Try Quests to earn cryptoBorrowing activity on Aave
What is the Question?🚨
Create a dashboard that covers and answers the questions below:
- How many unique borrowers of SNX, UNI, & MKR are there on Aave V2?
- What is total cumulative borrow for each asset on Aave V2?
- Can you visualize borrowing of each asset over time?
Analyzed Topics:
- Total Borrow Statistics of MKR & SNX & UNI
- Accumulated Borrow Activity of MKR & SNX & UNI
- MKR & SNX & UNI Borrowers Behavior on Aave
- Variable & Stable Borrow Rates
- Borrowing Activity on Aave V2
Introduction🚩
Welcome to my Aave Protocol Dashboard, a decentralized lending and borrowing platform built on the Ethereum blockchain.
On Aave, users can easily borrow funds by depositing collateral, with a variety of cryptocurrencies available to choose from. Aave offers competitive interest rates, customizable borrowing terms, and a user-friendly interface for managing your loans. Whether you're looking to make a large purchase or simply need a short-term loan, Aave's borrowing activity is a convenient and secure option for accessing funds in the decentralized finance (DeFi) ecosystem.
> Aave App > > Aave Docs > > Aave Github > > Aave Governance
Method⚡
In this dashboard, I analyzed the borrowing activity of MKR, SNX, and UNI assets on Aave V2 from different angles. Firstly, I presented their monthly and overall statistics and compared their records to determine which one performed better and led the others. Next, I visualized their cumulative borrowing on a monthly basis.
After that, I analyzed the borrowing behavior of token borrowers to understand their performance on Aave. Additionally, I presented the top 10 borrowers in terms of borrow count and borrowed USD volume for the mentioned tokens. Then explored the stable and variable borrowing rates for these tokens. Finally, I analyzed the entire Aave V2 ecosystem to determine which token performed the best among all.
To conduct this analysis, I extracted the data from the ==ethereum.aave== database provided by Flipsidecrypto. I primarily used the ez_borrows table to gather the necessary data and perform my analysis. I also utilized the ez_market_stats table to obtain borrowing rates.
I have included a field named "Date" at the beginning of the dashboard. If you prefer a different time interval, such as weekly or daily, you can select it from a dropdown menu after logging in to Flipside.
I filtered these tokens with symbol in ('MKR','SNX','UNI') and Aave V2 with aave_version = 'Aave V2'
Findings👀
- Based on the charts and data provided, the three assets - MKR, SNX, and UNI - have collectively generated a total borrowed volume of 586M USD, with over 2.5K borrows from 1.1K unique borrowers.
- SNX and UNI exhibit similar borrowing patterns, with an average of 1K borrows and 650 unique borrowers. SNX, however, has slightly outperformed UNI over time. MKR ranks third in all aspects except for average USD volume, where it accounts for over 58% of the total share, followed by SNX with 21% and UNI with 20.6%.
- After a decline in mid-2021, borrowing activity for these three tokens started to rise again in early 2022. SNX outperformed the other two and reached an all-time high in borrowing activity in June 2022 with 117 borrows.
- Interestingly, MKR, which was previously dominated by UNI and SNX, recorded over 100M USD in borrowed volume in January 2022, generating this amount from just five unique borrowers with nine transactions.
- Overall, SNX led the other mentioned tokens with over 1K borrows and 200M USD borrowed volume by 622 unique borrowers, followed by UNI and MKR in second and third place, respectively.
- Also we should mention that although UNI had 50 more unique borrowers than SNX but recorded 57 less borrows over time.
Findings👀
- The growth in borrowing activity for SNX and UNI on Aave V2 was nearly identical, moving in tandem with a consistent upward trend. Meanwhile, MKR exhibited a more gradual growth trend in USD volume, with a sharp increase in January 2022 mentioned in the previous part, followed by a return to its earlier, gradual slope of growth.
Findings👀
- In this section, I analyzed the behavior of MKR, SNX, and UNI borrowers on Aave V2, examining their activity over time.
- The data shows that over 60% of borrowers for these tokens only had a single borrowing transaction, while more than 28% borrowed over 100,000 USD worth of these tokens. In second place were borrowers who borrowed less than 1000 USD worth of tokens, accounting for 21.2% of all borrowers.
- Overall, it appears that users tend to borrow either once or only a few times, but often with a large borrowed amount.
Findings👀
- The above bar charts illustrate the top 10 borrowers of MKR, SNX, and UNI on Aave V2 based on the highest borrowing count or volume in USD over a period of time.
- The wallet address =="0xfac983fce7ef3cee8ffb2ceb967e1b2362aada00"== has recorded the highest number of borrows, with a total of 53 borrows. Meanwhile, the wallet address =="0x3ddfa8ec3052539b6c9549f12cea2c295cff5296"== borrowed the highest volume of these tokens, with a total amount of over 80M USD borrowed.
- Interestingly, the borrower with the highest borrowed amount is not in the top 10 in terms of borrow count.
Findings👀
- Upon reviewing the monthly charts, it is evident that SNX consistently had the highest variable rate for most months, while MKR had the highest stable rate. Although UNI and MKR had similar monthly variable rates, all tokens recorded numerous fluctuations in their stable rates over time, with MKR experiencing the most fluctuations and the highest monthly stable rate.
- Interestingly, most of the borrows and borrowed amounts were recorded at variable rates. This could be attributed to the high stable rates of these tokens, prompting users to opt for variable rates to take advantage of lower rates.
Findings👀
- In this section, I analyzed the borrowing activity on Aave V2 over time to determine which tokens are performing better and which ones are more popular among borrowers on Aave.
- The data reveals that stablecoins, particularly USDC and USDT, are the most frequently borrowed tokens. USDC accounted for the majority of the borrowing activity on Aave V2, with the highest number of borrows and unique borrowers in May 2022, and the highest borrowed USD volume in May 2021.
- Furthermore, USDC had twice as much borrowing activity as the second most popular token, USDT, with 92.7K borrows by 32.1K unique borrowers and a total volume of 31.7B USD over time.
- Among all tokens on Aave V2 in terms of borrow activity, UNI and SNX ranks after 12 or 13 place and MKR ranks after 20
Conclusion💡
- In conclusion, the analysis of borrowing activity on Aave V2 for MKR, SNX, and UNI reveals interesting insights into the behavior of borrowers and the popularity of these tokens on the platform. While SNX leads the other tokens in terms of borrowing activity, UNI and MKR also exhibit steady growth and popularity over time.
- It is notable that most borrowers tend to borrow only once or a few times but with a large borrowed amount.
- Additionally, the data highlights the popularity of stablecoins, particularly USDC, on the platform, as they account for the majority of borrowing activity.
- The use of variable rates for borrowing is also prominent, possibly due to high stable rates of these tokens.
- Overall, this analysis provides valuable information for investors and stakeholders in the cryptocurrency market to make informed decisions regarding their investments and strategies.
