GM
Welcome to issue #43 of Dune Digest.
We’ve got your weekly dose of data and Wizardry coming up - but first, a few news items.
Dune Arcana Lesson 1
If you hadn’t heard, we launched a bi-weekly learning session called Dune Arcana, hosted by @agaperste and @0xBoxer. The idea is to teach you fundamental Dune concepts through crypto “current affairs”.
We explored key Dune concepts and investigated Tornado Cash’s frozen $USDC together. If you missed it, don’t worry, you can catch up!
Also, next Thursday @agaperste will be hosting office hours at the same time, come hang out and get your questions answered…..
Teams
We launched Teams on Dune less than 2 months ago. Since then more than 170 teams have been created, and they’ve been doing some outstanding work!
This week Dune’s Alex Letsas posted an excellent piece explaining the why, the what and the who of Teams. It includes a step-by-step guide to creating your own team, and links to dozens of amazing dashboards.
DuneCon
DuneCon is rapidly approaching. This week we published the full program…..
Over 300 Wizards and data enthusiasts have registered to join us in Berlin on September 15th. There are still some spaces though - so come and join us……
Now, let’s get into the week’s data…….
Community Takes
Team Blockworks dives deep into Curve key metrics [link]
IEF Foundation review their top dashboards [link]
EC NFTea gives an update on the NFT market [link]
Andrew Hong breaks down Sudoswap metrics [link]
rmas shared their Aave cross-chain explorer [link]
The Merge is Coming
We’re approaching a long awaited event, a milestone in the history of Ethereum.
The Merge refers to the the Ethereum mainnet migrating from Proof-of-Work (POW) to Proof-of-Stake.
This has been a long time coming. According to Vitalik Buterin in March:
"We've been working on proof of stake for about seven years now, but finally all of that work is coming together."
Indeed. Just over a week ago on the 10th, the network completed the Goreli public testnet merge, the final milestone before the real deal.
It’s estimated to occur on the 15th of September - while we’re all hanging out at DuneCon!
This week team @sixdegree released a dashboard tracking key Merge metrics. Let’s take a look……
Ethereum 2.0 is a chain of upgrades of which The Merge is a key moment. One of the most important milestones occurred in December 2020 when the Beacon Chain was launched.
Beacon is the parallel POS chain coordinating the new network, to which users have been staking their $ETH since late 2020.
At a high level, The Merge is essentially the formal adoption of the Beacon Chain as the new consensus layer of Ethereum.
More than 13 Million $ETH has been staked by almost 80k depositors.
How is the exact time of The Merge determined? Terminal Total Difficulty is a cumulative measure of the total mining power that when hit will trigger the transition to PoS:
As you can see, we’ve been inching closer and closer through 2022 as the total difficulty approaches the terminal point:
Staking kicked off in November 2020 with large deposits from a relatively small number of depositors.
In December 2020 for example, 1.31m $ETH was staked by under 2000 depositors.
Since then, thousands of depositors have been staking hundreds of thousands of $ETH per month:
Take a look at how much $ETH was staked in 2022 so far, with March and April being particularly active months:
Over 11% of the total $ETH supply is staked. How? In a variety of ways.
@hildobby’s ETH2 Staking Deposits dashboard shines light on the question.
We can see that almost 64% is staked through either a liquid staking service or a CEX like Kraken, Coinbase or Binance.
Coinbase is the leader in terms of CEXes, and Lido dominates liquid staking…..
Liquid staking makes everything as simple as a token swap, and removes the main barriers like the 32 $ETH requirement, token lock up, and technical knowledge.
Team @ratedw3b built an impressive dashboard covering Eth2 Liquid Staking, let’s explore….
Over a third of staked $ETH - 4.679 Million - is pooled. Its value exceeds $8.6 Billion:
The liquid staking market is absolutely dominated by Lido, which accounts for 90% of staked $ETH - 4.14 Million.
74,466 wallets have deposited to Lido, while none of its competitors have cracked the 5k mark.
Liquid staking really grew impressively through late 2021 and 2022, as thousands flocked to stake their assets in preparation for The Merge….. Though deposits have levelled off since May:
All in all it seems like the community and large platforms are prepared and committed to The Merge, with Billions staked on the outcome.
For an exact countdown to the big event, you can follow @bernat’s The Merge Tracker……
To dive deeper into the stats:
Ethereum The Merge by @sixdegree
ETH2 Staking Deposits by @hildobby
Eth2 Liquid Staking by @ratedw3b
Bend DAO - an NFT Liquidation Spiral?
BendDAO, the first P2P NFT liquidity protocol……
Dashboards been noticeably trending this week, what’s going on? Let’s investigate through a great one by @cgq0123.
BendDAO allows bluechip NFT holders to borrow $ETH through lending pools by using their NFTs as collateral. It was launched relatively recently back in late April.
1,027 NFTs are currently locked as collateral, with a value 29.7k $ETH.
The other side of BendDAO is depositors who provide $ETH liquidity to earn interest. Currently reserves are at 31.78k $ETH with a utilization rate of around 50%.
Mutant & Bored Apes make up the majority of the NFTs collateralized, 308 & 270 respectively:
Though Bored Apes are just 26% of collateralized NFTs, they represent 65% of the collateral value.
NFTs are generally collateralized at 30-40% of the floor value. As the floor value fluctuates over the lifetime of the loan, so does a borrower’s “health factor”.
If the floor price of your collateralized NFT drops down toward the original loan value, the health factor deteriorates accordingly. Once it falls below 1 you will be liquidated and your NFT sold in a 48 hour auction……
Together, BAYC & MAYC represent 84% of total loan volume - more than 45k $ETH:
The majority of loans were taken out in late April:
Back then the floor for BAYC was hovering above 130 $ETH. On one of the highest volume days, when 3.19k $ETH was borrowed, the floor was at 152!
As you can guess, a lot of these loans are now in peril, since the BAYC floor has dropped to 70 $ETH in the last couple of days. Mutant Apes are in a similar pickle.
Over the past week dozens of Mutant Apes, Doodles and Azukis have been liquidated.
The worst could be yet to come though. 50+ Bored and Mutant Apes are now at or below a 1.1 health factor - check for yourself. That’s danger territory.
The Bored Apes locked on BendDAO represent 2.7% of the total collection:
Some fear that a liquidation spiral is imminent. Just look at the recent state of OpenSea volume in this query by @kqian:
With the recent lows in NFT volume and lack of liquidity, the effect of liquidations could push prices lower - driving further liquidations still.
This could get choppy for blue chips - that’s one of the tradeoffs in using volatile assets as collateral. On the other hand, many will see this as a great potential buying opportunity!
For more, check out the full dashboard, it’s seriously detailed. Also, check out this thread by Cirrus, and this one by doubleQ - both of which cite Dune dashboards.
Canto Bridging
Canto is a new L1 chain built using Cosmos SDK. Recently they airdropped $CANTO to early users and launched staking.
A few dashboards popped up this week investigating bridging from Ethereum to Canto.
This dashboard by @smyyguy shows that more than $12 Million in total has been bridged so far:
According to @masroor’s dashboard, this was in the form of 1905 transactions by 1007 wallets.
The majority of funds bridged, almost $9m, was in $USDC - but there was also almost 1m $USDT and more than $2m in $wETH.
Last night there was a particularly large spike, with over 4m $USDC bridged in a single hour:
If you’re interested in Canto - check out the full dashboard for more…..
ENS Secondary Market
ENS has a thriving secondary market, which @Marcov investigated in a recent dashboard.
There have been over 120k transactions and $90.29M volume in the ENS secondary market.
Interestingly, around half of that is “digit” ENS names.
When digit names were released at the end of April, they quickly became a craze and saw a huge spike in volume. They’ve also accounted for the majority of volume over the past few weeks:
The highest ever ENS sale was over $1.5 Million - for paradigm.eth, and plenty of others have gone for multiple six figures:
An interesting dashboard, illustrating what a huge success digit names have been. Check it out.
More Dashboards
GN
We hope you enjoyed this issue of Dune Digest……
Thank you for reading - and a special thank you to all the Wizards for their amazing work.
See you again next week.
The data must flow……….