The purpose of this post is to provide an analysis of Real Yield USD’s performance since inception through the end of the current quarter ending on July 1, 2023.
We will describe performance relative to the recently passed KPI proposal for RYUSD. 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 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 using a geometric mean. In the case of Real Yield USD (and likely many other Sommelier strategies) there is an occasional day with negative APY. The geometric mean does not work off-the-shelf for negative values, so we have computed it using a slight adjustment which first adds a constant to all the daily APY values, the subtracts the constant after.
Additionally, we have reported APY using both the standard mean as well as 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 USD KPI Analysis - Google Drive
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: 10086763.47
Average (geometric mean) APY: 0.04929892661
Average (mean) APY: 0.04929910919
Annualized share price difference APY: 0.04953808442
Therefore, the performance bucket is 10M TVL and 4% APY as per the KPI proposal.
This qualifies for the distribution of 400k SOMM:
| APY/TVL | $5M | $7.5M | $10M | Total |
|---|---|---|---|---|
| 1% | 75,000 | 50,000 | 25,000 | 150,000 |
| 2% | 50,000 | 25,000 | 25,000 | 100,000 |
| 3% | 25,000 | 25,000 | 25,000 | 75,000 |
| 4% | 25,000 | 25,000 | 25,000 | 75,000 |
| Total | 175,000 | 125,000 | 100,000 | 400,000 |
As specified in the KPI proposal forum post, the receiving address for the SOMM is a time-locked contract 0xaa71f75fb6948a6c814a28675241fc5e3bcac355
The contract implements a 2 year lockup period. Once the funds are sent to the contract, the contract owner (Seven Seas) may execute a transfer in 2 years.