diff --git a/vyper/venom/__init__.py b/vyper/venom/__init__.py
index bc66906ae9..71b0074c11 100644
--- a/vyper/venom/__init__.py
+++ b/vyper/venom/__init__.py
@@ -44,11 +44,12 @@ def _run_passes(fn: IRFunction, optimize: OptimizationLevel) -> None:
     ac = IRAnalysesCache(fn)
 
     SimplifyCFGPass(ac, fn).run_pass()
-    Mem2Var(ac, fn).run_pass()
     MakeSSA(ac, fn).run_pass()
     StoreElimination(ac, fn).run_pass()
+    Mem2Var(ac, fn).run_pass()
     MakeSSA(ac, fn).run_pass()
     SCCP(ac, fn).run_pass()
+    StoreElimination(ac, fn).run_pass()
     SimplifyCFGPass(ac, fn).run_pass()
     RemoveUnusedVariablesPass(ac, fn).run_pass()
     DFTPass(ac, fn).run_pass()
diff --git a/vyper/venom/passes/remove_unused_variables.py b/vyper/venom/passes/remove_unused_variables.py
index a4cd737e98..8307bdae40 100644
--- a/vyper/venom/passes/remove_unused_variables.py
+++ b/vyper/venom/passes/remove_unused_variables.py
@@ -1,22 +1,47 @@
 from vyper.venom.analysis.dfg import DFGAnalysis
 from vyper.venom.analysis.liveness import LivenessAnalysis
+from vyper.venom.basicblock import IRBasicBlock
 from vyper.venom.passes.base_pass import IRPass
 
 
 class RemoveUnusedVariablesPass(IRPass):
     def run_pass(self):
-        removeList = set()
-
         self.analyses_cache.request_analysis(LivenessAnalysis)
 
         for bb in self.function.get_basic_blocks():
-            for i, inst in enumerate(bb.instructions[:-1]):
-                if inst.volatile:
-                    continue
-                next_liveness = bb.instructions[i + 1].liveness
-                if (inst.output and inst.output not in next_liveness) or inst.opcode == "nop":
-                    removeList.add(inst)
-
-            bb.instructions = [inst for inst in bb.instructions if inst not in removeList]
+            self._remove_unused_variables(bb)
 
         self.analyses_cache.invalidate_analysis(DFGAnalysis)
+
+    def _remove_unused_variables(self, bb: IRBasicBlock):
+        """
+        Remove the instructions of a basicblock that produce output that is never used.
+        """
+        i = 0
+        while i < len(bb.instructions) - 1:
+            inst = bb.instructions[i]
+            i += 1
+
+            # Skip volatile instructions
+            if inst.volatile:
+                continue
+
+            # Skip instructions without output
+            if inst.output is None:
+                continue
+
+            # Skip instructions that produce output that is used
+            next_liveness = bb.instructions[i].liveness
+            if inst.output in next_liveness:
+                continue
+
+            # Remove the rest
+            del bb.instructions[i - 1]
+
+            # backtrack to the *previous* instruction, in case we removed
+            # an instruction which had prevented the previous instruction
+            # from being removed
+            i -= 2
+
+            # don't go beyond 0 though
+            i = max(0, i)