Real Yield ETH KPI Analysis

Governance
1

The purpose of this post is to provide an analysis of Real Yield ETH’s performance since Q2 through the end of the current quarter ending on October 1, 2023.

We will describe performance relative to the recently passed KPI proposal for RYE. As discussed in the proposal to establish the KPI council, performance is evaluated based on two criteria: TVL and APY.

For TVL, a snapshot of TVL on each day at 00:00:00 UTC is recorded and averaged using an arithmetic mean.

For APY, a snapshot of share price is taken each day at 00:00:00 UTC, then those share prices are differenced and annualized to produce daily APY values. Finally, those daily APY values are averaged. In the case of Real Yield ETH (and likely many other Sommelier strategies) there are occasional days with negative APY.

Additionally, we have reported APY using the annualized difference in share price from strategy launch to the end of the quarter.

For a smoothed APY that utilizes multiple means of measurement, we averaged the two above APYs for a more accurate estimation of user returns.

All raw data is available at the following spreadsheet: Real Yield ETH KPI Analysis
Daily share price and TVL were calculated by querying the Cellar contract and specifying block number corresponding to 00:00:00 UTC each day.

Average (arithmetic mean) TVL: $11,469,909.79

Average (arithmetic mean) APY: 6.94%

Annualized share price difference APY: 7.06%

Average Between Mean and Annualized Share Price: 7.00%

Therefore, the performance bucket is 11M TVL and 7% APY as per the KPI proposal.

This qualifies for the distribution of 400k SOMM:

Screenshot 2023-10-02 at 5.50.39 PM
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As specified in the KPI proposal forum post, the receiving address for the SOMM is a time-locked contract.

The contract implements a 2-year lockup period. Once the funds are sent to the contract, the contract owner (DeFine Logic Labs) may execute a transfer in 2 years.

The recipient address for the KPI funds after time-lock is owned by DLL and is the following: 0xf449eede7c26a1a051fd9f3a4dd29eba42782904

2

An error was observed in the analysis above. The dates of the data analyzed were erroneously from 6/1/2023 to 9/30/2023. These are not the correct dates for Q3 2023. The analysis has been redone for the period from 7/1/2023 to 9/30/2023.

The same methodology was used for capturing TVL and APY data, as described in the post above.

All raw data is available in the following spreadsheet: Real Yield ETH KPI Analysis

Geometric Mean TVL: $12,697,087
Geometric Mean APY: 9.08%

Therefore, the performance bucket is 12M TVL and 9% APY as per the KPI proposal.

This qualifies for the distribution of 550K SOMM:

Screenshot 2023-10-10 at 10.15.21 PM
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As specified in the KPI proposal forum post, the receiving address for the SOMM is a time-locked contract.

The contract implements a 2-year lockup period. Once the funds are sent to the contract, the contract owner (Define Logic Labs) may execute a transfer in 2 years.

The recipient address for the KPI funds after time-lock is owned by DLL and is the following: 0xf449eede7c26a1a051fd9f3a4dd29eba42782904

3

GM Define Logic - the KPI Council has finished our review and can replicate the numbers provided in your second analysis.

This qualifies your cellar for 550k SOMM in incentives for it’s performance in Q3 2023. We have posted our quarterly review in a new forum post confirming this decision.

I will initiate the incentives payment from the multi-sig within the next few hours. Please note that this might take up to 48 hours as we wait for other multi-sig members to sign the transaction.

Congrats on the great performance of your cellar!