dgnETH Quarterly Report Q2 2025
This report aims to provide a comprehensive update of all dgnETH 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 dgnETH over the last quarter while becoming a reference library for all governance, social media and on-chain data.
We are up against the limits of the forum software with these quarterly reports and it can be difficult to view and parse the data below. If you’d prefer you can find an identical version of the Q2 report in a Google Document here.
Summary
- Strong quarterly growth with the market cap gains well above ETH price appreciation revealing bolstered growth in ETH supply and dgnETH supply across DeFi markets.
- While supply across DeFi markets has swelled 140% in ETH terms, DeFi compostability remains problematic with no new markets over the last two quarters. Increasing DeFi compostability is a strong avenue for growth over the next two quarters.
- There is currently a contentious RFC on the forums with governors deliberating over the inclusion of OETH to the dgnETH collateral basket.
- Social media has continued to lag this quarter with all metrics showing a steep decline over the last quarter. Improving these numbers will be a focus over the next quarter.
- The two-token model that dgnETH is based on has continued to out-perform the rest of the single-sided ETH LP market with a yield multiplier of 1.8x, a 30d yield of 8% and a current yield of 14.9% maintaining the product as a market leader.
Questions for the community
-
Where can dgnETH be integrated in order to be more composable across DeFi with the hope of boosting sdnETH yields and RToken Market Cap?
-
Should we add OETH to the dgnETH collateral basket? Does its yield profile fit the current mandate? Please leave your comments in the forum and vote in the poll.
Full Report
dgnETH Core Metrics
| dgnETH Core Metrics | Close of Q1 | Close of Q2 | Delta (Q2/Q1) |
|---|---|---|---|
| Price ($) | $1,593.00 | $2,535.00 | 59.13% |
| Market Cap ($) | $3,673,458 | $13,000,000 | 253.89% |
| ETH Supply | 2,306.00 | 5,313.00 | 130.40% |
| Staked RSR ($) | $131,820 | $780,000 | 491.72% |
| Staked RSR ($RSR) | 21,970,000.00 | 114,400,000.00 | 420.71% |
| Total TVL | $3,805,278 | $13,780,000 | 262.13% |
| RSR Backing | 5.00% | 7.00% | 40.00% |
| RSR Staking Yield | 10.50% | 5.80% | -44.76% |
| Diversification Ratio | 37.50% | 37.50% | 0.00% |
Staked dgnETH (sdgnETH) Core Metrics
| Staked dgnETH (sdgnETH) Core Metrics | Close of Q1 | Close of Q2 | Delta (Q2/Q1) |
|---|---|---|---|
| dgnETH Supply | $892,080 | $3,447,600 | 286.47% |
| dgnETH Supply (ETH) | 560 | 1,360 | 142.86% |
| Staked dgnETH Supply | $2,230,200 | $4,700,000 | 110.74% |
| Staked dgnETH Supply (ETH) | 1,400 | 1,630 | 16.43% |
| Percent of dgnETH staked | 60.00% | 55.00% | -8.33% |
| sdgnETH Price relative to ETH | 1.08 | 1.11 | 2.78% |
| Collateral basket yield | 8.68% | 4.52% | -47.93% |
| Yield Multiplier | 1.70 | 1.83 | 7.65% |
| sdgnETH Yield | 13.60% | 14.70% | 8.09% |
| sdgnETH Yield (30d) | - | 7.90% |
Current dgnETH Collateral Basket
| Collateral Asset | Allocation | Yield | Basket Yield |
|---|---|---|---|
| Morpho RE7 WETH Vault | 25.00% | 3.02% | 0.76% |
| Convex ETH+/ETH | 75.00% | 5.02% | 3.77% |
| Total Yield Profile | 4.52% | ||
| Diversification Ratio | 37.50% |
Token Holder and Transfer Metrics
| Token Holders and Transfers | Close of Q1 | Close of Q2 | Delta (Q2/Q1) |
|---|---|---|---|
| dgnETH Holders | - | 42.00 | |
| dgnETH Stakers | - | 28.00 | |
| dgnETH Transfers (90d) | 562.00 | 417.00 | -25.80% |
| dgnETH Total Transfers | 1,897.00 | 2,250.00 | 18.61% |
DeFi Integrations
| Supply across DeFi Markets | Close of Q1 | Close of Q2 | Delta (Q2/Q1) |
|---|---|---|---|
| DeFi ($) | $647,700 | $2,342,400.00 | 261.65% |
| DeFi (ETH) | 381 | 915 | 140.16% |
| Curve ($) | $647,700 | $2,342,400 | 261.65% |
| Curve (ETH) | 381 | 915 | 140.16% |
Curve Markets
| Curve dgnETH | Close of Q1 | Close of Q2 | Delta (Q2/Q1) |
|---|---|---|---|
| dgnETH / ETHplus | |||
| Total TVL | $2,480,000 | $4,685,000 | 88.91% |
| dgnETH Supply (ETH) | 381 | 915 | 140.17% |
| ETHplus Supply (ETH) | 381 | 915 | 140.16% |
| — | — | — | — |
| Auto-Compounding Vaults | |||
| Yearn Finance | $260,000 | $465,983 | 79.22% |
| Yearn Finance Yield (30d) | - | 9.32% | |
| StakeDAO | $334,000 | $722,470 | 116.31% |
| StakeDAO Yield (30d) | - | 8.32% | |
| Convex | $1,250,000 | $3,545,128 | 183.61% |
| Convex DAO Yield (30d) | - | 7.26% |
Governance
Proposal 1 - dgnETH backing buffer increase from 0.1% to 0.15%
RFC
Total unique commenters - 1
Off-chain Poll - 5 votes (5 for / 0 against)
Total RSR voted - 5m (5m for / 0m against)
Proposal 2 - Collateral Basket Change Proposal: Adding Wrapped OETH (wOETH) to the dgnETH Collateral Basket
RFC
Total unique commenters - 3
Off-chain Poll - 6 votes. Incorrectly created, voters hidden until closed.
IP
This proposal has not yet graduated to IP.
Social Media
This section looks at the data surrounding the dgnETH X account only
| Social Media Metrics | Close of Q1 | Close of Q2 | Delta (Q2/Q1) |
|---|---|---|---|
| Posts | 49 | 22 | -55.10% |
| Impressions | 4,370 | 1,230 | -71.85% |
| Profile Clicks | 30 | 4 | -86.67% |
| Followers | 209 | 202 | -3.35% |
Most Viral Tweet
Conclusion
dgnETH has had a successful quarter with its market cap outpacing ETH price appreciation, with an increase of 89% compared to 35%, this is great news after a period of stagnation through Q1. It’s difficult to say why exactly we have seen this growth in ETH supply given we have not increased the compostability of dgnETH across DeFi or changed the collateral basket composition, however we have maintain a basket that has sustainably out performed the LST market average thus remaining competitive in the single side ETH staking market with yields of 14.9% presently. Another promising sign is the increasing amount of RSR staked on dgnETH increasing from 22m to 114m showing that RToken governors are keen to maintain a say in the future of the RToken, it also helps that RSR staking yield is 5.8%, one of the highest across all yield RTokens.
Unfortunately, dgnETH still remains the least compostable ETH based RToken with only the dgnETH/ETHplus LP on Curve live. While the issue is complex given dgnETH isn’t yield bearing natively incentives are needed to support the TVL, a more composable asset across DeFi will support sdgnETH yields even further given it’s built upon the two-token model. We have again seen monumental growth on the Morpho markets of ETHplus and bsdETH and could be a strong avenue for growth over the next quarter boosting sdgnETH yields well over the markets single-sided ETH yields current offerings.
We have seen two proposals hit the forum this quarter, one being an administrative post and the other to add OETH to the collateral basket. The first despite being for administrative purposes had high poll turnout and passed the IP without issue, likely due to its relevance to the slashing event we had last quarter. The second is a collateral basket change and concerns the addition of OETH to the collateral basket, this is contentious given the yield profile of OETH and is yet to graduate to IP.
In summary, we have seen a good quarter from dgnETH with market cap gains well above ETH price appreciation and increased dgnETH supply across DeFi. However, the compostability of dgnETH is not improving and has the potential to be a strong avenue of growth over the next quarter along with increasing dgnETH’s social media presence.
Once again I’d like to thank the community and the wider Reserve team for their continued support of bsdETH this quarter. Please consider this as an open invitation to anyone thinking about contributing to or have any feedback about the bsdETH strategy to reach out by either under this post or privately.
TG: @hamdefi
Discord: Ham6869