Daily Active Users

The daily active users indicate how many users actually use the platform on a given day. In this context, an active user is a users that performed at least one of the following transactions on Velodrome: performing a swap, staking, locking VELO, claiming rewards, adding or removing liquidity to an LP and voting.

We can see there is a clear dip in the number of active users on August 5 following the exploit a day earlier. However, currently, the number of active users seems to be about the same as before the exploit. This is a positive indication for the health of Velodrome. Since then, the number of daily active users has increased further.

Net Deposits into Liquidity Pools

Another important metric is the net deposits into the liquidity pools on Velodrome. Net deposits are calculated using deposited - withdrawn.

We can see that since the exploit the net deposits have been strongly negative. This means a significant amount of liquidity has left the platform. This a strong negative indicator as this suggest that users have lost faith in the protocol and are withdrawing their money.

Daily Active Users by Action

Next, we look at the same chart but now with the number of users that performed an action. Note that the total amount active users is higher in this chart as one user that perform two separate actions is counted as two separate users.

It is clear that swapping accounted for most of the activity by users both before and after the exploit.

This can be seen a neutral indication for the health of Velodrome. Swapping does bring in fees for the platform but more locking voting and staking would be a more positive sign for the health of Velodrome.

Daily Swapping Volume

Daily swapping volume in an indicator for how much users are swapping and therefore how much fees a generated for Velodrome. We can see that there is less swapping volume than before the exploit. This is a negative indication for the health of Velodrome.

Daily Rewards Claimed

The amount of daily rewards claimed is also a metric the health of Velodrome. We can see that the total USD value of the rewards claimed has decreased since the exploit. There have been some peaks, but the trend is still down. This is also a negative indicator for the health of Velodrome.

VELO Locks over time

One of the most important metrics for the faith in Velodrome and therefore the health of Velodrome is the locking of the VELO token. VELO is the main utility token of Veldrome and can be locked up for a certain period of time. Users in turn receive veVELO which can be used to vote on governance proposals. In the graph below 3 variables are plotted: the date, the lock time in days for each lock and size of the how many VELO locked up in each lock. This means that purple circles indicate a shorter lock and the size of the circle indicates the size of the lock in USD. We can see a few big bubbles during June and July. On July 27th, there was a lockup of around 317k worth of VELO for over 1000 days. We can see that since the exploit on August 4th the size of the lockups has decreased significantly. We can still see a lot of orange dots though, which indicates that users are locking up for 3 to 4 years. However, since the size of the lockups is so small, it does not matter that the locktimes are long. However, since October , we can see that there have been larger long-term locks. If this trend continues, this is a healthy trend for Velodrome.

Introduction

Velodrome Finance is a trading and liquidity marketplace on Optimism. Velodrome supports features such as swapping, liquidity pools, vesting tokens and voting. On August 4th, Velodrome was exploited of around $350k worth of assets. In this dashboard we’ll look at the current health of Velodrome Finance following the exploit using a number of metrics.

Finally, we look at the same data as the graph above, but using a different chart. In this chart, we can see the total volume in locks per day along with the lockup time. This graph also show that the the total volume in lockups decreased after the exploit.

Conclusion

• The number of daily active users has been about the same as before the exploit on August 4th.
• Most users are using Velodrome to swap token. This is no different than before the exploit.
• The daily swapping volume has decreased since the exploit.
• The net deposits have decreased significantly since the exploit. This is a particularly bad sign for the health of Velodrome.
• The total amount of new VELO locks has decreased significantly since the exploit. Even though the lock times have mostly been 3 to 4 years, the decreased volume still indicates lost faith in Velodrome. However, we can see that recently the volume is increasing in long-term lock ups. IDf this trend continues this is a positive indicator for the health of Velodrome.