Optimism - Velodrome Health (Redux)
🧠 Methodology
To deal with this bounty, we use the schema optimism.velodrome and the tables ez_velo_locks, ez_claimed_rewards, ez_lp_actions, ez_staking_actions, ez_swapsez_velo_locks and ez_votes.
In order to evaluate Health for the Velodrome, we look at the following metrics:
- Review and analysis of daily active users in Velodrome
- Review and analysis of daily new users in Velodrome
- Review and analysis of claimed rewards in Velodrome
- Review and analysis of swaps in Velodrome
- Review and analysis of ==$velo lock in Velodrome
- Review and analysis of mint and burn on LPs in Velodrome
- Review and analysis of balance of token pairs on top LPs in Velodrome
Note:
On Aug 4 Velodrome lost its funds: On August 4, one of Velodrome’s high-value wallets—dedicated to operating funds, such as salaries—was stripped of $350,000. before they could be transferred to the multisig wallet from the company’s treasury funds. A subsequent internal investigation revealed the identity of the attacker, allowing the company to recover all the loot → 🔗 Link to tweet about this incident from
- So the metrics that we want to check for Velodrome are also analyzed and checked for before and after loss funds in Velodrome.
✅ Observations
According to the results obtained from the analysis of daily active users on Velodrome, we found that the number of daily active users on Velodrome is increasing with an upward trend and after the loss of funds occurred on August 4, the number of active users has increased. it continued its upward trend after a while, and the loss of funds has not had a negative impact on Velodrome, and even the number of active users has increased. In addition, the activity of the number of daily users according to their activity type, such as sharing, voting, LP Action, etc., shows a constant trend over time, and there are no negative points observed in the trend of their activity type. Most of the daily active user activity is related to swapping, which based on the normalized graph, you can see that the trend of swapping activity over time is completely normal for users. This is the same for other activities like staking.
✅ Observations
Based on the graphs of new daily users on Velodrome, we notice that the number of new users on Velodrome recently has a significant upward trend, and based on the line chart showing the number of new daily users on Velodrome before and after the loss of funds, it can be seen that this trend is still upward, because after the loss of funds, the number of new users in Velodrome has continued to increase after a short period of time. The highest number of new users on Velodrome after the loss of funds is related to August 16 with 4506 new users, recently on November 11 this number reached 3797 and this means that the trend of new users continues to grow.
✅ Observations
Based on the charts of claimed rewards on Velodrome, we note that the trend of claimed rewards has been on a consistent weekly trend after September 1, with voters claiming their rewards on a consistent weekly trend, and the number of claimers, except October 6. is almost the same in others The weeks after September 1 are fixed and the same. The volume of claiming rewards shows a downward trend from August 3 onwards, but the number of claims and claimers shows an almost constant trend.
✅ Observations
Based on the daily swaps results, you can see that the number of swaps, the volume of swaps, and the number of unique swappers increased from Jul 13 to Jul 29, and peaked on Jul 29 for number of swaps and the volume of swaps and Aug 16 for number of unique swappers, and after that, there was a slight decrease. After the loss of funds on Aug 4, the number of swaps and the number of swappers until Oct 10 shows a downward trend but after October 10 and recently, the trend of the number of swaps and the number of swappers in the Velodrome has taken a significant upward trend, although the volume of trades is still showing a downward trend, the trend of users who enter the Velodrome for the swap continues to rise. The interesting point here is the trust of users in Velodrome after the loss of funds, so that the number of swappers in Velodrome has not dropped significantly since the loss of funds, and recently there has been a significant increase in swappers.
🧠 Interestingly, although the volume and number of swaps decreased by more than 30% in one week after the loss of funds, but the number of swappers has not decreased, which shows that users still trust Velodrome and a slight decrease in the number of swappers can not be seen, but they do swaps with a smaller volume of swap
✅ Observations
The total amount of locked $velo is currently 9.79M USD, the highest lock volume is on Jul 27 with 1M USD. The largest withdrawal volume of locked $velo is related to July 29 with 457K USD, after the loss of funds in only two days (Aug 4 and Aug 11), the volume of withdrawals was more than the deposit, and after that the amount of locking $velo shows a steady trend
✅ Observations
According to the results obtained from the number of LPs, LPers, and LP volume, it can be seen that the number of LPs and LPers has increased significantly recently, and as of September 20, we can see a significant upward trend. After Aug 4 (loss of funds), we again see an increasing trend in Velodrome LPs, the number of LPs and LPers is more for mint (deposit), but it is interesting that the volume of liquidity withdrawal or burn is more than mint.
Comparison of Mint (Deposit) and Burn (Withdraw) for the Volume of LPs, Liquidity Providers and LPers in a Week Before the loss of funds and a Week After, it can be seen that:
- The Volume of LPs for Mint has decreased drastically and has reached from 63.67M USD to 28.29M USD, which means that we see about 70% decrease in the volume of Mint for LPs, while the Volume of Burn in one week after the loss of funds has reached 43.47M USD has arrived, this means that the volume of Burn in one week after the loss of funds was almost 1.5 times the volume of Mints, and users have withdrawn most of their Liquidity from Velodrome LPs.
- The Number of Liquidity Providers for Mint has decreased less than the Volume of LPs and has reached 14.46K from17.92K, while Liquidity Providers for Burn in a week after the loss of funds has decreased and reached 2634. This means that the number of Liquidity Providers for Mint in a week after the loss of funds was almost 5.5 times the number of Liquidity Providers for Burn and more users have started Liquidity Providers for Mint.
- The Number of LPers (Minter) for Mint has reached from 2625 to 2330, which means we are witnessing a 11% decrease in the number of LPers for Mint, while the number of LPers for Burn (Burner) has increased in a week after the loss of funds and has reached 1531. It means that the number of LPers for Mint in a week after the loss of funds was almost 1.5 times the number of LPers for Burn, and more users have used Liquidity Providers for Mint.
🧠 After the negative fund that happened for Velodrome on Aug 4, we have seen more ==Volume of Withdraw== from Velodrome LPs, but the number of users ==(Minters)== for Liquidity Providers has decreased less than before and users still trust Velodrome, but they try to use less risk and capital Inject liquidity into LPs
✅ Observations
> The reason for checking the balance of token pairs in LPs in terms of volume (USD) is that when the volume between tokens in an LP is balanced (the volume of token pairs in LP is equal or has a very small difference), the liquidity power on that LP increases and Trading on these LPs becomes easier and more users do their transactions on these types of LPs, and so called these types of LPs are dynamic.
According to the results obtained from checking the balance of Top LPs in Velodrome, it can be seen that most of the LPs in Velodrome, their pairs of tokens are almost balanced in terms of volume, and only three LPs are not balanced and their token pairs are It is the same that includes:
- USDC/sUSD, USDC/LUSD and WETH/sETH
So, according to this review, we find that the LPs in Velodrome are balanced and users do their transactions with more comfort and confidence on these LPs, which shows that LPs in Velodrome are ==healthy== and ==dynamic==.
✔️ Final Conclusion
> After reviewing several metrics to measure Health in Velodrome, which included checking the active user, new user, claimed rewards, $velo lock, status of swaps, LPs, LPs tokens balance and New Users (Swapper and Minter), I came to the conclusion that the Volume of Swap and Number of Swaps in Velodrome decreased significantly (about 30%) after the occurrence of Loss Funds and it started increasing again, but the Number of Swappers did not decrease significantly. Also, the same situation existed for Minters and Liquidity Providers in Velodrome LPs, and considering that after Loss Funds, the Volume of Burn (withdrawn) in LPs It became more than Mint (Deposit) and users withdrew their liquidity from LPs, but the Number of Minters and the Number of Liquidity Providers did not decrease significantly, which shows that users still trust Velodrome and did not cause them to lose their users, which shows Trust and Health in the Velodrome. Also, after checking the balance of the token pairs in terms of volume (USD) in Velodrome LPs, we came to the conclusion that most of the LPs in Velodrome are balanced, which makes LPs dynamic and highly liquid. This makes it easy for users to use Velodrome LPs, which shows the Health of Velodrome. Also, after checking the number of daily active users and the number of new users, we came to the conclusion that recent users have done more activities in Velodrome and the number of daily active users and the number of new users have been on the rise. This also shows that after Loss Funds, new users have started using Velodrome and Velodrome is still alive and strong and continues to grow and is in good health :slightly_smiling_face:.
🔗 Links
- Tweet link for this dashboard: Velodrome Health (Redux)
- Discord: Yousefi_1994#7190
- Twitter: Yousefi_1994
- Related link: My previous dashboard about Velodrome Health