Overview

The Ethereum merge has been one of the most waited event on crypto during the past years. The intention of the merge were to reduce the fees of the network, facilitate the smart contracts interactions and much more.

Since its success, the network experimented some changes but also before it. For example, the Market Makers (MM) taken part of it before the event and started to move their capital to minimize the risks. But, what happened after the merge?

Sushiswap s a decentralized exchange (DEX) that operates under the automated market maker (AMM) mechanism, used by many DEX platforms. SushiSwap is the first decentralized exchange that modifies the mechanisms used so far, using a new incentive scheme. The idea of modifying these mechanisms is to achieve media presence and thus attract investors. \n \n The basis for achieving media presence is the SUSHI token, which is used for various solutions within the platform. Among the uses is to offer governance capabilities to platform users, giving them the ability to vote. Although some of the most interesting for the user is to obtain rewards through yield farming and liquidity mining.

Methodology

The intention of this dashboard is to provide a vision of how the MM responded not only before the Ethereum merge event but also after that.

To be able to compare it, I have analyzed different liquidity metrics such as deposits and withdrawals, net volumes, most affected pools and some projects implicated on the capital movement. All of the metrics have been calculated two weeks prior to merge and two weeks after.

The metrics taken into account have been:

• Daily liquidity addings and removings
• Daily users moving in and out
• Volume in and out
• Cumulative volume added and removed
• Net volume before and after the merge
• Most affected pools
• Specific projects involved

As we can see, the daily deposits and withdrawals before the merge were constant and similar. However, just after the merge the number of deposits spiked from 60 to up to 100. On the other side, the removals decreased from 60 to 30. Then, the merge has been good for the liquidity actions.

Something similar occurred with active users. The number of users adding increased after the merge and the withdrawers have been reduced.

Finally, looking at the volume, we can see ho the deposited volume spiked just after the merge, but the removed volume spiked the day before.

Considering the cumulative volume, we can see how the deposited volume spiked after the day of the merge, while the removed volume spiked previous to the merge. The total volume deposited over this month was 64M and 52 were removed, with a balance of 12M.

Looking at the second chart we can see the evolution of the net deposited volume. Here we can see how during the pre merge the net volume were negative having the lowest peak on September 14th. However, the situation have been reverted since the merge reaching this 12M in green.

If we take into account each Sushiswap pool available on Ethereum (I have filtered those pools that generated a low volume), we can see how there are some of them that must be highlighted due to their removals volume:

• USDC-WETH, WETH,USDT,SUSHI-WETH,TOKE-WETH, SYN-WETH and ILV-WETH.

  
  Three of them redeployed back their capital: USDC.WETH, SYN-WETH and ILV-WETH. However, the rest lost capital during that period.

In the donut chart, we can see how almost 30% of the pools affectation invovles the USDC-WETH pool.

Key insights

• As we can see, the daily deposits and withdrawals before the merge were constant and similar. However, just after the merge the number of deposits spiked from 60 to up to 100. On the other side, the removals decreased from 60 to 30. Then, the merge has been good for the liquidity actions. Something similar occurred with active users. The number of users adding increased after the merge and the withdrawers have been reduced.

• Looking at the volume, we can see ho the deposited volume spiked just after the merge, but the removed volume spiked the day before.

• The most involved pools have been: USDC-WETH, WETH,USDT,SUSHI-WETH,TOKE-WETH, SYN-WETH and ILV-WETH.

• Three of them redeployed back their capital: USDC.WETH, SYN-WETH and ILV-WETH. However, the rest lost capital during that period.

• Matos DAO, Icy.Tools and Sismo Protocol has been detected as projects involved.

• Matos DAO deposited more volume than removed redeployed back their capital and adding more with a net volume of over 3M USD. Sismo Protocol has laso redeployed their capital with a net volume of 130k USD. However, the Icy.Tools basically removed their liquidity with a negative balance above -800k USD.

  
  
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In this final charts, we can see three detected projects that have been involved on the Sushiswap liquidity moving days before and after the merge:

• Matos DAO
• Icy.Tools
• Sismo Protocol

Matos DAO deposited more volume than removed redeployed back their capital and adding more with a net volume of over 3M USD. Sismo Protocol has laso redeployed their capital with a net volume of 130k USD. However, the Icy.Tools basically removed their liquidity with a negative balance above -800k USD.