Stellar Submissions: Uniswap Bounty Program, Round 4

The grand prize winners of MetricsDAO’s Uniswap Bounty Program, Round 4.

Stellar Submissions is a series of articles by MetricsDAO wherein we highlight bounty submission best practices by showcasing the grand prize winners of our bounty programs. Our goal with this is to sharpen the skills of on-chain analysts and raise the overall quality of bounty submissions.

This edition of Stellar Submissions highlights the grand prize winners of MetricsDAO’s Uniswap Bounty Program, Round 4.

Grand Prize Winners

1. A guide for everyone

Analysis: Hitchhiker’s Guide to DEX’s

Author: KARTOD

If you are new to DeFi or you just need a refresher on decentralized exchanges and automated market makers, look no further than KARTOD’s guide to DEX’s. He goes through the basics of Uniswap and AMMs, providing liquidity, and concepts like impermanent loss.

From here, he dives into Uniswap itself, its history, current position as the market leader, and its performance across other chains like Optimism and Polygon.

Impermanent Loss
Uniswap v3 vs v2 Volume

Speaking of its history, KARTOD compares Uniswap v2 and v3, highlighting the features of the latter such as concentrated liquidity and flexible fees. He shows that v3 overtook v2 in terms of total value locked (liquidity) on January 27-28, 2022.

Uniswap v3 overtakes v2 in liquidity

In terms of performance on other chains, KARTOD shows how popular Uniswap is by showing that within 6 weeks of launching in Polygon, it already became the top DEX by trade volume.

DEX market share on Polygon

This bounty submission is a great example of being comprehensive, keeping the context in mind, and guiding the audience properly.

It is comprehensive because it goes through all the basics at the very beginning then systematically introduces information that builds on top of the last. As for context, the analyst never strayed away from the fact that this is a guide to Uniswap and DEX’s in general, hence, he made sure that the concepts are explained well with clear visualizations and concise language. These all ensure that the reader is guided all throughout and gets insights the analyst wants to convey.

Check out KARTOD’s full guide here and give him a follow on Twitter to learn more.

2. Build context by comparing

Analysis: Uniswap and Launching on Different Chains

Author: rplust

For this round, I was fortunate enough to be named one of the grand prize winners. As you saw from KARTOD’s guide, Uniswap has launched on multiple chains which is the focus of my analysis. Specifically, I look at the effects these launches had on Uniswap's Ethereum mainnet implementation in terms of trading activity and liquidity.

Perhaps a sign of strong demand and its position as the market leading-DEX, trading activity and liquidity levels on Uniswap-mainnet remained largely unaffected during the launch periods on these other chains, save for a slight decrease in trading volumes when it launched on Polygon.

Uniswap activity during the launches on different chains

On Optimism, trading volumes and liquidity levels did not immediately pick up upon launching, however, they did start to trend upwards after 30+days. In contrast, the protocol's activity on Polygon started off relatively high from the get-go and its liquidity has been trending upwards.

Trading Volume on Optimism (OVM 1.0)
Trading Volume on Polygon

My approach to this analysis was to observe the trends from multiple angles:

  • Trading and liquidity on the day of the respective launches
  • Trading and liquidity during the period before and after the launch
  • Trading and liquidity on the chains themselves, with available data.

The goal was to exhaust as many perspectives as possible such that the audience will be able to see the complete picture. This helps remove some of the potential biases and gives the audience the chance to derive their own insights from the trends as well.

Check out the full analysis here. I would love to know what you think.

2 Takeaways

1. Make it timeless

One way to make a timeless analysis is by building a general purpose dashboard that has live and updated data. Another way is how KARTOD did it: use the appropriate insights and time-bound analysis to support the resource you are building. This fits perfectly with making guides that tackle foundational concepts. The data itself might be outdated but if the insights are still relevant, the analysis itself will stand the test of time and will keep providing value.

2. Always cite your sources

Any great analysis always has its sources cited and more so for time-bound analysis. This has two main purposes. First is that bounty reviewers need to be able to verify the accuracy of your findings. The second is that this also helps the audience to be confident with the insights you presented.

As time passes by, it is important that the foundation remains intact and having the sources handy enables people to keep reaffirming your findings. At the very least, this also allows you to easily review and refresh your analysis when new information comes in.

Complete Set of Uniswap Grand Prize Winners (fourth round)

  1. Uniswap - Hitchhiker’s Guide to DEX’s by KARTOD
  2. Uniswap and Launching on Different Chains by rplust

MetricsDAO has a lot more bounty programs coming! Check out the active ones here.

Stay tuned for the next set of Stellar Submissions.

Want to share your own tips and best practices? Maybe you are ready to participate in a bounty program? Hop on over to the MetricsDAO Discord or follow us on Twitter to find out more.