Conclusion

In conclusion, the lending and borrowing analysis of Agave over the past 30 days, as one of the largest DeFi protocols on the Gnosis blockchain, has indicated that although the initial high level of activities on the platform had constantly decreased throughout the measured period, it started to increase substantially, with the recent increase in the overall crypto market. Overall, the netflow of the platform has been negative for all tokens combined, however, it can rapidly recover. Among all the tokens in the Agave lending market, the GNO token has had the highest number and volume of activity compared to the others. Combined with WETH and USDC as the other two major tokens of the platform, they have accounted for more than 75% of the total activity on the application. Last but not least, the Agave token staking behavior of users has shown that while there have been numerous users who staked their tokens and claimed their rewards, the big players have tended to redeem their AGVE tokens, resulting in a much higher redeem volume compared to the other two.

Lending Market Analysis

The analysis of deposits, borrows, repays, and withdraws of Agave over the past 30 days has demonstrated that the platform has seen a negative netflow of $73K during this period. In other words, the volume of the inflow consisting of deposits and repays had been lower compared to the volume of outflows including borrows and withdraws. This has happened while the number of depositors and repayors had been higher compared to the number of withdrawers and borrowers, respectively. The lower number of outflow transactions has also confirmed that a fewer number of users have been responsible for a greater amount of outflows.

Introduction

Agave is a decentralized non-custodial lending protocol built on the Gnosis blockchain that allows users to lend or borrow specified assets through the platform. It is a fork of Aave, built by the 1Hive community, and deployed on the xDai chain. This has resulted in lower network fees. When users deposit their tokens into the protocol, they will receive aTokens in exchange which will accrue passive interest for the token holders. Users can also borrow other assets by enabling their deposits to be used as collateral. Besides the lending market, users are able to stake the AGVE token as the native token of the platform to earn interests while securing the protocol.

Sample Transactions

> Deposit: 0xeb4ce0e3f57e7ffaff9914cdcaeebb9db9a9015105d6337c2f6db4962b0726fd > > Borrow: 0x1c9d64ab9b65a5a62df3aab6cf23ce142d58448f0de5191dd169c3e145913a32 > > Repay: 0xf17cc934851d6e1ba2cec0da58b9969eef0ff25fe00120aa21fc9b3f6e4ac4ff > > Withdraw: 0x8fcec5007e515240e6d312dba5704d4ee858285ce8827243d5d07427bb7bcf8e > > Stake: 0x06537b8baa3ec1f58426b593ec40ca1e4ad21e19b201371344d793b1dd168523

Contracts

Staked Agave: 0x610525b415c1bfaeab1a3fc3d85d87b92f048221
Agave Initializer: 0x5e15d5e33d318dced84bfe3f4eace07909be6d9c

WBTC: 0x8e5bbbb09ed1ebde8674cda39a0c169401db4252
WETH: 0x6a023ccd1ff6f2045c3309768ead9e68f978f6e1
USDC: 0xddafbb505ad214d7b80b1f830fccc89b60fb7a83
LINK: 0xe2e73a1c69ecf83f464efce6a5be353a37ca09b2
GNO: 0x9c58bacc331c9aa871afd802db6379a98e80cedb
FOX: 0x21a42669643f45bc0e086b8fc2ed70c23d67509d

The analysis of tokens undergoing different actions on the platform has indicated that the GNO token has been the largest player, having half of the total transaction volume. GNO token, in addition to WETH and USDC, have the top three tokens embracing more than 75% of the platform activity.

The analysis of inflows and outflows of each token over the past 30 days has shown that while the volume of the two has been near each other for WBTC, LINK, and FOX, the inflows of WETH and USDC have been much higher compared to their inflows. On the other hand, the outflows of GNO have been massively higher compared to its inflows resulting in a substantial negative netflow for the token. WETH and USD have also had a considerable positive inflow on the platform.

The separate analysis of deposits, borrows, repays, and withdraws for each token has also demonstrated the same trend similar to their overall trend. It is worth mentioning that the analysis of the number of users has shown that while the transferred volume of each action has been substantial for each token, not many users have been using the protocol over the past month.

The analysis of daily transactions over the past 30 days has indicated that although there had been days when the number of transactions, the number of users, and the volume peaked, the overall trend has been to the downside since the beginning of the period. Nevertheless, the metrics have started to increase, especially in the last few days, following the overall recovery in the crypto market. It is worth mentioning that the number and volume of deposits and borrows have increased more compared to the repays and withdraws, which is a good sign for the health of the platform.

Similar to the overall trend, the daily analysis of deposits, borrows, repays, and withdraws of each token has also demonstrated that GNO has had the highest volume compared to the others in all four actions. Other tokens, especially WETH and USDC, have had a considerable number of transactions and users while their volume has not been high. WETH had a high volume and a large number of transactions during the first days of the measured period. However, its activity massively decreased moving to the recent stages of the past 30 days.

Methodology

The required data for this analysis were collected from the fact_event_logs of the core schema of the gnosis database. Since the project lacks any form of documentation, the contract addresses were determined by directly interacting with the protocol by the author. Links to sample transactions for a deposit, borrow, repay, and withdraw are provided. Due to the database being in the lite mode, the past 30 days were considered as the time frequency of the analysis. The information of each transaction was evaluated using both the table and the Gnosis chain explorer. The USD price of tokens in the lending market was selected using the fact_hourly_token_prices of the core schema of the ethereum database.

Data

Each of the four actions of deposit, borrow, repay, and withdraw registers an event with the same name on the event_name column of the fact_event_logs table. The transferred amount of each respective event, as well as the contract address of its transferred token, was collected using the data on the event_inputs column. Similarly, the staking behavior of the AGVE token was analyzed.

Agave Staking Analysis

The AGVE staking analysis has shown that while the number of users who staked their Agave tokens and claimed their rewards, as well as their subsequent number of transactions, have been much higher compared to the redeems, the total redeemed volume has been almost two times higher compared to the volume of staked and claimed AGVE combined.

The daily analysis of staking actions has also demonstrated that while there have been constant staking and reward claiming transactions each day, there were only a few days with a redeem transaction. In other words, a huge volume of Agave tokens was redeemed from the platform within those few redeem transactions.