Multichain (formerly known as AnySwap), is an open-source routing protocol that facilitates interoperability among blockchain networks, with no restrictions for Ethereum. This means, Layer2's, parachains, Comsos IBC, are all able to swapped or bridged using Multichain's universally applicable router feature. This router feature enables users with cross-chain assets to transfer between various supporting networks. Multichain uses liquidity pools to collect and move native assets between chains as a solution, supporting over 26 chains and 1100 tokens across different chains.

On May 24th, 2023 Multichain experienced a backend upgrade delay after users reported that their multichain funds had not arrived when expected. According to CoinTelegraph, that same day, it was heard that the Multichain team had been arrested causing the $MULTI governance token to drop over 30%. What have users been doing since? Where are they moving there funds? In this report our objective is to observe the Multichain protocol usage, user metrics and $MULTI token to see how the protocol and it's community are reacting to this turmoil.

Analysis

We're first going to look protocol metrics such as dapp usage, and bridge activity using the cross chain router. Then we'll break down token metrics to follow volume, price and transfers, finally, we'll monitor user behavior to track the top destinations token movements. To find the information we need, we must answer the following questions:

• How has protocol usage been affected?
• What impact did the delay have on the $MULTI token price?
• What have token holders done with their tokens? What are the top destinations?

Methodology

The following tables were used:

• ethereum.core.ez_token_transfers
• arbitrum.core.ez_token_transfers
• avalanche.core.ez_token_transfers
• polygon.core.ez_token_transactions
• optimism.core.ez_token_transfers
• bsc.core.ez_token_transfers
• ethereum.core.ez_decoded_event_logs
• ethereum.core.dim_labels