OlympusDAO shared a dataset of GRO/PWRD bond activities based on the first $250K GRO allocation we made in November 2021 under Vote 004 (equivalent to 35,200 GRO at an average price of $7.1 per GRO token at the time). Gro team has conducted further analysis on participants to better understand the bonding activities.
Summary
Majority of bond activities (57%) were conducted by a network of bots that eventually sold off all GRO tokens into the market once GRO/PWRD bonds were no longer available.
This could have been driven by a combination of factors such as
(1) high gas costs relative to bond value at ~6.7%
(2) decrease in token price over the course of bonding period
(3) holiday season leading to lower natural bonding, which paved way to extensive bot activitiesThis prompted questions on whether Gro DAO should re-evaluate the allocation approved under Vote 008 before we received the bond analytics data below; and if the DAO decides to continue this program, what changes should be put in place to improve bond dynamics
Bond statistics
Note that the below prices were taken at the time of transactions instead of current value.
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In total 35,200 GRO tokens were allocated for GRO/PWRD bond – among which 1,712 GRO tokens were paid to OlympusDAO treasury as bond origination fees, 1.16 GRO remains in the bond treasury, and the rest distributed through bonding (1,050 GRO were not yet claimed).
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In return, Gro received 33,423 GRO/PWRD pool tokens that were priced at a total of $204,474 at the time of transactions.
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Total discounts received by bond participants totaled $40.5K at the time of transactions for an average of 19.8%; OlympusDAO team suggested this is above the average discount observed across all bonds at about 10%.
Participants
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34 bonding transactions took place between 19th November and 28th December 2021.
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Of the 34 transactions, there were 19 unique wallets that participated in bonding.
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With further analysis, a significant number of wallets are shown to be transacting with each other. This narrows down the individual entities that participated in bonding to 6 groups of wallets. Majority of the bonded values was driven by a bot network of 11 wallets contributing to 21 transactions.
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The identified bot network (Group 1) has contributed 57% of bond value, followed by an individual DAO member (Group 2) who contributed 22%. All GRO tokens obtained by these wallets were eventually sold in the market, though part of them were initially retained and used for subsequent bonding.
Bond size & value
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76% of all bonding activities bonded at above 90% of maximum bond size (1,162 bonds), reflecting a desire to bond at or beyond the maximum bond size.
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Bond value averaged at $6,000 and decreased over time as token price dropped over the course of the bonding period, even though the bond size remains close to maximum bond size.
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By comparison, gas cost required for bonding estimated to be at ~$400 i.e. 6.7% of average bond value. This likely has helped drive the higher-than-average discount.
Suggestions by OlympusDAO
We discussed the analysis outcome with our counterparts in the OlympusDAO team, who provided us with the following suggestions.
- Increasing co-marketing efforts
- Featuring Olympus Pro bond more prominent in community channels on Discord (e.g., Bond Support Channel with Olympus Rep answering questions) and on dApp to drive organic demand
- Reviewing the bond vesting period (currently at 14 days)
- Reviewing overall GRO emission and bringing it more in line with APY implied by bond discounts
DAO input required
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Should Gro DAO re-evaluate the allocation approved under Vote 008?
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If the DAO decides to continue this program, what changes should be put in place to improve bond dynamics?