Thorchain – On Ramp Transactions

How do you break down the number of new users on-boarding to Thorchain by chain? How about a breakdown of a wallet’s first transaction on Thorchain. From what chain are they coming? Are they swapping for RUNE or for something on another chain?

THORSwap

DEX built by THORchain, THORswap is a cross-chain exchange that leverages THORchain’s features to provide instant liquidity and trade cryptocurrency within the network. By removing the barrier of token standards, THORswap allows users to direct exchange tokens on different blockchains with just one click.

RUNE functions as a liquidity connector between two types of assets. When swap transactions are performed, the token ratio changes, resulting in a difference in the exchange rate. As the price in the pool is different from the outside market, arbitrage traders will enter the trade and profit from the difference. This process is repeated at a high frequency. Eventually, THORChain settles with the external market. For LPs that stake for over 100 days, THORChain has implemented a permanent loss insurance formula similar to Bancor’s.

If we want to swap BTC for ETH, it first converts BTC into RUNE, then RUNE into ETH. In this case, RUNE acts as a liquidity connector between two types of assets.

THORchain – New Users

An individual who is new to RuneTokens can on ramp in two ways: 1. By sending tokens to different pools with different assets using THORswap. 2. By transferring their own tokens from their own pool, which is categorized by value of assets.

From the below chart you’ll be able to see how new users navigate the THORchain. In this case, we are looking on two separate operations. Out of the two operations, Operation Transfer Rune Tokens contributed the most (59.75%).

On the following graph, we can see the number of new users on THORchain and their first operation within the past six months by weekly basis. Out of the two operations, Operation Transfer Rune Tokens contributed the most (59.75%).There are 8.81K Total Wallets (Swap Tokens) and 13.08K Total Wallets (Transfer Rune Tokens), a difference of 48%.A maximum of 3K wallets was observed in Week 44, 2021, and a minimum of 19 wallets was observed in Week 36, 2021.

From April to November 2021, there were 21.89K daily new users.The maximum number of Daily New Users was 3K in Oct 31-Nov 6, 2021, and the minimum number of Daily New Users was 19 in Sept 5-11, 2021.Between Jul18th and Sept11th 2021, the number of daily users decreased.

New Users Swapped by Assets and Pools

From April 11, 2021 to November 7, 2021, there were 8.81K wallets on 5 different Blockchains. Out of the 5 blockchains, Blockchain BNB contributes the most (49.78%) to total wallets.The lowest Total Wallets are 309 (BCH) and the highest are 4.39K (BNB).During September 27th, 2021, a maximum of 623 wallets were recorded, while a minimum of 1 wallets was recorded in April 11th, 2021.Total Wallets shows an increasing trend. According to Total Wallets, LTC trended upward for the first quarter of the year, while ETH trended downward.

From April 11, 2021 to November 7, 2021, there were 27 different pools, for a total of 8.81K wallets.BNB.CAS has the lowest Total Wallets at 1 and BNB.BNB has the highest at 2.39K.The maximum number of Total Wallets was 623 on September 27, 2021 and the minimum number of Total Wallets was 1 on April 11, 2021.According to Total Wallets, the trend is increasing.Since the first quarter of the year, LTC.LTC has been trending upward, while ETH.THOR has been trending downward.Total Wallets for BNB.BUSD and BNB.BNB are positively correlated.

Transfer of RUNE Tokens Based on Asset Value

From April 11, 2021 to November 7, 2021, the total wallets transferred using RUNE tokens was 13.08K.84.7% of total wallets came from categories with less than 10K asset amounts.Total Wallets at the lowest level is 6 (more than 1 million) and at the highest level is 11.08K (less than 10K).There was a maximum of 1.06K Total Wallets in July 2, 2021, and a minimum of 1 in September 9, 2021.The number of wallets in May 6, 2021 and June 3, 2021 is lower than normal, and higher than normal in June 14, 2021 and July 2, 2021.

Swap Tokens Based on Asset Value

Under Swap Tokens operation, there were 8.81K wallets between April 11, 2021 and November 7, 2021. The lowest total wallets are 10 (more than 100K) while the highest total wallets are 5.54K (less than 10K).From the 4 Asset Amount Categories, the Category Less than 10K contributes the most (62.82%) to Total Wallets. During September 27th, 2021, a maximum of 623 wallets were recorded, while a minimum of 1 wallets was recorded in April 11th, 2021.Less than 10K trended upward in the first quarter of 2021, while More than 10K trended downward.

In this image, we can see percentage views of new users, as well as the amount of money (USD) that has been swapped by swap token operation.

Observations

From the above analysis,

  • By operation Transfer RUNE Tokens, there was a less number of new users between July 18th to Sept 11th ,2021.
  • The number of new users by Swap Tokens reached its peak in Sept 2021 and is again on the rise.
  • In Oct31-Nov6,2021, the total number of new users onboarded to Thorchain is at its highest.
  • According to New Users Swaps by Blockchain, BNB is the highest contributor.
  • Based on data from Thor Swaps – New Users And Their First Interacted Pool, BNB .BNB is the leading contributor.
  • Less than 10K tokens were contributed for more total wallets under the Transfer Rune Tokens operation .
  • Taking into account the Swap Tokens operation as well, less than 10K tokens were contributed for more total wallets.

Leave a Reply