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 of its activities over the last quarter while also being the first in a series of reports which will become a reference library for all governance, social media and on-chain data.
dgnETH Core Metrics
Price: $3300 (as of 01/01/25)
Price relative to ETH: 1 dgnETH = 1 ETH
Market Cap at the end of Q3: $2.4m (731 ETH)
Current Market Cap: $7.97m (2416 ETH)
Staked RSR: $490k ( 38m RSR)
Total TVL (MC+Staked RSR): $2.9m
Backing: 6%
RSR Staking yield: 7.1%
Diversification Ratio: 50%
sdgnETH Core Metrics (as of 28th Jan)
Price: $3174 (as of 28/01/25)
Price relative to dgnETH: 1sdgnETH = 1.06 dgnETH
Total dgnETH supply: 2770 ETH
Total dgnETH staked (sdgnETH): 1650 ETH
Percent staked: 60%
Base yield Multiplier: 1.7x
Base Basket Yield: 7.2%
sdgnETH yield: 12%
On-Chain Metrics
Token Metrics
Holders: 30
Total Transfers: 1392
Transfers (90d): 500
DeFi Integrations
Total dgnETH supplied: $3m (626 ETH)
Curve
Total dgnETH Supplied:$3m (626 ETH)
dgnETH/ETH+
Total TVL: $4m
dgnETHETH: $1.94m (626 ETH)
ETH+: $2.15m (694 ETH)
Curve LP staked:
Convex: $3.5m
Yearn: $322k
StakeDAO: $88k
Governance
No governance activity on the dgnETH forum this quarter.
Social Media
This section looks at the data surrounding the dgnETH X account only.
Posts: 39 (-57%)
Impressions: 9.16k (-61%)
Profile Clicks: 43 (-59%)
Followers: 222 (-20.4%)
Conclusion
On-chain metrics have been very positive for dgnETH in quarter 4 with a 300% gain in TVL both in USD and ETH terms and a strong commitment from RSR stakers with an overcollateralisation of 6% higher than ETH+ and bsdETH with overcollateralisation ratios of 5% and 4% respectively. A particular metric worth highlighting is the ratio of dgnETH to sdgnETH, currently 60% of dgnETH is staked. Since 40% is unstaked, holders likely opting instead to make it productive in DeFi, this gives us a yield multiplier of 1.7x. Since the sdgnETH and sdgnETH yield are pretty well balanced right now, I don’t expect this ratio to change drastically in the upcoming quarter.
DeFi integrations for dgnETH are sparse. Only one LP is live, the dgnETH/ETH+ LP on convex which is supported by Convex, Yearn and StakeDAO vaults (ordered by size). Since Morpho markets of the other two ETH denominated RTokens provide a significant share of the RTokens DeFi activity this is something that should be considered for dgnETH. An integration would significantly boost sdnETH if we see similar DeFi activity occurring on dgnETH that we see on ETH+ and bsdETH.
It’s interesting that there hasn’t been any governance proposals on the dgnETH forums in the last quarter. Due to dgnETHs mandate it has been difficult to find high yielding yield strategies with sufficient TVL that can be easily plugged into the Reserve ecosystem. I have my own ideas with how to optimise for yield in the upcoming quarter such as the recent proposal that just passed governance, removing apxETH and reweighting the basket and possibly integrating the liquidity rate from Tokemak’s autoETH but would appreciate any one from the community to come forward with other ideas with how we can maintain the dgnETH mandate and optimise the basket yield further.
With regards to dgnETHs social media presence we have seen lacklustre performance across the board likely coming from the reduced posting cadence from the dgnETH account while this has led to a drop in impressions and profile clicks.
In summary this has been a good quarter for dgnETH in terms of on-chain metrics seeing a huge 300% increase in TVL. No governance posts this quarter can be attributed to the shift in focus by the core teams from the yield protocol to the upcoming index protocol and the lack of strategies that meet the dgnETH mandate, this should change in the upcoming quarter with a more balanced approach from the core teams and more strategies coming online that meet dgnETHs mandate. More work needs to be done in regards to the social media account going into the next quarter, increasing the frequency of posts whilst maintaining the engagement rate is the main priority.
It’s been a great quarter but couldn’t have been achieved without the help of the community. Please consider this an open invitation to continuing to contribute to dgnETH strategy in the upcoming quarter. Please leave a comment on this post if you have any suggestions or would like to take a more active role in supporting dgnETH. (TG: Ham_PERQ / Discord: Ham6869).