Velodrome Health Metrics

    Metrics to assess Velodrome health !!

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    Introduction

    Velodrome finance is an amazing solution built to perfectly incentivize the liquidity for most of the protocols on Optimism chain.

    The aim of this article is to analyze the health of Velodrome finance in terms of metrics such as Deposits or Withdrawals on Liquidity pools, lock durations and Swaps performed over the past few months, with supporting graphs or visuals.

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    Methodology

    We will be using the below metrics to analyze the health of Velodrome finance

    • Deposit and withdrawals
    • Swap transactions
    • Velodrome locks

    For this analysis, we will derive data using optimism.velodrome.ez_swaps , optimism.core.fact_event_logs, optimism.core.dim_labels, optimism.core.fact_token_transfers tables. We will first look at the daily trend of deposits and withdrawals on Velodrome over time and then will analyze the daily net volume (in USD).

    Then will observe how the users are ramping us on depositing tokens on Velodrome and similar pattern for Withdrawing tokens.. then, will check if deposits are dominant when compared to withdrawals etc.. Later, we will continue with swaps analysis on Velodrome, in terms of total number of swaps performed for time, total number of Swappers and total volume swapped so far on Velodrome finance.

    Further, we will analyze the locked amount and duration of locks on Velodrome finance over the time and identify if any patterns are noticed with users who are locking the amount for a particular time period, with supporting graphs or visuals.

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    Observations

    On seeing all the above graphs or visuals, we can notice that

    • In terms of token withdrawals on Velodrome finance, there has been a sudden spike on 27th of July 2022, with a count of 453 tokens withdrawn but however have noticed a decreasing trend while approaching towards the third week of August 2022.

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    • When compared to token withdrawals, the total number of Deposits are always dominant on Velodrome finance over time verified on a daily basis.

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    • Also, the Total number of users who have deposited tokens are always high when compared to the users who have withdrawn tokens over time and it seems, a maximum number of users around 1.6k have deposited tokens for vAMM-OP/USDC pool on Velodrome.

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    Observations

    When we look at the above charts, we can clearly notice that the total number of locks are getting higher and higher in the last week of July, reaching a maximum lock transactions count on 27th of July 2021.

    Also, we can see highest spikes of lock transactions in both terms of number of lockers or users who locked their tokens and the lock transactions especially during the last week of July 2022, later on started coming down while approaching towards the end of July 2022.

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    Observations

    From all the above charts, if we look closely at the swap transactions volume, there seems to be a drastic raise around the last week of July 2022. Also, we could notice that a highest amount of Swap volume (in USD) of 93.95M has been recorded on 29th of July 2022.

    The same day a maximum number of swap transactions were observed with a count of 71.18K on Velodrome finance.

    Summary

    On seeing all the above graphs or visuals, here are few highlights:

    • A maximum number of users around 1.6k have deposited tokens for vAMM-OP/USDC pool on Velodrome finance. But, however when compared to token withdrawals, the total number of Deposits are always dominant on Velodrome finance over time captured on a daily basis.
    • A maximum amount of Swap volume (in USD) of 93.95M has been recorded on 29th of July 2022, further which there has been a slight decline in the swap volume trend while approaching towards the third week of August 2022.
    • Highest swap transactions were observed with a count of 71.18K on Velodrome finance, where as the total number of Swap transactions performed so far on Velodrome finance is around 1.027M.
    • A maximum number of lock transactions in terms of both number of lockers or users who locked their tokens and the locks count has been noticed especially during the last week of July 2022. So, overall there seems to be a healthy note while assessing in terms of deposits, withdrawals, locks, swaps etc.. on Velodrome finance.
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    References