[SIPS-055] Upcoming Rhino Fi RYE Incentives Proposal

Governance
3

Here are some results from the SIPS-034 Proposal.

In addition to Sommelier vaults being listed directly in the Rhino UI, the Sommelier App UI also offers users the opportunity to make a deposit from the Rhino L2 as shown in the screenshot.

Rhino Screenshot

Spend

  • A total of 70,000 SOMM was spent on boosting RYUSD yields. Additionally, 20,000 SOMM (a portion of which is reclaimable) was allocated to promoting RYUSD to a targeted group of approximately 150 users who had shown interest in passive yield opportunities. Rhino still has around 10,000 SOMM remaining, which can be allocated to future Sommelier opportunities.

Results

  • TVL: At its peak, $630k of RYUSD’s TVL came from the Rhino platform and its userbase. Since Rhino is no longer providing incentives for this opportunity, the TVL figure has decreased to approximately $300k of RYUSD, mirroring the reduction seen in RYUSD TVL on Ethereum mainnet since SOMM incentives stopped (from a peak of $16.5M to $8.5M currently).

  • Users: The number of Rhino accounts using RYUSD continues to increase and currently stands at approximately 490. For context, the number of lifetime RYUSD users on Ethereum mainnet is approximately 240.

  • Gas Fees: Gas fees for bridging from Ethereum to Rhino and then making a deposit are significantly lower than depositing directly into Sommelier vaults on Ethereum mainnet. Specifically, entering Sommelier vaults from Rhino is more than 10 times cheaper than doing so through Ethereum mainnet. This is because, at 15 gwei, it costs around $3 to bridge to Rhino, and depositing is free. In contrast, making a deposit on Ethereum mainnet costs approximately $37. The savings in gas fees have made Rhino a viable option for smaller depositors, as demonstrated by the user figures above.

Conclusions

SIPS-034 was a promising trial with Rhino and demonstrated the ability to attract a different set of users compared to those Sommelier accesses via Ethereum mainnet. After consulting with the Rhino team, we believe that a smaller program offering a modest yield boost will be most effective in attracting new users to the Real Yield ETH vault.

Additionally, Rhino plans to include the Real Yield ETH vault as one of the featured “quests” in their upcoming marketing campaign, which starts later this week.