MasterChef.sol is probably one of the most forked contracts in DeFi. By branching, I mean that the codebase has been copied with most of its features unchanged. Developers can change the name of one or the other variable, but the architecture of the contract and the way its interface is remain largely the same. This is beneficial: developers can conveniently achieve their intended outcome by issuing token rewards, and the contract may be more secure since it has been used on Ethereum for some time.
MasterChef.sol was first deployed by Sushiswap in its rampage attempt to drain liquidity from Uniswap in 2020 by incentivizing locked assets (LP tokens) with $SUSHI issuance. It remains a popular way for new projects to attract capital investment to this day. ERC20 tokens can be transferred, and the native platform token will be issued to users after they withdraw.
methodology
In this article, we perform an aggregated analysis of all Masterchef contracts and see if we can gain insights into yield farming activities on the blockchain. Let’s retrieve a database of contracts that contain the word boss. There are almost 400 such contracts – let’s rank them by the number of views for those contracts.
Unsurprisingly, Sushiswap’s Masterchef contract leads in terms of the number of contract calls. In this study, we only look at contracts that have been viewed at least 500 times. We take this dataset of contracts and get the token transactions both in and out of the contracts, representing token deposits and withdrawals. We’re looking at cash flows to new farm contracts here, so I didn’t include Sushiswap’s MasterChef contract. That leaves us with around 28 “Chef” forks.
A few assumptions:
- Each token that goes into such a contract is considered a deposit
- Any token that steps out of the contract is considered a resignation
By checking the difference between booking in and out of a token from a Masterchef contract, we get a sample size of around 40,000 courtyard entries and exits. These were initiated from a total of 33882 unique addresses. With a little parsing, we can determine the duration between entering and exiting a farm, and the duration between deploying a farm and entering the fund for the first time.
Results
How sticky is the capital deposited in these contracts? Well – not very. A large majority of farmers appear to be doing this Exit within the first 5 days to enter a farm, and half of all farmers never stay more than 15 days. However, 13% of addresses still have money in these contracts.
We can also draw a heatmap to visualize the relationship between a user entering a farm and the duration of the farming activity. Unfortunately, there doesn’t seem to be a clear correlation between entering a farm and how long a user stays in the farm. The rightmost column of data is representative of the number of users who have yet to leave the farm.
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Here’s what might be a more interesting statistic: A whopping one 42% of yield farmers The Enter a farm on the day it starts and exit within 24 hours. Around 16% leave inside 48 hoursand through the third day, 70% these users would have withdrawn from the contract. This is certainly because reward emission rates (APR) usually decrease block by block and how rewards are diluted over time as more users enter the farm. Capital is indeed a mercenary in DeFi and users would rather deploy their capital elsewhere. Don’t fall behind!
Smart Yield Farmer
Could we find addresses that are consistently entering yield farms early? It seems there are a handful. About 11 addresses closed at least 6 cooking contracts within 5 days of their launch. This list is uploaded here as a summary in case anyone wants to dig further into Nansen using the wallet profiler. You can also set up smart notifications that alert you to actions taken by these addresses.
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Disclaimer: All information contained in this article is for informational purposes only and does not constitute financial advice. It is based on current publicly available information, internal data and other sources which we believe to be reliable but which may not have been independently verified. While every effort is made to ensure the accuracy and completeness of this information, we do not guarantee that it is correct or complete. RELIANCE ON THE INFORMATION IN THIS MATERIAL IS AT YOUR SOLE DISCRETION.
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