Sign in

Apollo Liquidity Inflow Analysis

What is Apollo?

ApolloDAO is a yield optimizer built on Terra. The team’s current focus is on auto-compounding, however over time the team will develop more advanced strategies. Additionally, ApolloDAO seeks to be fully cross-chain and will build upon other chains like Cosmos or Solana.

Apollo’s Vision

Apollo has a broad vision and as one of the first yield-aggregators on Terra, it has a first-mover advantage. Right now the product is very similar to another yield-aggregator — Spectrum — however the vision for Apollo is grand as you’ll read in a recent interview with the Apollo team.

Adoption

Apollo’s farms have proved massively popular with the TVL reaching almost $142 million in 1 week! At it’s peak the TVL exceeded $200m within 24 hours! The community farming event was supposed to last a month but 3 Million Apollo were farmed within only 3 days! The team had to announce an extension of the community farming event.

https://twitter.com/ApolloDAO/status/1441021451314864130

Using Apollo

  1. With existing LP tokens.

Data Analysis

You can have the best product but you need users for it to be a success. Let’s take a look at the numbers that Apollo has generated so far since launch on September 14, 2021. This data analysis is done using the data from Flipside Crypto (https://www.flipsidecrypto.com).

Overall Picture

Let’s first look at the overall number of transactions and depositors per deposit type (UST or LP tokens). As expected the frictionless UST deposits have proved more popular than the LP Tokens.

Comparing UST vs LP deposits

LEGEND: For these next set of visualizations — Green = UST and Yellow = LP Tokens

Comparing Strategies/Vaults

When you view the Apollo Vaults on Finder, they are represented by a unique strategy id. For e.g. the ANC-UST Vault is represented by strategy_id = 30 . In the below charts, we’ll use these Ids to get a sense of how popular each of these vaults are.

UST Deposits

Let’s look at the UST deposits first. It’s clear that the strategies 29 and 30 are the most popular with strategy 29 having most of the daily transactions and deposits. Looking at the APY/APR rates since launch, it’s not a surprise to guess that strategy 29 is the MINE-UST pool.

LP Deposits

Looking at the LP deposits, we see a similar dominance by strategies 29 (ANC-UST) and 30 (MINE-UST) for transactions but for the amount of LP tokens deposited the strategy 29 (ANC-UST) holds more than 90% share. How can this be?

Where is the new liquidity coming from?

Now let’s look at the sources of new liquidity being added to Terra. There are two sources that I’m considering for this scenario — Central Exchanges and Bridges (Ethereum, BSC).

  1. Then, I’m looking at the pre-launch timeframe between August 7, 2021 (When Apollo posted launch details) and September 14, 2021 (Apollo public launch).
  2. Next, I’m looking for deposits made to these addresses from either a central exchange or a bridge. For the addresses for the exchange and bridge, I’m using the information available on ET Finder under “Named accounts” — https://finder.extraterrestrial.money/named_accounts. The exchanges that are included in this analysis are — Kucoin, Binance, Bkex, Coinone, Upbit, Moonpay, Coinex, Huobi and Bithumb.

Conclusion

  1. Apollo has proven to be very popular
  2. Apollo made it really frictionless for users to deposit and it has proven to be the right decision.

On-chain crypto analyst