Introduction

Velodrome Finance, at its core, is a solution for protocols on Optimism to properly incentivize liquidity for their own use cases. Building on top of the groundwork laid out by Solidly, our team has addressed that first iteration's core issues to realize its full potential.

For more details about Velodrome refer to Velodrome docs.

Method

In this dashboard we will look at some metrics on Velodrome to see “How healthy is this project?”. I have used optimism.velodrome tables to query Velodrome data and complete this dashboard.

Also I have selected following metrics:

• Liquidity
• Swaps
• Locks (Vest)
• Votes
• Rewards

In each section I will explain why these metrics is important for Velodrome finance and how these metrics changed over time. Also I have included two parameters for this dashboard:

• pool_name that is a list of 10 pools that users have most interaction with. You can select any of these pools to see LP transactions and Cumulative LP transactions for specified pool, also Deposit amount to pool and Withdraw amount from pool in USD.

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• moving_average_days that is for swaps section. The selected number applies to Swap per min, Number of Swaps, Swap in volume (USD) and Swap fees (USD) charts. You can choose one of these options:

1. “2” for 3 days moving average
2. “6” for 7 days moving average
3. “13” for 14 days moving average
4. “29” for 30 days moving average

Daily Refresh Rate has been set for queries and numbers, volumes and percentages may update later!

Based on above charts we can say:

• 85.6% of LP actions are Deposit and 14.4% are Withdraws.
• 34.6% of LP transactions belongs to vAMM-VELO/USDC pool.
• 64.7% of all users have interacted with Velodrome pools have at least one deposit transaction and 35.3% of them have at least one withdraw transaction.
• 12.6% of users interacted with vAMM-VELO/USDC pool, 11.5% of users interacted with vAMM-OP/USDC pool and 7.93% of users interacted with vAMM-VELO/OP.

On following charts we can see daily number of LP transactions, Deposit amount and withdraw amount in USD per day for specified pool name as parameter on the start of dashboard. Default selected pool is vAMM-VELO/USDC and by changing the pool name we can see these metrics for another pools.

Observation for VELO/USDC pool on following charts:

• We can see an uptrend in number of LP transactions from June 15 to August 3, just one day before attack on Velodrome finance (You can read more about this attack in this link). This uptrend can shows user’s trust in Velodrome.
• We can see the number of LP transactions had recovered so fast after attack and it reaches from 59 on August 5 to 1274 on August 7. Also it could be another sign of health and security in Velodrome.
• We can see deposit volume (USD) has decreased after attack and withdraw volume (USD) has increased after attack.

Swaps

On following charts we can see swap per min, daily number of swaps, the swap in flow (USD) and daily spent fee for swaps by users. In these 4 charts I have included moving average that you can change it’s duration on the start of dashboard.

To acquiring these parameters I have used optimism.velodrome.ez_swaps table.

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• By selecting 14 days moving average, we can see number of swaps and swap volume was ascending before August 4 attack and these metrics have became descending just after attack.

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• number of swaps and swap in volume is still ascending in 30 days moving average but the numbers are below 30 days moving average that could be a descending signal.

• 28.7% of swap fees paid by USDC and 11.4% of them paid by VELO.

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• 43.6% of fee volume paid by USDC and 5.07% of fee volume paid by VELO.

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Locks

Users can lock their VELO tokens on Velodrome finance to earn rewards and have voting power. The more tokens users lock for longer period they will earn more rewards and having more voting power.

For this section I have used optimism.velodrome.ez_velo_locks table.

Also users can choose when their created lock expires on Velodrome Vest page. Users have 4 options for expire time:

1. One week

2. One month

3. One year

4. Four years

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The following charts shows lock transactions on Velodrome based on lock duration.

• We can see 71.6% of locks will expire in 4 years that shows users have trust in Velodrome health.
• Also 56.4% of users had locked their VELO for 4 years and only 8.71% of users selected 1 week option.
• 41.1% of VELO tokens had locked for 4 years and 23.6% of them locked for 1 year.

Votes

$veVELO holders decide which liquidity pools receive emissions in a given epoch by voting on their preferred liquidity pool gauges. $VELO emissions will be distributed proportionally to the total votes a liquidity pool receives.

In return, voters receive 100% of the trading fees and bribes collected through the liquidity pool they vote for. Trading fees accrue in the epoch as soon as the vote is cast. Bribes accrue to voters in the same epoch in which they're deposited. Velodrome docs

On following charts I have compared number of votes vs. unvotes, number of unique voters vs. unique unvoters and vote amount vs. unvote amount.

I have used optimism.velodrome.ez_votes table for this section.

The left chart shows daily number of votes and daily number of unvotes over time.

The right chart shows daily number of unique voters vs. unique unvoters over time.

Rewards

There are 4 types of rewards on Velodrome Finance:

• Emissions

Represent $VELO distributed to liquidity pool stakers. The amount of $VELO distributed towards every pool is proportional to the voting power received from the voters every epoch. These rewards are streaming and are available for claim as these accrue.

• Fees

Represent liquidity pool trading fees distributed to voters in pool tokens ( e.g., if the pool is vAMM-VELO/USDC the distributed tokens are $VELO and $USDC). The tokens are streaming proportionally to the voting power cast by a voter and the accrued amount of trading fees. These rewards are available for claim as these accrue.

• Bribes

Represent external rewards added to incentivize voters to cast their voting power for a specific liquidity pool. These rewards can be in any whitelisted tokens. These rewards accrue and are available for claim after a snapshot is taken (after Wednesday 23:59 UTC), and are proportional to the voting power cast by a voter ($veVELO).

• Rebases

Represent $veVELO distributed to $veVELO holders in order to reduce the voting power dilution. These rewards are available for claim as these accrue and are streaming proportionally to all $veVELO holders.

From Velodrome docs on rewards.

I have used optimism.velodrome.ez_claimed_rewards table for this section.

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• We can see 88.7% of claimed reward transactions belongs to Emissions.

• Also 85.3% of claimed reward volume is for Emissions.

• We can see the most rewards (USD) has been claimed on August 3, just one day before the attack on Velodrome.

• Total claimed reward for Emissions type is 3.66M USD, for Fees is 401.08K USD and 232.31K USD for Rebases.

Liquidity Pools

The core functionality of Velodrome Finance is to allow users to trade digital assets in a secure way, with very low fees and low slippage. Slippage is the difference between the current market price of an asset and the price at which the actual trade/transaction is executed. This difference could result in a smaller amount (higher price paid) or a higher amount (smaller price paid) of desired tokens returned from a trade. Velodrome Finance offers two different liquidity pool types based on token pair needs, Stable Pools and Variable Pools. Velodrome docs

In this section I have used optimism.velodrome.ez_lp_actions table to compare Velodrome LP deposits vs. withdraws for different pools and also number of unique users who interacted with these pools.

Let’s see the result!

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• We can see an uptrend in lock transactions and unique lock creators before attack. Also we can see fast recovery in both after attack where number of lock transactions reaches to the highest number on

  August 11 by 676 locks.

• We can see ascending trend in lock volume (USD) from June 16 to July 27 were the daily locked volume reaches to 1M USD and after that we have descending trend in lock volume.

• We can see an spike in unlock volume on August 4, exactly the day that Velodrome was attacked and we have another spike in unlock volume after attack on August 11 by 269.71K USD.

• Also we can see total volume of deposited VELO to lock is 6.399M USD (without considering withdrawals).

• Total withdrawn volume by users by locking VELO is 2.074M USD.

The above left chart shows number of vote transactions (both vote and unvote) over time and the right chart shows vote amount (both vote and unvote) over time. Also I have included 7 days moving average and 30 days moving average to get better understanding of voting on Velodrome.

• We can see 30 days moving average for number of votes has increased over time but the number of votes is under 30 days and 7 days moving average.
• We can see a repetitive pattern in voting amount and spikes on every Wednesdays that is because rewards will available for claim every Wednesday 23:59 UTC.
• The 30 days moving average for vote amount is almost constant that shows voting power has not much changes.

Conclusion

• 85.6% of LP actions are Deposit and 14.4% are Withdraws.
• 34.6% of LP transactions belongs to vAMM-VELO/USDC pool.
• 64.7% of all users have interacted with Velodrome pools have at least one deposit transaction and 35.3% of them have at least one withdraw transaction.
• 12.6% of users interacted with vAMM-VELO/USDC pool, 11.5% of users interacted with vAMM-OP/USDC pool and 7.93% of users interacted with vAMM-VELO/OP.
• We can see an uptrend in number of LP transactions (vAMM-VELO/USDC) from June 15 to August 3, just one day before attack on Velodrome finance (You can read more about this attack in this link). This uptrend can shows user’s trust in Velodrome.
• We can see the number of LP transactions (vAMM-VELO/USDC) had recovered so fast after attack and it reaches from 59 on August 5 to 1274 on August 7. Also it could be another sign of health and security in Velodrome.
• We can see deposit volume (USD) has decreased after attack and withdraw volume (USD) has increased after attack for vAMM-VELO/USDC pool.
• By selecting 14 days moving average, we can see number of swaps and swap volume was ascending before August 4 attack and these metrics have became descending just after attack.
• number of swaps and swap in volume is still ascending in 30 days moving average but the numbers are below 30 days moving average that could be a descending signal.
• 28.7% of swap fees paid by USDC and 11.4% of them paid by VELO.
• 43.6% of fee volume paid by USDC and 5.07% of fee volume paid by VELO.
• We can see an uptrend in lock transactions and unique lock creators before attack. Also we can see fast recovery in both after attack where number of lock transactions reaches to the highest number on August 11 by 676 locks.
• We can see ascending trend in lock volume (USD) from June 16 to July 27 were the daily locked volume reaches to 1M USD and after that we have descending trend in lock volume.
• We can see an spike in unlock volume on August 4, exactly the day that Velodrome was attacked and we have another spike in unlock volume after attack on August 11 by 269.71K USD.
• Also we can see total volume of deposited VELO to lock is 6.399M USD (without considering withdrawals).
• Total withdrawn volume by users by locking VELO is 2.074M USD.
• We can see 71.6% of locks will expire in 4 years that shows users have trust in Velodrome health.
• Also 56.4% of users had locked their VELO for 4 years and only 8.71% of users selected 1 week option.
• 41.1% of VELO tokens had locked for 4 years and 23.6% of them locked for 1 year.
• We can see 30 days moving average for number of votes has increased over time but the number of votes is under 30 days and 7 days moving average.
• We can see a repetitive pattern in voting amount and spikes on every Wednesdays that is because rewards will available for claim every Wednesday 23:59 UTC.
• The 30 days moving average for vote amount is almost constant that shows voting power has not much changes.
• We can see 88.7% of claimed reward transactions belongs to Emissions.
• Also 85.3% of claimed reward volume is for Emissions.
• We can see the most rewards (USD) has been claimed on August 3, just one day before the attack on Velodrome.
• Total claimed reward for Emissions type is 3.66M USD, for Fees is 401.08K USD and 232.31K USD for Rebases.

Discord: pouya_22#1482