The purpose of this post is to provide an analysis of Real Yield ETH’s performance since Q3 through the end of the current quarter ending on January 1, 2024.
We will describe performance relative to the KPI proposal passed in July 2023 for RYE SIPS-060. 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 a Geometric mean.
For APY, a snapshot of APR 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 using a geometric mean. In the case of Real Yield ETH (and likely many other Sommelier strategies) there are occasional days with negative APY (which cannot be calculated in a geometric mean), so to calculate the geometric mean, we took the geometric average of the daily APY + 1e6 and then subtracted 1e6 from the result.
Additionally, we have reported APY using the annualized difference in share price from strategy launch to the end of the quarter.
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 (geometric mean) TVL: $30,757,482
Average (geometric mean) APY: 9.2%
Therefore, the performance bucket is 20M+ TVL and 9%+ APY as per the KPI proposal.
This qualifies for the distribution of 850k SOMM:
As specified in the KPI proposal forum post, the received SOMM shall go to 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.
DeFine Logic Labs requests support from the KPI Committee in setting up the time-lock contract.
The recipient address for the KPI funds after time-lock is owned by DLL and is the following: 0xf449eede7c26a1a051fd9f3a4dd29eba42782904