Question:

Q103. Create a dashboard that can refresh daily with metrics that provide a detailed picture of Wormhole activity both from Ethereum to Solana and from Solana to Ethereum.

How are tokens being bridged from chain to chain and which actions seem to be popular among users of Wormhole? What actions seem to influence bridging behavior? What are users doing before and after bridging? Do users seem to think that bridging is safe or more risky relative to transfers to centralized exchanges?

Overview of essay:

In this essay, the application of Wormhole bridge between Solana and Ethereum has been studied. Also, the main feature of Wormhole users have been determined based on the actions before and after bridge.

This analysis divided into two main parts based on the side of analysis (Ethereum and Solana). The time frame of this study is for the past 3 months.

What is Wormhole bridge?

Wormhole bridge is a way to transfer digital assets between a root chain and several foreign chains. The wormhole does this with the help of intermediaries called Guardians. This communication bridge we are talking about is a smart contract (Bridge Smart Contract). One of the important points when evaluating the centralized or decentralized nature of this communication bridge is to check how to maintain the Admin Key of this smart contract in the blockchain networks supported by these projects. A wormhole bridge is a decentralized communication bridge. This smart contract is managed and controlled by network nodes. In addition to regular users looking to transfer their assets from the Solana network to Ethereum or vice versa, other projects and platforms can also use it to transfer their platform tokens from the Ethereum network to the Solana network. By using this network, it is easy to create their Rapid Token on the Solana network without selling Ether currency and ERC-20 tokens, and by simultaneously holding their currency on the Ethereum network, they can also benefit from the benefits of DeFi platforms on the Solana network.

Part 1: Study on Ethereum side

Ethereum → Solana:

The usage of Wormhole on the Ethereum side evaluated in this part. The token sent from Ethereum to Solana investigated accordingly.

• From the middle of May, the application of Wormhole from Ethereum to Solana has followed the reducing trend.
• The most used token for bridge from Ethereum to Solana is USDC with over 115 million tokens.
• The last sector that users use before bridge are DEXs and DeFi programs.
• From the actions point of view, three of the most popular actions before bridge are Transfer, Approval and Swap.
• The top interacted contracts reveals the domination of fee contracts before bridge from Ethereum to Solana.

Solana → Ethereum:

Now lets analyze the transactions from Solana to Ethereum on Ethereum side.

• The highest application in the past 90 days belong to May 13th with over 200 bridges by 185 unique wallets. After that date, the bridge transactions reduced dramatically.
• The most used tokens that bridged from Solana to Ethereum are USDC and USDT but the domination of USDC could not be ignored.
• The domination DEX sector after bridge from Solana to Ethereum is considerably high.
• The most used actions right after bridge to Ethereum are Transfer and Swap.
• The top first usages on Ethereum right after bridge from Solana are interacting with LP of Uniswap and Sushiswap.

Part 2: Study on Solana side

Solana→ Ethereum

In this part analyze the Wormhole application from Solana side. First lets talk about the bridges from Solana to Ethereum:

• The highest application of Wormhole to bridge from Solana to Ethereum happened on May 16 by 76 unique wallets. After that time and due to the Bear market features, the application of Wormhole reduced over time.
• The most used actions before bridge from Solana to Ethereum are Create and Transfer actions.
• The most popular sector that users interacted before bridge to Ethereum is DEX with 87.7% of usage.
• The Jupiter and Raydium LP are the two of the most used programs before bridge from Solana to Ethereum.

Ethereum → Solana

In the Solana side, lets analyze the bridge from Ethereum to Solana.

• The application of bridge from Ethereum to Solana decreased in June and July but by the start of August it has been enhanced as can be seen.
• The most popular actions right after bridge from Ethereum to Solana are Close account and Transfer actions.
• The most used sectors after bridge from Ethereum to Solana are DEXs and DeFi programs on Solana network. Also, the DEX sector has dominated the process and it means users swap their tokens after bridge to Solana from Ethereum.
• The most used programs after bridge to Solana are Jupiter, Solend and Mango markets respectively.

References and useful links:

• Wormhole bridge Docs
• Solana Scanner: SolanaFM
• Ethereum scanner: Etherscan

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani