What is the Ethereum Merge?

The Merge is a technical upgrade that will shift Ethereum’s existing proof-of-work consensus mechanism to a proof-of-stake model. With this move, Ethereum aims to significantly cut its carbon footprint and lay the groundwork for future scalability upgrades.

The Merge was the joining of the original execution layer of Ethereum (the Mainnet that has existed since genesis) with its new proof-of-stake consensus layer, the Beacon Chain. It eliminated the need for energy-intensive mining and instead enabled the network to be secured using staked ETH. It was a truly exciting step in realizing the Ethereum vision—more scalability, security, and sustainability.

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Add liquidity

• As we can see, the number of added liquidity transactions has generally increased on a daily basis after the Merge.

• In two weeks period before the Merge, we had 880 added liquidity transactions in total.

• In two weeks period after the Merge, we had 1,109 added liquidity transactions in total.

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Remove liquidity

• The number of removed liquidity transactions has generally decreased on a daily basis after the Merge or from another point of view, the number of removed liquidity transactions has increased before the Merge.
• In two weeks period before the Merge, we had 907 removed liquidity transactions in total.
• In two weeks period after the Merge, we had 593 removed liquidity transactions in total.

Add liquidity

• The number of unique addresses that added liquidity increased per day on average after the Merge, especially the first 5 days after the Merge, but this increase was not significant.
• The total number of unique addresses which added liquidity before merge was 616 and this number was 750 after the Merge.

Remove liquidity

• The number of users who removed their liquidity from the pools before the Merge was on average more than the number of users after the Merge. The day with the highest number of unique users who removed their liquidities was 1 day before Merge, which had 93 users.
• Total unique addresses removed their liquidity before the merge was 707 unique addresses and this number was 488 for unique addresses that removed liquidity after the Merge.

Unique Addresses

Transactions

Liquidity amount (USD)

Add liquidity

• The highest amount of liquidity was added to the pools exactly on the day of the Merge, 15th September, with $29.7M and the day after that with $8.7M.
• The total amount of liquidity added to pools in two weeks period before the Merge was $6.32M and in two weeks period after the Merge was $58.3M.

Remove liquidity

• The total amount of liquidity removed from pools in two weeks period before the Merge was $42M and in two weeks period after the Merge was $10M.
• From the previous two points, we can see that users have removed their liquidities from the pools in bulk before the Merge and then added liquidity to the pools again after the Merge.
• The day with the most amount of liquidity removed from pools was 14th September with $17.58M.

Top 10 pools affected the most

Based on the number of transactions

• ILV-WETH_SLP pool has the highest number of transactions both in add and removes cases.
• We have around 462 add tx and 314 remove tx in this pool.
• Other pools like SYN_WETH SLP and RADAR_WETH LP are next with over 100 transactions. In general, add txs are more than remove txs in all pools except TOKE_WETH SLP.

Based on the number of unique users

• Unique users in the ILV-WETH SLP pool are also the highest among all.
• Over 617 users have done actions in this pool and 346 out of them were adding addresses.
• The trend is similar to transaction count and SYN-WETH SLP is next with 136 added addresses and 38 removed ones. Adding liquidity actions is more than removing actions in all pools.

Based on the sum USD amount added/removed

• In the case of USD volume, ILV-WETH SLP doesn't have the first rank anymore. USDC-WETH SLP has over $43M added liquidity and $12M removed.
• Other pools have a significant difference in USD volume from the first pool and their average amount, in general, is $3M.

Methodology

In this dashboard, I will analyze the behavior of Sushi MMs 2 weeks prior to and after the merge. I split this dashboard into 4 sections:

1. Transactions

   1. Before/After Merge add/remove liquidity total transactions (single number charts)
   2. Add liquidity daily transactions count (bar chart)
   3. Remove liquidity __daily transactions count __(bar chart)

2. Unique Addresses

   1. Before/After Merge add/remove liquidity __total unique addresses __(single number charts)
   2. Daily unique addresses count that added liquidity (bar chart)
   3. Daily unique addresses count that removed liquidity (bar chart)

3. Liquidity amount (USD)

   1. Before/After Merge add/remove liquidity __amounts (USD) __(single number charts)
   2. Daily liquidity amount (USD) added (bar chart)
   3. __Daily liquidity amount (USD) removed __(bar chart)

4. The top 10 pools affected the most

   1. Based on # of transactions
   2. Based on # of unique addresses
   3. Based on the sum of liquidity removed and added

Conclusion

• The number of added liquidity transactions has generally increased on a daily basis after the Merge. In two weeks period before the Merge, we had 880 added liquidity transactions in total, and in two weeks period after the Merge, we had 1,109 added liquidity transactions in total.
• The number of removed liquidity transactions has generally increased on a daily basis before the Merge.
• The number of unique addresses that added liquidity increased per day on average after the Merge.
• The total number of unique addresses which added liquidity before the merge was 616 and this number was 750 after the Merge.
• The number of users who removed their liquidity from the pools before the Merge was on average more than the number of users after the Merge.
• Total unique addresses removed their liquidity before the merge was 707 unique addresses and this number was 488 for unique addresses that removed liquidity after the Merge.
• The highest amount of liquidity was added to the pools exactly on the day of the Merge, 15th September, with $29.7M and the day after that with $8.7M. On the other hand, the day with the most amount of liquidity removed from pools was 14th September with $17.58M.
• The total amount of liquidity added to pools in two weeks period before the Merge was $6.32M and in two weeks period after the Merge was $58.3M.
• The total amount of liquidity removed from pools in two weeks period before the Merge was $42M and in two weeks period after the Merge was $10M.
• From the previous two points, we can see that users have removed their liquidities from the pools in bulk before the Merge and then added liquidity to the pools again after the Merge.