February 2023 Yield+ Report
Notice To DeFi Protocols From the Yield+ Team
In the initial Yield+ Blue Paper, there were a number of requirements laid out for DeFi protocols to be eligible to receive funding. Although code audits were recommended in this document, it was not presented as a requirement. However, after listening to feedback from the EOS community, a decision has been made by the Yield+ working group to require that all participating protocols receive an audit from a reputable firm, in order to be eligible for this program.
This amendment will help further ensure the safety and security of user funds on the EOS Network. All protocols currently participating are required to meet this new requirement by April 15th 2023 in order to continue receiving funds from Yield+. Any questions on this can be directed to the Yield+ Telegram group.
Thanks for your cooperation and participation in growing the EOS ecosystem.
February marks the 6-month anniversary of the Yield+ program with continued progress and outperformance of the benchmarks.
EOS TVL in the program increased by just over 8%in local terms, with another new dApp launching and being immediately eligible for rewards. Overall US Dollar TVL increased 15%to $37 Million across 15 participating dApps.
Total Value Locked (TVL)
The current program allows for EOS and USDT to be counted as TVL for reward eligibility.
There are 4 tiers of eligibility for dApps with minimum TVL of EOS 200K, 750K, 1.5M and 3M respectively.
Top 5 dApps Change in TVL
| EOS (m) t-1 | EOS(m) t | Δ | Δ EOS | Δ USD | |
| vaultdefi | 9.34 | 10.28 | 10% | 0.95 | 1.15 |
| swapdefi | 7.32 | 7.92 | 8% | 0.60 | 0.73 |
| lenddefi | 3.54 | 3.85 | 9% | 0.31 | 0.38 |
| dfsdeveloper | 3.95 | 3.48 | -12% | -0.47 | -0.57 |
| danchorsmart | 3.34 | 3.43 | 3% | 0.09 | 0.11 |
Cumulative TVL
The spread of TVL across dApps continues to broaden.
Performance Metrics
The original Yield+ Blue Paper highlighted three core stages of the transition of a Layer 1 chain’s value proposition from speculation to ecosystem driven.
EOS remains in the first of these stages, ‘Green Field’, where Market Cap exists without significant TVL. In this stage, the Yield+ reward mechanism primarily aims to drive adoption through the TVL to Market Cap ratio, whilst the other factors are less significant.
As a brief reminder, the paper considers a formula to calculate total rewards is calculated via three factors
- TVL to Market Cap ratio
- Absolute TVL (scaled [0.1])
- Distribution of TVL – Entropy (scaled [0.1])
The three different factors that will ultimately determine long term rewards play different roles in driving this progress. Absolute TVL does not play a role at this point and drops out the calculations.
We display the trends of the two other components, Entropy and TVL to Market Cap Ratio below and the overall Factor that we observe to test the efficacy of the programme.
Entropy remains stable and reflects increasing diversification of dApps.
The TVL to Market Cap ratio remains buoyant and positively trending.
The overall performance metric reflects the fundamental growth of the program.
Correlation between EOS Market Price and TVL was extremely high, circa 0.98, which supports the fundamental data emerging.
The trend is depicted below with the YTD TVL/MC ratio oscillating more on general market volatility with TVL acting as a (stable) proxy for EOS idiosyncratic risk.
The trend since inception reflects similar characteristics.
Wider Market
Below we have plotted TVL performance in EOS against Ethereum, and then a basket of other chains ‘RoW’ comprising Binance Smart Chain, Tron, Arbitrum, Polygon, Avalanche, Optimism, Fantom and Solana.
EOS continues to outperform its peer group for growth and retention of TVL.
The data this month confirms the same conclusions reached in previous reports and so recommendations remain similar. The program sees steady uptake and steady growth in TVL against market cap. TVL in the EOS ecosystem remains strongly idiosyncratic.
Yield+ Treasury Account
The ENF has allocated in total 600,000 EOS for Yield+ to date, or 0.06% of overall supply, which has generated a TVL of circa 3% of market cap.
| Starting Balance | 299,780 |
| Allocated | 87,490 |
| Funding | |
| Unclaimed | 6,401 |
| End Balance | 218,691 |
| Net of Liabilities | 212,290 |
Unclaimed rewards are generally not significant.
Recommendations
Although the program has operated for 6 months, and there are positive trends emerging, it is too early to expect to see the economic effects reflected in the EOS economy. At this point in the cycle, the goal is to attract on-chain liquidity alone. However, this should catalyse economic development in a number of ways and further incentive modelling should be performed to maximise the opportunities.
Report presented by 0rigin.one
EOS Network
The EOS Network is a 3rd generation blockchain platform powered by the EOS VM, a low-latency, highly performant, and extensible WebAssembly engine for deterministic execution of near feeless transactions; purpose-built for enabling optimal Web3 user and developer experiences. EOS is the flagship blockchain and financial center of the Antelope framework, serving as the driving force behind multi-chain collaboration and public goods funding for tools and infrastructure through the EOS Network Foundation (ENF).
EOS Network Foundation
The EOS Network Foundation (ENF) was forged through a vision for a prosperous and decentralized future. Through our key stakeholder engagement, community programs, ecosystem funding, and support of an open technology ecosystem, the ENF is transforming Web3. Founded in 2021, the ENF is the hub for EOS Network, a leading open source platform with a suite of stable frameworks, tools, and libraries for blockchain deployments. Together, we are bringing innovations that our community builds and are committed to a stronger future for all.
