[REPORT] bsdETH Quarterly Report Q1 2025

This report aims to provide a comprehensive update of all bsdETH related activities over the last quarter, including both on-chain and off-chain data. The purpose of this report is to inform and educate the wider Reserve community on the activities of bsdETH over the last quarter while becoming a reference library for all governance, social media and on-chain data.

bsdETH Core Metrics

Price: $1634
Price relative to ETH: 1 bsdETH = 1.03 ETH
Market Cap at the end of Q4: $27.8m (8625 ETH)
Current Market Cap: $8.1m (5121 ETH)
Staked RSR: $812,000 (117.5m)
Total TVL (MC+Staked RSR): $8.9m
Backing: 11%
RSR Staking yield: 3.7%
Diversification Ratio: 77.8

On-Chain Metrics

Contract Address: 0xcb327b99ff831bf8223cced12b1338ff3aa322ff
Holders: 6,659 -19.5% (8,265)
Total Transfers: 234,407 +47% (159,809)
Transfers (90d): 78,764 +44% (54,957)

DeFi Integrations

Total bsdETH supplied end of Q1 2025: $7.8m (4970 ETH)
Total bsdETH supplied end of Q4 2024: $23.4m (7100 ETH)
Dollar value change: -65%
ETH value change: -30%

Morpho

Total bsdETH Supplied: $6.5m -63% ($17.3m)

bsdETH/WETH
Total supply: $4.9m
Total Borrow: $4.2m
Available: $740k
Liquidations: $0

Vaults
Seamless WETH supply: $4.12m (2610 ETH)
Gauntlet WETH Core supply: $818k (518 ETH)
Re7 WETH supply: $0

bsdETH/eUSD
Total supply: $1.51m
Total Borrow: $566k
Available: $994,000
Liquiditations - 35 ETH

Vaults
Morpho eUSD supply: $1.51m

Uniswap

bsdETH/ETH LP
Total TVL: $481k
bsdETH: 115 ETH
ETH: 188ETH

Aerodrome

Total bsdETH Supplied: $1.2m (750 ETH)

CL1-WETH/bsdETH (Concentrated Stable)
Total TVL: $892k
bsdETH: 425 ETH
ETH: 181 ETH

vAMM-WETH/bsdETH (Basic volatile)
Total TVL: $942k
bsdETH: 292 ETH

ETH: 299 ETH

vAMM-RSR/bsdETH (Basic volatile)
Total TVL: $75k
bsdETH: 23 ETH
RSR: 5.5m ETH

CL200-RSR/bsdETH
Total TVL: $20k
bsdETH: 10.8 ETH
RSR: 305k RSR

Governance

Proposal 1 - Collateral Basket Change Proposal: Adding Wrapped Super OETH (wsuperOETHb) to the Based ETH Collateral Basket

RFC

Total Voters: 5 (5 For / 0 Against)

Comments: 8

IP
Total Voters: 4

Total RSR Voted: 17m RSR (100% For)

Proposal 2 - bsdETH Backing Buffer change from 0.1% to 0.15%

RFC

Total Voters: 5 (5 For / 0 Against)

Comments: 0

IP
Total Voters: 3

Total RSR Voted: 25m RSR (100% For)

Proposal 3 - Collateral Basket Change Proposal: Adding Rocket Pool ETH (rETH) to the Based ETH Collateral Basket

RFC

Total Voters: 3 (3 For / 0 Against)

Comments: 1

This RFC is awaiting further community engagement and a reply from Signal (the proposer) before it can be moved on-chain.

Social Media

This section looks at the data surrounding the bsdETH X account only

Posts: 55 (62%)
Impressions: 19k (966%)
Profile Clicks: 256 (1322%)
Followers: 147 (37.5%)

Conclusion

In Q1 bsdETH has struggled to maintain the high growth rate witnessed over the previous quarter, experiencing a decline in Total Value Locked (TVL), dropping 72% in dollars and 41% in ETH value. While market sentiment and a weak ETH price contributed to these changes, they were not the only factors, as total ETH supply across DeFi markets has also decreased.

In Q4 2024, 74% of bsdETH allocated to DeFi strategies was concentrated in Morpho’s vaults, leaving us dependent on the decisions of vault curators. Recently, the Re7 WETH vault removed its entire bsdETH allocation, severely impacting the overall supply. This drop was somewhat offset by the introduction of the Gauntlet Seamless WETH Vault in mid-February, which has a total supply of $21 million and a 22% allocation to bsdETH. However, overall adjustments in bsdETH supply to Morpho vaults has resulted in a total reduction of 1,140 ETH or a 20% decline, with the dollar value of supply dropping by 63%.

Governance activity has picked up this quarter, with three RFCs on the forums, two of which have successfully passed and completed their IP governance process. This increase is largely due to the completion of the index protocol and the core team lifting the governance freeze across all yield protocol RTokens. The first successful proposal involved adding superOETHb to the collateral basket, a topic referenced in the previous quarter’s governance review. With the collateral plugin now complete, we have been able to finalize the addition, increasing diversification and yields with its inclusion. The second proposal involved increasing the backing buffer from 0.1% to 0.15% to align with yield protocol standards. Additionally, RocketPool has proposed an RFC to include rETH in the collateral basket, pending the completion of its collateral plugin.

Last quarter, we noted that bsdETH’s social media presence was lacking, with lower-than-desirable impression counts due to a limited posting volume. Fortunately, these metrics have significantly improved, with a stronger posting cadence, impressions nearly ten times higher and a stable engagement ratio at 4.8%. However, with just 55 posts last quarter, there is still potential for growth.

In summary, bsdETH has faced a significant decline in TVL—72% in dollars and 41% in ETH for Q1 2025—affected by market sentiment and reduced ETH supply in DeFi markets. Governance activities have increased with successful proposals, while social media engagement has also seen notable improvements. Yet, there’s still room for further enhancements in community engagement both in governance and on twitter.

It’s been a productive quarter, made possible by our community’s support. We invite you to continue contributing to bsdETH’s strategy in the upcoming quarter. Please leave a comment on this post if you have suggestions or if you’d like to take a more active role in supporting bsdETH. (TG: Ham_PERQ / Discord: Ham6869).

Thanks for putting together a solid quarterly report @ham, this was quite useful and included some things I would have missed otherwise. Regarding the wsuperOETHb yield - I believe the amount showing in the Reserve UI to be not entirely accurate - according to Origin’s API, for the 40 days since the wsuperOETH proposal passed the superOETHb yield was 5.254217542010967% APR, which brings the blended APR a bit higher than the amount in your screenshot to 3.86076073%. I’ve mentioned this to the Reserve core team, hopefully they can update the UI to include the API by the time the next quarterly report is ready.

One idea I had to help drive growth for bsdETH, would be to deploy a bsdETH/superOETHb pool on Curve, with Yield Forwarding enabled. Origin can assist with obtaining the gauge for this pool. Through Yield Forwarding, rather than having the yield sent to other users, like it is with superOETH sitting in other smart contracts that are opted-out of receiving yield, the yield from the underlying superOETH in the pair will be sent back to Curve as a bribe on the pair - incentivizing Curve voters to vote to send emissions to the pool, which in turn drives individuals to deposit into this pool. The bribes for this pool could be entirely funded from the superOETH yield itself, rather than needing the Reserve team or DAO to cover this cost.

To get the Yield Forwarding process started, Origin would just need the bsdETH/superOETH pool to be deployed. The initial liquidity for this pool could come from one of the current bsdETH/ETH pools on Uniswap or Aerodrome. Many of the current pools with Yield Forwarding enabled can be found on Origin’s governance forum.