Setting Up a System to Track User Progression from On-Ramp to Swap

In decentralized finance (DeFi), a user's journey typically begins with on-ramping fiat currency and culminates in executing a swap on a decentralized exchange (DEX). This progression involves multiple steps across different protocols and chains. For developers building analytics dashboards, wallet applications, or protocol integrations, tracking this flow is essential for understanding user behavior, optimizing onboarding, and identifying drop-off points. A robust tracking system provides actionable data on conversion rates, gas fee sensitivity, and preferred asset pairs.

The technical foundation for tracking this journey is the blockchain itself. Every on-ramp transaction, token transfer, approval, and swap is recorded as an immutable event on a public ledger. By indexing and analyzing these events, you can reconstruct a user's path. Key data points include the source of funds (e.g., a fiat on-ramp address), the chain and wallet used, the sequence of approve() and swap() contract calls, and the final token balances. Services like The Graph for subgraph queries or direct RPC calls to node providers are commonly used to fetch this data.

To build a practical tracker, you must first define the events that mark progression. The initial event is the receipt of funds from a known on-ramp service (like Coinbase or MoonPay) into a user's wallet. The next milestone is often an ERC-20 approve() transaction, granting a DEX router (like Uniswap's SwapRouter) permission to spend the user's tokens. The final event is the swap() transaction itself. By listening for these specific transaction logs and linking them to a single user address, you can measure the time between steps and the success rate of each transition.

Implementing this requires setting up an event listener or a scheduled job that queries blockchain data. For example, using Ethers.js or Viem, you can poll for recent transactions to a user's address and filter for interactions with known contract addresses. A basic code snippet to get started might listen for Transfer events from on-ramp addresses and Swap events from a DEX. The complexity increases when tracking cross-chain activity, which necessitates monitoring multiple networks and using cross-chain messaging protocols or bridge contracts as additional data sources.

The insights from this tracking system are valuable for multiple stakeholders. Product teams can identify if users are failing at the approval step due to high gas fees, prompting integration with gas sponsorship services. Protocol developers can see which trading pairs are most popular for on-ramped funds. Ultimately, by systematically tracking the on-ramp-to-swap pipeline, builders can create a smoother, more informed DeFi experience, reducing friction and increasing successful transaction completion.

To track a user's journey, you must first identify the key on-chain events that define each stage. The primary flow involves: a funding transaction from a fiat on-ramp (like Coinbase or MoonPay) to the user's wallet, followed by token approval for a DEX, and culminating in the swap execution itself. You'll need to monitor these events across multiple blockchains, which requires connecting to reliable node providers or using a blockchain data indexer like The Graph or Covalent.

Your tracking system's core is an event listener. For Ethereum and EVM-compatible chains, you can use libraries like ethers.js or viem to subscribe to specific contract events. For example, to detect a Uniswap V3 swap, you would listen for the Swap event on the pool contract. You must also track ERC-20 Transfer events to see funds arriving from an on-ramp's settlement address and Approval events for token permissions. Setting up robust error handling for re-orgs and RPC connection drops is critical.

You need a database to store the progression state for each user and transaction. A simple schema might include tables for users (wallet address), transactions (tx hash, chain ID, block number), and journey_steps (linking a transaction to a stage like FUNDED, APPROVED, SWAPPED). Using a time-series database can optimize querying for analytics. Ensure your database client is configured for high write throughput to handle blockchain data ingestion.

Finally, you must establish a method to correlate off-ramp deposits with on-chain activity. Most fiat on-ramps provide a webhook or API to notify you of completed deposits. Your system should capture this webhook, extract the destination wallet address and amount, and begin scanning for the corresponding on-chain Transfer event. This link is the crucial starting point for the entire tracking pipeline.

In Web3, a user's journey from first deposit to executing a swap is a critical conversion funnel. Tracking this progression—often called on-ramp analytics—is essential for understanding user behavior, identifying drop-off points, and optimizing product flows. Unlike traditional web analytics, this funnel spans off-ramp providers, custodial wallets, and multiple blockchain transactions, requiring a unified tracking strategy. Key metrics include deposit initiation rate, fiat settlement success, gas funding completion, and final swap execution.

To track this funnel, you must instrument events at each stage. Start by integrating with your on-ramp provider's API (like MoonPay or Transak) to capture deposit_initiated and deposit_completed events. Next, monitor the user's custodial wallet for the arrival of funds, which triggers a funds_received event. The critical step is tracking the subsequent gas sponsorship or user-funded transaction that bridges funds to a self-custody wallet (e.g., via a transfer or bridge contract call), logged as gas_funded. Finally, capture the swap_executed event on the destination DEX (like Uniswap or 1inch).

Correlating these events across disparate systems requires a persistent user identifier. Implement a server-side session or use a signed payload that persists through the flow. For example, when a user starts an on-ramp, generate a unique sessionId and pass it through each subsequent step—embedded in the on-ramp widget callback, included in transaction metadata via your relayer, and attached to swap intents. This allows you to reconstruct the full journey: User A (sessionId: abc123) deposited $100, received 0.05 ETH at 14:30, paid gas at 14:32, and swapped for 150 USDC at 14:35.

Analyzing the funnel data reveals actionable insights. Calculate conversion rates between each stage to pinpoint failures: a low deposit_completed rate may indicate KYC issues; a drop between funds_received and gas_funded often points to UX complexity in moving funds. Use cohort analysis to see if improvements (like simplifying gas sponsorship) increase conversion. Tools like Dune Analytics or Flipside Crypto can be used to query on-chain events, while off-ramp events are best handled by your own backend or a dedicated analytics platform.

For developers, here is a conceptual code snippet for tracking a key event using a backend service:

javascriptCopy
// Example: Logging a gas funding event
app.post('/track-event', async (req, res) => {
  const { sessionId, eventType, txHash, chainId, amount } = req.body;
  // Validate and store event in your analytics DB
  await analyticsDB.insert({
    session_id: sessionId,
    event: eventType, // e.g., 'GAS_FUNDED'
    tx_hash: txHash,
    chain_id: chainId,
    amount_wei: amount,
    timestamp: new Date()
  });
  // Correlate with previous events for this session
  const funnel = await reconstructFunnel(sessionId);
  console.log(`Funnel progress: ${funnel}`);
  res.sendStatus(200);
});

Ultimately, effective funnel tracking transforms raw transactions into a narrative of user experience. By systematically capturing and analyzing these events, teams can make data-informed decisions to reduce friction, increase successful swap completion, and build more intuitive onboarding flows. The goal is to close the loop between user action and product insight, ensuring that every step from fiat to DeFi is measurable and optimizable.

Tracking user progression from an on-ramp integration to a final swap is critical for understanding drop-off points and optimizing conversion. This requires a frontend event tracking system that logs key user actions and state changes. The goal is to create a sequential event log for each user session, capturing milestones like wallet connection, funding method selection, transaction signing, and completion. This data, when correlated with on-chain data, provides a complete picture of the user journey and identifies friction.

The foundation is a structured event schema. Each event should include a session ID (generated client-side), a user ID (hashed wallet address), an event name (e.g., wallet_connected, quote_requested, transaction_signed), a timestamp, and a payload of relevant context. The payload for a quote_requested event might include { "sourceToken": "USDC", "targetToken": "ETH", "amount": "100" }. Use a lightweight library like PostHog, Amplitude, or a custom service to handle batching and sending events to your backend.

Instrument your application at key interaction points. After a successful wallet connection via libraries like wagmi or ethers.js, fire a wallet_connected event. When a user selects a fiat on-ramp provider (e.g., Transak, MoonPay), log an onramp_selected event. Crucially, you must track the on-ramp's callback or listen for on-chain deposits to log an onramp_funded event once the user's wallet receives funds. This bridges the off-ramp and on-chain phases of the journey.

For the swap flow, track swap_quote_received, transaction_signed, and transaction_broadcast events. The transaction_broadcast event should include the transaction hash in its payload, which is the essential link to on-chain data. Implement error tracking with events like transaction_failed, including error codes from the provider (e.g., "errorCode": "INSUFFICIENT_FUNDS"). This allows you to analyze failure rates and causes at each step of the funnel.

Finally, ensure privacy and compliance by hashing or omitting personally identifiable information (PII). Use a secure backend endpoint to receive events, validate them, and store them in a time-series database like TimescaleDB or a data warehouse. This stored event stream can then be visualized in analytics dashboards to calculate metrics like on-ramp to swap conversion rate and average time to complete a swap, providing actionable insights for product improvement.

To track user progression, you need a backend service that listens for events from your on-ramp provider and your own smart contracts. The core architecture involves an event-driven system where webhooks notify your server of state changes. For the on-ramp phase, providers like Coinbase Commerce, MoonPay, or Stripe send HTTP POST requests to your designated endpoint upon events like transaction.created, transaction.completed, or transaction.failed. Your backend must validate these webhooks using a signature header to ensure they originate from the trusted provider.

Once fiat is converted to crypto and deposited into a user-controlled wallet, the next phase is tracking the on-chain swap. You can emit custom events from your swap contract or listen for standard ERC-20 Transfer events. A service like The Graph can index these events, or you can run your own indexer using ethers.js with a WebSocket provider. The key is to correlate the on-ramp transaction ID with the subsequent on-chain wallet address and swap transaction hash, storing this linkage in a database like PostgreSQL.

Your processing logic should handle idempotency to avoid duplicate event processing from potential webhook retries. Implement a simple flow: 1) Receive and verify on-ramp webhook, 2) Store status and user's deposit address, 3) Listen for a transfer to a known liquidity pool or DEX router address from that user address, 4) Record the swap transaction and update the user's journey status to completed. This creates an auditable trail from fiat entry to DeFi interaction.

For resilience, queue incoming webhooks using Redis Bull or Amazon SQS to decouple receipt from processing. This prevents data loss during backend outages. Log all events and their processing status for debugging. Finally, expose an internal API or dashboard query that can reconstruct a user's full progression timeline using the correlated data, which is essential for analytics, support, and compliance reporting.

You now have a blueprint for a user progression tracking system built on event-driven architecture. The core components—the on-ramp listener, wallet monitor, and swap analyzer—work together to create a complete journey map for each user. Implementing this system provides actionable data on drop-off points, conversion rates, and the effectiveness of different on-ramp providers. Start by deploying the listener service for a single provider like MoonPay or Transak, using their webhooks to capture the initial onramp.success event as demonstrated in the code examples.

The real analytical power is unlocked by correlating events. By stitching together the on-ramp transaction hash, the resulting wallet address, and subsequent transfer and swap events, you can calculate critical metrics: time-to-first-swap, preferred destination chains (e.g., Ethereum mainnet vs. Arbitrum), and common token pairs. This data moves you beyond simple volume tracking to understanding user intent and behavior. Tools like The Graph for indexing or Covalent for unified APIs can significantly reduce the complexity of querying this cross-chain data.

To extend the system, consider adding more data sources. Integrate additional on-ramp providers to avoid vendor lock-in and get a broader view. Implement tracking for bridge transactions to understand cross-chain movement after the initial swap. You can also add a gas usage analyzer to see if high network fees are a barrier to entry. Finally, ensure user privacy by hashing or anonymizing wallet addresses in your analytics database, and always comply with relevant data regulations when storing personal information from on-ramp KYC processes.