Analysis Of Velodrome Finance Locks

Source: twitter

Our aim is to analyze new Velodrome Finance locks created in this article. Can you tell me what the most common durations are? In the past four weeks, which wallets have been most locked? With their locked tokens, which pools do wallets most often vote for? 

An Overview Of Velodrome

To create Velodrome, the premier trading and liquidity marketplace on Optimism, the Velodrome Team sought to bring together the top traders and analysts. As a public good, Velodrome is a public market maker modeled after Solidly. It provides deep liquidity and low slippage to token pairs essential for the growth of the Optimism ecosystem. Bringing together an automated market maker (AMM) and a full financial platform in a single protocol can dramatically improve user experience and sustainability. Similar decentralized exchanges like Solidly, Curve, and Delegate seem to always be spawned by external protocols like aggregators, auto-compounders, and delegators. Users and protocols are therefore less likely to be able to play the game effectively because of unnecessary inefficiency, value extraction, and confusion. Using Velodrome Relay will eliminate this requirement and streamline the process.

A Velodrome’s flywheel is composed of numerous groups, including:

Here from the below tweet we can see how does Velodrome works .

  • AMM is ultimately designed for traders and protocols because they drive Velodrome’s cash flow.
  • In exchange for supplying the assets necessary for low slippage swap executions, liquidity providers (LPs) are rewarded with VELO emissions.
  • As VELO grows in popularity, holders share in its success. Token holders who vest-lock their tokens receive a veNFT with the power to vote which trading pairs they would like to receive VELO emissions and receive 100% of the fees generated for the pairs they vote for, along with an anti-dilute rebasing process.

Using Velodrome, each group is rewarded for taking actions that contribute to the protocol’s success. Slippage can be reduced by liquidity. Trades are boosted when slippage is low. Protocol revenue is generated by trades, which are shared by token lockers. Additionally, this model encourages long-term token holding and active governance participation, which are crucial to the sustainability of the ecosystem.

For the past 4 weeks period, we are looking at an overview of the distribution of locked tokens based on their blocked duration, but also the daily distribution of tokens and wallets based on their blocked duration for the past 4 weeks period on Velodrome. Additionally, the Top 10 wallets and their tokens can be seen here as well as the top pools by votes received over the past 4 weeks. 

An Overall Distribution Of Locked Tokens ,Wallets and Transactions Based On Duration

From the below graph we can see the distribution of locked tokens , wallets and the transactions based locked duration . Among the 4 Locked Durations, 4 Years contributed the most (37.72%) to the total Locked Tokens.The lowest total locked tokens are 9.9M (1 Year) and the highest are 23.6M (4 Years), almost more than 2 times the amount of  1 year locked tokens. As we can see, the next highest locked tokens are in 1 month duration.

Based on the below graphs, we can see how transactions and wallets have been distributed over the last four weeks. In this example, we can see that wallets and transactions were both contributed more in the locked period of 4 years. Also, it is evident that more than 50% of wallets are locked for a period of four years. The lowest total of wallets is 131 (1 Week) and the highest total is 942 (4 Years). In addition, when looking at the transactions, the highest transaction is 2,931 (4 Years) and the lowest is 231 (1 Week). Of the 4 locked durations, the 4 year lock accounts for the most transactions (67.67%).

Daily Distribution Of Locked Tokens ,Wallets and Transactions Based On Duration

Below are graphs showing the distribution of tokens locked on a daily basis for the past four weeks based on their locked duration. Out of the 4 Locked Durations, 4 Years contributed the most (33.74%) to the total Tokens Locked. It is 9.9M (1 Year) that has the lowest total number of Tokens Locked, and 23.65M (4 Years) that has the highest total number of Tokens Locked. The maximum number of tokens locked was 9.13M on July 16, 2022, and the minimum number of tokens locked was 144.99K on June 25, 2022. From 596.29K tokens at the end of June 2022 to 9.13M tokens at the end of July 16, 2022, the total tokens locked increased by 14.30 times. On July 13, 2022, there were more tokens locked than usual. 

A total of 62.72 million tokens were locked between June 19, 2022 and July 17, 2022. In the beginning, it seemed that tokens locked for four years were more than those locked for other durations. Over the past 2-3 days, we have noticed that tokens locked on 1 month periods are more than those locked on other periods.  It is possible that they expect bribes to increase after the epoch flip as a result of qualifying for more bribes.

As we can see from the below tweet, 

 

The total number of wallets between June 19, 2022 and July 17, 2022 was 2.6K. The most significant contributor to the total number of wallets (56.23%) was the Locked Duration 4 Years. The lowest number of wallets was 180 (1 Week) and the highest number was 1.4K (4 Years). The total number of wallets increased from June, 2022 to July, 2022. The total number of wallets is higher than normal in July 13, 2022.

According to the below graph, most wallets that are distributed by duration fall within the 4 year locked period. 

The most significant contributor to the total transactions (67.67%) was the Locked Duration 4 Years. The lowest number of transactions was 231 (1 Week) and the highest number was 2,931 (4 Years). The total number of transactions increased from June, 2022 to July, 2022. The total number of transactions are higher than normal in July 13, 2022.

In the graph below, we can see that the lock duration 4 Years contributed the most percentage to the total transactions (67.67%).

Top Most Locked Wallets In The Past 4 Weeks

From the below graph we can see top10 wallets and their locked tokens in the past 4 weeks .There is a total of $25.08M locked within the top 10 wallets across all top 10 wallets. In terms of total tokens locked, the top 2 wallets contributed 35.94%, and the top 4 wallets contributed 57.01%. The lowest total amount of tokens locked is $1.41M (0x5cbf8c43b11a3b120d2cc2955f9b638303e0d22f) and the highest amount is $5.81M (0xcc739b45da0123047cd0103b88f968b22ebdfc66).

Votes Received For The Top Pools 

Based on the graph below, we can view the top pools by how many votes they received over the past four weeks. You can also see the top pools vote share percentages over the last four weeks. In total, 149M votes were cast across all top 10 pools. The vAMM-VELO/USDC pools accounted for 28.21% of votes and the Top 2 pools( vAMM-VELO/USDC and vAMM-OP/USDC) accounted for over half (51.67%) of votes. The lowest number of votes is 4.1M (vAMM-THALES/USDC) and the highest number is 42.2M (vAMM-VELO/USDC).  In general, the lowest total vote share percentage is 2.27% (vAMM-THALES/USDC) and the highest total vote share percentage is 23.33% (vAMM-VELO/USDC).

Observations

  • Based on the above analysis, we can see that the locked duration of 4 years is the most commonly used by many locked tokens and wallets, as well as by transactions. 
  • Looking at the daily distribution of tokens based on their locked duration, the four-year tokens seemed to be more prevalent than the other tokens at the beginning. In the past 2-3 days, we have noticed that tokens locked on 1 month periods are more than those locked on other periods. Maybe they are expecting to qualify for the more bribes for the week following the epoch flip.
  • Additionally, the number of wallets, transactions, and locked tokens have increased from June, 2022 to July, 2022. 
  • Additionally, if we look at wallets that are locked out the most in the past four weeks, we can see that the top wallet is “0xc739b45da0123047cd0103b88f968b22ebdfc66” and almost 5.81M tokens were locked out of these top 10 wallets tokens (which are 25.08M tokens). 
  • Votes received by the top 10 pools over the last four weeks revealed that vAMM-VELO/USDC accounted for 28.21% of the total votes, and the top 2 pools (vAMM-VELO/USDC and vAMM-OP/USDC) accounted for over half (51.67%). 
  • In addition, if we examine the vote share percentages for the top 10 pools over the past four weeks, we see that vAMM-VELO/USDC has the highest total vote share percentage (23.33%).

References: https://medium.com/@vedao.alt/more-on-velodrome-fef8e9779758

Reference SQL

WITH base AS (
  SELECT
    *,
    CONCAT('0x', SUBSTR(topics [1] :: STRING, 27, 42)) AS provider,
    ethereum.public.udf_hex_to_int(
      topics [2] :: STRING
    ) :: DATE AS locked_till,
    regexp_substr_all(SUBSTR(DATA, 3, len(DATA)), '.{64}') AS segmented_data,
    ethereum.public.udf_hex_to_int(
      segmented_data [0] :: STRING
    ) AS tokenID,
    ethereum.public.udf_hex_to_int(
      segmented_data [1] :: STRING
    )/pow(10,18) AS locked_amount,
    ethereum.public.udf_hex_to_int(
      segmented_data [2] :: STRING
    ) AS deposit_type,
    ethereum.public.udf_hex_to_int(
      segmented_data [3] :: STRING
    ) AS TIMESTAMP
  FROM
    optimism.core.fact_event_logs
  WHERE
      topics [0] :: STRING = '0xff04ccafc360e16b67d682d17bd9503c4c6b9a131f6be6325762dc9ffc7de624'
  	and block_timestamp >= CURRENT_DATE - INTERVAL '4 weeks'
),
something as (
SELECT
  tx_hash,
  block_timestamp,
  contract_address,
  provider,
  locked_till,
  tokenID,
  locked_amount,
  deposit_type,
  datediff(days, block_timestamp, locked_till) as days_locked,
  CASE 
  	WHEN days_locked <= 7 then '1 Week' 
  	when days_locked <= 31 then '1 Month'
  	when days_locked <= 365 then '1 Year'
  	when days_locked <= 4 * 365 then '4 Years'
  	else days_locked || ' days'
  END as lock_duration,
  case DEPOSIT_TYPE
  	when 0 then 'DEPOSIT_FOR_TYPE'
  	when 1 then 'CREATE_LOCK_TYPE'
  	when 2 then 'INCREASE_LOCK_AMOUNT'
  	when 3 then 'INCREASE_UNLOCK_TIME'
  	when 4 then 'MERGE_TYPE'
  end AS  deposit_type_value
FROM
  base
)
SELECT 
	lock_duration,
	count(tx_hash) as txns,
	sum(locked_amount) as tokens_locked,
  	count(distinct provider) as wallets
FROM something 
group by 1
	

Leave a Reply