Try Quests to earn NEARRef.Finance, the Bank of Near ?
NEAR Tournament Round 3: The Financial District Provide and explore key health metrics, as well as detailed data on at least 1 key project. In your analysis, provide visualizations of USN, USDC and USDT breakdowns (i.e. which dapps and addresses hold the majority of USDC and USDT, and what cumulative flows to & from exchanges look like over time)
Introduction
Money, Money , Money. One of the foundations of modern civilization. We started from the primitive barter system to the new age borderless cryptocurrency payment. What started from a barter system that is founded on the basis of trust to cryptocurrency that is founded on trustless system.
While barter trade could be done in complete secrecy with no records, cryptocurrency trades record everything necessary, open to everyone for verification. What a journey it has been.
But then, I read an old proverb Money, like manure, does no good till it is spread. It still holds true. So how good is our new system in our new country NEAR. While it is known that Ref.Finance is among the major project on NEAR. So, we’ll be diving deep into it.
Swap trend
While the ==blue bar indicates the number of transaction,== the red line indicates the swap volume==.
In the ==early days of the protocol==, while the number of swaps were large, the ==total volume is seen to be low==. This might indicate that people had low confidence in the protocol or that the whales stayed away initially.
However, on a positive note==, as the app ages, the swap volume has increased considerably,== peaking during volatile market conditions. Notably, the terra fiasco and fed’s increase in interest rate.
top tokens in
As expected, a representative token of the ecosystems basic coin ( NEAR TOKEN) ==Wrapped Near is the most swapped (in)== both in terms of volume and sheer number of times.
Another interesting find is that the ==stable coins== USDT, USDC and DAI (especially USDT) is ==among the most swapped (in).==
Token out
As expected, a representative token of the ecosystems basic coin ( NEAR TOKEN) ==Wrapped Near is the most swapped (out)== both in terms of volume and sheer number of times.
Another interesting find is that the ==stable coins== USDT, USDC and DAI (especially USDT) is ==among the most swapped (out).==
A good project or product company listens to its customers. A great project will involve the customers.
And also the health of the project depends upon the community participation. A smaller vote base is always susceptible to be over-taken by a bad actor. We shall now look at how ref finance fares.
We see that a total of ==256 proposals were made==, while only a handful of them made it to the voting. However, what is heartening to see is that there are ==only 31 voters for this protocol.== which in itself appears to be very low. This aspect needs to change for the Dapp to be considered healthy.
The ==most active proposal were== -
- Proposal ==28== : Approve budget and transfer of stablecoins for Dev Team: https://bit.ly/2XdZ4Qp
- Proposa==l 45==: To send 139,638 REF to refchef.near as farms reward for the new aurora-wNEAR pool.
==Fight_index :==
A fun little parameter, it depicts the fight for a proposal. higher the number, more equal were the approve votes and reject votes.
For example,
Proposal 175 : To transfer 164,887 REF as reward for wbtc<>hbtc stable pool farming for 43 days, see details on (https://gov.ref.finance/t/farm-hbtc-wbtc-stable-pool-farm/649)
the proposal 175 had 6 votes saying yes and 6 rejecting it. the fight_index is aptly 1 :smiley:
We now enter the realm of stable coins.
We compare the price of four popular stablecoin and see their performance in the past few months. The four stablecoins are
- USDC - Fully collateralised
- USDT - Fully collateralised but with sketchy details
- DAI - Over collateralised and open
- USN - algorithmic stable coin before, now collateralized
Well well well, Looks like the ghost of terra is not going away soon. It’s effect appears here too.
As the market unfolded during the terra fiasco, users chose to go with USDC or the over collateralised DAI and dumped USDT and USN. USN which had previously announced a UST style token was saved as the product hadnt been attacked like UST was. Fairly enough, USN has now moved to collateralized style of functioning.
==USN, Nears stablecoin does not have the same faith that USDC and DAI have.==
Key takeaways
- Ref-finance is amongst the leaders in Near de-fi space with a market cap of 11 million usd.
- The crowd puller at ref finance is its swap platform
- The early days involved many small transactions which has now become larger but few trades .
- Top pool is The USDT-NEAR pool with a swap volume of 200+ Million USD commands a 41% share in the top 10 pools.
- After the wrapped version of near, stablecoin are the most popular assets to swap in and out of.
- ==we can clearly say that the customers who venture into ref finance are clearly not being converted into loyal customers==. around 85% are testers and sporadic users.
- The number of active voters for ref-finance is currently too low and needs to increase. Incentivising voters is one method that can be explored
- USN, Nears stablecoin does not have the same faith that USDC and DAI have.
- ==Aurora contract which acts as a layer 2 on NEAR holds the highest amount of USDC, USDt and DAI.==
- ==majority of the stablecoin moves in from factory.bridge.near, a bridging port (address).==
What are we looking at in this article. Duh, i already know it’s about finance. Well, here’s what we are looking at in the entire article.
Table of contents
- Market cap visualisation
- Top activities on Ref.Finance
- Swap activity analysis
- User loyality
- Governance in ref finance
- Liquidity providers
- Stable coin price comparison
- Stable coin analysis
- Flow of stablecoin
- Article in 10 sentences
Using the awesome website, awesomenear.com we identify the key projects on near protocol being ref finance, aurigami, Tsolaris and others.
To select the top project, we use the market cap of their token as a metric.
According to our metric, r==ef finance with a market cap of 11 Million USD is among the most important Dapp== on Near protocol. Hence, we focus our entire attention and article on ref finance.
==Majority of the transactions involving ref finance is related to swapping==. It appears that the swapping activity is among the crowd pullers for Ref Finance.
Withdraw and claim_reward for staking are the next favorite things for customers to do at the Ref-finance bank.
User loyalty analysis
The ==number of trades== made by users and the ==number of days a user is active== on the wallet are ==(expectedly) negative skewed==, with only a few users making the bulk of the transactions.
Ironically, a simpleguy.near is among the major users of the platform with 20k transactions in the past 3 months itself.
But wait, what if it was a bot ? Are there any bots and also what is the makeup of users.
We see that around half or ==55 % of the users are so called testers,== they are users who are just here to test the app and make transaction only on one or 2 days.
We then see that ==among the rest , sporadic and low users make up the bulk.== They are users who spent less than 10 days on the app and less than 250 swaps.
It appears that Through these patterns , ==we can clearly say that the customers who venture into ref finance are clearly not being converted into loyal customers.== The root cause of this has to be identified to increase the market value of ref finance.
Liquidity providers
Which are the gas guzzler function in ref-finance ?
mft_transfer_call is the highest gas guzzler while ==swap is intermediary,==
it’s relatively costly to withdraw.
USDC
DAI
USDT
Observation
We see that the ==majority of the stablecoin moves in from factory.bridge.near, a bridging port (address).== It signifies a lot of users bridge their stablecoins from other chains such as ethereum into NEAR protocol.
Where do the stablecoin go from ref-finance?
We now visualize where ref-finance gets it stablecoin from and where it goes out.
Meanwhile, it appears that the inflows and outflows of stablecoin from ref-Finance is somewhat evenly distributed.
Article in 10 sentences.
Ref-finance is amongst the leaders in Near de-fi space with a market cap of 11 million usd, and it’s eye catching feature is its swap platform which accounts to half of transactions done on Ref-Finance. While the early days involved many small transactions it has now become larger but few trades.
Top pool is The USDT-NEAR pool with a swap volume of 200+ Million USD and commands a 41% share in the top 10 pools. After the wrapped version of near, stablecoins are the most popular assets to swap in and out of. them being USDC USDt and DAI. Regarding the customers, ==we can clearly say that the customers who venture into ref finance are clearly not being converted into loyal customers== as around 85% are testers and sporadic users. The number of active voters for ref-finance is currently too low and needs to increase. Incentivising voters is one method that can be explored. USN, Nears stablecoin does not have the same level of peoples faith that USDC and DAI have. ==Aurora contract which acts as a layer 2 on NEAR holds the highest amount of USDC, USDt and DAI where majority of the stablecoin moves in from factory.bridge.near, a bridging port (address).==