ON–125: Optimism (Part 2)
Coverage on Uniswap, Velodrome, and Quixotic.
Jun 10, 2022
- Uniswap, a leading AMM-based DEX in the Ethereum ecosystem, launched on Optimism last July after a proposal passed through governance. Over the past month, Uniswap has consistently controlled most volume on the L2, tracking at ~60-70% market share of daily volume. This market structure largely mimics Ethereum mainnet.
- Uni’s daily volume on Optimism has varied considerably, but is tracking ~$35m; this number is dwarfed by mainnet, which is tracking at ~$1b. Weekly volume roughly ~10x’ed after the OP airdrop.
- Uniswap Optimism TVL is tracking ~$42m, the second highest (to Synthetix) on the L2. However, it represents <1% of Uni’s total TVL. Community members were discussing possible liquidity mining (LM) incentives to drive up TVL and passed a consensus check last December.
- Velodrome is an AMM designed as the central trading and liquidity marketplace on Optimism. Velodrome is built on top of Solidly, and was launched on May 31st. At its core, Velodrome uses two tokens to manage its utility (VELO) and governance (veVELO). Voters choose which pools get emissions and receive incentives through trading fees, bribes and anti-dilutive weekly rebases weekly, while LPs receive the emission directed to their pools. There's a total of 321m VELO supply, with 51% locked.
- A week into its launch, Velodrome has surpassed $100m in total volume traded, and generated $23k fees to date. Velodrome has taken almost 20% of DEX marketshare on Optimism according to the dashboard by hildobby.
- Within the first week of launch, Velodrome accumulated $48m TVL at its peak, and trends down to $26m at the time of writing. This is mostly attributed to the net outflow of liquidity from WETH-USDC pool ($8.5m) and USDC-DAI pool ($3.5m).
- Quixotic is the largest NFT marketplace for Optimism, and a top 10 dapp by users in the Optimism ecosystem. 9,260 unique addresses have traded on Quixotic in the past 30 days.
- The NFT ecosystem on Optimism is small and growing despite the broader market downturn. It’s seen >19% month over month growth in ETH volume traded for 5 out of the past 6 months. Total volume traded on Quixotic so far is 921 ETH with 301 ETH traded in the first 10 days of June.
- Quixotic has also become an important part of the Optimism governance ecosystem. It serves as the largest delegate of the OP Token House with 9% of all OP tokens delegated to Quixotic.
