Our goal in this article is to examine the Sushi Swap performance in Optimism over time. Under this we would like to show the number of unique user interactions, active users, new users , swap transactions and volume of Sushiswap on Optimism . Additionally, we are interested in seeing the LP’s Swap Revenue on Optimism. Additionally, we can see the Sushiswaps top 10 pools performance in Optimism in various areas.
What is an Optimism ?
Optimism, like other L2 solutions, saw an opportunity to scale Ethereum without compromising security or decentralization. Optimistic Ethereum is an EVM-compatible rollup chain that is simple, fast, and secure. By using optimistic rollups, users are able to interact with any Ethereum application at a fraction of the cost. In an optimistic rollup, transaction data is moved off-chain, bundled, and rolled up.
Optimism: how does it work?
A technology called rollups is employed by optimism, particularly optimistic rollups.
It combines the information about hundreds of transactions, such as token mints, swaps, etc, into one transaction on Ethereum mainnet (layer 1). Blockchain transaction, or “gas,” fees are conveniently distributed across everyone involved in the transaction when so many transactions are combined into a single transaction. By this it reduces gas fees when we compare with the Ethereum blockchain . A optimistic rollup assumes that transactions are valid until proven false. Therefore, it’s called an innocent until proven guilty rollup.
SushiSwap? How does it work?
SushiSwap is an automated market maker that uses UniSwap’s code. Users can swap cryptocurrencies, borrow, and receive rewards on a platform that runs on Ethereum.
With SushiSwap, users can buy and sell different cryptocurrencies between themselves, like on a traditional exchange.On SushiSwap, tokens are supported by smart contracts rather than a single central entity, and users lock crypto on the software which traders can then access.It should be noted that traders who trade locked assets pay a fee, which is then shared proportionately among all liquidity providers.
Liquidity Pools in Sushiswap
The purpose of liquidity pools is to pool tokens (also known as liquidity) so that users can use them to make trades in a decentralized way. These liquidity pools are created by users and DApps (Decentralized Apps) who want to benefit from their usage. The SushiSwap liquidity pools allow anyone to provide liquidity, and in return, they receive SLP tokens (SushiSwap Liquidity Provider tokens). For example, if a user deposited $SUSHI and $ETH, they would receive SLP tokens for the SUSHI-ETH pool.A user can reclaim their tokens from the LP pool at any time, which represents their share of the pooled assets. Every time another user uses the pool to trade between $SUSHI and $ETH, a 0.3% fee is taken, with 0.25% going to the pool.
Since Uniswap helps to provide liquidity only when it’s active, liquidity providers only earn revenue when they’re actively supplying liquidity. Once they withdraw their portion of the pool, they stop earning passive income.
But with Sushiswap, SUSHI tokens can also be issued for providing some liquidity into a pool. While SUSHI tokens will not give you a stake in the protocol, they will also give you continued access to a portion of the protocol’s fees, accumulated in SUSHI, even if you decide not to participate in the liquidity provision.
Approach
The purpose of this dashboard is to analyze Sushiswap’s performance on Optimism over time. Sushiswap’s unique user interaction, active users, new users , swap transactions and volume on Optimism blockchain are shown here. Additionally, we are interested in seeing the LP’s Swap Revenue on Optimism. Additionally, we can see the Sushiswaps top 10 pools performance in Optimism in all these areas .
- Sushiswap’s User Interactions, Transactions and Volume on Optimism
- An Analysis of Sushiswap’s revenue and fees generated by optimism
- Analyzing Sushiswap’s Top 10 Pools In Optimism
Sushiswap’s Users, Transactions And Volume On Optimism
From the below graph, we can see the number of unique Sushiswaps users in Optimism on a monthly basis. Since July 2022, the number of unique users on Optimism has continually increased. There were 6.38K unique users between May 2022 and November 2022. In October 2022, a maximum of 2.06K users was observed. There were 320 users in May 2022 and 2.06K in October 2022, an increase of 5.44 times. A trend of increasing users can be observed.
According to the chart below, the maximum number of new users joined in October 2022. From July 2022 onwards, we are able to observe a trend of an increase in new users.
In the following graph, we consider active users as those who swapped at least once every 30 days. It can be seen that on August 2022, the largest number of users were in an active state. Total Active Users increased by 4.06 times from 31 in May 2022 to 157 in October 2022. Active Users shows an increasing trend
Maximum Transactions of 12.31K were observed in October 2022, while minimum Transactions of 2.18K were observed in May 2022. As a result, Transactions are showing an increasing trend. There was an increase of almost 60% in total Transactions in October 2022. Additionally, we can see that the total number of transactions increased by 4.64 times from 2.18K in May 2022 to 12.31K in October 2022.
The maximum swap volume was $778.35K in June 2022. The total swap volume increased by 5.58 times between May and October 2022, from $50.45K to $332.18K. A trend of increasing swap volume can be observed. June 2022 has a higher total swap volume than usual. More users may be attracted to Optimism due to its low transaction gas fees .
Optimism’s average daily swap volume on a quarterly basis shows an all-time high during the second quarter. Our average daily swap volume is expected to decrease over the next few quarters. As a result of the volatility of crypto markets, we can speculate that this is the reason.
May 2022 had the lowest average Daily Swap Volume, $2.52K, and June 2022 had the highest average Daily Swap Volume of $25.94K. There is an increasing trend in average daily swap volume by month wise. Crypto markets are volatile and unpredictable, therefore there is a decrease in average daily swap volume after Jun 2022.
In the below graph, we can see how Optimism has performed in the past 30 days. As a result of the volatility of the crypto market, we see an increase in OP tokens and also suspect it might be the reason for an increase in daily swaps for the past 3 days .
An Analysis Of Sushiswap’s Revenue And Fees Generated By Optimism
In this section , we can see the transaction revenue, Sushi’s Swap Revenue and Liquidity Provider’s Swap Revenue which is generated by optimism . There was a maximum Tx Revenue of $7.33K observed in May 2022 and a minimum Tx Revenue of $1.25K observed in July 2022. There was a decline of over 30 percent in total TX Revenue in October 2022. There was a 77% drop in total Tx Revenue from $7.33K in May 2022 to $1.68K in October 2022
According to Sushi’s Swap Revenue By Optimism on a monthly basis, maximum revenues were observed in May 2022 of $352 and minimum revenues were observed in July 2022 of $63.69. During October 2022, swap revenue increased by double when compared to the previous month. Nevertheless, Revenue for October 2022 decreased from $352.15 in May 2022 to $186.97.
The total revenue generated by LP from May 2022 to October 2022 was $4.33K. Maximum Lp Revenue was observed in May 2022 at $1.76K and minimum Lp Revenue was observed in July 2022 at $318.44. Comparing October 2022 with September 2022, total Lp Revenue was almost doubled. Between May 2022 and October 2022, Lp Revenue decreased by 47%. That means we will be able to see a maximum amount of swap revenue for LPs based on Optimism. However, it has been drastically reduced later on, and it is now increasing again on October.
Analyzing Sushiswap’s Top 10 Pools In Optimism
Sushiswap’s top 10 pools in Optimism are analyzed here in terms of users, transactions, swap volume, revenues, and fees on a monthly basis. Based on the top 10 pools Unique swappers in Optimism, the swappers have been increasing since Aug 2022. In terms of swap pools, WETH-USDT is at the top. WETH-DAI is the next most popular pool. Nearly half of all the unique swappers come from the top two pools out of all the top 10 pools.
Based on the top 10 pools swaps, we can see an increasing trend since August 2022. We can see that the most swaps take place in the WETH-USDC pool, followed by the WETH-OP pool. The trend of swaps is increasing
Below is a graph illustrating the swap volume of the top ten pools on a monthly basis. A total of 49.7% of total Swap Volume came from WETH-OP pool among all top 10 pools. WETH-DDD has the lowest Swap Volume at $417.76 and WETH-OP has the highest Swap Volume at $852.23K. In June 2022, the maximum swap volume was $777.41K. Swap Volume shows an increasing trend.
From the below graph we can see the revenue generated for miners/stakers among top 10 pools . Out of all the Top 10 pools, the top one contributes half of all revenue. The lowest revenue is $18.25 (USDT-DAI) and the highest is $9.34K (WETH-USDC). There was a maximum Revenue of $7.32K achieved in May 2022 and a minimum Revenue of $1.25K achieved in July 2022. There was a 30% decrease in total revenue in October 2022. May 2022 to October 2022 saw a decrease in total revenue of more than 75%.
As we can see from the graph below, out of all top 10 pools, most of the swaps revenue comes from WETH-OP pool. But later we discover that most swap revenue comes from WETH-USDC pool. Additionally, we can see that swaps revenue is increasing. There is a lot of volatility in the market, which is to be expected.
As we can see from the given graphs , out of all top 10 pools, most of the Sushi and Liquidity Providers revenue comes from WETH-OP pool in the initially. But later we discover that most the Sushi and LP’s revenue comes from WETH-USDC pool. Additionally, we can see these 2 types of revenues are increasing .
Observations
- According to the above analysis, the number of active users, new users, and unique users on Optimism blockchain is continuously growing.
- There is a trend of increasing swap volume. A higher swap volume is expected for June 2022 than usual. Because of Optimism’s low transaction gas fees, more users may be attracted to it.
- According to the above analysis, total TX Revenue decreased by over 30 percent in October 2022. Furthermore, TX revenue is on a downward trend. During the period of May 2022 to October 2022, total Tx Revenue dropped 77%.
- In the above analysis, we can see that initially, both sushi’s swap revenue and LP’s revenue were high, but later they decreased. We can see again which is going up in October 2022.
- According to the top 10 pools with unique swappers in Optimism, the number of swappers has been increasing since August 2022. There is no doubt that WETH-USDT is at the top of the list when it comes to swap pools. The second most popular pool is WETH-DAI. Of the top 10 pools, nearly half of the unique swappers come from the top two.
- Observing the top 10 pool swaps since August 2022, we can see an increasing trend. The most swaps take place in the WETH-USDC pool, followed by the WETH-OP pool. The trend of swaps is on the rise.
- Among the top 10 pools, WETH-OP accounted for 49.7% of total Swap Volume. A maximum swap volume of $777.41K was recorded in June 2022. A trend of increasing swap volume can be observed.
- A majority of all top 10 pools’ revenue comes from WETH-OP pool in the category of swaps, sushi, and LPs. But later, it became apparent that most swap, sushi, and LP’s revenue was derived from WETH-USDC pool. Additionally, we can see that all 3 types of revenues are on the rise. In addition to the market volatility, there is also a lot of uncertainty.
Reference Query
1. /**
Approach:
1. Find the number of days between two transactions for every wallet by blockchain
2. If the distance between two transcations is less than 30 days then consider the wallet as monthly active wallet
3. If the distance between two transcations is more than 30 days then exclude the wallet from monthly active wallet
**/
WITH swaps as (
SELECT
blockchain,
origin_from_address,
block_timestamp,
date_trunc(month, block_timestamp) as date,
lag(block_timestamp) over(partition by blockchain, origin_from_address order by block_timestamp) as last_txn_block_timestamp,
datediff(day,last_txn_block_timestamp, block_timestamp) as lag_days
FROM flipside_prod_db.crosschain.ez_swaps
where platform ='sushiswap'
and block_timestamp >= CURRENT_DATE - {{days}}
)
SELECT
blockchain,
date,
count(distinct origin_from_address) as active_users
FROM swaps
WHERE lag_days between 1 and 30
GROUP BY blockchain, date
-------------------------------
2. with swaps as (
select
tx_hash,
block_timestamp,
origin_from_address as wallet,
pool_name,
blockchain,
CASE
when amount_in_usd is not null and amount_out_usd is not null then least(amount_in_usd, amount_out_usd) -- to handle scenarios like 0x817d872cab4d985c1f902a7c6da0dd6d66adcba751e2fb2fc95b11ca70062a0b on BSC
else NVL(amount_in_usd, amount_out_usd)
end as amount_usd
from flipside_prod_db.crosschain.ez_swaps
where platform ='sushiswap'
and amount_usd > 0
),
aggregate as (
select
date_trunc({{frequency}}, block_timestamp) as date,
blockchain,
count(tx_hash) as txns,
count(distinct wallet) as wallets,
sum(amount_usd) as swap_vol_usd
from swaps
group by date, blockchain
)
SELECT * FROM aggregate
-------------------------------
3.