Hop - Value and Volume

    In this dashboard, we will look at the USD volume through the Hop Bridge from Ethereum Mainnet and also the TVL of the Bridge. The USD volume through Hop Bridge will be compared with the respective Native Bridges.

    Getting Hop Bridge data

    Rather than locking and unlocking assets in mainnet and minting and burning on the L2, Hop maintains liquidity on both sides of the chain to allow easy and smooth bridges, without any wait times.

    As of now Hop supports 4 chains:

    • Optimism - Chain ID 10
    • Gnosis - Chain ID 100
    • Polygon - Chain ID 137
    • Arbitrum - Chain ID 42161

    Hop also support 6 assets across the bridge:

    • USDC
    • USDT
    • WETH
    • WBTC
    • DAI
    • MATIC

    Each asset has its own deposit vault, and the Function sendtoL2 is invoked with the necessary parameters, which include the amount of asset to be sent, the destination chain ID. When assets are sent across the bridge, a TransferSentToL2 event log is emitted.

    From this event, we can find the user details, destination chain and amount of asset involved transferred. From the contract which emits this event log we can identify the asset in consideration. Aggregating these data, we can generate the metrics we require.

    The contract addresses for the respective vaults are

    • 0x22b1cbb8d98a01a3b71d034bb899775a76eb1cc2 - MATIC
    • 0xb98454270065A31D71Bf635F6F7Ee6A518dFb849 - WBTC
    • 0xb8901acB165ed027E32754E0FFe830802919727f - WETH
    • 0x3d4Cc8A61c7528Fd86C55cfe061a78dCBA48EDd1 - DAI
    • 0x3E4a3a4796d16c0Cd582C382691998f7c06420B6 - USDT
    • 0x3666f603Cc164936C1b87e207F36BEBa4AC5f18a - USDC

    TV Locked

    Let us look at the Ethereum-side TVL of Hop Protocol by using ethereum.erc20_balances to retrieve the Wallet Balances of the above vaults.

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    There is very little WBTC locked as of today. Stables make up almost 75% of all the TVL locked as most other assets have lost quite alot of their value. ETH makes up only 30%.

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    Looking at the daily data, current TVL is less than half that of the 2022 TVL ATH. Most of the value is attributed to the ETH drop. Stables have remained pretty much same. This suggests that most of the assets are still locked in the bridge. Its also telling that, WBTC has consistently never been part of the vaults.

    Volume comparison

    Unlike Hop Bridge, Native bridges involve depositing an asset on the mainnet side and then minting the corresponding asset on the L2. Hence to track bridges, we simply need to track the asset movement to the respective Bridge contracts. Now Polygon and Arbitrum have separate contracts for native ETH deposits and ERC20 token deposits. Optimism has a single contract for both, but also has a faster and cheaper execution contract for smaller ETH only deposits.

    for Optimism, the bridge contracts are:

    • 0x99c9fc46f92e8a1c0dec1b1747d010903e884be1 - This is the native bridge, that has been used in general. Can handle both ETH and ERC20 tokens.
    • 0x52ec2f3d7c5977a8e558c8d9c6000b615098e8fc - A new bridge to handle small sized ETH only deposits in a much more gas efficient way

    for Polygon, the bridge contracts are:

    • 0xa0c68c638235ee32657e8f720a23cec1bfc77c77 - handles native ETH bridges
    • 0x40ec5b33f54e0e8a33a975908c5ba1c14e5bbbdf - handles ERC20 bridges

    for Arbitrum, the bridge contracts are:

    • 0x4dbd4fc535ac27206064b68ffcf827b0a60bab3f - handles native ETH bridges
    • 0x72ce9c846789fdb6fc1f34ac4ad25dd9ef7031ef - handles ERC20 bridges

    We can use ethereum.core.ez_eth_transfers for tracking ETH deposits and ethereum.core.ez_token_transfers for tracking ERC20 token deposits. Aggregating the total volume since start of 2022 ....

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    Hop has bridged a very small fraction of the Total volume bridged by the native bridges. Most of this sizable disparity can be attributed to Polygon. This could be due to Polygon's Bridge being more popular and earlier than the likes of Hop. Plus Hop is technically a 3rd party bridge, while the native bridges are built and maintained by the teams responsible for the L2 involved.