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Analysis Of Solana Decentralized Exchanges

Kavitha Kavitha
Source :

This dashboard will analyze different DEX in Solana separately. The focus of this analysis was the number of swaps, swappers, and the growth of swappers by taking into account their swaps over time. The top 10 pairs by swap on the different DEX platforms were also discussed. Also, we can see the top 10 swapped in tokens and swapped away tokens on different DEX over time.

What is a DEX(Decentralized Exchange) ?

The DEX allows tokens to be exchanged smoothly across the network and the various DeFi (Decentralized Finance) Applications. That means ,Keeping the Network decentralized and secure requires a DEX that ensures seamless asset exchange throughout the Network. Developing a world digital economy relies on DEXs. It will take time for traditional exchanges to match their benefits and address their weaknesses.

What is a DEX? How A Decentralized Exchange Works

Approach

The Solana blockchain provides the open infrastructure necessary for global adoption in a fast, secure, and censorship-resistant manner. The top 4 DEX projects (Orca, Saber, Jupiter and Raydium ) that we find most interesting in the Solana ecosystem have been selected for this article. So let’s take a look at it. The way we approached for this article is as follows :

Swaps , Swappers And Growth Of Swappers In Solana By DEX

Here from the below graph we can see the number of swaps by DEX in Solana Blockchain . Out of the 4 DEX, DEX Jupiter Aggregator V2 contributes the most (55.46%) to the total swaps. Saber has the lowest total Swaps at 134.85K and Jupiter Aggregator V2 has the highest total Swaps at 41.49M. When compared with the initial period of our analysis, the number of swaps on orca, raydium, and saber is declining. However, Jupiter swaps are increasing in number.

Out of the 4 DEX, DEX Jupiter Aggregator V2 contributes the most (55.46%) to the total swaps. Recently we can see the daily percentage of Jupiter swaps is almost more than 80% (Approx. ) when we compare with the other DEX.

Orca is experiencing its peak swapper activity in May 2022. Later, however, we can see that swappers on Orca were following a downward trend drastically. Out of the 4 DEX, DEX Orca contributes the most (50.98%) to total Swappers. Saber has the lowest total Swappers at 53.49K, while Orca has the highest total Swappers at 3.61M. It was observed that the maximum number of swappers occurred in May 2022. The main contributor to this is the Orca. Between December 2021 and November 2022, total swappers decreased.

Out of the 4 DEX, DEX Orca contributes the most (50.98%) to total Swappers. Recently we can see the daily percentage of Jupiter swppers is almost more than 70% (Approx. ) when we compare with the other DEX.

Graph below shows the growth of swappers over the past 6 months by their swaps on different DEX projects in Solana.Out of the 4 DEXs, DEX Jupiter Aggregator V2 contributed 58.7% to the growth of Swappers by swaps . Saber has the lowest growth of Swappers at 2.52K, while Jupiter Aggregator V2 has the highest at 244.31K. There was a decreasing trend in growth of swappers.

According to the below graph, Jupiter DEX swapper growth is on the rise. On the other hand, when we look at the growth of Orca swappers over the past 6 months, it has been decreasing.

The following graph shows the week over week percentage growth of swappers by their swaps on different DEX in Solana for the past 6 months. If we compare the week of Nov (6-12) 2022 with the week before, we can see a sudden growth in DEX swappers.

1. Orca

With Orca, you can exchange cryptocurrency on the Solana blockchain in an incredibly fast and user-friendly manner. It is said that Orca is the easiest cryptocurrency exchange on the Solana blockchain. It is a pure AMM DEX based on Solana, with its own liquidity pools.

For cryptocurrency investors and traders, Orca offers some main features:

According to the graph below, 18.99M Swaps were executed between December 27, 2021 and November 28, 2022. May 23, 2022 was the day when Swaps reached their maximum of 1.83M and November 28, 2022 was the day when Swaps reached their minimum of 7.23K. Between December 27, 2021 and November 28, 2022, total swaps decreased by 79%, from 34.29K to 7.23K

Observations on Orca show that the maximum Swappers occurred on May 23, 2022, and the minimum Swappers occurred on November 28, 2022. Between December 27, 2021 and November 28, 2022, the number of Swappers decreased by almost 90%. We may suspect this is caused because of the crypto market volatility . 

From the below graph, we can see the swaps made by top 10 pairs are not noticeable after July 18, 2022. As a result, we can consider that the top 10 pairs were not using Orca for their swaps. In part, this can be attributed to the volatile market conditions in the crypto sector.

Out of the 4 Swap Away options on Orca, A Swap Away GST contributes the most (42.39%). The lowest total swaps are 684.24K (Gmt) and the highest total swaps are 6.75M (Gst). Moreover, after July 2nd week 2022, there were no swap away tokens of these GSTs. In Orca, USD coin and Wrapped Sol maintain most of the top 10 swap away tokens.

Out of the 4 Swap to options on Orca, A Swap to USD Coin contributes the most (39.54%). GMT has the lowest total swaps at 2.65M, and USD Coin has the highest total swaps at 6.36M. Additionally, there were no swaps to tokens after the 2nd week of July 2022 for GST and GMT. Among the top 10 swaps to tokens in Orca, USD coin and Wrapped Sol make up most of the list. Thus, USD Coin and Wrapped Sol make up the majority of swaps in this DEX.

According to the growth of swappers by their swaps in Orca over the past 6 months, the growth is decreasing. We can see from the graph below that swappers have grown less on Orca over the past 6 months. Cryptocurrency’s bear market may be causing this behavior.

The graph below shows an increase of swappers during the week of Nov 6-12, 2022, when compared to its previous week, which is quite remarkable to see.

2. Jupiter

In addition to Jupiter being the first on-chain swap aggregator, Jupiter is a key liquidity aggregator for Solana, offering the most tokens and the best routes between any token pair. In addition to providing the best rates, Jupiter’s main objective is to deliver the best swapping experience for all users and developers across the entire DeFi ecosystem. Because of the high transaction speed of Solana, swap aggregation actually works extremely well.

The tweet regarding Jupiter can be found below.

It has been observed that the maximum Swaps on Jupiter were observed in November 7th, 2022, whilst the minimum Swaps were observed in December 27th, 2021. The total number of swaps increased 4.77 times between December 27, 2021 and November 28, 2022, from 83.04K to 479.1K. The number of swaps on November 7, 2022, and May 9, 2022, were higher than usual.

Maximum Swappers of 57.31K were observed on October 10, 2022, and minimum Swappers of 5.45K were observed on December 27, 2021. During the period between December 27, 2021 and November 28, 2022, Swappers increased from 5.45K to 18.17K. Here we can see an increasing trend of swappers by Jupiter Project in Solana .

From the below graph, The USD Coin -> Wrapped Sol Swap Pair contributed 49.72% of total Swaps. It is 13.3K (Marinade Staked Sol (Msol) -> Wrapped Sol) that has the lowest total Swaps, and 7.88M (Usd Coin -> Wrapped Sol) that has the highest total Swaps. In May 2, 2022, the maximum number of swaps was 586.72K, and in December 27, 2021, the minimum number of swaps was 39.08K. Between December 27, 2021 and November 28, 2022, total swaps increased. November 28, 2022 and November 14, 2022 saw lower swap totals than usual, while May 2, 2022 saw higher swap totals than usual. There was a downward trend in swap pairs in Swaps.

As can be seen in the graph below, top 10 most of the swap away tokens are from Jupiter. These top two swap away tokens (USD Coin and Wrapped SOl) accounted for 80.17% of the total swaps. Swaps are trending downward in almost 6 of the top 10 tokens, with the lowest being 5.33K (Step) and the highest being 9.65M (USD Coin).

In total, USD Coin and Wrapped Sol tokens accounted for 81.69% of all Swaps. Swaps are trending downward in almost 6 of the top 10 tokens, with the lowest being 5.33K (Step) and the highest being 9.65M (USD Coin).

From the graph below, we can see the growth of swappers by their swaps with Jupiter in Solana over the past 6 months. A maximum number of Swappers of 18.77K was observed in W41, 2022, and a minimum number of Swappers of 3K was observed in W48, 2022.

There was an increase in swappers during the week of Oct 9-15, 2022, when compared to the previous week, which is quite remarkable. The same pattern was observed during the week of Nov 6-12, 2022, when compared to the week before.

3. Saber

With Saber, you can trade stablecoins on Solana that are pegged to another asset, such as gold or government bonds. With Saber liquidity pools, market makers can earn passive yields on transaction fees, token-based incentives, and even automate DeFi strategies. Users of Saber can swap stablecoins and stake them on a decentralized exchange (DeX). Saber is currently able to trade more than 25 cryptocurrencies due to its integration with Solana.Furthermore, Saber has a liquidity pool for users to use. Through Saber liquidity pools, liquidity providers can earn yield on swap pairs traded on the platform.Saber provides fast execution times in addition to low fee and slippage rates.  

The maximum swaps on Saber were 11.27K on January 3, 2022, and the minimum swaps were 150 on November 28, 2022. The total number of swaps decreased by 94% from 2.32K in December 27, 2021 to 150 in November 28, 2022. The total number of swaps on January 3, 2022 and November 7, 2022 is higher than usual.

The maximum Swappers of 4.38K were observed on January 3, 2022, and the minimum Swappers of 66 were observed on November 28, 2022. From 1.09K swaps in December 27, 2021 to 66 swaps in November 28, 2022, the total has decreased by 94%.

On a weekly basis, Jupiter shows the growth in swappers based on their swaps for the past 6 months. Because of the volatility of the crypto market, swappers are growing less.

When compared with its previous week, we can observe a dramatic increase in swappers on Nov 6-12 2022.

4. Raydium

A feature of Solana that stands out among other cryptocurrencies is its lightning speed of up to 65,000 transactions per second, 400ms block time, and less than $0.01 average transaction fees. Raydium was built on the Solana blockchain by believing in its future growth. In order to create Raydium, we use the central order book of the Serum decentralized exchange (DEX) and the Solana blockchain. Using this technology, we can enable lightning-fast trades, shared liquidity, and new features to earn yield. DeFi and DEXs of other AMM platforms are able to access liquidity within their own pools, but they have no access to a central order book. A major problem with Ethereum platforms is that transactions are slow and gas fees are high. Raydium has a blockchain-based order book that allows for lightning-fast trades, distributed liquidity, and new profit-sharing features.

How to Swap on Raydium?

On Raydium, tokens are traded similar to on other platforms, but faster and cheaper. Raydium charges a 0.25% fee for every trade or swap you make. In return, liquidity providers are rewarded with 0.22 percent of the liquidity pool. RAY token holders who stake their tokens earn 0.03% as a reward. The Raydium Swap will hold your order until the “worst price” during the swap rather than cancel it if the price moves past your slippage tolerance.

On Raydium, maximum Swaps of 644.67K were observed on January 24, 2022, and minimum Swaps of 28.96K were observed on November 28, 2022. The total number of swaps decreased by 77% from 128.19K in December 27, 2021 to 28.96K in November 28, 2022. As compared to normal, there were more swaps on January 3, 2022 and May 9, 2022. Here we can see the number of swaps are in decreasing trend.

The maximum Swappers were observed in January 3, 2022, and the minimum Swappers were observed in November 28, 2022. A decrease of 83% in total Swappers was recorded between December 27, 2021 and November 28, 2022. In January 3, 2022, there were more swappers than usual. The number of swappers are in decreasing trend.

USD Coin – > Wrapped Sol Swap Pair contributed over 55% of total swaps made by Raydium’s top 10 pairs. Among the total Swaps, Raydium -> Wrapped Sol has the lowest number of swaps at 3.52K, while USD Coin -> Wrapped Sol has the highest number at 2.29M. The total number of swaps decreased by 86% between December 27, 2021 and November 28, 2022, from 50.07K to 7.21K. The number of swaps on January 3, 2022 and January 24, 2022 was higher than normal.

The top 2 Swap Away tokens on Raydium (USD Coin and Wrapped SOl) contributed for 80.29% of total swaps. The lowest total Swaps are 17.15K (Metaplex) and the highest are 3.72M (USD Coin). December 27, 2021 to November 28, 2022, total swaps decreased by 86% from 79.74K to 11.36K. Maximum swaps were observed in January 24, 2022 and minimum swaps were observed in November 28, 2022. The total number of swaps on January 3, 2022 was higher than usual. There is a downward trend in the Swap away tokens.

The top 2 Swap to tokens on Raydium (USD Coin and Wrapped SOl) contributed for 82.24% of total swaps. Swaps are lowest at 10.19K (Metaplex) and highest at 4.25M (USD Coin). Maximum Swaps of 428.08K were observed on January 24, 2022, and minimum Swaps of 10.77K were observed on November 28, 2022. Compared to December 27, 2021, the total number of swaps decreased by 87% to 10.77K in November 28, 2022. In terms of Swap to tokens, there is a downward trend.

As of June 5-11, 2022, the maximum Swappers were observed, and the minimum Swappers were observed as of November last week of, 2022. There are more Swappers than usual between October 9-15, 2022. Raydium in Solana has seen a decreasing trend in swapper growth by their swaps over the last 6 months.

There was an increase in swappers during the week of Oct 9-15, 2022, when compared to the previous week, which is quite remarkable. The same pattern was observed during the week of Nov 6-12, 2022, when compared to the week before.

Observations

Reference Query

1. 
with swap_txns as (
  SELECT  
   	s.*,
  	INITCAP(NVL(l1.address_name,'Miscellaneous') ) as swap_to_mint_name,
  	INITCAP(NVL(l2.address_name,'Miscellaneous')) as swap_from_mint_name
  FROM solana.fact_swaps s 
    LEFT JOIN solana.dim_labels l1 ON s.SWAP_TO_MINT = l1.address
    LEFT JOIN solana.dim_labels l2 ON s.SWAP_FROM_MINT = l2.address
  WHERE SUCCEEDED
      AND block_timestamp >= '2022-01-01'
)
select 
	date_trunc('week', block_timestamp) as date, 
  	Initcap(SWAP_PROGRAM) as dex_name,
	count(distinct tx_id) as swaps,
  	count(distinct SWAPPER) as swappers
from swap_txns
GROUP BY date, SWAP_PROGRAM 
------------
2.
with swap_txns as (
  SELECT  
   	s.*,
  	INITCAP(NVL(l1.address_name,'Miscellaneous') ) as swap_to_mint_name,
  	INITCAP(NVL(l2.address_name,'Miscellaneous')) as swap_from_mint_name
  FROM solana.fact_swaps s 
    LEFT JOIN solana.dim_labels l1 ON s.SWAP_TO_MINT = l1.address
    LEFT JOIN solana.dim_labels l2 ON s.SWAP_FROM_MINT = l2.address
  WHERE SUCCEEDED
      
),
first_swap_tx as (
  SELECT 
    *
  FROM swap_txns
  QUALIFY row_number() over(partition by SWAP_PROGRAM, swapper order by block_timestamp) = 1
)
select 
	date_trunc('week', block_timestamp) as date, 
  	Initcap(SWAP_PROGRAM) as dex_name,
  	count(distinct SWAPPER) as swappers
from first_swap_tx
GROUP BY date, SWAP_PROGRAM 
----------------
3.
with swap_txns as (
  SELECT  
   	s.*,
  	INITCAP(NVL(l1.address_name,'Miscellaneous') ) as swap_to_mint_name,
  	INITCAP(NVL(l2.address_name,'Miscellaneous')) as swap_from_mint_name,
   	IFf(swap_to_mint_name < swap_from_mint_name, swap_to_mint_name || ' -> ' || swap_from_mint_name,  swap_from_mint_name  || ' -> ' || swap_to_mint_name ) as swap_pair
  FROM solana.fact_swaps s 
    LEFT JOIN solana.dim_labels l1 ON s.SWAP_TO_MINT = l1.address
    LEFT JOIN solana.dim_labels l2 ON s.SWAP_FROM_MINT = l2.address
  WHERE 1 = 1 --SWAP_PROGRAM = 'jupiter aggregator v2' 
      AND SUCCEEDED
      AND block_timestamp >= '2022-01-01'
  	  and swap_to_mint_name <> swap_from_mint_name
),
top_10_by_swaps as (
  select 
  	date_trunc('week',block_timestamp) as date, 
  	INITCAP(SWAP_PROGRAM) as dex_name,
  	swap_pair,
  	count(distinct tx_id) as swaps
  from swap_txns
  group by date, swap_pair, SWAP_PROGRAM
  qualify row_number() over(partition by date order by swaps desc ) <=10
)
select 
	*
from top_10_by_swaps
-----------
4. 
with swap_txns as (
  SELECT  
   	s.*,
  	INITCAP(NVL(l1.address_name,'Miscellaneous') ) as swap_to_mint_name,
  	INITCAP(NVL(l2.address_name,'Miscellaneous')) as swap_from_mint_name,
   	IFf(swap_to_mint_name < swap_from_mint_name, swap_to_mint_name || ' -> ' || swap_from_mint_name,  swap_from_mint_name  || ' -> ' || swap_to_mint_name ) as swap_pair
  FROM solana.fact_swaps s 
    LEFT JOIN solana.dim_labels l1 ON s.SWAP_TO_MINT = l1.address
    LEFT JOIN solana.dim_labels l2 ON s.SWAP_FROM_MINT = l2.address
  WHERE 1 =1 --SWAP_PROGRAM = 'jupiter aggregator v2' 
      AND SUCCEEDED
      AND block_timestamp >= '2022-01-01'
  	  and swap_to_mint_name <> swap_from_mint_name
  	  and l1.address_name IS NOT NULL 
  	  and l2.address_name IS NOT NULL 
  
),
top_10_by_swaps as (
  select 
  	date_trunc(week,block_timestamp) as date, 
  	initcap(swap_program) as dex_name,
  	swap_to_mint_name,
  	count(distinct tx_id) as swaps
  from swap_txns
  group by date, swap_to_mint_name, swap_program
  qualify row_number() over(partition by date order by swaps desc ) <=10
)
select 
	*
from top_10_by_swaps
-------------
5. 
with swap_txns as (
  SELECT  
   	s.*,
  	INITCAP(NVL(l1.address_name,'Miscellaneous') ) as swap_to_mint_name,
  	INITCAP(NVL(l2.address_name,'Miscellaneous')) as swap_from_mint_name,
   	IFf(swap_to_mint_name < swap_from_mint_name, swap_to_mint_name || ' -> ' || swap_from_mint_name,  swap_from_mint_name  || ' -> ' || swap_to_mint_name ) as swap_pair
  FROM solana.fact_swaps s 
    LEFT JOIN solana.dim_labels l1 ON s.SWAP_TO_MINT = l1.address
    LEFT JOIN solana.dim_labels l2 ON s.SWAP_FROM_MINT = l2.address
  WHERE 1=1 --SWAP_PROGRAM = 'jupiter aggregator v2' 
      AND SUCCEEDED
      AND block_timestamp >= '2022-01-01'
  	  and swap_to_mint_name <> swap_from_mint_name
  	  and l1.address_name IS NOT NULL 
  	  and l2.address_name IS NOT NULL 
  
),
top_10_by_swaps as (
  select 
  	date_trunc(week,block_timestamp) as date, 
  	initcap(SWAP_PROGRAM) as dex_name,
  	swap_from_mint_name,
  	count(distinct tx_id) as swaps
  from swap_txns
  group by date, swap_from_mint_name, SWAP_PROGRAM
  qualify row_number() over(partition by date order by swaps desc ) <=10
)
select 
	*
from top_10_by_swaps
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