Try Quests to earn NEARRef Finance impacts on Near Blockchain
Ref finance overview dashboard
What is Ref Finance?
Ref Finance is a decentralized finance (DeFi) platform that was initially created by Illia Polosukhin, which is also the co-founder of the NEAR Protocol. The platform scaled in operation when Proximity Labs, a NEAR-focused research and development company, received funding from NEAR Foundation to expand and strengthen the DeFi service.
The platform allows users to trade tokens using its Automated Market Maker exchange, stake LP token into farms, and provide liquidity to the system.
The platform has already initiated token swaps and pool-swapped tokens with NEAR-based projects to form markets with active liquidity.
How Ref Finance works?
Participants can either trade or become a liquidity provider (or both) in the platform by depositing an equivalent of each underlying token in exchange for LP tokens, also called “pool tokens.” Uniswap’s liquidity pools might be more popular than Ref Finance’s for the time being, but it doesn’t mean that Ref’s services are inferior in any way.
Ref Finance’s advantage over Uniswap is that its smart contract contains all pairs of liquidity pools, which comprise reserves of two or three NEP-141 tokens, kind of like the ERC-20 tokens of NEAR.
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Hello! Today we are going to take a look at Ref finance and its’s effects on NEAR Protocol in recent 6 months, but before we start let’s get familiar with Ref finance at first:
Methodology
In this dashboard we will get some general info about Ref finance at first, Then track The users behavior on it and in the next part we will see how Ref finance is effecting Near, finding Ref finance’s Transactions counts and status, wallets, and also total gas used in the chain. for finding Ref finance’s impacts on Near
note: All of our data in this dashboard are in recent 6 months timeframe.
First part: Ref Finance overall status
By looking at the charts, we see the number of unique wallets interacting with Ref finance was decreasing month by month from April until July But in August the amount of Ref users increased (almost 1600 more than July) but again in September we had another decreasing in Ref unique users.
If we look at the daily Ref finance users we see its correlation with $NEAR tokens prTice for example on May 2022 and 2 fig. Near price, Ref had more interactors but with $NEAR price fall starting from May we see fall of Ref Users too!
Also in August $NEAR experienced a lite growth on its price chart and we can see users growth in Ref as well.
Second part: Ref finance vs other parts of Near ecosystem
As we see the general trend of Ref finance users and other Near users is the same, in both of the group making 2~10 transactions are higher than the others be far but if you look at Ref finance related charts you see the group of users making 10~50 transactions is 21% of all, while in other parts of Near ecosystem this group’s share is 9.5%, so we can say Ref finance users are more active than overall Near users in making transactions and Ref finance have positive effects on making Near users more active on average.
Users activity
Users retention
User retentions means the time between a unique user’s first and next transaction (first here not mean the first transaction from creating wallets, it means the fist transaction the wallet made in our research timeframe).
In Ref finance larger group of people do their 2nd transaction in the same day they made the first compared with other parts of Near (6.3% more in numbers) , but if you look at the second group you see almost 5% of Ref users don’t use the protocol again before 15 days after their last transactions , in other Near projects this rate is 4.3%.
So Ref has both negative and positive effects in Nears overall Retention, how ever the positive effects is a bit more than negative ones here.
Share in the Near chain events (Transactions, gas fees, wallets,…)
As we see, Among the all transactions making on the Near protocol in recent 6 month, 4.69M is related to Ref finance. in other words 4.65% of total
100.9M Near transactions is making on Ref finance including: swaps, staking LP creating and farming
7.2K $NEAR is the amount that Ref finance users have payed for the gas fees for completing their transactions, In fact, 4.33% of 166.1k $NEAR has payed for transaction fees are payed on Ref finance.
We know Ref have 4.65% share of total Near transactions form previous charts, and here we see Ref’s share on payed gas is 4.33%, so as this two rates are not equal, we can say transactions on Ref finance are completing with less gas fees than average amounts.
The charts tell as less than 1% off all Near active users (users making 1 transactions in recent 180 days) are Ref finance users, and we can understand from this the high activity of Ref finance users, (They have 4.8% of transactions share already!), so another emphasizing reason Ref finance about Ref finance importance in Near and its effect on making the Near users more active (as we seen in users activity and retention diagrams..
The last Metric we are focusing is the failed transactions, we see, 18.6% of all Near’s failed transactions are happing on Ref Finance, in fact we can say Ref can be one of the main reasons about Near’s possible bad performance in completing the transactions.
Conclusion
- $NEAR’s price have high impact on using Ref finance, when $NEAR is bullish more users interact with Ref finance and when it’s bearish users activity on Ref decrease.
- Ref finance have positive effects on making Near users more active, as Ref finance users are more active than overall Near users in making transactions, 20% of Ref users have made 10 ~ 50 transactions in recent 6 month while in other parts of Near ecosystem the 10 ~ 50 transaction wallets share is 9.5%.
- In Ref finance larger group of people do their 2nd transaction in the same day they made the first compared with other parts of Near (6.3% more in numbers).
- 4.65% of total 100.9M Near transactions is making on Ref finance including: swaps, staking LP creating and farming.
- 4.33% of 166.1k $NEAR has payed for transaction fees are payed on Ref finance.
- Ref can be one of the main reasons about Near’s possible bad performance in completing the transactions as 18.6% of all Near’s failed transactions are happing on Ref Finance
Technical note
I was going to add some additional info about Ref finance’s DEX swaps and the most popular tokens also the users average swaps size, but I saw some bugs on the related table (such as less than 100 unique wallets making the swaps on overall and some also some bugs on token prices leading to mis-calculating the swaps volume, so I did not add them here, to have a dashboard with correct data.