Sushiswap Introduction

Sushiswap is a decentralised exchange (DEX) that is built on the Ethereum blockchain. It offers a substitute for the trading of tokens issued by liquidity providers (LP). Users may purchase and sell tokens using Sushi DeFi and decentralised exchanges using the Automated Market Maker (AMM) protocol, which is enabled by "smart contracts" in SushiSwap.

SUSHI is Sushiswap’s native token, and it is a governance token that enables users to have an impact on the token's future price and development.

Dashboard Introduction

The Ethereum successfully merged on the 15th of September. However before the merge, it created some doubt in the DEFI markets. It convinced several market makers (MM) to remove liquidity from DeFi in order to reduce their risk. Hence in this dashboard, we will look into the behavior of Sushi MMs since the start of September. We will also analyse the liquidity added & removed activity as well as the pools that got affected the most.

Approach

1. Table used: ethereum.core.ez_token_transfers, ethereum.core.ez_eth_transfers, ethereum.core.dim_dex_liquidity_pools
2. Start date: 2022-09-01

Topics

1. Liquidity Added & Removed activity
2. Pools Analysis
3. Conclusion

Liquidity Added & Removed activity

• The metrics above shows the details of the liquidity added & removed on Sushiswap since the start of September.
• As can be seen, we can see that there was an identical trend across all metrics since one week before the merge.
• There was a huge increase in liquidity removed from Sushiswap since one week prior to the merge.
• Furthermore, liquidity was added during the day of the merge.
• An average of 532.34k USD in liquidity was added per day before the merge, while 4.22 million USD were added per day since the merge.
• On the other hand, 5.84 million USD were removed daily on average and only 3.09 million USD were removed after the merge.
• As a result, this indicates that users were removing liquidity before the merge due to uncertainty and have added their liquidity back after the merge.

Next, lets looks at the pools that were most affected.

Pools Analysis

• According to the metrics above, we can see that USDC-WETH SLP is the pool where most amount were withdrew from before the merge, and also the pool where users added their capital back after the merge.
• Moreover, USDC-WETH SLP 24.87 million USD withdrawn from the pool prior to the merge and 53.05 million added after the merge succeeded.
• Out of all the users that have withdrew their liquidity from Sushiswap, only 17.7% of the users have redeployed their capital back, which is significantly less.
• The largest withdrawer had removed a total of 12.47 million USD since the start of September to September 14th.
• Olympus DAO and Tokemak came in third and forth, with 7.36 million removed for Olympus DAO and 7.11 million removed for Tokemak.

Conclusion

1. Liquidity Added & Removed activity:

   • Activity of removing liquidity have been increasing since one week prior to the merge.

   • Furthermore, large amounts of liquidity were added during the day of the merge.

   • This suggests that users were removing liquidity before to the merge due to uncertainty, and that they added liquidity back after the merge.

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2. Pools Analysis:
   • USDC-WETH SLP is the pool that got affected the most, with 24.87 million USD withdrawn before the merge and 53.05 million were added after the merge.
   • Only 17.7% of users who have withdrawn their liquidity from Sushiswap have redeployed their capital back.
   • From the beginning of September to September 14th, the top withdrawer had withdrawn a total of 12.47 million USD.
   • Olympus DAO and Tokemak each had withdrawn more than 7 million USD.