ON–099: DeFi (Part 2)
Coverage on Genie and IndexCoop.
Nov 26, 2021
👥 Ruvaag
- IndexCoop's DPI (DeFiPulse Index) provides broad DeFi exposure by creating a market-cap weighted basket of DeFi tokens into an ERC20 index token. DPI migrated their Liquidity Provision Program from Uniswap v2 to Uniswap v3 in August 2021. Even post-migration, the DPI/WETH Uniswap v2 Pool still holds ~40% of combined assets and accounts for ~44% of the combined daily trading volume.
- Despite the above, the DPI/WETH Uniswap v2 Pool saw a significant outflow of capital (from $50M+ in Aug 2021 to $10M+ by the end of Sept), accompanied by an ~7x jump in the Uniswap v3 Pool TVL (from $2.2M+ in Aug 2021 to $15M+ by Sept end), indicating the extent of the migration in terms of capital.
- As with others, the DPI LP migration saw some resistance - there were 2.8K+ unique LPs for Uni v2, but Uni v3 saw only 380+ unique LPs. Additionally, the combined 1.5K ETH / 45K DPI of reserves in the Uni v2 & Uni v3 pools are a fraction of the 8.5K ETH / 65K DPI held in the Uni v2 Pool in Aug 2021.
🦉 IndexCoop (Part ②) 👥 Deepanjal Gupta 🔎 Dashboard
- A total of 6260 DPI tokens are present on Polygon currently. The cumulative amount has increased sharply since Oct 20th, when the WETH-DPI contract was introduced, which in of itself contains around 2.2M USD (as of 2021-11-25 08:53:41 UTC).
- When we split the addresses holding DPI by wallets and contracts, we see that even though 83% of the addresses are wallets, they hold only 30% of the DPI on Polygon (the average wallet holds ~ 2.4 DPI while an average contract holds ~ 27 DPI).
- The number of daily transactions that add to the DPI-WETH pool liquidity (minting) hovers around 200. We can also see that the amount of DPI added per transaction is only ~0.8 per transaction. This is in sharp contrast with the burn transactions where the average size of the DPI burn is ~ 7.
