Main Dashboard used to support this report: https://flipsidecrypto.xyz/Rodolfo-Lima/curve-trading-volume-dynamics-SL0ga8
Github Repo: https://github.com/LimaRods/Curve-Trading-Volume-Dynamics/blob/main/analytics.ipynb
Curve Finance is a prominent popular automated market maker (AMM) platform focused on providing low fees and low slippage swaps by offering liquidity pools with similar behavior assets. In terms of Total Value Locked, Curve is the second-largest decentralized exchange (DEX) in DeFi, presented in 13 Blockchain Networks. Curve also incentivizes stakeholders by integrating other DeFi protocols and offering different ways to offer extra rewards like staking, locking its governance token CRV, and boosting users’ earnings besides only providing liquidity.
The objective of this research is provide to readers with a comprehensive analysis of the Protocol when it comes to trading behaviour and liquidity dynamics, covering different faces of the protocol like vote-escrowed tokens (veCRV) and why Curve is popular and relevant in the DeFi field.
We will explore inherent risks and external impacts on the protocol's health and how to use its genius features and design to improve traditional finances.
At last, we would pick a pool Curve to build a predictive model about its volume.
Keep in mind that most of the data collected was restricted to Curve DEX deployed on Ethereum, we won't mention that anymore. We only brought data from other chains to elucidate the distribution of TVL across the chains.
For this project, besides the two datasets provided by Ocean Protocol, we used FlipsideCrypto data and DeFiLlama. Interesting fact: Flipside platform allows us to use DeFilama datasets and API through Flipside Studio, in this way, we can use SQL language to manipulate its data and the no-code visualization tool in order to consolidate different sources of data into a single dashboard.
We used Python to read, prepare, and visualize the datasets provided by Ocean, as well as to build the ML algorithm. You can find this in our GitHub repository
As mentioned in the article's introduction, it's highly recommended you take a look at the Curve Dashboard to zoom out our complete EDA, It would be boring to cover all charts built into the dashboard. In this section, we will present the Curve's facets in the last 2 years responsible for making it a DeFI's leading AMM.
TVL (Total Value Locked):