Project : Optimism

Bounty Name : Velodrome Health

\n Question: Create at least 3 metrics on Velodrome with a description for each that showcase traction and success in a data-driven manner.

Date of analysis : 2022-08-15

What Is a DEX?

Decentralized crypto exchanges (DEXs) are blockchain-based apps that coordinate large-scale trading of crypto assets between many users. They do that entirely through automated algorithms, instead of the conventional approach of acting as financial intermediary between buyers and sellers.

The algorithms that DEXs use are examples of smart contracts. They are pieces of code written on top of blockchain networks like Ethereum that trigger various outputs when given certain inputs.

The idea behind a DEX is "disintermediation," which means removing middlemen to allow regular people to do business directly with each another. A DEX doesn't offer custody of users’ crypto assets. Instead, users directly hold all their assets in their own wallets at all times.

The largest crypto DEXs had begun to challenge some of the largest centralized exchanges (CEXs) in terms of trading volume by late 2021, according to a report by global accountancy KPMG. Just as exchanges are the largest crypto firms, DEXs are the largest decentralized organizations.

Typically, DEXs do away with conventional exchange order books – where buyers and sellers are matched based on order prices and volume – in favor of "liquidity pools." These are pots of crypto assets sitting under the surface of the exchange, waiting to clear any buy or sell orders that appear. The assets in the pool are sourced from investors, who deposit them in order to earn a yield from transaction fees charged to users of the pool. Source

About velodrome

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.source

Velodrome average users per day was 477 and this show this DEX has loyal users,although their number is small, but with the trend ahead, this DEX will have more loyal users.Velodrome average swap volume per day was 5.8M and this amount is very good for a DEX.

In charts above we see the the swaps and swapper count was growing and this is good point for Velodrome because it show the its popularity has increased.Velodrome has many competitors, and older DEXs are its competitors but despite this, this DEX has grown very well and this growth ensures the health and stability of this DEX.In average the swap count of Velodrome from almost 3000 has reached 20K and this indicates a very good growth of this DEX.Total Velodrome unique swappers was 9K and this amount is low for this DEX, and it seems that with the growth that this DEX has taken, this amount will soon increase a lot.In Velodrome the popular pairs for swap was OP/USDC and USDC/OP and this two pairs hast most swaps in this DEX so that this two pairs together has more than 70% of swaps in this DEX.OP token is native to Optimisim network and this token has the highest volume of transactions in this exchange.

The number of new Velodrome users has increased along with the increase in its volume, and new users are added to this DEX daily.On July 28, we recorded the largest volume in this DEX with 130B, and with this record, 1884 new users used DEX and in this day this DEX has 60K tranasactions.

Most popular for stake in Velodrome was VELO/USDC and the amount of stakes in this pool was around 25K and but this pool has not most stakers because the amount of stakers in this pool was 1654 but the OP/USDC pool has 1711 stakers but in other side the amount of stakes in this pool was around 7K. It is clear that the trend of deposits has been upward. The highest amount of deposits in one day was for August 3 and the amount of deposits was 2800.

Thanks for reading

\n All data used are from: Flipside Crypto

My Twitter :Sepehrmhz8

Conclusion

When we look at the performance of this platform in the last 2 months, we can clearly see the development of the popularity of this platform, Velodrome.

When we pay attention to the different parts of this platform, we realize that the volume of transactions, the number of transactions, the number of new users, the amount of stakes, the amount of deposits and TVL have increased, and this increase is quite evident.

Methods

Tables I used:

optimism.core.fact_event_logs

optimism.velodrome.ez_swaps

optimism.velodrome.ez_staking_actions

optimism.velodrome.ez_velo_locks

Metrics

• Swaps Count

• Swappers Count

• Total Velodrome Swap Count

• Total Velodrome Unique Swappers

• Velodrome Average Swap Count Per Day

• Velodrome Average Users Per Day

• Velodrome Average Swap Volume Per Day

• Velodrome Popular Pairs

• Velodrome Total Users and new Users

• Velodrome Popular Pools for Stake

• Velodrome Deposits and withdrawals

• Velodrome Top 10 Pools Burn Action

• Velodrome Top 10 Pools Mint Action

• Velodrome TVL

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