Everyone says “the bear market is for building”.
Well, the bear market doesn’t last forever.
Of course, the building never stops, but it’s easier right now, without all the extra noise, the spotlights, the hype and the scrutiny. The Folks team has been firing on all cylinders, and the results are clear. Let’s celebrate some stats relating to Governance period 6, for which the commitment period just closed.
3865 unique wallets are using Liquid Governance this period, a new high-water mark for this metric. It’s the most wallets for any DeFi governance solution by a significant margin, proving the value of putting community first. We’re thrilled that the focus on our core users is appreciated.
177 Million gALGO were minted for Gov6. This is slightly down from the 191 Million of last quarter, but still impressive. gALGO utility continues to grow, so we anticipate this metric reaching new highs later this year.
Leveraged commit launched right before the commitment period closed. Over 30 Million ALGO were committed through 518 loans by 423 users in only 5 days of the feature being live. Users of leveraged commit were interacting with the lending markets on the backend as well, providing liquidity in gALGO, then borrowing ALGO. It’s this, specifically, we are most proud of. DeFi needs to operate more in the background to entice new users in. To the governor, it was as simple as picking your leverage between 2x and 4x, but within, there’s so much going on. That governor is now using DeFi without realizing it. While leverage commit was live, the ALGO borrow rate increased, as expected. This creates incentive for liquidity providers to deposit into the ALGO markets, which is healthy for TVL and ecosystem liquidity in general.
APR for governance is now at 14.67%, about 8% higher than traditional governance through the Algorand Foundation. The allocation received via the past two governance votes is proving to be successful in rewarding those brave enough to use Algorand DeFi. It’s our pleasure to provide the service which can facilitate the growth of adoption.
Keep your eyes out for unique opportunities and benefits if you minted gALGO this quarter. We’ll keep delivering value and utility over everything else.