Why Chris Anderson is Wrong About Human Behaviour Data

When talking about human behaviour data, Chris Anderson, the curator of TED, once said, “Who knows why people do what they do? The point is they do it, and we can track and measure it with unprecedented fidelity. With enough data, the numbers speak for themselves”.

He is right about the fidelity part. But the numbers can not speak for themselves.

1.98 trillion USD, this is the market cap of the crypto market, as of Feb 16th, 2022, which is 130 billion USD more than the 2021 GDP of Brazil. Meanwhile, the Total Value Locked (TVL) in DeFi is 209.63 billion USD, among which the TVL of Ethereum is 123.54 billion. Meanwhile, the entire sync data size of the Ethereum Chain has reached 547GB. The Cumulative Unique Addresses of it has a value of 187.95 million. In terms of daily transactions, let’s take BSC as an example. There are 6.45 million transactions finished on Binance Smart Chain, which has been falling from the peak of over 16 million because of the bear market. Its year change rate increases over 300%.

Based on the numbers above, you don’t need to read from tea leaves to tell that more and more people are exploring, and have discovered, the gold mines in DeFi. But with great opportunities come great volumes of data; with myriad data comes great confusion. For example, have you ever tried to analyze specific addresses’ transaction histories, including all the token numbers, to uncover their secret money-making sauces? Unfortunately, these numbers do not speak for themselves; hence Chris Anderson is wrong.

Fortunately, with proper tools to “track and measure” and guide, you can identify the path to wealth; to #wagmi.

Bigger Data Problem Needs Better Tool

In which way competent data analytic tool can benefit you?

• It reveals the transaction structures behind the complexity of addresses, tokens, and trades.
• It presents the intrinsic substance of smart contracts, which you can use to foretell the future behaviours of certain actors.
• It manifests associations among multiple nodes, liquidity pools, and owners of liquidity pools.

In essence, a capable data analytical platform empowers you to profit from invaluable insights crystallized from ever-increasing data. And this is what we, EigenPhi, consider as our mission: discovering the wisdom of DeFi.

For now, our platform has provided not only the big picture of arbitrage/#MEV on Ethereum and BSC but layered structure data regarding specific arbitrage contracts.

First, I’d like to guide you through our homepage: https://eigenphi.io/.

Overview of #MEV

This page has three sections: top, overall arbitrage status, and complementary information.

The top section determines the data shown in the overall status part. You can switch between Ethereum and BSC. Choosing the time period is essential in presenting the long-time winner and the shooting star. You can dig them deeper with EigenPhi’s structure analysis feather.

The upper right corner displays, under the current time period, the overall #MEV profit and the corresponding transaction number. On EigenPhi, all the profit, revenue, and cost are US dollars; unless marked in a specific Token.

There are 4 data areas in the overall status section.

• Leader Board shows the top 10 contracts and their general data during the period. You can find the contract address, profit, cost, and profit percentage, a.k.a. ROI. You can pick the contract that interests you. We will deal with it in a short while.

• Arbitrage Transaction Profit Distribution exhibits the overall #MEV capabilities in the market. For example, the figure below shows that the lowest 25% transactions’ profit is less or equal 0.11 USD; the bottom 50% transactions’ profit is less or equal 0.58 USD; about 95% is less or equal 23.38 USD, and the highest profit is 58,346.87 USD.

Please be advised that the data you read on the page when reading the article could be different in the figures. As time moves forward, the transaction data filtered into the chosen period of time would be variant.

• Arbitrage Transaction Profit Leader Board picks out the top 10 transactions hidden in the countless contracts. It tells you which contracts these transactions belong to and the type of the transactions. There are four types of arbitrage transactions: Combination, Sandwich, Spatial, and Triangular.

• Arbitrage Transaction(Real-Time Stream) illustrates what’s happening now on the chain. The columns of the data are the same as the part above it.

Next, the complementary section contains three tables independent of the chosen time period.

New Liquidity Pools brings up the latest LPs in descending order of time.

Frequently Used Pools shows the most used LPs and the amount they have made during the last seven days in descending order of amount.

Malicious Tokens helps you identify the tokens with bad intentions and risk types they are carrying.

All three tables have a More button and URL link, which take you to the corresponding list pages to show much more data for you to research.

With the broad view in mind, let us zoom in on one BSC contract.

One Contract at a Time And Don’t Settle for Less

No one joins the DeFi world to learn less and earn less. To accomplish more, like pinpointing behaviours and dissecting interrelation among participants, you have no choice but to establish the structure inside the contract.

Using EigenPhi, you will be able to find out the general information about a contract, dive into the detailed transaction, and bring to light ways of profitmaking.

Take a look at this contract. The detail page of it is more or less like the homepage.

• Current Contract Overview section tells you how many successful transactions in the chosen period are identified by EigenPhi as arbitrage ones. As of now, this one has 29,052 labelled. You can jump to the BscScan website by clicking the link on the right of the contract address. There are almost 545,000 transactions listed there. Imagine if someone has to go through all those.

Current Contract Overview section also calculates the ROI, cost, and profit.

• Like on the homepage, the purpose of Arbitrage Transaction Profit Distribution section is to exhibit profitmaking capabilities in terms of the transactions in the current contract.
• Transaction Profit Leader Board picks out the top 10 transactions hidden in the 29,052 contracts.
• Current Contract Transactions section itemizes the latest MEV transactions.

Next, let’s crack wide open the best performance transaction of the current contract.

In Current Transaction Flow Overview section, you can read its earnings and share them via Twitter, Telegram, and Reddit.

The most exciting part is Arbitrage Process Chart, in which is all the money. It should be read from the user’s perspective, who kicked off the transaction.

To help you get a basic idea, this is the tokens transfer records captured from BscSCAN:

This graph clarifies the interactions among the hodlers and liquidity pools.

For clarity, the token amount in the text below is rounded.

First, LP 0x61eb received 1599.93 WBNB from Hodler 0x62bc.

In Hodler 0x62bc’s viewpoint, it lost 1599.93 WBNB. But it received 21.37 BTCB from LP 0x61eb, which shows in the second step. So although these BTCB did not transfer directly to Hodler 0x62bc, you can treat them as the asset increasing in terms of the interaction between Hodler 0x62bc and LP 0x61eb. That’s what EigenPhi present it.

Next, LP 0x61eb sent 21.37 BTCB to LP 0xc7e9. And in the third step, LP 0xc7e9 sent 1722.63 WBNB back to Hodler 0x62bc.

Regarding the interaction between LP 0xc7e9 and Hodler 0x62bc, in the Hodler’s eyes, its asset received 1722.63 WBNB at the cost of 21.37 BTCB. Hence the way EigenPhi shows it:

In the end, by implementing the spatial transaction, Hodler 0x62bc’s net gain is 122.699779 WBNB, which shows in the red rectangle below.

Without a doubt, Arbitrage Process Chart simplifies the complexity of the addresses and tokens interweaving, discloses the structures hidden in the contracts, and extracts the critical activities for your consideration.

The Biggest Human Financial Behavior Data in History

Financial data is one of the most precious data categories generated by human beings. This is why Bloomberg’s terminal costs about 2,000 USD per month because it enables you to gain access to the financial information otherwise challenging to obtain.

Fortunately, blockchain and DeFi deliver all the financial behaviour data, the most enormous and ever-growing human behaviour dataset ever, without holding. It would be best to have suitable tools like EigenPhi to mine the gold, the gems, and unwrap the wisdom deeply hidden in DeFi.

To find out how we achieve the goal, please feel free to follow us on Discord, Medium, Revue, Substack, and Twitter.

Interested in receiving the latest MEV alert? Follow EigenPhi MEV🤖 Alert.