Our Network: Issue #89

Coverage on Compound, Liquity, Aave, and CREAM.

The #1 On-Chain Analytics Newsletter
⭐ About the editor: Spencer Noon is an investor at Variant, an early-stage crypto VC.
⭐ Founders should reply directly to this email to get in touch.
⭐ Click here to apply to the πŸ†• Our Network Talent Agency

This week our contributor analysts cover DeFi: Compound, Liquity, Aave, and CREAM.

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β‘  Compound

πŸ‘₯ Nick Martitsch

πŸ“ˆ 4 New Markets Added to Compound

πŸ‘‰ Community Discord πŸ“Œ Job Board πŸ”Ž Dashboard

  • The Compound protocol is a set of open-source interest rate markets for earning interest and borrowing assets. Since August 1st, the community voted to add 4 new assets: MKR, SUSHI, YFI, and AAVE. These markets added $16.7M of liquidity to the protocol, with larger volumes expected once the community enables COMP rewards and increases the collateral factor for each market. Besides added liquidity, new markets encourage new developers and communities to participate in the Compound ecosystem.

  • The supply interest rates for the top 3 stablecoins on Compound (USDC, DAI, USDT) have grown steadily over the past 3 months, from an average of 3.36% APY on June 18th to 4.02% APY on September 15th. These rates can serve as a useful barometer to gauge the market demand for leverage and liquidity.

  • The Compound protocol continues to have strong daily usage, with nearly 600 transactions, $371M of assets being supplied, and $167M of assets being borrowed in the past 24 hours.

β‘‘ Liquity

πŸ‘₯ Kolten

πŸ“ˆ Liquity sees 118% growth in Troves since May

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  • The last time Liquity was featured in Our Network (May 21st), the protocol had just seen its first major set of liquidations due to the market crash on May 19th. Since then, we’ve seen a 118% increase in Troves β€” from 496 Troves to 1,086 Troves β€” signaling that there’s still growing demand for LUSD’s interest-free, high LTV borrowing. Remember: borrowers only pay a one time, upfront fee of ~0.5% to borrow LUSD against their ETH.

  • Liquity's β€œStability Pool'' has been LUSD's primary use case since launch. Users deposit LUSD and in return, they receive LQTY and purchase ETH at a discount when Troves are liquidated. Fortunately, as LUSD continues to mature, we're seeing Stability Pool dominance shrink to all-time-lows.

  • I mentioned that the Stability Pool pays out LQTY, which can then be staked to earn Liquity's protocol revenue generated from fees. Liquity has distributed $4.3M in protocol revenue to LQTY stakers since May and $14.6M has been distributed since our launch in April of this year.

β‘’ Aave

πŸ‘₯ Llama

πŸ“ˆ Aave Pulls In $16.7M of Net Income YTD Aug 21st

πŸ‘‰ Community Discord πŸ”Ž Dashboard

  • Llama presented our first set of Financial statements for Aave. This comprises a Profit or loss statement for the various reserves within the network along with presenting an overview of treasury holdings and a holistic view of token transactions through our token flow statement. The accounts and Dune dashboard both aim to provide a high level overview of the DAO’s trading activity to date, something which is not currently widely available within DeFi.

  • Llama has prepared two income statements, one specifically for the Ethereum ecosystem and the other for Polygon, both denoted in USD translated at the EOD token value. August shows a total net profit of: Ethereum V1, V2 - $12,241,360, and Polygon - $4,437,190.

  • Llama produced a holistic token flow statement. This has been prepared to show the flow of transactions on a monthly basis. The Aave and other ERC-20 tokens are translated using the USD price at month-end. We have also shown a consolidated view of the Ecosystem, Ethereum and Polygon Reserve.

β‘£ C.R.E.A.M. Finance

πŸ‘₯ Max

πŸ“ˆ iceCream stakers earn ~$240k yvcrvIB since launch

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  • C.R.E.A.M. Finance is a decentralized lending protocol. With the launch of C.R.E.A.M.'s new tokenomics, $iceCream, 50% of protocol revenues are distributed to iceCream holders. Since launch (4 weeks ago), iceCream stakers have earned 239,254 yvcrvIB, ~35% APR. According to Token Terminal, the C.R.E.A.M. protocol has collected $734.3k of protocol fees over the last 30-days. Annualizing this data, puts C.R.E.A.M. on a run-rate of $8.8M of protocol fees per year.

  • Today, the Iron Bank broke an all-time-high in total supply, reaching $1.224B. The Iron Bank (IB) has 11 assets with at least $10M liquidity: wETH, USDT, USDC, DAI, ibEUR, ibKRW, ibGBP, ibCHF, wBTC, ibJPY, and ibAUD. Notably, the IB has a total supply of $176M of synthetic fiat in partnership with Fixed Forex.

Our Network: Issue #88 (Part 2)

Loot Emergency Issue 🚨

Coverage continued from Part 1.

  • (AGLD, continued) In just a week, the top 10 holders of AGLD changed quickly. At first all top holders minted tokens. A week later, only one of the the top wallets remains in the top ten and only two receive from the minting. This rapid change in top holders cements the fact that the community is still emerging.

β‘€ Loot Derivatives

πŸ‘₯ Daniel Lew

πŸ“ˆ Loot Derivatives have traded over 4000Ξ in volume

πŸ‘‰ Community Discord  πŸ”Ž Dashboard

  • Given Loot's success, many derivatives have flooded the scene. As of now, there are over 40 Loot derivatives, not including other Loot factions like Bloot. Although there are many of them, not all enjoy equal success; most of them are free to mint if you're a Loot holder β€” some do cost ETH, but others have supply open to the public. Cumulatively, derivatives have traded over ~4000Ξ on Opensea compared to original Loot, which has traded over ~60,000Ξ.

  • Assuming the current number of unique owners of Loot is around 2.5k, early derivatives have enjoyed more participation than older ones. Some of them with the most mints include Abstract Loot, Characters, Treasures, and Realms with an exception for Doggos for Dog Owners which was announced a few days later.

  • It is the same story for total volume and number of sales on Opensea. Some of the ones that have generated the most volume are Realms, Treasure, Ability Score, Characters and, Abstract Loot which make up ~85% of all derivatives volume. However, in aggregate, the volume of Loot derivatives are only about 7% of Loot's total volume.

Our Network: Issue #88

Loot Emergency Issue 🚨

The #1 On-Chain Analytics Newsletter
⭐ About the editor: Spencer Noon is an investor at Variant, an early-stage crypto VC fund. Founders should reply directly to this email to get in touch.
⭐ Apply to the πŸ†• Our Network Talent Agency

Loot Emergency Issue 🚨

Attention often feels like the scarcest resource in cryptoβ€”which is saying something if you’ve been monitoring ETH block space lately. So when a new NFT project called Loot launched last week and unexpectedly took the crypto world by storm, we decided to scrap our plans and run an emergency newsletter.

Loot NFTs, as shown above, have no artistic value. They are nothing but 8 lines of computer-generated text on a black background. But this unprecedented form sparked lightning in a bottle, inspiring a massive and diverse community to start building a new metaverse together.

Since jumping into the space in 2013, I’ve only ever observed 3 communities as strong as Loot’s: Bitcoin, Ethereum, and Yearn. So as the initial hysteria calms down and speculators leave, I would carefully watch the community that remains, including its on-chain footprint. I have a feeling we are going to be covering Loot a lot more in the future.

This week our contributor analysts cover the Loot ecosystem.

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β‘  Loot Project Overview

πŸ‘₯ Mert Lostar

πŸ“ˆ Loot disrupts NFT scene with a 7-day Vol. of 46KΞ

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  • Loot has a simple concept. In the words of project creator Dom Hofmann, Loot is β€œtext-based fantasy crypto loot,” where individual NFTs represent β€œbags” of loot containing different items. However, this simple concept has made a huge impact on the NFT scene, with the value of Loot NFTs appreciating from just the minting cost of gas to generating a 16KΞ daily volume (~$53M) on the secondary market in just 6 days. The volume seemed to fizzle out to more reasonable levels in the following days, similar to the way it rushed to the top.

  • A steady decrease in the floor price of Loot NFTs, along with a decrease in volume, indicates that the hype around the project has subsided slightly since it started off at a fever pitch. Floor price took the biggest hit on September 4th, when the creator introduced More Loot, which created a dynamic supply of non-original loot. Even so, Loot changed the way we think about NFTs.

  • Incredibly, Loot had more 7-day volume than CryptoPunks, BAYC, and ArtBlocks combined. Just a little while ago, all we were talking about was the amazing growth these projects were experiencing! Then, the β€œweird experiment” dropped. I believe stealing the spotlight is a huge understatement at this point.

β‘‘ Loot Project Overview (pt. 2)

πŸ‘₯ Banterlytics

πŸ“ˆ Loot: A Weird Experiment to ETH 100K+ in Sales

πŸ”Ž Dashboard

  • Dom, Loot’s creator, called Loot a weird experiment. What really is this experiment? In simple words: a jpeg with randomized adventurer gear. Dom wanted people to use these traits to make something, hence no images or stats were included, leaving everything open to interpretation of the Loot holders. The initial 2 days saw little sales volume for Loot. Once the community realized the potential Loot presented, the money started to flow in.

  • What really ignited the project was when community members started making projects that complemented Loot, such as Ability Score, Realm, and Character score. Adventure Gold, AGLD, a token for loot holder member also helped in increasing the interest for Loot. At its peak AGLD was worth $ 7+ and had a market cap of more than $600 million.

  • While speculators FOMO-ed into Loot, some communities came up with their own alternatives to Loot such as Bloot, The N project, Dope Wars, First First NFTs, and teh list goes on. This all led to Dom’s weird experiment along with projects inspired by it to cross 100K+ ETH in secondary sales.

β‘’ OG Loot NFTs

πŸ‘₯ Will Leas

πŸ“ˆ OG Loot surpasses 61.9k ETH in trading volume

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  • Bag secured! Loot has become one of the hottest projects in the NFT space topping OpenSea charts and Twitter newsfeeds. In the roughly two weeks since launch, OG Loot has done over 61,872 ETH in trading volume making it the 9th most traded NFT collection of all time on OpenSea. As of writing, Loot floor prices are in the ~7 ETH range. On September 2nd, a rare Divine Robe Loot Bag (Bag #748) sold for 250 ETH, the highest sale on record for the collection to date.

  • There are currently over 2,500 unique holders of OG Loot. The top 10 wallets currently own 18.9% of the entire Loot supply.

  • Funds like Robot Ventures and other whales have acquired sizable Loot collections. While total transactions and unique buyers have decreased slightly from their August 30th peak, this has not stopped a whale who has been on a buying spree acquiring a net of 237 OG Loot Bags in the last 7 days.

β‘£ Adventure Gold

πŸ‘₯ Etienne Brunet

πŸ“ˆ AGLD, the game token with a $200m+ market cap

πŸ‘‰ Community Discord πŸ”Ž Dashboard

  • Adventure Gold (AGLD) was airdropped to Loot holders and is a game token for future Loot-related games with no current use cases until the community decides. The market cap reached an all-time high of $600m. The total number of unique addresses reached 4,543 and has since decreased to 4,339, suggesting a low engagement. The total supply on exchanges has reached an all-time high at 41%. This is substantial for a token without links to an exchange and suggest holders have been looking for liquidity.

  • On the second day of its launch, AGLD volume on Uniswap reached $250m, equivalent to the third most traded pair. A week after, its volume decreased by 90% representing only $23m. Challenges include a lack of staking (only 2% of total AGLD) and lack of utility beyond speculation.

Click here to read Part 2.

Our Network: Issue #87

Coverage on FIL, GRT, GTC, POKT.

The #1 On-Chain Analytics Newsletter
⭐ About the editor: Spencer Noon is an investor at Variant, an early-stage crypto VC fund. Founders should reply directly to this email to get in touch.
⭐ Apply to the πŸ†• Our Network Talent Agency

This week our contributor analysts cover Web3: Filecoin, The Graph, Pocket Network, Gitcoin.

Get the NFT of this issue

β‘  Filecoin

πŸ‘₯  ZX

πŸ“ˆ Filecoin Surpasses $1.4B in Protocol Revenue

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  • Filecoin is a decentralized layer-1 protocol that allows anyone to provide verifiable storage and adjacent services. One can think of Filecoin as an Airbnb for cloud storage. Since its launch, Filecoin has reached 10EiB in capacity, more than 3000 storage providers & 10,000 developers building applications on Filecoin. The active usage of the protocol has generated more than $1.4B in protocol revenue. Filecoin is also the largest zk-SNARK network and recently had a 10-25x scalability improvement.

β‘‘ The Graph

πŸ‘₯ Eva Beylin & Ricky Esclapon

πŸ“ˆ Subgraph Migration grew 195% since Studio Launch

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  • Curators signal on subgraphs they deem high-quality, so Indexers prioritize the best APIs. The Sushi Exchange subgraph has ~8% of curation signal, followed by Livepeer, Audius, and UMA with ~6% of total signal each. Synthetix, Opyn, Reflexer, PoolTogether, and Curve are also highly signaled subgraphs.

  • Developers create API keys to query subgraphs and pay for the usage. API key creation has grown ~195% over the last 2 months as Dapps have been migrating their subgraphs from the hosted service to The Graph Network to ensure Dapps are decentralized. 50+ unique API keys are used daily in Web3 today!

  • Indexers are allocating to the subgraphs they want to serve to earn indexing rewards. Over 43M GRT in rewards has been earned for processing queries for the top 10 subgraphs, growing ~147% since late June. The UMA voting subgraph leads with the most rewards followed by PoolTogether, mStable, and DODO.

β‘’ Gitcoin

πŸ‘₯ Omni Analytics Group

πŸ“ˆ Gitcoin has generated $29.9M in funding for OSS!

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  • Come September 8th, Gitcoin will be kicking off Round 11 with an estimated matching pool of $900,000 to be quadratically dispersed across nearly 2,000 grants on the platform. Funding for this round will represent a $200,000 increase over the amount available for open-sourced projects in the previous quarter. Since our last coverage, the number of monthly active developers has nearly doubled to 311,688 and total open source funding across the platform has jumped over $9M from $20.7M to $29.98M.

  • Over the last 10 rounds, not only has Gitcoin seen increases across the size of the matching pool, but also in the number of contributors, contributions, and the overall amount contributed. In the most recent round, 14,658 contributors made 308,658 contributions that amounted to over $1.1M in project funding.

  • Through their use of a quadratic funding, Gitcoin encourages smaller donations and is the main reason why the median contribution is only $1.21. While this individual amount is small, successful grants with more than 5K contributors have the opportunity to receive over $40K in matching funds.

β‘£ Pocket Network

πŸ‘₯ Lewis Harland

πŸ“ˆ Pocket Network Surpasses 40m Daily API Requests

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  • Pocket Network has seen strong growth in the average number of daily relays. The network saw a historical average of ~4.5M requests a day pre-August. Now the network is printing an all-time-high of ~41M average daily relays. Key drivers for relays have been demand from Dark Forest players and Austin Griffith's scaffold.eth tooling for solidity developers.

  • Pocket Network is equally seeing healthy growth in active validator nodes who serve Pocket’s integrated applications. The drop in late June was likely driven by a reduction in relays (and therefore node rewards) and demonstrates that capacity changes dynamically according to network demand.

  • Pocket’s recent integrations of other chains has lead to an increasing diversification in which traction is being sourced including Fuse and xDAI. Ethereum mainnet remains the dominant source of relays today (80% market share) but it is reasonable to see the chain’s dominance decline over time.

Our Network: Issue #86

Coverage on Art Blocks, Crypto Punks, Parallel, Pudgy Penguins, and Deafbeef.

The #1 On-Chain Analytics Newsletter
⭐ About the editor: Spencer Noon is an investor at Variant, an early-stage crypto VC fund. Founders should reply directly to this email to get in touch.
⭐ Apply to the πŸ†• Our Network Talent Agency

This week our contributor analysts cover NFTs: Art Blocks, CryptoPunks, Parallel, Pudgy Penguins, and Deafbeef.

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β‘  Art Blocks

πŸ‘₯ Jon Itzler

πŸ“ˆ 7 Day Sales Volume Tops $200M

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  • First deployed in November 2020, Art Blocks is a platform for launching generative art series where the generation script is stored immutably on Ethereum for each project. When a user mints an ERC-721 from the platform, a provably unique seed determines the variables in the generative script, ultimately defining the appearance of the output.

    Since the beginning of this summer, daily volumes have skyrocketed, with ~$25M in sales volume traded on Wednesday across Curated, Playground, and Factory series.

  • The total count of wallet addresses that hold Art Blocks is similarly rising in an exponential fashion, with over 14,800 unique owners as of Wednesday. Over the last week alone, the project has seen an influx of more than 2000 new accounts that own a piece.

  • The table below displays the top 10 Art Blocks series ranked by all-time historical sales volume in ETH, with much of this volume originating over the last week. With the Fidenza by Tyler Hobbs, for example, more than 86% of the ~23,400 ETH all-time sales volume was traded within the last 7 days. If you take the average 3-day sale price for each series (a naive proxy) and multiply by edition size, you can back out a total estimated market cap for the full Art Blocks collection at ~842,000 ETH or ~$2.5B.

  • Editor’s Note: Variant did an Art Blocks drop last year, which you can find here. I’d like to think we’ve been tracking this space before it was cool 😏.

β‘‘ CryptoPunks

πŸ‘₯ Elias Simos

πŸ“ˆ Punks continue to lead as NFTs explode higher

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  • If you don't know what CryptoPunks (CP hereon) are by now, you must have been living under a...rock?! The OG pfp NFT continues to explode higher, with a total of Ξ 365k of volume processed through the CP contract this year. The last Ξ 150K has come through in the past 40 days. This is a cool 24x in volume YTD and it's only August. Average tx price has followed suit, 6x-ing YTD and 26x-ing in the past year.

  • One of the more interesting observations worth zooming in on, is the trend in total sales and unique buyers. Since Dec 2019, there is a consistent trend of hype-cycle waves around the CP contract that tops out every 5 months. Every cycle top sees more unique buyers come in than the one before it.

  • And now, for some alpha (maybe)! CPs have different attributes; some more numerous or rare, some less. Granted that for the lifetime of txs there is a loose +ve correlation (35%) between rarity and avg_tx_price, are Buck Teeth and Pink With Hat undervalued, or are they unloved because they...ugly?

β‘’ Parallel

πŸ‘₯ Kinjal Shah

πŸ“ˆ Parallel, Sci-fi trading game, has done ~$100M GMV

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  • Parallel is a sci-fi trading card game that's a cross between Hearthstone and Magic the Gathering. The game has quickly become one of the most anticipated as the community builds out its sets in preparation for launch. Without doing any marketing, Parallel has done nearly $93M (31K ETH) in volume in the last 30 days across only 7K users.

  • The first drop occurred in March, followed by one in July. The breakdown of cards ranges from 0.5 ETH to 0.025 ETH, however the prices have accelerated quickly. While the floor hovers around 0.17 ETH, the all-time-high sale went for 360 ETH.

  • The project has completed nearly 80K sales, with anticipation of the next card drop in October. The excitement for the game is rooted in the unique storyline, fantastic artwork, and the community support which has been rapidly growing.

Click here to read Part 2.

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