The current wave of geysers are set to expire on December 19th, 2023, let’s talk about the next rounds!
SPOT is closing in on it’s 1 year anniversary next month. It’s so far shown resilience through a fairly protracted down market period. The Spot Rotation Vault (aka stAMPL) was launched 3 months ago and in that short time has already amassed 6.5% of the AMPL network.
AMPL has seen some growth lately seemingly connected to awareness and trust around SPOT. This is suggested by the strong demand for AMPL staking in the vault and also increasing sophistication in activity in community channels. More people seem to show an understanding of the SPOT system, how it works, and the benefits it brings compared to alternative systems.
The FORTH/WETH PALM vault is making good use of the market volatility and is showing some life. It’s earned $19K in fees and now owns 65.5 ETH in external assets. The value is up 8% vs holding the assets outside the vault.
The DAO still owns $1M of AMPL/ETH liquidity on Uniswap v2. Average volume has been in the few $100k per day, which is a healthy source of income.
The SPOT/USDC Arrakis vault is earning 1.58% APR from organic fees, all while 77% of the assets are already inflation resistant, which would mean ~5% already vs the dollar.
A new version of the rotation vault is in development, with some features that could help make market making operations for SPOT more efficient, and earn more fees for vault depositors simultaneously.
But, there is still a lot of work needed to grow SPOT. For SPOT to succeed, I believe we still need more people to treat it as a real and lasting store of value. Higher supportable supply, higher holders of SPOT or SPOT liquidity, more efficient market arbitrage, and perhaps new things to do with SPOT, could help bring SPOT to the next level.
I propose keeping largely the same configuration as last time with more weight to encouraging SPOT supply and liquidity.
The rotation vault has shown strong demand so far. We should closely watch the behavior of vault stakers during any possible market reversal.