1. Swaps

In this section we’ll be diving into Swap activity on the DEX and seeing how volume and trading size has shifted over time.

Introduction

In this investigation, we’ll be looking at how activity on the SushiSwap DEX has varied 2 weeks before and after the merge. We’ll be looking at a few different offerings:

1. Swaps
2. Deposits & Withdrawals, Lending & Borrowing
3. Liquidity Actions
4. Summary

Dashboard refreshes daily

Dashboard does not include latest date (as it will always be incomplete)

Key Points

• When looking at the ==daily== period we can barely see much difference, both in terms of transaction volume and $ volume
• The ==hourly== period (change parameters) shows a significant spike in Volume right before the merge (a day before) and a few spikes after the merge that could be people coming off of specific tokens and slowly users swapping back into them.
  • We can also see that there’s a massive spike in transactions a bit after the merge, indicating significant user activity (compared to the average in that period).

Let’s now look at trade sizes before and after the merge as well as comparing them (by bins) to see if anything has changed in terms of user behaviour in pre-post merge swap sizes.

Key Points

• Pre and Post merge swap distribution looks almost identical
• When digging deeper we can see that the 0-100 and 800-900 bins pre-merge were most active but post merge we can also see that the 200-300 and 1000-1100 bin sizes are more active, but this could be just a coincidence, given that the merge and the pre-merge period is not long enough to draw any more meaningful conclusions
• In general most (about 20%) of the swaps are within the 0-100 $ range with about 7% on the 100-200 bins, e.t.c.

DEXs usually tend to have this left skew distribution when it comes to swaps as most users are swapping smaller amounts as well as most arbitrage/mev etc bots are usually targeting easy small transactions for profits.

2. Deposits & Withdrawals, Lending & Borrowing

Key Points

• What we can see is that there were a lot more withdrawals that deposits into the different strategies pre-merge, with very few amount $ re-entering into strategies/LPs post-merge
• Unlike Deposits and Withdrawals, Lending spikes are all positive pre-merge until a week or so after the merge with a -10k $ spike (Borrow spike), someone or more than one person entering a borrowed or leveraged position.

3. Liquidity Provision Actions

In terms of LP actions, I was not able to get $ amounts for the different add/remove liquidity actions, but we can still look at the number of transactions pre and post-merge.

What we can see in this case is that there were a lot of LP remove liquidity actions pre-merge and post-merge these transactions are all addLiquidity actions. This is great news, as it means people are again comfortable to re-enter LP positions and trust their capital with sushi pools.

Although what should be noted is that the transaction counts are quite low across, which is slightly concerning given also that SushiSwap TVL is on a steady decline that has (hopefully) reached its lowest point.

4. Summary

Overall, what we’ve seen is that in terms of swaps people haven’t really changed their behaviours, maybe some arb bots didn’t run before and right after the merge, but the activity both in terms of Volume $ and swap sizes has remained pretty much the same. In terms of Deposits and WIthdrawals, we can see that a lot of people did withdraw their assets before the merge and some have chosen to re-deposit them after, in support of that we also see people continuing to lend out their assets with no one borrowing leading up to the merge, but then it’s good to see that someone has borrowed ~10k of assets or has entered a leveraged position. In terms of the LP actions we see heavy removeLiquidity actions pre-merge and post-merge is all addLiquidity or at least the net-flow is addLiquidity as we’re looking at the difference.

Evaluation

I am a bit bummed out I wasn’t able to get $ values for the LP activity, although I was expecting an LP actions table to exist, which made me not want to do much more work on it. Although I feel like there’s a lot more specific analysis one can do, I feel like there’s enough here to show what has taken place pre-post merge on SushiSwap.