What was The Merge?

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 the network to be secured using staked ETH. It was a truly exciting step in realizing the Ethereum vision—more scalability, security, and sustainability.

source:

Observations:

• UniSwap v3 platform had the most significant withdrawal of Ethereum, with a total of 82 million Ethereum.The process of withdrawing from this platform has gained a lot of momentum since June 18, 2021, and as you can see, the slope of the graph is very high.
• In the second place, the most significant withdrawal of assets was from platform aave, with a total amount of 51 million Ethereum.

observations:

• In this graph, you can see the trend of withdrawals from uniswap version 3 from June 18, 2021, which has increased daily, and the closer we get to the date of Merge, September 15, 2022, we see that the volume and share of daily withdrawals from uniswap v3 are increasing significantly. These withdrawals were made by removing liquidity from liquidity pools.

• Also, the most significant amount of withdrawal in one day was through Ethereum withdrawal from the aave platform on June 18, 2021, which includes 1.61 million Ethereum. It seems that Celius made this withdrawal.

• Also, the most significant volume of withdrawals for aave after June 18, 2021, occurred on October 29, 2021, with 723 thousand Ethereum. This happened because of Concerns over the recent Cream Finance exploit that drained 130 million dollars from the protocol have spilled over to the number one blue-chip in Defi, Aave. On Friday, a significant percentage of the assets deposited into Aave's V2 money market protocol were withdrawn. Also, in the wake of the withdrawal, stablecoins — particularly USDT — were in short supply, and both utilization rates and, consequently, the yields being charged to borrowers skyrocketed. For several hours, the cost to borrow USDT on Aave's V2 Ethereum market was between 60-80% annualized.

Observations:

• In the last 30 days, the most significant amount of Ethereum has been withdrawn through the uniswap v3 platform with 11.6 million Ethereum, which again has a much higher slope graph in this method than other methods of Ethereum withdrawal from the platforms.

• In second place is withdrawal from aave with the amount of 2.25 million Ethereum.

• The third place is borrowing from aave with the amount of 783 thousand Ethereum,

• and the last place is the withdrawal from maker dao with the amount of 113 thousand Ethereum.

• As you can see, since the day of the Ethereum Merge event, which happened on September 15, 2022, the withdrawal rate of Ethereum from all platforms has decreased, and the withdrawal process is weakening.

• The most significant withdrawal in the last 30 days happened on August 21, 2022.

• The largest exit in the last 7 days happened on September 14, 2022, one day before the finalization of the Merge event.

• Ethereum's exit trend after the Paris update of Merge event that occurred on September 10, 2021 has been increasing and after Merge, the trend has been decreasing.

Observations:

• This general brain chart, which is in the form of a linear diagram, represents the overall result of the entry and exit of Ethereum; that is, the larger this number is, the more Ethereum is left overall, and the lower it is, the more Ethereum is entered.
• As you can see, after a significant exit result on May 20, 2022, the overall trend is increasing, which indicates the exit of Ethereum from this platform.

#How did this significant Ethereum exodus happen? 

The price of ETH tanked big time. This caused many MakerDAO Vaults that used ETH as collateral to drop below the 1.5:1 Collateralization Ratio and become available for liquidation. Liquidation of Vaults kicks off an auction process where users in the system called "Keepers" bid for this ETH collateral. The winning bid is paid in DAI, which is then used to reimburse the liquidated Vault's debt. The DAI raised is then burned, the debt is erased, and any ETH that remains is returned to the Vault's owner.

The combination of a dropping ETH price and a congested network (with long transaction times and high gas prices) led to a unique situation for MakerDAO. Many Keepers stopped their network activity, and This led to a situation where a single Keeper bot continued to trigger Vault liquidations and became the only bidder for the ETH collateral. This Keeper was able to bid close to $0 DAI against no competition and won $4.5 million of ETH from the protocol in a matter of hours. MakerDAO was expecting to be paid this $4.5 million in DAI but received nothing. Before this happened, the system ran a surplus of $500,000 but is now in a $4 million hole.

Observations:

• 944 of the wallets that withdrew Ethereum from the MakerDao platform have made an Ethereum stake for eth 2.0, which is 10.5% of all wallets who Ethereum withdrawals from the platform.

Methodology: I used the Ethereum.core.ez_eth_transfers table and Stake Platforms Smart Contract to find Stakeholders. I also used the Ethereum.aave.ez_withdraws table to withdraw Ethereum from the aave platform, and I identified the withdrawal of Ethereum from aave as an Ethereum withdrawal, which was usable for me by the Ethereum.aave.ez_borrows table. I detected the removal of Ethereum from uniswap liquidity pools as an exit, which was tracked by the Ethereum.uniswapv3.ez_lp_actions table. I also used the Ethereum.maker.ez_withdrawals table to withdraw Ethereum from MakerDao.

Why do I consider WETH equal to ETH in my analysis?

The process of generating WETH digital currency is simple. Just send your Ethereum tokens to a smart contract. This smart contract will give you WETH in exchange for Ethereum. Thus, all RapidEthers created are fully backed by ETH reserves. Your Ethereum cryptocurrency will be locked in a smart contract, and you can exchange it back to WETH whenever you want. When your Ethereums are returned, the smart contract will automatically burn the supplied WETH cryptocurrency.

So to own WETH , you can directly interact with the WETH smart contract. This smart contract will take your ETH and top up your wallet with WETH at a 1:1 ratio. In this way, apart from the transaction fee, you do not need to pay any other fees. For the reverse conversion (converting Rapid Ether to Ethereum) you need to use another smart contract. But the process of transformation and exchange in both contracts is almost the same.

Observations:

• This general brain chart, which is in the form of a linear diagram, represents the overall result of the entry and exit of Ethereum; that is, the larger this number is, the more Ethereum is left overall, and the lower it is, the more Ethereum is entered.
• As you can see, the trend has been growing since September 10, i.e., the Paris upgrade, and decreasing since September 15, i.e., the Merge event.

Observations:

• The 42 wallets that withdrew Ethereum from the platform MakerDao in the last 30 days have staked Ethereum for eth 2.0, which is 12.6% of all wallets who Ethereum withdrawals from the platform.
• This increase in stake participation percentage in the last 30 days compared to the overall percentage indicates that users spend more of their Ethereum to participate in Ethereum 2.0.

Observations:

• This general brain chart, which is in the form of a linear diagram, represents the overall result of the entry and exit of Ethereum; that is, the larger this number is, the more Ethereum is left overall, and the lower it is, the more Ethereum is entered.

• After the large output that occurred on September 29, 2021, from the aave platform, which I explained above, the Ethereum output from this platform is increasing sharply.

Observations:

• 1569 of the wallets that withdrew Ethereum from the Aave platform have made an Ethereum stake for eth 2.0, which is 10.7% of all wallets who Ethereum withdrawals from the platform.

Observations:

• This general brain chart, which is in the form of a linear diagram, represents the overall result of the entry and exit of Ethereum; that is, the larger this number is, the more Ethereum is left overall, and the lower it is, the more Ethereum is entered.

• The general trend of withdrawal after the success of the Bellatrix upgrade on September 6 has been increasing, but since the success of the Ethereum Merge, i.e., September 15, 2021, the trend has been decreasing.

Observations:

• The 97 wallets that withdrew Ethereum from the platform Aave in the last 30 days have staked Ethereum for eth 2.0, which is 12.5% of all wallets who Ethereum withdrawals from the platform.
• This increase in stake participation percentage in the last 30 days compared to the overall percentage indicates that users spend more of their Ethereum to participate in Ethereum 2.0.

Observations:

• This general brain chart, which is in the form of a linear diagram, represents the overall result of the entry and exit of Ethereum; that is, the larger this number is, the more Ethereum is left overall, and the lower it is, the more Ethereum is entered.
• The general trend of Ethereum withdrawal from uniswap v3 pools has been decreasing since May 7, 2022, but the trend has been strengthening and improving since June 14, 2022.

Observations:

• 853 of the wallets that withdrew Ethereum from the UniSwap V3 platform have made an Ethereum stake for eth 2.0, which is 14.1% of all wallets who Ethereum withdrawals from the platform.

Observations:

• This general brain chart, which is in the form of a linear diagram, represents the overall result of the entry and exit of Ethereum; that is, the larger this number is, the more Ethereum is left overall, and the lower it is, the more Ethereum is entered.
• In UniSwap version 3, the withdrawal process of Ethereum has been incremental since the day of Merge, September 15, 2022.

Observations:

• The 5396 wallets that withdrew Ethereum from the platform UniSwap V3 in the last 30 days have staked Ethereum for eth 2.0, which is 9.92% of all wallets who Ethereum withdrawals from the platform.
• This decrease in the percentage of participation in the last 30 days compared to the overall percentage indicates that users are spending less of their Ethereum to participate in Ethereum 2.0.

Conclusion:

• In all three platforms, the general trend of Ethereum withdrawals since the start of Ethereum Stake has been generally upward, and also after the Paris upgrade, withdrawals from all three platforms have taken an increasing trend until the fall of Ethereum; of course, this trend is in UniSwap version 3 It is the opposite, and after the Marj date, the withdrawal process of Ethereum decreases.
• An average of 11% of Ethereum miners from these 3 Ethereum platforms have staked for Ethereum 2.0, and this trend of interest in Ethereum 2 among maker dao and aave users in the last 30 days has been an upward trend compared to the general direction.

What is Uniswap Protocol?

The Uniswap Protocol is an open-source protocol for providing liquidity and trading ERC20 tokens on Ethereum. It eliminates trusted intermediaries and unnecessary forms of rent extraction, allowing for safe, accessible, and efficient exchange activity. The protocol is non-upgradable and designed to be censorship resistant.

source:

What is MakerDao?

MakerDAO is a decentralized governance community that enables the generation of Dai, the world’s leading decentralized stablecoin.

The decentralized governance community of MakerDAO manages the generation of Dai through an embedded governance mechanism within the Maker Protocol.

From early adopters and Maker Foundation Employees to MKR holders, ecosystem stakeholders, and community members, the Maker Community is an indispensable and critical part of the Maker system. In short, the Maker Community is MakerDAO.

source:

What is Aave?

Aave is a decentralised non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralised (perpetually) or undercollateralised (one-block liquidity) fashion.

source: