Progress Update Report - OpenBlock Labs
OpenBlock Labs is pleased to provide you with a progress update on our collaboration with the analytics and reWARDs committees. In the last two months, we have made substantial progress in creating a curated data intelligence platform for the DAO; this platform aims to establish an objective-based framework for identifying liquidity targets and enhancing organic volume growth. Our latest work is available here, and we are excited to continue expanding our scope to enhance growth within the Lido DAO. We have outlined below the details regarding OpenBlock’s current progress and future work.
Working with the Analytics and reWARDs Committees:
- We have actively engaged with the analytics and reWARDs committees to gain a comprehensive understanding of their KPIs and the various levers within their control. Through extensive discussions and evolving protocol needs, new metrics have been identified with the insights required to drive volume growth effectively. The current live dashboard presents the most recent analytics considered valuable from these discussions, and additional metrics will be incorporated in the upcoming month.
V1 Incentive Budget Data Analysis:
- Leveraging the data available, we analyzed and evaluated the effectiveness of incentivizing various venues to promote trading volume growth. By utilizing data-driven insights, guidelines were identified for June and July, outlining the pools most likely to yield the desired outcomes around liquidity and volume targets.
Data Integrations:
- To enable a wide range of queries and facilitate comprehensive analysis, we have indexed the blockchain and created a robust data architecture that supports extensibility. Some examples include: real-time monitoring of volume per venue, DEX-specific breakdowns, current and historical pool-specific breakdowns, trading volume breakdown, and lending pool analytics. The indexed data serves as a solid foundation for further analysis and decision-making.
Development of Forecasting Models:
- Our data science team has focused on developing robust forecasting models to predict Total Value Locked (TVL), volume, and LP revenue in response to incentives. These models utilize historical data and relevant market factors to provide accurate forecasts. By leveraging econometric techniques, we aim to provide valuable insights into future performance and trends for upcoming resource allocation.
Building an Intuitive Dashboard:
- Our team has designed and implemented an easy-to-use and intuitive dashboard that presents data in a comprehensive and accessible manner. We have integrated feedback received from multiple contributors who intend to utilize the dashboard regularly. We encourage community members to contribute additional design feedback and propose relevant analytics for consideration within the DAO.
Tangential Data and Liquidity Needs:
- Collaborating closely with the general Business Development (BD) team, we also provided tangential data and analytics on liquidity, such as lending pool supply caps. Our work here demonstrates how a solid data foundation can easily extend to other needs of the protocol in effort to provide a more holistic and comprehensive analytics platform.
Looking ahead to the next month, our key priorities are as follows:
Incorporation of Lending Risk Frameworks and Centralized Data:
- As per requests with various committees, we will work with relevant parties to incorporate lending risk frameworks and centralized exchange data into the dashboard. OpenBlock will leverage this data to help maximize the growth potential of various money market venues, by recommending opportunities for development. OpenBlock will collaborate with Aave risk stewards to discern specific liquidity, volume, and supply benchmarks. These guidelines will facilitate an improvement from the current supply caps, and provide a general-purpose framework that will extend to other money markets across various ecosystems.
Money Market Liquidity Dynamics, Modeling, and Recommendations:
- With the inclusion of new data sources, we will develop analytics and econometric models to provide recommendations to optimally leverage the lending and centralized data. These queries and models will provide valuable insights into liquidity dynamics and enable better decision-making.
Data Quality Assurance and User Feedback:
- Throughout the development process, we continue to bolster our rigorous data quality assurance test suite to ensure our data and analytics are error-free. Additionally, we actively seek user and community feedback to identify areas of improvement.
We are excited about the progress made thus far and confident that the upcoming milestones will contribute to the growth of key metrics within the Lido DAO ecosystem. We are committed to providing a powerful, data-driven intelligence platform that facilitates informed decision-making for core contributors and the broader DAO community.
We appreciate the opportunity to work with this community and look forward to our continued collaboration.
Best regards,
Paul Sengh
OpenBlock Labs