basis.

      • Additionally, Serum's activity prior to the insolvency of FTX & Alameda Research has been substantially higher than OpenBook's most recent activity.

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    2. Solana DeFi Overview:
      • During the collapse of FTX & Alameda, Solana DeFi saw an increase in transactions and wallets.

      • However, since November 13th, there have been far fewer transactions every day, averaging less than 1 million.

      • On the other side, with the demise of FTX & Alameda, there was a surge in the number of active wallets.

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    3. Liquidity Flows on Decentralised Staking Pools & Exchanges:
      • A significant amount of SOL have been unstaked after November 8th. This shows that Solana users are withdrawing their funds instead of staking them.
      • Furthermore, the number of swaps and swappers reached a monthly high during the FTX & Alamade's insolvency timespan.
      • The Lido pool provided the majority of the staked and unstaked SOL, while Raydium and Jupiter were the DEXes with the highest activity.
      • As a result, we could conclude that Lido is the program that was most impacted in the decentralised staking sector, while Jupiter and Raydium are most impacted in the Solana DEX sector.
    • The metrics above depicts the details of liquidity flows on Solana decentralised exchanges since the start of November.
    • Similarly, the number of swaps and swappers reached a monthly high since the insolvency of FTX & Alamade begun.
    • Nonetheless, the activity on Solana DEX quickly diminished after the peak.
    • Most of the trades were conducted on Raydium and Jupiter, demonstrating that Jupiter and Raydium are most affected in the Solana DEX sector.
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    • The metrics above depicts the number of transactions and new wallets on Serum & OpenBook since the start of November.
    • On November 12, the same day that Serum's previous program ID was virtually discarded, OpenBook was introduced.
    • As a result, we can observe an upward trend in transactions and new users on OpenBook.
    • OpenBook accounts for more than 90% of the transactions market share on a daily basis.
    • Nevertheless, OpenBook has a far lower overall transaction count and user base than Serum.
    • Furthermore, the activity on OpenBook has been significantly lower than Serum before the collapse of FTX & Alameda Research.

    Serum & OpenBook