Analyse After The Mars Protocol Launch

Throughout this article, we aim to give an overview of how the Mars Protocol is doing, based on the number of depositors and borrowers, and by calculating the LUNA and UST deposited and borrowed.

Mars uses the Terra blockchain to facilitate on-chain credit and is fully automated, community-governed, and community-controlled. Based on the utilization rate, interest rates are priced algorithmically. While managing illiquidity and insolvency risks, Mars’ aim is to attract deposits and lend out these funds. Mars operates a fully automated, on-chain credit infrastructure governed by a decentralised community based on a transparent governance procedure unlike banks.As a start, Mars will offer collateralized debt to users (C2B) as well as Contract-to-Contract debt to pre-approved smart contracts (C2C). For the C2C portion, the Mars team will create whitelisted smart contracts that utilize simple leveraged yield farming strategies. 

From the below tweet we can see the launch of Mars Protocol.

The following graph illustrates daily users of the mars protocol, including borrowers, depositors, and repayers. Over time, the number of depositors and borrowers declined. We can also observe that the number of depositors has dramatically decreased from the launch of the mars protocol in the early days to now. On March 29,2022, the number of repayment wallets has been increased. On the same day, all deposits and borrowers increased by a significant amount. 

The maximum number of depositors and borrowers was recorded on March 8th, 2022. All borrowers, depositors, withdrawers, and repayers are on a downward trend.

According to the following graph, the maximum deposited and borrowed amounts were on March 19,2022. There was an increase in borrowing, deposit and withdraw amounts. A trend of every 4 days is evident here, all showing high values. 

Here from the below graph we can see the net LUNA and UST borrowed and deposited over a time period. Net Borrowed Amount from March 7, 2022 to April 4, 2022 was 77.61M. Approximately 99% of both LUNA and UST borrowed amount come from UST. Maximum Net Borrowed Amount was observed on March 19, 2022, and Minimum Net Borrowed Amount was observed on March 26, 2022.Initial net borrowing amounts of LUNA and UST are normal, though we can see a growing trend in both . Therefore, the net borrowed amount shows an increasing trend.

Her we can see there is no much change of borrowers amount on LUNA . But on UST we can see a lot of up and downs of net borrowings. on Mar25,2022 we can see -3.67M of net borrowed amount of UST. Suddenly we can see an increasing trend of net borrowed amount of UST.

Net Deposited Amount from March 7, 2022 to April 4, 2022 was 2.74M. Approximately more than 50% of both LUNA and UST deposited amount come from UST. Maximum net deposited amount was observed on March 8, 2022, and Minimum net deposited amount was observed on March 11, 2022. There is a trend of decreasing net deposited amounts.

In this case, on UST, we can see that net deposited amount fluctuates a lot.  As of March 11, 2022, we see that net deposited amount is lower than normal. Recently, we are noticing an increase in the net amount deposited by LUNA .

Observations

  • Here is an analysis of the Mars protocol users by considering the daily deposits and borrowings. The maximum number of depositors and borrowers was recorded on March 8th, 2022. Afterwards, all borrowers, depositors, withdrawers, and repayers are on a downward trend. 
  • LUNA borrower amounts do not significantly change as compared to UST borrower amounts. UST, however, shows a great deal of volatility in borrowed amounts. UST shows an increasing trend in borrowed amounts.
  • When it comes to the net amount deposited by LUNA and UST, there are many fluctuations observed on depositing UST compared with LUNA. Initially, there is not much LUNA deposited, but later we can see deposited LUNA has grown. Deposited LUNA now shows an increasing trend.

Reference : https://docs.marsprotocol.io/mars-protocol/protocol/welcome-to-mars

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