ApeSwap Treasury Bills Campaign Report [March]
Summary
Over the previous three months, we have been engaging in the ApeSwap Treasury Bills Campaign to increase our protocol-owned liquidity (POL) and bring more revenue for the DAO.
After the first Campaign’s initial success, the team worked with ApeSwap to put forward Proposal DCP-6, where we allocated 40,769,233 RADAR as a reward for participation in the following Treasury Bills Campaign. We initially estimated that the campaign would last ~90 days, however, there are still 60% of the rewards left remaining. For users, this means more rewards available, and for us, as a DAO and community, more revenues will be coming into our Treasury.
Together with the @ApeswapDAO team, we have put together a brief report to highlight the current state of the Campaign.
1. Treasury Bill Highlights
| SOLD | STARTED | VESTED VALUE | ACQUIRED VALUE | SALE DURATION | R.O.I. |
|---|---|---|---|---|---|
| 60 % | 11/16/23 | $ 245,797 | $ 200,343 | 98 days | 81.51 % |
Sold: Percentage of the total allocation to Treasury Bills that were purchased by users.
Vested value: Total tokens paid out, multiplied by the token’s price at vesting time.
Acquired value: Sum of LPs deposited by users, multiplied by the price of the LP at the moment of purchase.
ROI: AcquiredValue / VestedValue
2. Liquidity Graphs
ApeSwap Treasury Bill Liquidity Growth (in USD)
The below graph shows the accumulated liquidity by Treasury Bills since launching DappRadar’s second Treasury Bill.
ApeSwap Treasury Bill Liquidity Growth (in LP’s)
The below graph shows the accumulated LP tokens raised to date by Treasury Bills. The dollar amount of liquidity fluctuates given market volatility and impermanent loss. But the amount of LP tokens in the protocol controls is always increasing with Treasury Bills.
These LPs can regain value and are continuously growing given LPs are a yield-bearing asset! The LP value grows over time simply by holding them, which means the liquidity will naturally continue to grow over time.
Total number of LP tokens raised to date: 64,298.67 LPs
At today’s LP price (aprox. $6.58) the raised LPs represent a total value of $423,120 in RADAR-WBNB liquidity that is now owned by the project.
The current bill has already sold 60% of its tokens. Given the outstanding results achieved to date, it is projected that the overall number of LP raised to be over 100K by the end of the current campaign.
3. Token Price During Bill Sale
In the following figures, we can see that the Treasury Bill Campaign has no negative effect on the token’s price overall tendency.
4. Treasury Bills R.O.I. vs Renting Alternative
The ApeSwap team is strongly convinced that the adoption of traditional liquidity mining programs that involve renting (”farming”) as a project’s primary strategy is totally outdated.
Traditional “farming” involves a huge investment from the project’s treasury that:
- Has a strictly short impact on demand for the token, producing pumps & dumps on the token’s price between the starting and ending dates of the farms.
- Attracts yield mercenaries who take away a huge amount of the farm’s rewards and just get away as soon as the program ends, “stealing” those rewards from the project’s real community, and leaving a huge dump in the project’s price that loyal community holders must bare with.
- Leaves literally no returns for the project’s treasury. All the value invested in rewarding the program is gone.
- As derived from the above statements, continued and renewing farming programs can inflict tremendous damage to the project and its loyal investors by producing huge volatilities in price through those pumps & dumps, which will for sure panic many holders of the token, and may introduce a death spiral.
Through strong research, and the thorough analysis of data gathered on hundreds of projects that have reached to ApeSwap’s financial engineers with the objective of raising a better & long-lasting liquidity profile at a minimum cost is that we think we have finally arrived at an infinitely better alternative. The case of our Campaign, to date, has yielded the following outstanding results:
By adopting a sustainable liquidity mining strategy, and under the current bill, the project was able to:
- Acquire over $200K in liquidity (with a current value of $423,120 due to LPs appreciating over time).
- Provide a deeper liquidity pool for their community to trade against that will last for several months to come.
- Raise demand for their token & strengthen the price by reducing swap slippages with a long-lasting deeper liquidity pool, and,
- Last but not least; become the owner of that freshly brewed liquidity.
Below we show the Treasury Bills’ return versus DappRadar’s traditional liquidity renting alternative. As we can see Treasury Bills are exponentially more effective and categorically a better use of capital.
| Treasury Bills | Farming Scenario | |
|---|---|---|
| Token Budget | ||
| (Sum of token’s value at bills’ purchase moment) | $ 245,797 | $ 245,797 |
| Value of LPs Acquired | ||
| (Sum of LPs’ value at bill’s purchase moment) | $ 200,343 | $ 0 |
| R.O.I. | 81.51 % | 0 % |
5. Recommendation on Next Steps
As the second Treasury Bills allocation has been going successfully. ApeSwap has strongly suggested that DappRadar maintains its sustainable liquidity mining programs. We will keep the community updated on how the Campaign continues before we discuss any next steps.