May 2023 - Governance Call OP Rewards Analytics Update

Background

The data team at OP Labs has been working on tracking OP distributions across governance grants, partner funding, and other sources. We aim to share grant program performance and insights on a monthly basis in #Monitoring.

This doc serves to update data and case studies for monthly delegate call in May. We welcome the broader community to analyze & contribute to our open-source analytics repo. You can follow this brief guide on how to contribute here.

A snapshot of program data was taken on May 6, 2023.

Open Questions

  1. What are the best metrics for evaluating grants?
  2. Are there any proactive criteria / grant structures that we can apply for future seasons?
  3. What are the activities that lead to developer growth & future applications, and how can we address those?
    1. i.e. do we need more TVL, major pair DEX liquidity, something else?

Current Deployment Status - Growth Experiments

  • We’ve observed 39 growth experiment proposals launch or complete, with 32 to be launched.
    • Geo Web from Season 3 went live on Apr 12, 2023 with 20,000 OP
  • Live & Completed programs represent 80% (43.7M) of allocated OP, and have deployed 56% (31M) of allocated OP (not in projects’ wallets).

Growth Experiments Only

# Programs # OP Allocated (M) % OP Allocated
Live ‎🔥 Subtotal 32 39.6M 73%
Governance - Season 3 1 20.0K -
Governance - Season 2 9 6.5M -
Governance - Season 1 8 3.6M -
Governance - Phase 0 14 29.5M -
Coming soon ‎⏳ Subtotal 32 10.9M 20%
Governance - Season 3 12 2.1M -
Governance - Season 2 13 5.2M -
Governance - Season 1 4 1.3M -
Governance - Phase 0 3 2.2M -
Completed Subtotal 7 4.1M 7%
Governance - Season 3 - - -
Governance - Season 2 2 790.0K -
Governance - Season 1 1 900.0K -
Governance - Phase 0 4 2.4M -
Grand Total 71 54.6M 100%
Source: OP Summer Programs

Stats by Season

  • Aggregate by Gov Fund Season

Stats were measured at the Latest Date (Note: Many programs still ongoing). ‘Multiple’ includes projects across multiple seasons and/or funds (i.e. Partner Fund & Governance Season 2).

Source # OP Allocated Net OP Deployed Net $ Inflow Net $ Inflow / OP Incremental # Txs Annualized # Txs / OP Incremental Gas Fee ($) Annualized Gas Fee / OP
Governance - Phase 0 31.0M 19.8M 141.9M $7.18 14,860 0.27 160,643 2.97
Governance - Season 1 4.2M 2.3M 133.7M $58.04 2,702 0.43 19,826 3.14
Governance - Season 2 1.8M 1.1M 26.8M $23.35 1,303 0.41 5,930 1.89
Governance - Season 3 20.0K 21.0K - - 2 0.03 0 0.00
Multiple 9.2M 8.2M 291.1M $35.68 9,921 0.44 46,164 2.06

Select Deep Dives

Program Benchmarks

The following comparisons evaluate growth experiment programs in relation to benchmarks such as incremental transactions, ETH fees, and cumulative net inflows. To standardize these metrics, we assess their effectiveness per OP. Growth experiments are then compared to the 25th, 50th, and 75th percentile increments per OP collectively, with the size of the bubble indicating the amount of OP deployed.

Programs positioned in the top right quadrant of the coordinate plane, above the 75th percentile, indicate better performance in a specific metric.

See Program Benchmarks in the op-analytics/op_rewards_tracking readme for chart links.

Note: It’s important to consider that the performance of programs can be influenced by various factors, such as their nature of business, externalities, and incentive mechanisms. Therefore, while the numbers may indicate one program outperforming another, it is essential to recognize that these differences could be attributed to these additional factors rather than a direct measure of superiority.

At Program End Date (Or Latest), n = 32 Incremental Txs per Year / OP Incremental Fees per Year / OP* Incremental TVL per Year / OP
75th Percentile 1.21 Txs 0.003 ETH / $4.76 USD $12.1 USD
50th Percentile (Median) 0.27 Txs 0.0006 ETH / $1.11 USD $1.04 USD
25th Percentile 0.01 Txs 0.0001 ETH / $0.18 (-$4.45) USD
30 Days Post-Program, n = 7 Incremental Txs per Year / OP Incremental Fees per Year / OP* Incremental TVL per Year / OP
75th Percentile 0.42 Txs 0.00035 ETH / $0.64 USD $3.63 USD
50th Percentile (Median) 0.17 Txs 0.0001 ETH / $0.18 USD $0.28 USD
25th Percentile 0.008 Txs 0 (-$1.01) USD
  • Assume $1850 ETH/USD conversion, Subject to L1 gas prices

Transactions - Acquisition Period


Source: OP Analytics

Transactions - Post-Incentives Period


Source: OP Analytics

ETH Fee - Acquisition Period


Source: OP Analytics

ETH Fee - Post-Incentives Period


Source: OP Analytics

Top Inflows - Acquisition Period


Source: OP Analytics

Top Inflows - Post-Incentives Period


Source: OP Analytics

Incentivized DEX pools
Below are the individual DEX pools with OP incentives, with comparison across metrics like # trades, unique traders, and trade volumes. Incremental uplift is calculated by the difference between the average during incentive period vs that 30 days before incentive started.

  • 4.0M OP has been used to incentivize individuals DEX Pools (excluding Uniswap Liquidity Managers) - 2.5M to Velodrome, 1.2M to Curve, and 330k to Beethoven X.
  • Below is the summary of the top and bottom DEX pool performers in terms of incremental $ volume and cumulative net flows


Source: Dune


Source: Dune

Breakdown by Program - Liquidity

Top Inflows - Acquisition Period

App Product Incentivised Net TVL Inflows Projected OP Deployed Net Inflows per OP
Aave App $342.0M 5.0M $68.4
Velodrome App $286.7M 0.0K $46.4
Beefy Finance App $76.3M 370.1K $206.2
Synthetix App $66.7M 2.8M $24.0
Lido App $50.2M 56.0K $897.2
Gamma App $43.9M 271.7K $161.8
Arrakis Finance App $41.5M 271.7K $152.9
Beethoven X App $38.9M 238.1K $163.4
Pooltogether App $34.3M 1.0M $34.3
Rocket Pool App $28.4M 463.5K $61.2

Top Inflows - Post-Incentives Period

App Product Incentivised Net TVL Inflows (End Date + 30 Projected OP Deployed Net Inflows per OP (End Date + 30)
Aave App $77.3M 5.0M $15
Pooltogether App $4.6M 1.0M $5
Revert Finance App $1.1M 240.8K $5
Layer2Dao App $235.0K 20.8K $11
Defiedge App $0.0K 25.0K $0
Aelin App -$2.8K 900.0K $0
Rubicon* App -$1094.2K 793.9K -$1
Note: Rubicon migrated protocol versions as the program ended, so outflows are overstated.

Breakdown by Program - App Usage

Top Usage - Acquisition Period

For usage, we aggregate all incentive programs and observe the activity on each apps’ contracts. For a broader view, see the Project Usage Trends dashboard and project <> contract mappings.

Cutoff at Program End Date (Latest Date if still Live)

App # OP Allocated OP Deployed Incremental # Txs Annualized # Txs / OP Incremental # Txs After Annualized # Txs / OP After
Velodrome 7.0M 6.2M 7,546 0.45 - -
Stargate Finance 1.0M 544.7K 4,758 3.19 - -
Rubicon 900.0K 793.9K 4,110 1.89 1,584 0.73
Pika Protocol 900.0K 718.7K 3,896 1.98 - -
Synthetix 9.0M 5.4M 3,866 0.26 - -
Aave 5.0M 4.8M 3,123 0.24 4,744 0.36
Uniswap 1.0M 800.0K 2,767 1.26 - -
Hop Protocol 1.0M 174.1K 2,675 5.61 - -
1inch 300.0K 300.0K 2,101 2.56 390 0.47
Beethoven X 500.0K 240.4K 1,901 2.89 - -

Top Usage - Post-Incentives Period

Cutoff at Program End Date + 30 days (Latest Date if not yet reached 30 days)

App # OP Allocated OP Deployed Incremental # Txs Annualized # Txs / OP Incremental # Txs After Annualized # Txs / OP After
Rubicon 900.0K 793.9K 4,110 1.89 1,584 0.73
1inch 300.0K 300.0K 2,101 2.56 390 0.47
Aave 5.0M 4.8M 3,123 0.24 4,744 0.36
Revert Finance 240.0K 240.8K 218 0.33 116 0.18
WePiggy 300.0K 300.0K 39 0.05 12 0.01
XToken 900.0K 709.8K 18 0.01 3 0
Aelin 900.0K 900.0K 8 0.00 -5 0

Top Gas Spend - Acquisition Period

Cutoff at Program End Date (Latest Date if still Live)

App # OP Allocated OP Deployed Incremental Gas Fee ($) Annualized Gas Fee / OP Incremental Gas Fee ($) After Annualized Gas Fee / OP After
Synthetix 9.0M 5.4M 105,358 7.11 - -
Velodrome 7.0M 6.2M 44,141 2.61 - -
Stargate Finance 1.0M 544.7K 21,269 14.25 - -
Hop Protocol 1.0M 174.1K 19,820 41.54 - -
Uniswap 1.0M 800.0K 11,900 5.43 - -
Beethoven X 500.0K 240.4K 8,751 13.29 - -
Aave 5.0M 4.8M 8,635 0.65 15,551 1.18
Rubicon 900.0K 793.9K 8,017 3.69 10,876 5.00
QiDao 750.0K 362.0K 6,471 6.52 - -
Kwenta 900.0K 911.6K 5,506 2.20 - -

Top Gas Spend - Post-Incentives Period

Cutoff at Program End Date + 30 days (Latest Date if not yet reached 30 days)

App # OP Allocated OP Deployed Incremental Gas Fee ($) Annualized Gas Fee / OP Incremental Gas Fee ($) After Annualized Gas Fee / OP After
Rubicon 900.0K 793.9K 8,017 3.69 10,876 5.00
Aave 5.0M 4.8M 8,635 0.65 15,551 1.18
WePiggy 300.0K 300.0K 155 0.19 174 0.21
Revert Finance 240.0K 240.8K 116 0.18 97 0.15
XToken 900.0K 709.8K 19 0.01 0 0.00
1inch 300.0K 300.0K 5,293 6.44 -58 -0.07
Aelin 900.0K 900.0K 58 0.02 -77 -0.03

Data Resources

OP Analytics Github Repo

TVL Flows by Program

Flows are shown by token at the latest price (unless otherwise indicated) | Sources: Defillama & TheGraph APIs

Onchain Usage by Program

17 Likes

Tagging in Council members for visibility:

@danelund.eth @katie @jackanorak @MattL @GFXlabs @Gonna.eth @kaereste @Michael @MoneyManDoug

7 Likes

I so badly want to understand what’s going on here but I feel like this is written in data analyst jargon from Jupiter.