ON–081: DEXs

Coverage on Uniswap, Index Coop, Reflexer, and DODO.

Jul 23, 2021

ON–081: DEXs
About the editor: Spencer Noon is an investor at Variant, an early-stage crypto VC fund. Fundraising? Reply directly to this email and introduce yourself.

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This week our contributor analysts cover DeFi: Uniswap x Optimism, Index Coop, Reflexer, and DODO.

Uniswap x Optimism

📈 6k+ Users Try Uniswap's Alpha Launch on Optimism

  • On July 13, Uniswap announced an "Alpha Launch" of their v3 exchange on Optimism's Layer 2 roll-up. Only 6 tokens were available for trading (ETH, WBTC, DAI, USDT, SNX, sUSD) versus 50 on Ethereum — so what drew in the 6k+ early adopters? Whereas gas fees for Uniswap v3 on Ethereum cost between $4.30 - $14.86 (.00196 - .00644 ETH) per swap over the past 30 days (daily median), gas fees on Optimism ranged between $0.47 - $0.97 (.00025 - .00050 ETH) — about a 14x savings on gas prices overall.
Dune Analytics (Michael Silberling)
  • It is still in the early days for Uniswap on Optimism. Its all-time high of $1.8M trading volume on July 21st dwarfed the $1.13B traded on Ethereum on the same day. ETH/DAI was the most popular pair on Optimism (50% of volume), versus ETH/USDC on Ethereum (45%); however, USDC was not yet listed on Optimism.
Dune Analytics (Michael Silberling)
  • After a jolt of $3.64M liquidity to Optimism on launch day, daily net new liquidity added to Uniswap slowed to $240k over the past week. ETH/DAI had the largest TVL of all pools on Optimism and was among the highest APY returners to liquidity providers along with ETH/USDT and ETH/SNX pools.
Dune Analytics (Michael Silberling)

Index Coop

📈 171% growth in unit supply in past 90 days

  • The Index Coop is a DAO to make crypto investing simple, accessible, and safe for everyone through crypto index primitives. Unit supply is the number of tokens (“units”) circulating due to market demand. Unit supply has grown by 171% over the past 90 days led by the explosive launch and growth of the FLI product series in April-May and followed by MVI’s 33% unit supply growth in just the past 30 days. The Coop has not experienced a negative week-over-week growth rate in unit supply since March.
Dune Analytics
  • Units that are not staked for incentives are considered “un-incentivized.” Un-incentivized supply is now at ~93% across all Coop products. This is a signal of product-market-fit for index / exchange-traded products, suggesting that the products alone are desirable for users to hold or trade.
Dune Analytics
  • Coop products are showing strong user retention — 70%+ of users maintain exposure to DPI and MVI 60-days after their initial buy and 55-60% of traders continue to trade or hold FLI products 60-days after their initial trade. Cohort breakouts of all Coop products suggest increased stickiness over time.
Dune Analytics


📈 RAI on secondary lending markets surpasses $15M

  • The amount of RAI outstanding on secondary lending markets surpassed $15M, with Aave being the largest platform. RAI is also the only non-pegged, ETH backed stablecoin on Aave.
RAI on Aave
  • RAI started to be used as a unit of account in DeFi, Lido being the first to denominate their grants in RAI. Their LEGO program has four different tiers depending on the size of the grant, and three of them are quoted in RAI: 150, 1500 and 10,000 RAI.
  • Out of the many new stable assets issued this year, RAI has one of the most diverse distributions. It’s used as both a store of value and as a way to capture high yield from markets such as Fuse, CREAM, Aave, Yearn, Sushiswap’s Kashi, and Idle Finance.


📈 DODO is the dominant DEX for USDT/USDC

  • DODO has been the most dominant DEX for the USDT/USDC trading pair. DODO's Proactive Market Maker (PMM) universal liquidity framework allows for low trading fees and ample liquidity. USDT/USDC is one of the cheapest trading pairs to trade on the DODO platform, with $50 million in TVL powering an average turnover ratio of 120%. The PMM algorithm, coupled with sufficient capital from LPs, allows traders to achieve low slippage swaps that can outperform other DEXs.
Dune Analytics
  • The popularity of the DODO platform has been increasing rapidly — this past week, when compared to the previous quarter, we saw the number of daily active users increase by 41.6%. The total number of daily active users last month was 327,538, with a DAU:MAU ratio averaging 9.5%.
Internal App Data
  • DODO facilitated $453.5 million worth of trades this week, placing it 6th among DEXs in terms of volume. This represents a 1.6% increase in week-to-week volume and accounts for 3.6% of the market share.
DODO Dashboards

About the editor: Spencer Noon is General Partner at Variant, a first-check crypto VC fund.