Better, Faster, Easier: On What's In-Store From EigenPhi in 2023
Join Us on the Journey to the Core of DeFi: Liquidity Analysis.
You may have noticed: the data on EigenPhi.io has been different since Jan 1st, 2023. It’s the effect of our upgrading data processing infrastructure. The result is to deliver the data better, faster, and easier for you to use.
Better quality of MEV data regarding accuracy and validity.
Faster streams of real-time data illustrating the trends in the market.
Easier approaches to accessing the data as public goods for the public, including transaction-level and summaries via APIs and public datasets.
Providing credible data as a public good for the community to use anytime, anywhere is only the beginning. Eventually, EigenPhi’s mission is to contribute knowledge and wisdom for the industry to digest and design safer DeFi products with higher qualities, benefiting all the financially underprivileged population.
The goal above is hardly achievable unless you equip with the proper tools to analyze the core of DeFi, actually any financial instruments in TradFi and DeFi - LIQUIDITY. All the protocols, such as lending, yield aggregator, index, and derivative, need accurate liquidity data to produce reasonable pricing and manage risks for sustainable growth. Choosing MEV as the start, EigenPhi explores the frontier of Liquidity Analysis. This is a long and winding road that we, as well as the newer version of EigenPhi.io, can’t manage without your input.
Let me walk you through the improvements. Then, you can leave your suggestions in the comment section or reply to this newsletter as feedback.
MEV Identification Algorithms Revamping
Our old MEV spotting approaches have been proven valuable and instrumental. However, with more complex DeFi products and protocols emerging, we have put a loop-based recognition algorithm into service for the newest version. More details about the loop-based recognition algorithm will be in another post.
The new algorithm has enhanced its ability to identify arbitrage and sandwich MEVs with better accuracy, lowering the False Alarm Rate(FAR) and False Negative Rate(FNR).
Over 100 arbitrages daily have been identified by the new algorithm than the old one since the new one went live in Dec 2022. Some transactions had been falsely identified as arbitrage by the old one but not by the new one anymore.
Compared to the data of mev-inspect, the number of arbitrages we recognize now is 5% to 10% more, giving users of EigenPhi higher-quality results.
PnL Calculation Improvement
The result of the Profit & Loss(PnL) calculation represents the performance of revenue, cost, and balance of certain address groups during one or more transactions. This is an issue of financial area.
However, in the practice of analyzing and calculating the PnL of Tx/Txs, revenue collecting and transferring activities are pretty typical. The anonymity of on-chain addresses makes it hard to distinguish asset collecting and transferring from fee collecting and transferring. To solve this problem, in the newest version of PnL calculation, we put the recognized frequent MEV participants, usually the “From” and “To” addresses of a transaction, as default in the computation. On the contrary, the uncertain asset-collecting addresses will not be put into PnL calculation unless we have a clear view of their relationships with the bots using the address Association Analysis. After all, this falls into the area of Association Analysis.
The old version processes the addresses based on specific rules. Although it works well in some scenarios, it lacks the scalability to cope with complex cases, which our newest version can deal with efficiently. The aggregated values on the home page and pages for all the modules manifest these improvements.
Support Internal Bookkeeping, Virtual Token, and Protocol Adapting
Many DeFi protocols, i.e., ABRACADABRA, use internal bookkeeping to track the asset transfers among users and their different products in complicated activities like liquidation. Our matured complex transaction visualizer, EigenTx, illustrates these by using virtual tokens to help users understand the mechanism shown in the picture below, like virtualDebtMIM, virtualShare, and virtualSharexSushi.
In the newest version of EigenPhi.io, we have added virtual token support.
Take a look at this liquidation:
It’s also shown in the token flow:
EigenTx's protocol adapting feature gains much attention by benefitting users with a faster understanding of the DeFi protocols and entities involved and more meaningful asset-transferring activities. For example, the flow chart below has three groups of addresses belonging to AAVE v2, Curve, and MakerDAO, marked with rectangles.
This feature will be added to the current version of EigenPhi.io. And we synchronize the protocol adapting features between EigenTx and EigenPhi.io iteratively. As a result, they will reflect the actual liquidity activities of transactions with higher precision and accuracy.
New MEVs & New Features
In addition to the features and adjustments above, we are adding more exciting stuff to deliver more valuable data to you:
Sandwiches on BSC: Like our current Ethereum Sandwich module, the BSC Sandwich module will display summary data, attackers, victims, and much more. And this will be the first comprehensive BSC sandwich data product of the DeFi industry.
More data with more delivery approaches, including, and not limited to, APIs and public datasets for transaction-level and aggregation-level.
More Association Analysis features revealing deeper connections among MEV transactions: On the detail page of a transaction, you will explore all the transactions in the same block, transactions involving the same “From” address, and transactions involving the same “To” address.
Higher analyzing performance: you can dive into the interconnecting data with faster rendering.
More data insights from embedded EigenTx features: to help you better understand all the liquidity data extracted from on-chain sources.
Based on our new Big Data infrastructures, all these new features are designed to provide you with more timely, accurate, and easily integrated access to data.
Data Scope of the New Version
The current new version went live on 2022.12.12. Currently, it provides 1-month of historical data on Ethereum, which means that starting from 2022.11.12, the tx details and aggregated summaries are based on the upgraded MEV algorithms and PnL calculations.
The same applies to data on BSC, except that the go-live date is 2022.12.26.
You will be guided to the legacy version if you want to visit data before those two go-live dates. We’ve been putting our backs into migrating the whole of 2022’s data into the upgraded version.
Conclusion: On Route to A Better DeFi
To sum up, all the work we’ve been doing on EigenPhi.io and EigenTx is aimed at spreading more wisdom about the liquidity of DeFi. By providing accurate and up-to-date liquidity data, we hope to empower individuals and organizations to make informed decisions about their participation in the decentralized finance space. Furthermore, we believe that by increasing understanding and awareness of DeFi liquidity, we can help to foster the growth and development of this innovative sector and contribute to the overall health and vitality of the blockchain ecosystem.
We would love to hear from you if you have any thoughts or feedback on the new version. Please leave a comment below to let us know what you think. Your insights and opinions are valuable to us and will help us continue to improve and refine our offering. We appreciate your support, and we look forward to hearing from you!
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