Agora Insights — Olympus Community Weekly Newsletter — Friday 19 November 2021
Welcome to the Agora Insights — our data-driven newsletter — made by Ohmies, for Ohmies!
- Editorial — OHM Value Creation and APY
- Numbers at a Glance — 70k Ohmies, $17m LP Fees, Protocol Revenue takes a breather
Editorial — OHM Value Creation and APY
The legendary Shadow released a timely thread earlier today covering a variety of topics with one overarching theme: The importance of value creation by OHM and the OHM community. The thread covers APY changes & protocol emissions, OHM partners, the DAO, forks, and more.
At its core, a high APY is an attention-grabbing metric used to bootstrap a protocol in its early days. As a protocol matures, the high APY can begin to become detrimental as dilution begins to weigh on holders. This is especially true if a protocol isn’t innovating or bringing in additional value. This is the reason why the policy team proposed a reward rate framework as a part of OIP-18. While reward rate changes will still need to be voted on, the framework shows how APY will likely change as the protocol matures.
Numbers at a Glance — 70k Ohmies, $17m LP Fees, Protocol Revenue takes a breather
As we do each week, we returned to Delphi to gather up the latest protocol data and metrics.
You can access all of the enclosed charts and data at the wonderful Olympus Dune Analytics page HERE (curated by the legendary Shadow). Please read on for this week’s numbers at a glance:
1. Number of Ohmies: 70,763 (+7,618)
- November 5: 56,418
- November 12: 63,145
- November 19: 70,763
To the new Ohmies: Welcome! :)!
2. Olympus Pro Treasury Holdings: $441,744
- 7-day change: -$68,988 (-13.5%)
- 30-day change: +$268,940 (+155.6%)
- The Olympus Pro Treasury holds the tokens of partner protocols who are utilizing the Olympus Pro platform. The tokens are generated via a 3.3% fee charged for use of the platform.
- While relatively small currently, the mutual benefit received by both Olympus and the partner protocols far exceeds the amount of fees received.
3. Liquidity Provider Fees
- Total LP Fees Generated: $17,190,506
- $1,456,139in fees generated in one week!
- Week-over-week growth of +9.3%
Via: Dune Dashboard
Olympus has taken in over $17.1M in LP fees to date. It is worth noting that these LP fees are collected in both OHM and the stable asset (either DAI or FRAX) at 0.25% per trade on Sushiswap and 0.30% on Uniswap.
4. Market Value of Treasury Assets: $767,055,687
- 7-day change: -8,080,264 (-1.0%)
- 30-day change: +$332,987,229 (+76.7%)
The Market Value of Treasury Assets shows the current market rate of all of the assets held within the Treasury. This value will be more volatile than Treasury Risk Free Value as it encompasses all assets in the treasury and not solely stable coins.
5. Risk Free Value of Treasury Assets: $174,855,114
- 7-day change: +$3,952,960 (+2.3%)
- 30-day change: +$55,011,266 (+45.9%)
- RFV Per OHM: $38.53
- Based on current circulating supply of 4,557,731
As a reminder, when the supply growth of OHM outpaces the revenue inflow, RFV per OHM will drop — this is part of the motivation behind OIP-18 as covered in the August 18th edition of the newsletter.
6. Protocol Weekly Revenue (7-day rolling average): $53,419,793
- 7-day change of -34.2%
- 30-day change of -29.4%
- Annualized rate (using 7-day MA): $2,785,460,635
7. Current Runway: 389 days
At the current reward rate of 0.297%, Olympus can continue to distribute OHM rewards for 389 days even if it stops bringing in revenue. That’s over a year of runway and a -6 day decrease over the past week.
If you need a recap on what runway is, check out this twitter thread from @xh3b4sd.
8. Current Index: 35.282 OHM
Current Index measures your current OHM balance if you had one OHM staked since the first epoch.
The following table compares the difference in your current OHM balance based on your staking date:
The price of OHM on 15 June was about $204.28. If you staked one OHM since then, you would have more than septupled your stack now to 7.668 OHM! OHM’s price today is around $761.11. Let’s find out what is your ROI:
- Principal: $204.28
- Return on 5 November: 7.688 * $761.11 = $5,836.19
- Principal gain = $5,836.19 — $204.28 = $5,631.91
- ROI = ($5,631.91 / $204.28)*100% = 2756%
Investing in OHM back in the middle of June would give you about 27x return today. Don’t underestimate the power of compounding.
9. Macro numbers from around the Cryptoverse:
Opportunities to contribute — join us
To get involved with what is happening atop Mount Olympus, join the DAO Discord.
Once you are in, head to the #dao-start-here channel and read the instruction carefully so that you can get assigned a role.
Have any questions? Just ask in the #general-dao channel and a helpful Ohmie will appear to guide you along your path.
Keep it (3,3), till next week Ohmies — with love from the Agora Dispatch team!