Question:

Q5. Where do people go when they bridge to Polygon from Ethereum? What are the 10 most popular first destinations for Polygon addresses that have just bridged from Ethereum?

Overview of essay:

Polygon, formerly known as Matic Network, is a protocol and framework for building and connecting blockchain networks compatible with Ethereum. This protocol tries to solve some of Ethereum's major limitations, including its throughput, poor user experience, and lack of community governance, using a new on-chain solution.

Its long-term goal is to provide an open and borderless world where users can communicate with decentralized products and services without the need to navigate through intermediaries and pass through various barriers.

To transfer tokens from Ethereum to Polygon, the user must lock their tokens in a contract on the Ethereum blockchain, and then the corresponding tokens will be minted in the Polygon network. This mechanism requires the approval of two-thirds of Polygon network validators to transfer tokens.

Withdrawing from the Polygon network to Ethereum takes place in two stages. First, tokens must be burned on the Polygon chain, and then proof of this token burning must be submitted to the Ethereum mainnet.

This essay seeks to identify the actions and activities of users whom bridged their assets from Ethereum to Polygon. Exactly, the first action after bridging has been acquired.

The data of Polygon network on Flipside community are from 2022/06/06 thus, this investigation executed on this time period.

Bridge from Ethereum to Polygon:

According to the introduction above, to track the bridge from Ethereum to Polygon we should follow these approach:

select *

from polygon.core.fact_event_logs

where ORIGIN_FROM_ADDRESS=ORIGIN_TO_ADDRESS and ORIGIN_TO_ADDRESS='0x0000000000000000000000000000000000000000' and EVENT_NAME='Transfer'

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The results related to bridge count and users bridged from Ethereum to Polygon demonstrated in the next graph.

According to this graph, the usage of bridge from Ethereum to Polygon has been enhanced from June27 and reached its highest level on June 29 with 7537 bridges by 1932 unique users.

Actions done as first transactions after bridge:

The first thing we should look is the actions executed by users transferred from Ethereum to polygon:

• For this purpose we should identify the date of bridge and find the first action right after bridging: (tb1 introduced above as bridge code)

tx_hash, from_address as users

from polygon.core.fact_transactions x join tb1 y on x.from_address = y.users and x.block_timestamp>y.block_timestamp

• Now after that estimate the actions by: (tb2 is the previous table)

distinct event_name as first_actions

from polygon.core.fact_event_logs where tx_hash in (select tx_hash from tb2)

The consequence related this part has been summarized in the Key findings.

Top 10 most popular first destinations

The second part belongs to the identification of most popular destination. For this purpose track the bridges from Ethereum to Polygon and find the next destination of users right after bridging by:

• To underestimate the first destination:

  ROW_NUMBER() OVER (partition by FROM_ADDRESS order by x.BLOCK_TIMESTAMP) as t_n from polygon.core.fact_token_transfers x join tb1 y on x.from_address = y.users and x.block_timestamp>y.block_timestamp

  where t_n=1 -- for first transaction

• Find main sectors and popular destinations:

LABEL_TYPE,

PROJECT_NAME,

count(tx_hash) as count_txn

from tb2 q join polygon.core.dim_labels w on q.TO_ADDRESS= w.address

Key findings 1:

• The three most popular actions right after bridging from Ethereum to Polygon are Transfer, Approval and Swap. But the domination of Transfer action can not be ignored.
• Most popular actions are ranked by count of transactions and users. In consideration of users count, the share of each action get closer to each other as can be seen.
• The first actions over time shown in the normalized area graph and validate the previous statement in the mentioned time period.
• The top destinations of users right after bridge from Ethereum to Polygon have been classified based on sector of addresses. According to this analysis, the most popular destinations on Polygon are DeFi, Layer2 and NFT projects.
• After obtaining the top sectors users interacted with right after bridging now lets talk about the top 10 most popular destination.
• According to the scatter graph, the most popular destinations for Polygon addresses that have just bridged from Ethereum are Hop protocol, Aave and OpenSea.