Task

How did the recent spike in market volatility affect the overall activity of sushi on Ethereum?

• Analyze both swaps and lendings (and borrows)

Intro

Sushiswap offers a suite of defi applications, and in those, borrows, lends or swapping will be reviewed in the next charts.

Method

This review uses the next Flipside's tables:

• For the reference of WETH price, the ethereum.core.fact_hourly_token_prices table was used.
• For swapping activity, the ethereum.sushi.ez_swaps table was used.
• For borrowing activity, the ethereum.sushi.ez_borrowing table was used.
• And for lending activity, the ethereum.sushi.ez_lending table was used.

The timeframe for this review will be weekly since May for easier visualization.

Analysis

ETH price gives a nice impression of the current mood of the market. With a continuing downtrend since May. With two relevant points in May 7, and June 11

Swapping activity spikes in a positive correlation with big prices movements.

• In this case is possible to see the big spike when Terra crash in may.
• And a spike in activity soon after June, 9.
  • The levels from this movements remained for at least two weeks.

While the swapping activity had constant high activity levels, the USD volume this actions moved is only particularly huge during these last two big events.

• The usd volume during the early june, particularly the 13, reach up to 63 USD millions, even more that the volume swapped during Terra's crash.
• While the activity remained high after the last spike, the volume really dwindled down.
• The last spike in June 24 moved up to 7 millions usd.

First lets look at swapping activity

The gross of the swapping activity came from WETH, by a huge amount.

• Followed by USDC
• Then by USDT
• And then by DAI

The nulls data are those contracts who didnt have symbol name and are all grouped in the same 'null' category.

And while WETH as expected, moved a correlated USD volume with its activity levels:

• USDC didnt fall too behind during the movements on May or mid June.
• USDT was third followed closely by DAI.

And now borrow & repay activity

Borrow and Repayments have drop in these last days: -Since may activity in those activities have dropped with each crypto price drop.

• I have to think that the reason repay activities spiked during May and June was because these dates had significant price drops, that would case a huge amount of liquidations when the value of the collateral drop along the general crypto market.
• This could mean that given the downward trend in crypto price, less people are borrowing.
• Also bringing repayments activity down.

During the last weeks, borrowing volumes had almost come to a stop.

It appears to be too much fear/uncertainty to participate in these activities.

In USD volume the picture is quite different.

• While previous spikes, in early May and mid June had a direct increase in volume withdrawn from the lending protocol, is the week after June 20 that really moved volume.

With each drop in price the withdrawn activity increases and deposit decreases.

• At this point, users seem less eager to lend money.
• And while activity levels currently seem lower than before, the volume seen in the next chart says different.

• And the movement didn't came from an user, it was from a contract.

In summary

Todays price movements do explain the sushi current activity. Or at least heavily correlates them.

• As expected of periods after sudden price drops, activity levels also drop.
• But not before a huge increase in swapping activity during the drop.
• Along with the volume of those swaps.
• WETH and stablecoins are the big drivers in swapping activity.
• Also the price drops seem to have caused two possible movements: a huge amount of liquidations or the increase in users will to repay their debts.
• Users these days are less eager to borrow money.
• That could be different for deposits for lending, where deposits are actually increasing these last days.