It's time to check in on the HOPR Arrakis vault. All data from our Dune dashboard: dune. com/hopr/hopr-arrakis.
13 Jun 2023, 15:00
It’s time to check in on the HOPR Arrakis vault ⏰
All data from our Dune dashboard: dune.com/hopr/hopr-arrakis
We’re six weeks into the trial of Automated Liquidity Managers, as voted for by the HOPR community in our fifth governance experiment 🗳️
snapshot.org/#/vote.hopr.eth/proposal/0x0f36e7d9cb695224af76bd345417f5780545b2d3b799159a8f3719dc44bce5ee
Around $300k from the community treasury was allocated to @ArrakisFinance to manage in one of their Arrakis Palm vaults 🌴
etherscan.io/token/0xc7b95a90d5c7bd234def512be51afca3002dbe37
Although this represents just 5% of the community holdings in the Uni v3 pool at the time, the Arrakis vault has facilitated 13% of volume during the trial
dune.com/queries/2355465/3857778
The first month of the trial was smooth, with the vault almost keeping parity with just holding the assets (in addition to providing plenty of liquidity for other token holders)
dune.com/queries/2496231/4107204
Unfortunately, the weekend’s market turbulence affected HOPR as well 😩
This is reflected in the data, with a quite large drop in vault performance versus holding.
dune.com/queries/2496231/4107206
Of course, this isn’t unexpected impermanent loss is an intrinsic feature of providing liquidity, and the goal of the community liquidity provision isn’t primarily to make moneyHopefully the PALM system can close that gap as the market starts to recover 📈
It’s too early to deliver a verdict, of course, and there are many confounding factors: the bear market certainly isn’t helping liquidity pools thrive 🐻
The seventh governance experiment resulted in a significant investment in future HOPR products 🧑💻
snapshot.org/#/vote.hopr.eth/proposal/0x40760c8440daf1fbfff80080752dd113010d80599ef96eb4af67594ae51f3c43
This had the (intended) side effect of reducing the depth of the liquidity pool, in turn making the Arrakis vault a much more significant player
It will be interesting to see how that plays out over the coming months 👀