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Analyzing Onchain User Behavior at Ajna Protocol
Analyzing Onchain User Behavior at Ajna Protocol
Analyzing Onchain User Behavior at Ajna Protocol

Analyzing Onchain User Behavior at Ajna Protocol

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StableLab

Jul 2, 2024

Key Takeaways

  • Ajna's lending pools show moderate concentrated activity, with 90% of transactions occurring in just 39 out of 313 available pools, indicating user preference for specific pools while maintaining ecosystem diversity.

  • User engagement increased significantly following the launch of Ajna V2 in early 2024, though retention of V1 users remains a challenge with only about 9 users actively participating in both versions.

  • Ajna users demonstrate diverse DeFi engagement patterns, with a significant portion interacting with major protocols like Frax, Lido, Safe, Maker, and Curve, suggesting opportunities for strategic integrations.

  • Transaction volume analysis reveals a distinct inactivity gap before Ajna V2 launch, followed by a steep uptick, highlighting the impact of protocol enhancements on user activity. This increased activity faded quickly again, with Ajna having had low # of transactions since.

  • The findings provide a roadmap for Ajna's strategic development, focusing on user engagement, cross-protocol integrations, and continued innovation to sustain growth within the ecosystem.

Introduction

In this report, we delve into the dynamics of user interactions within Ajna lending pools, leveraging on-chain data to provide a comprehensive analysis of user engagement, transaction patterns, and ecosystem health. Our goal is to provide valuable findings that may inform and enhance the strategic development of the Ajna protocol.

User Interaction Analysis

Transaction Distribution Across Pools

Our analysis of the Ajna protocol on the Ethereum blockchain reveals key insights into user engagement within its lending pools. A total of 148 unique addresses were identified, generating 1,302 transactions across the platform. Notably, the majority of activity is concentrated in a select subset of pools:

  • 90% of transactions occurred in just 39 out of the 313 available pools

  • The top 5 pools account for 38% of total transactions (499 out of 1,302)

  • Two of the top pools by transaction count are now deprecated or empty

This distribution indicates a significant focus on a relatively small number of pools, while still reflecting a broader interaction spectrum across approximately 10% of the total pools deployed. This finding highlights the balance between user preference for specific pools and the diversity of engagement across the Ajna ecosystem.

The top two pools by transaction counts (Table 1) are now deprecated or empty, while the 4th and 5th highest are ETH pools primarily used for leveraging staking rewards. Collectively, these five pools represent 499 transactions, accounting for 38% of the total 1,302 transactions analyzed.

Figure 1. All Ajna pools, sorted by decreasing number of transactions.
Figure 2. Lifetime of Ajna users

User Lifespan and Retention

We analyzed the lifespan of all users interacting with Ajna's lending pools, revealing interesting patterns in user engagement over time:

  • Increased density of user activity observed in the latter half of 2023 and early 2024

  • Significant uptick in interest following the launch of Ajna V2 pools in early 2024

  • Limited transition of users from Ajna V1 to V2, with only approximately nine users actively participating in both versions

Figure 3. Ajna users, categorized by level of DeFi activity

DeFi Interaction Patterns

To better understand the broader DeFi engagement of Ajna users, we categorized them based on their interaction with other DeFi applications (dApps):

  • Light users: <5 dApp interactions

  • Heavy users: 5-10 dApp interactions

  • Very heavy users: 15+ dApp interactions

This categorization reveals that while most Ajna users have engaged with a limited number of protocols, nearly one-third display significant engagement across multiple dApps. Notably, the light user category likely includes bot accounts created for specific purposes, such as those conducting only two Ajna transactions. Therefore, they are likely to represent fewer users than addresses.

Figure 4. DeFi protocols interacted by Ajna users sorted by decreasing number of interacting Ajna users.

Protocol Overlap

Our analysis reveals significant overlap between Ajna users and other prominent DeFi protocols:

  • 42 out of 148 Ajna users have engaged with Frax

  • Other top protocols include Lido, Safe, Maker, and Curve

By targeting integrations with these leading protocols, Ajna can potentially boost its adoption and enhance its composability, offering a seamless experience for users who are already familiar with these established platforms.

Figure 5. DeFi protocols interacted by Ajna users sorted by decreasing number of total Ajna users interactions.

Transaction Volume Analysis

While Frax is the most commonly used protocol among Ajna users, actual transaction volumes paint a different picture:

  • Highest transaction volumes observed with Safe, followed by Maker DAO

  • Frax, Convex, and Stake DAO also show significant transaction volumes

These patterns underscore the relevance of integrating Ajna with highly engaged protocols to leverage existing user behaviors and transaction volumes.

Figure 6. Total number of transactions to Ajna pools per day.

Daily Transaction Trends

An analysis of daily transaction counts across all Ajna pools reveals notable patterns of activity:

  • Distinct inactivity gap observed between December 2023 and January 2024

  • Steep uptick in transaction volume following the release of Ajna V2

  • Overall activity levels have increased compared to the earlier version

This surge in daily transactions highlights the renewed interest and engagement driven by the enhancements introduced in Ajna V2.

Conclusion and Final Thoughts

The on-chain analysis of Ajna’s lending pools presents a comprehensive view of user behavior and engagement within the protocol. With a total of 148 users generating 1,302 transactions, the data indicates a concentrated activity in a select number of pools, yet reveals a broader engagement across the ecosystem. Notably, the majority of interactions are confined to 39 pools, with the top five pools alone accounting for 38% of total transactions, underscoring user preference and strategic pool utilization.

The lifespan analysis highlights increased user interest following the launch of Ajna V2 in early 2024, though a significant number of V1 users did not transition to V2. This suggests potential areas for user retention improvement as the protocol evolves. Additionally, user engagement patterns show a diverse interaction with DeFi applications, ranging from light to very heavy usage, with indications of bot activity among the light users.

Our findings on protocol overlap demonstrate that Ajna users frequently engage with other major DeFi platforms, such as Frax, Lido, Safe, Maker, and Curve. The cumulative interaction data emphasizes that transaction volumes are highest with Safe and Maker DAO, highlighting opportunities for deeper integration with these protocols to foster greater adoption and composability.

Finally, the analysis of daily transactions reveals a gap in activity prior to the V2 launch, followed by a significant uptick, reflecting the protocol’s enhancements and renewed user interest. These insights collectively offer a roadmap for Ajna’s strategic development, focusing on user engagement, cross-protocol integrations, and continued innovation to sustain growth and user satisfaction within the Ajna ecosystem.

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