[Analytics] Protocol Revenue

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  1. Context

Last October, the Ref Dev DAO (dao.ref-dev-team.near) has started working with Datrics, a data service provider.

The objective of this partnership is to provide public data relating to the protocol revenue, which is a key component of the project and its sustainability in the future.

  1. Solution

Two dashboards have been delivered and are now accessible:

  • General view: link
  • Detailed (per pool) view: link

The revenue is computed on a daily basis. In simple terms, the revenue corresponds to the USD value of the protocol shares (protocol’s LP tokens) at the end of every day.

THIS IS NOT the realised revenue, but rather a theoretical revenue as today the protocol DOES NOT extract its shares on a daily basis, but on a quarterly basis.

  1. Insights

Here are some interesting insights, based on the data provided:

  • Since inception (August 2021), Ref has generated over $1.3M in revenue
  • In May 2021, Ref recorded its most profitable month with over $250k in revenue generated, followed closely by April 2021 ($240k)
  • Average monthly revenue is $87k
  • Last October, revenue generated from Normal pools represented 84% of the monthly revenue vs. 15% from Stable pools and <1% from Rated pools
  • 9 out of the 10 most profitable pools since inception are paired with NEAR
  • Looking at the 3 most profitable pools
    • USDT<>NEAR: 65% of the protocol revenue derived from direct swap vs. 35% from instant swap
    • USDC<>NEAR: 50% direct swap vs. 50% instant swap
    • REF<>NEAR: 39% direct swap vs. 61% instant swap
  1. Next steps

While the team and the community are invited to dig in and share their insights/findings, one of the obvious value propositions is to find out what’s the best protocol revenue extraction strategy; daily, weekly, or monthly.

In the detailed (per pool) view, Datrics recommends the best extraction strategy for every corresponding pool.

It would be interesting to understand how Ref could implement a more dynamic revenue management vs. the quarterly extraction currently implemented.

Finally, the team is working on the improvement of the dashboards with the idea to integrate them into Ref Analytics.

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Hey, it’s Vlod from Datrics.

It’s been a pleasure working with you and more all the analysis/ building dashboards.
We are looking forward to finding even better insights and building analytics together.

Datrics is an AI and analytics partner and a no-code tool that helps speed up the development and deployment of analytical solutions. If you would like to know more: http://blockchain.datrics.ai/

If you have any suggestions or questions, don’t hesitate to reach out.

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