What is the Question?🚨

Create at least 5 metrics on Velodrome with a description for each that showcase traction and success in a data-driven manner.

Most importantly, your insights should help our readers answer the question "How healthy is this project?"

Analyzed Topics:

1. Swaps
2. Staking
3. LP Actions
4. Voting Activity
5. Claim Rewards
6. Locks

Introduction🚩

What is Optimism?

1. Optimism, like Polygon, Arbitrum, and ZkSync, is an Ethereum Layer 2 network.
2. Layer 1 network is a blockchain in the decentralised ecosystem, whereas a Layer 2 protocol is a third-party integration that may be used in conjunction with a Layer 1 blockchain.
3. Users can bridge their ETH and ERC20 assets to Optimism using bridges such as the Optimism native bridge, Hop Protocol, Across, LiFi and so on.

What is Velodrome?

1. Velodrome is a DEX on Optimism, a platform that allow users to swap from 1 Optimism asset to the other.
2. Velodrome is known as the ==The Trading and Liquidity Marketplace on Optimism==

Method⚡

For this open bounty, i explored velodrome deep down secrets and analyzed what happened on velodrome in past 5 months and take a look at its different sections like swaps, staking and etc.. .

I mainly used ==Optimism.velodrome== database provided by Flipsidecrypto and used multiple tables to find the data that i needed. Here are all the tables that i used:

==“optimism.velodrome.ez_swaps”== for Velodrome ==swap== data,

==“optimism.velodrome.ez_lp_actions”== for Velodrome ==LP== actions,

==“optimism.velodrome.ez_votes”== for Velodrome ==voting== actions,

==“optimism.velodrome.ez_velo_locks”== for Velodrome ==Locks== actions,

==“optimism.velodrome.ez_staking_actions”== for Velodrome ==Staking== actions,

==“optimism.velodrome.ez_claimed_rewards”== for Velodrome ==Claim Rewards== data.

All the charts are since 2022-06-01 ==(Velodrome’s LaunchDay)== until now 2022-11-16.

Findings👀

• In this section, i showed Velodrome swap activity from different angles and take a look at the swap distribution by size over time and at the end i analyzed the From & To $VELO swaps.
• As we see, Velodrome swap activity were peaking in late July, but after the exploit that happened in early August on Aug 5th, swap activity especially number of swappers fell off badly.
• This incident provided some trust issues for Velodrome users and they lost their trust, but the charts are saying Velodrome brought their users back and gained their trust again after late Sep that we see number of swaps and swappers has increased.
• Over 60% of swaps (~2.9M) were between 10$-1000$ and most of this were 100$-1000$ (~1.6M).
• As i talked earlier, most of the Velodrome swaps happened in August most of August swaps had 100$-1000$ size.
• As we see in the left pie chart, USDC is the most popular token that swapped From and To $VELO over time accounting over 60% of top 10 share with almost 74M swapped volume followed by $OP that accounted over 34% of the share with almost 40M swapped volume on both From and To cases.

1. Swaps

2. Staking

Findings👀

• Above charts are showing the staking actions on Velodrome over time since June and the number of transactions that each delegator recorded in past 5 months.
• As we see number of stakes and unstakes increased after Sep 20th and peaked on Oct 13th, over 4.4K stakers recorded over 6.8K stakes and recorded the highest number of daily stakes on Velodrome over time.
• Almost 75% of delegators transacted only 1 stake transaction followed by 2-5 Transactions with almost 20% in stakes and 25% in unstakes.
• We see that in past 5 months since June, Over 54K stakers recorded over 240K stakes and 48K unstakers recorded over 94K unstakes.
• In general, there has been so many more stakes recorded on Velodrome than unstakes.
• Past 2 months, after Sep 20th until this day (Nov 16th) were the hottest days for Velodrome staking activity over time since its launch.

3. LP Actions

4. Voting Activity

Findings👀

• In this section, we see Velodrome voting activity.
• Most of velodrome voting activity happened on Oct 26th with almost 2K votes and unvotes.
• A total number of 42.4K votes recorded by 6K voters and a total of 35K unvotes recorded by 4.2K unvoters over time on Velodrome.
• Almost Each day of every month has pretty close number of votes and unvotes but in overall, there has been more votes recorded than unvotes.

5. Rewards

Findings👀

• These charts are showing monthly claiming rewards on Velodrome and their distribution by claims/claimers.
• voter_reward is the most reward type that we see in multiple monthly charts followed by venft_distribution.
• Most of the rewards that claimed on Velodrome were less than 10$, almost 65% in terms of number of claims and 52% in terms of number of claimers followed by 10$-100$ reward size with almost 25% in both cases.
• the number of reward claiming transactions on Velodrome is increasing more and more over time especially before the hack month (August).After the hack Month, we have less number of rewards claiming on Velodrome but it is recovering in a good rate over time.

6. Locks

Findings👀

• Above charts are showing monthly locks that happened on Velodrome by their duration over time.
• As we see, most of the locks were between 2 years-less than 4 years followed by 1 week-less than 1 month in the second place.
• July had the highest number of lockers and lock volume in USD and October recorded the highest number of lock transactions over time.
• On every month since June, most of the lock activity were between 2 years- less than 4 years.

Conclusion💡

• Velodrome swap activity were peaking in late July, but after the exploit that happened in early August on Aug 5th, swap activity especially number of swappers fell off badly.
• The Exploit provided some trust issues for Velodrome users and they lost their trust, but the charts are saying Velodrome brought their users back and gained their trust again after late Sep that we see number of swaps and swappers has increased.
• Over 60% of swaps (~2.9M) were between 10$-1000$ and most of this were 100$-1000$ (~1.6M).
• Most of the Velodrome swaps happened in August most of August swaps had 100$-1000$ size.
• As we see in the left pie chart, USDC is the most popular token that swapped From and To $VELO over time accounting over 60% of top 10 share with almost 74M swapped volume followed by $OP that accounted over 34% of the share with almost 40M swapped volume on both From and To cases.
• Almost 75% of delegators transacted only 1 stake transaction followed by 2-5 Transactions with almost 20% in stakes and 25% in unstakes.
• In past 5 months since June, Over 54K stakers recorded over 240K stakes and 48K unstakers recorded over 94K unstakes.
• In general, there has been so many more stakes recorded on Velodrome than unstakes.
• Most of the LP transactions and LPers were between 10$-100$ LP size over time.
• Almost 69K deposit recorded by 28.8K LPers and 31.8K withdrawals recorded by 24.2K LPers on October.
• Over 75% of LP actions were between 0$-100$.
• Most of velodrome voting activity happened on Oct 26th with almost 2K votes and unvotes.
• A total number of 42.4K votes recorded by 6K voters and a total of 35K unvotes recorded by 4.2K unvoters over time on Velodrome.
• voter_reward is the most reward type that we see in multiple monthly charts followed by venft_distribution.
• Most of the rewards that claimed on Velodrome were less than 10$, almost 65% in terms of number of claims and 52% in terms of number of claimers followed by 10$-100$ reward size with almost 25% in both cases.
• the number of reward claiming transactions on Velodrome is increasing more and more over time especially before the hack month (August).After the hack Month, we have less number of rewards claiming on Velodrome but it is recovering in a good rate over time.
• the most number of lock transactions are used for Creating locks, claiming and also increasing the amount and duration of lock transactions.
• Withdraw has lower percentage on all pie charts and it shows that users dont like to withdraw their assets after locking them in.
• most of the locks were between 2 years-less than 4 years followed by 1 week-less than 1 month in the second place.
• July had the highest number of lockers and lock volume in USD and October recorded the highest number of lock transactions over time.
• On every month since June, most of the lock activity were between 2 years- less than 4 years.

Author: Sbhn_NP

Discord : Sbhn_NP#8717

Twitter : Sbhn_np

Instagram : Sbhn_NP

Thanks for your time!

Findings👀

• This section is showing Velodrome LP actions in different angles.
• October had the highest number of LP transactions and LPers between past 5 months and most of these transactions had between 10$-100$ LP size.
• Most of the LP transactions and LPers were between 10$-100$ LP size over time.
• Almost 69K deposit recorded by 28.8K LPers and 31.8K withdrawals recorded by 24.2K LPers on October.
• Over 75% of LP actions were between 0$-100$.

Findings👀

• Above charts are showing monthly locking activity on Velodrome from different angles over time and also actions share by their type.
• Based on the above chart, the most number of lock transactions are used for Creating locks, claiming and also increasing the amount and duration of lock transactions.
• Withdraw has lower percentage on all pie charts and it shows that users dont like to withdraw their assets after locking them in.
• Past 5 months were so hot for Locking on Velodrome and recently, most lock transactions were belonged to Claims.