Conclusion

• Uniswap dominates the L2 over sushiswap
  • Highest weekly swaps for uniswap was 378K during Sep 19, 2022 and cumulative total of 4.88M.
  • Highest weekly swaps for sushiswap was 212K during Aug 29, 2022 and cumulative total of 2.9M.
  • Highest weekly swappers for uniswap was 63.9K during May 30, 2022 and cumulative total of 1.02M.
  • Highest weekly swappers for sushiswap was 54K during Aug 29, 2022 and cumulative total of 716K.
• Arbitrum is the blockchain where most of these swaps take place on both Uniswap and Sushiswap and it dominates both the platforms.

Uniswap

Number of Swaps

• Looking at the number of swaps, polygon was never in the race, arbitrum and optimism have always led the metrics.
• Highest weekly swaps for arbitrum was 378K during Sep 19, 2022 and cumulative total of 4.88M.
• Highest weekly swaps for optimism was 378K during Sep 19, 2022 and cumulative total of 4.88M.
• Highest weekly swaps for polygon was 74K during Jul 25, 2022 and cumulative total of 12K.

Number of Swappers

• Looking at the number of swappers, polygon was never in the race, arbitrum and optimism have always led the metrics.
• Highest weekly swappers for arbitrum was 63.9K during May 30, 2022 and cumulative total of 1.02M.
• Highest weekly swappers for optimism was 63.9K during May 30, 2022 and cumulative total of 1.02M.
• Highest weekly swappers for polygon was 2.8K during Jul 11, 2022 and cumulative total of 53K.

Overall

Number of Swaps

• Looking at the number of swaps, sushiswap was the barely the leader for the weekly swaps until May 09, 2022, however after that uniswap has just taken off after that.
• Highest weekly swaps for uniswap was 378K during Sep 19, 2022 and cumulative total of 4.88M.
• Highest weekly swaps for sushiswap was 212K during Aug 29, 2022 and cumulative total of 2.9M.

Number of Swappers

• Looking at the number of swappers, sushiswap was the barely the leader for the weekly swaps until May 09, 2022, however after that uniswap has just taken off after that.
• Optimism is just nowhere near the other two.
• Highest weekly swappers for uniswap was 63.9K during May 30, 2022 and cumulative total of 1.02M.
• Highest weekly swappers for sushiswap was 54K during Aug 29, 2022 and cumulative total of 716K.

What is layer 2?

Layer 2 (L2) is a collective term to describe a specific set of Ethereum scaling solutions. A layer 2 is a separate blockchain that extends Ethereum and inherits the security guarantees of Ethereum. [1]

Why do we need layer 2?

Three desirable properties of a blockchain are that it is decentralized, secure, and scalable. The blockchain trilemma states that a simple blockchain architecture can only achieve two out of three. Want a secure and decentralized blockchain? You need to sacrifice scalability.

Ethereum has reached the network's current capacity with 1+ million transactions per day and high demand for each of these transactions. The success of Ethereum and the demand to use it has caused gas prices to rise substantially. Therefore the need for scaling solutions has increased in demand as well. This is where layer 2 networks come in.[2]

Scalability

The main goal of scalability is to increase transaction speed (faster finality) and transaction throughput (higher transactions per second) without sacrificing decentralization or security.

The Ethereum community has taken a strong stance that it would not throw out decentralization or security in order to scale. Until sharding, Ethereum Mainnet (layer 1) is only able to process roughly 15 transactions per second. When demand to use Ethereum is high, the network becomes congested, which increases transaction fees and prices out users who cannot afford those fees. That is where layer 2 comes in to scale Ethereum today.[2] \n

How does layer 2 work?

As we mentioned above, Layer 2 is a collective term for Ethereum scaling solutions that handle transactions off Ethereum layer 1 while still taking advantage of the robust decentralized security of Ethereum layer 1. A layer 2 is a separate blockchain that extends Ethereum. How does that work?

A layer 2 blockchain regularly communicates with Ethereum (by submitting bundles of transactions) in order to ensure it has similar security and decentralization guarantees. All this requires no changes to the layer 1 protocol (Ethereum). This lets layer 1 handle security, data availability, and decentralization, while layer 2s handles scaling. Layer 2s take the transactional burden away from the layer 1 and post finalized proofs back to the layer 1. By removing this transaction load from layer 1, the base layer becomes less congested, and everything becomes more scalable.[2]

Rollups

Rollups are currently the preferred layer 2 solution for scaling Ethereum. By using rollups, users can reduce gas fees by up to 100x compared to layer 1.

Rollups bundle (or ’roll up’) hundreds of transactions into a single transaction on layer 1. This distributes the L1 transaction fees across everyone in the rollup, making it cheaper for each user. Rollup transactions get executed outside of layer 1 but the transaction data gets posted to layer 1. By posting transaction data onto layer 1, rollups inherit the security of Ethereum. There are two different approaches to rollups: optimistic and zero-knowledge - they differ primarily on how this transaction data is posted to L1.[2]

Methodology

• Find all the swaps metrics for Sushiswap from respective sushi.ez_swaps tables for each blockchain.
• Find all the swaps metrics for Uniswap from respective core.fact_event_logs tables for each blockchain.

  • We first find all the Uniswap Swap Contracts on various platforms

      select
        *
        from crosschain.core.address_labels
        where project_name = 'uniswap'
        and label_subtype = 'swap_contract'
        and blockchain in (
          'polygon',
          'arbitrum',
          'optimisism'
        )
    

  • The we look at all the events where s.event_name = 'Swap' to find all the swaps for Uniswap.

• We first look at metrics for each platform based on Blockchain, then we look at the overall metrics for each platform.

Sushiswap

Number of Swaps

• Looking at the number of swaps, polygon was the leader for the weekly swaps until July 25, 2022, however after that arbitrum has just taken off after that.
• Optimism is just nowhere near the other two.
• Highest weekly swaps for arbitrum was 151K during Aug 29, 2022 and cumulative total of 1.54M.
• Highest weekly swaps for polygon was 111K during Jun 13, 2022 and cumulative total of 1.38M.
• Highest weekly swaps for optimism was 1K during Sep 05, 2022 and cumulative total of 12K.

Number of Swappers

• Looking at the number of swappers, polygon was the leader for the weekly swaps until July 25, 2022, however after that arbitrum has just taken off after that.
• Optimism is just nowhere near the other two.
• Highest weekly swappers for arbitrum was 43K during Aug 29, 2022 and cumulative total of 422K.
• Highest weekly swappers for polygon was 21K during Jun 13, 2022 and cumulative total of 306K.
• Highest weekly swappers for optimism was .5K during Sep 05, 2022 and cumulative total of 5.5K.