The Bancorian | A Weekly Summary-October 3rd 2021

This post was originally published on Bancor

🔥Bancor Vortex

+---------------+--------------+
| time | burnedamount |
+---------------+--------------+
| 4/1/2021 0:00 | 66613.12837 |
| 5/1/2021 0:00 | 234190.261 |
| 6/1/2021 0:00 | 240030.686 |
| 7/1/2021 0:00 | 212623.0538 |
| 8/1/2021 0:00 | 281869.4172 |
| 9/1/2021 0:00 | 214951.2059 |
+---------------+--------------+
+----------------+--------------+
| time | burnedamount |
+----------------+--------------+
| 9/26/2021 0:00 | 4334.940002 |
| 9/27/2021 0:00 | 4324.199758 |
| 9/28/2021 0:00 | 5225.247785 |
| 9/29/2021 0:00 | 6738.227584 |
| 9/30/2021 0:00 | 4576.661794 |
| 10/1/2021 0:00 | 4152.765652 |
| 10/2/2021 0:00 | 4472.588928 |
| Sum | 33824.6315 |
+----------------+--------------+

📊 Key Metrics

7-day total cumulative fee revenue: ~$732K

biswap
  1. 30 days ~$163K
Left: Protocol Revenue (30 Days) Right: Price to Sales ratio (P/S)
  • Specifically, we have looked at the top 17 pools by value locked and excluded those with “like-kind assets” (two assets that track each other in price closely). On aggregate, about 60% of users who provided liquidity to the top 17 pools have lost money. In certain pools, that number is as high as 80%. This reality is often obscured from users as directionally their holdings may be worth more because the prices of the assets have gone up but they can’t see that they are losing money vs. simply holding the assets on their own outside the pool.
  • The questions then becomes, why is there still significant liquidity in Uni V3? In short, many people don’t know that they are losing money and we don’t think that is sustainable in the long term. We think token holders are better off in protected pools and a big part of this study is educating the community on the real cost of IL. There are thousands of token holders that are currently shorting their own bags without realizing it. We are hoping to finalize our report soon and deliver our results to the broader DeFi community.
  • In conjunction with the Uni V3 study, we are also planning an aggressive campaign to help get the word out. We will have bounties available that will allow you to get paid to help distribute this educational information. If you have ideas about bounties that we can implement then let us know in discourse.

💪Social Channels

🏫Take me back to school

WOW! Both of these threads are a great read to understand the intricacies of Divergence Loss (Impermanent Loss). Plenty of graphs, equations, and examples to explain this concept that is elusive for many to understand. Be warned, this is not for the faint of heart and might require spending some time to analyze the information provided. This is quite the big 🧠 analysis from Oscar D Torson.

🎲Random Musings

Real recognize real. The amount of low effort crypto projects launching daily leads to a false narrative that things move quicker than they actually are. With every new blockchain launch, a number of projects that forked other protocols follow to try to capitalize on the initial rush. There are very few teams that are innovating and bringing new primitives to DeFi.

🎩Bancorians in the Wild

A collection of weekly tweets from some of the greatest Bancorians 🧠💪

👈Previous Proposals

There were no governance proposals this past week (9/26/21).

👉Current Proposals

For this week (10/3/21), we have three proposals up for voting:

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