We are delighted to present to you the key insights collected from the past three months, along with our planned distribution strategy for the upcoming quarter.
Key Insights:
Tinyman has reported 77M ALGO for GP11 TDR calculations, reflecting a 5% growth compared to the previous period.
Currently, there are approximately 10,000 active LP positions in the 50 largest pools selected for TDR Farms, marking a 20% growth in the past quarter.
A notable achievement is the generation of $60M in volume over the last three months on the Tinyman protocol, equivalent to the volume generated in the previous 6 months combined and also representing approximately 60% of the total volume in the ecosystem.
This progress has been made possible through the huge support of our community, and we thank everyone who contributed.
Below, you will find details outlining our potential distribution plan for the next governance period. We believe that this plan will continue to foster Tinyman’s growth in the quarters ahead.
Here’s an overview of our approach:
Coefficients have been assigned to each pool based on the following metrics: (this approach allows us to take care of the pools activity and distribute rewards fairly across the pools)
Total Value Locked (TVL) - 40% (Feb 7th)
Volume - 50% (over 90 days)
LPs Count - 10% (Feb 7th)
Pools Allocations:
80% — 35 ALGO/ASA Pools (with the only exception, USDC/USDT pool)
10% — 10 Wrapped Asset Pools
5% — Lending Pools
5% — $TINY Token Launch (TINY/ALGO and TINY/USDC pairs)
Great that you use objective metrics and determine the reward allocation that way! I would prefer if you would use something like volume/TVL to measure the effectiveness of the TVL as well but it is already a step in the right direction, other DEXs should take a look at that. Objectivity is great but I think you should also think about ways to increase TVL/ volume in general and not blindly focus on those metrics. Especially since something like LPs count is easily game able on algorand due to low fees.
For example I don’t think Opulous is actively building anymore on Algorand since they moved to Arbitrum. Should we really just use objective metrics to determine how much rewards the OPUL-ALGO pool should get? Shouldn’t we focus on the projects that continue doing their best on Algorand?
We try to cover TVL, Volume and Volume/TVL and Active Users all at the same time. While active LPs seem to be easily manipulated, the data still looks insightful and can be validated with some other aspects: farming participation, reward claims, LP position updates, etc. We don’t trust any metrics 100%, but they do give some idea, at least “relatively” insights. Additionally, as we monitor these metrics regularly, we can easily identify and ignore “suspicious” activities or any abusive situation reported by the community.
On the other hand, If I need to provide some details about OPUL, based on the data we use:
TVL: $246,586.54
3-months Volume: $3,819,079.38
Volume/TVL: ~15.5 (this is an incredibly high rate. I wish it was the same in all other pools the total average is around 4.5)
Active LPs: 300 Accounts (none of which are whale or team funds)
Considering all this, we believe that it’s unfair to incentivize this pool negatively because it is actively used and really generates revenue for its user base.
Re: Shouldn’t we focus on the projects that continue doing their best on Algorand?
We already built and currently running all our strategy around ALGO and ASAs and try to support all the projects, community initiatives and allocate the TDR rewards accordingly: “80% Allocation to 35 ALGO/ASA Pools”. Moreover, Tinyman initiates the most partnership firms in every period, as we already have good relations with most ASAs.
Thank you again for your feedback.
We are happy to see you contributing every time.
the total average is around 4.5)