๐Can @EvmosOrg reclaim the Crown of EVM-based Appchain in the Cosmos Ecosystem?
1๏ธโฃ Evmos liqudity Trends in Q4 2022
2๏ธโฃ Effect of Osmosis Incentive Program on Evmos
3๏ธโฃ Evmos needs Community Alignment
4โฃ@spacefi_io TVL sees ~5000% growth
#Evmos๐งต๐
1๏ธโฃ Evmos liqudity Trends in Q4 2022
2๏ธโฃ Effect of Osmosis Incentive Program on Evmos
3๏ธโฃ Evmos needs Community Alignment
4โฃ@spacefi_io TVL sees ~5000% growth
#Evmos๐งต๐
TL;DR
(1) Evmos faced a significant decline in TVL since Q4 2022, but recent developments suggest that the incentive program can bring potential benefits to the Evmos ecosystem if used wisely.
(1) Evmos faced a significant decline in TVL since Q4 2022, but recent developments suggest that the incentive program can bring potential benefits to the Evmos ecosystem if used wisely.
TL;DR
(2) To revitalize the Evmos ecosystem and regain its position as a leading appchain in the Cosmos ecosystem, community alignment and incentivizing developer and dapp growth will be crucial in creating a virtuous cycle of adoption and innovation.
(2) To revitalize the Evmos ecosystem and regain its position as a leading appchain in the Cosmos ecosystem, community alignment and incentivizing developer and dapp growth will be crucial in creating a virtuous cycle of adoption and innovation.
1 / Tokenomics Recap
Before delving into the trend in EVMOS capital, here is a quick recap of the tokenomics model.
Before delving into the trend in EVMOS capital, here is a quick recap of the tokenomics model.
2 /
Following the initial distribution plan for EVMOS tokens, EVMOS will be highly inflationary as approximately 1 billion EVMOS tokens will be released within the next three years.
Following the initial distribution plan for EVMOS tokens, EVMOS will be highly inflationary as approximately 1 billion EVMOS tokens will be released within the next three years.
3 /
The issued EVMOS tokens primarily incentivize users through staking rewards (40%) and usage incentives (25%) with the deferred gas rebate, usage-based reward, and a shared fee model.
The issued EVMOS tokens primarily incentivize users through staking rewards (40%) and usage incentives (25%) with the deferred gas rebate, usage-based reward, and a shared fee model.
5 /
As such,ย it is imperative for Evmos to continually serve reasons for users to hold and spend Evmos and participate in the Evmos ecosystem, creating organic activity.
In the next section, weโll look at the usage patterns in Q4 2022 and discuss ways ahead for Evmos.
As such,ย it is imperative for Evmos to continually serve reasons for users to hold and spend Evmos and participate in the Evmos ecosystem, creating organic activity.
In the next section, weโll look at the usage patterns in Q4 2022 and discuss ways ahead for Evmos.
6 / Capital Contraction in Evmos
Since October, Evmos has seen a remarkable surge in its TVL, reaching its peak in early November. However, this was followed by a sudden decline, with the TVL falling by approximately 90% from its peak.
Since October, Evmos has seen a remarkable surge in its TVL, reaching its peak in early November. However, this was followed by a sudden decline, with the TVL falling by approximately 90% from its peak.
7 /
While the collapse of FTX in early November may have contributed to this dip, a more comprehensive analysis is necessary to see the full picture.
While the collapse of FTX in early November may have contributed to this dip, a more comprehensive analysis is necessary to see the full picture.
8 /
As of late 2022, Evmos native dApp Diffusion Finance dominated the trading volume within Evmos, and externally, the trading volume was mostly generated by Osmosis DEX.
As of late 2022, Evmos native dApp Diffusion Finance dominated the trading volume within Evmos, and externally, the trading volume was mostly generated by Osmosis DEX.
9 /
Therefore, weโll first evaluate the liquidity patterns in Osmosis provides crucial insights into the behavior and trends of external EVMOS token usage.
Therefore, weโll first evaluate the liquidity patterns in Osmosis provides crucial insights into the behavior and trends of external EVMOS token usage.
10 / Impact of Osmosis Incentives on EVMOS Liquidity
On October 17th,ย Evmos proposal #70ย was approved to distribute additional 600,000 EVMOS incentives on the OSMO/EVMOS (#722) pool in Osmosis DEX.
On October 17th,ย Evmos proposal #70ย was approved to distribute additional 600,000 EVMOS incentives on the OSMO/EVMOS (#722) pool in Osmosis DEX.
11 /
With the incentive program, the number of EVMOS tokens in the Osmosis token reserves experienced a marked increase shortly after October 20th, with the amount of EVMOS tokens exceeding those of OSMO in early November.
With the incentive program, the number of EVMOS tokens in the Osmosis token reserves experienced a marked increase shortly after October 20th, with the amount of EVMOS tokens exceeding those of OSMO in early November.
12 /
On the surface, incorporating an external incentive program into the OSMO/EVMOS pool positively impacts the Evmos ecosystem, as a higher level of liquidity in the pool indicates increased activity for EVMOS tokens.
On the surface, incorporating an external incentive program into the OSMO/EVMOS pool positively impacts the Evmos ecosystem, as a higher level of liquidity in the pool indicates increased activity for EVMOS tokens.
13 /
It was observed that shortly after the incentive program implementation, the TVL of Evmos sharply rose, reaching its peak in early November. However, overly incentivizing a nascent ecosystem yields costly consequences.
It was observed that shortly after the incentive program implementation, the TVL of Evmos sharply rose, reaching its peak in early November. However, overly incentivizing a nascent ecosystem yields costly consequences.
14 /
Starting from early October, EVMOS liquidity saw a sharp increase with the incentive program, but faced downward pressure since mid-November.
Starting from early October, EVMOS liquidity saw a sharp increase with the incentive program, but faced downward pressure since mid-November.
15 /
Interestingly, the selling volume for EVMOS was always greater than the buying volume, indicating that users were using Osmosis as an exit for EVMOS.
Interestingly, the selling volume for EVMOS was always greater than the buying volume, indicating that users were using Osmosis as an exit for EVMOS.
16 /
In line with the initiation of the Evmos incentive program, the amount of EVMOS in OSMO/EVMOS pool increased along with the amount sold. This trend is concerning, as a larger sell volume than buy volume could put downward pressure on the price of EVMOS.
In line with the initiation of the Evmos incentive program, the amount of EVMOS in OSMO/EVMOS pool increased along with the amount sold. This trend is concerning, as a larger sell volume than buy volume could put downward pressure on the price of EVMOS.
17 /
If this trend continues, it could make it challenging for token holders to sell their tokens attributing to exacerbated selling pressure.
If this trend continues, it could make it challenging for token holders to sell their tokens attributing to exacerbated selling pressure.
18 /
But why are EVMOS being sold in the first place? Evaluating the current dApp scheme reveals insights.
But why are EVMOS being sold in the first place? Evaluating the current dApp scheme reveals insights.
19 /
Users accrue value by spending EVMOS to swap Evmos assets or engage with dApps in the ecosystem. On the other hand, developers garner fees from usersโ interactions.
Users accrue value by spending EVMOS to swap Evmos assets or engage with dApps in the ecosystem. On the other hand, developers garner fees from usersโ interactions.
20 /
However, Evmos currently lack dApps. With lacking dApps, itโs difficult for users to engage with the Evmos ecosystem and find places to use EVMOS tokens.
However, Evmos currently lack dApps. With lacking dApps, itโs difficult for users to engage with the Evmos ecosystem and find places to use EVMOS tokens.
21 /
Therefore, in its current state, it is hard for users to find meaningful avenues to spend EVMOS within the native protocol.
Therefore, in its current state, it is hard for users to find meaningful avenues to spend EVMOS within the native protocol.
22 /
In the meantime, it is also crucial to understand that most Evmos stakers are airdrop recipients. Evmos is a fairly new chain that launched in March 2022, so when evaluating the data in Q4 2022, it is natural to see a sharp decline in EVMOS spending.
In the meantime, it is also crucial to understand that most Evmos stakers are airdrop recipients. Evmos is a fairly new chain that launched in March 2022, so when evaluating the data in Q4 2022, it is natural to see a sharp decline in EVMOS spending.
23 / Trends in Evmos User Activity
User activity thus decreased in Evmos on the Cosmos side of Evmos. With a lack of dApps, it is hard for Evmos to remain resilient, especially in line with the deteriorating market conditions.
User activity thus decreased in Evmos on the Cosmos side of Evmos. With a lack of dApps, it is hard for Evmos to remain resilient, especially in line with the deteriorating market conditions.
24 /
Despite brief spikes in mid-October and late December, the trend remains stagnant, if not dwindling.
Despite brief spikes in mid-October and late December, the trend remains stagnant, if not dwindling.
25 / Evmos Staking Ratio is On the Rise
Yet,ย evaluating the Evmos staking ratio presents a positive outlook.
Yet,ย evaluating the Evmos staking ratio presents a positive outlook.
26 /
While itโs true that other factors could be driving this increase, such as the high staking incentives or side staking by non-retail investors, itโs still a positive indicator for the Evmos ecosystem.
While itโs true that other factors could be driving this increase, such as the high staking incentives or side staking by non-retail investors, itโs still a positive indicator for the Evmos ecosystem.
27 /
Overall, the rising staking ratio in Evmos presents a positive outlook for the future growth and development of the network.
Overall, the rising staking ratio in Evmos presents a positive outlook for the future growth and development of the network.
28 / What Now? Evmos Needs Community Alignment
With that, what we crucially need in the Evmos ecosystem is education and community alignment. Evmos was designed to incentivize developers, users, and apps, yet the Evmos ecosystem currently lacks dApps.
With that, what we crucially need in the Evmos ecosystem is education and community alignment. Evmos was designed to incentivize developers, users, and apps, yet the Evmos ecosystem currently lacks dApps.
29 /
To address this issue, incentivization was proposed as a means of attracting more developers and re-engaging the user base. However, it appears that theย Evmos community is not fully aligned with this approach.
To address this issue, incentivization was proposed as a means of attracting more developers and re-engaging the user base. However, it appears that theย Evmos community is not fully aligned with this approach.
30 /
Three funding proposals have been put forward since October 2022, aiming to support the development (#77) and fund events to attract more developers in the ecosystem (#80, #82).
Three funding proposals have been put forward since October 2022, aiming to support the development (#77) and fund events to attract more developers in the ecosystem (#80, #82).
31 /
Using @JayLovesPotato's governance framework, the difference between the percentage of โYESโ votes and the rate of votes that were not โYESโ has been calculated for these proposals.
Using @JayLovesPotato's governance framework, the difference between the percentage of โYESโ votes and the rate of votes that were not โYESโ has been calculated for these proposals.
32 /
Proposals #77, #80, and #82 aims to incentivize while expanding the developer and dApp ecosystem.
Proposals #77, #80, and #82 aims to incentivize while expanding the developer and dApp ecosystem.
33 /
Here, finding a balance between overspending and attracting new developers and projects is the key for Evmosโ success as the growth of both user community and developer ecosystem are crucial.
Here, finding a balance between overspending and attracting new developers and projects is the key for Evmosโ success as the growth of both user community and developer ecosystem are crucial.
34 /
The community must come together to find a solution that promotes the long-term health and growth of Evmos. Despite the potential benefits these proposals could bring, achieving consensus is crucial for driving growth in the Evmos ecosystem.
The community must come together to find a solution that promotes the long-term health and growth of Evmos. Despite the potential benefits these proposals could bring, achieving consensus is crucial for driving growth in the Evmos ecosystem.
35 / Itโs 2023. Whatโs next?
Analysis of the Q4 2022 data highlights the necessity for Evmos to prioritize educating the community and building an active dApp ecosystem.
Analysis of the Q4 2022 data highlights the necessity for Evmos to prioritize educating the community and building an active dApp ecosystem.
36 /
However, prominent developments have occurred in the Evmos ecosystem since Q4 2022. Letโs unpack them.
However, prominent developments have occurred in the Evmos ecosystem since Q4 2022. Letโs unpack them.
37 / Rise in Evmos dev-tools Usage
The rise in the usage of Evmos-related development tools is a positive sign for the ecosystem, indicating the growing engagement and interest in Evmosโ technology and development.
The rise in the usage of Evmos-related development tools is a positive sign for the ecosystem, indicating the growing engagement and interest in Evmosโ technology and development.
38 /
While Evmos does not have a feature that directly generates revenue from forks, the reliance on Evmos technology is a positive sentiment in the ecosystem, demonstrating that Evmos tech is attractive to others.
While Evmos does not have a feature that directly generates revenue from forks, the reliance on Evmos technology is a positive sentiment in the ecosystem, demonstrating that Evmos tech is attractive to others.
39 / Growth in Evmos dApp Ecosystem
Since Q4 2022, several dApps have been added into the Evmos ecosystem, including SpaceFi and PagolinDEX. Letโs unpack each of them and what theyโll bring to the ecosystem.
Since Q4 2022, several dApps have been added into the Evmos ecosystem, including SpaceFi and PagolinDEX. Letโs unpack each of them and what theyโll bring to the ecosystem.
40 / @spacefi_io
SpaceFi is a cross-chain web3 platform on Evmos and layer two zkSync with three different products: DEX, NFT Launchpad, and Spacebase.
SpaceFi is a cross-chain web3 platform on Evmos and layer two zkSync with three different products: DEX, NFT Launchpad, and Spacebase.
41 /
Two of its products, Space Swap and Planet NFT, have been on Evmos mainnet since May 2022, acquiring over 40k users. However, SpaceFiโs TVL was insignificant, remaining around $20K.
Two of its products, Space Swap and Planet NFT, have been on Evmos mainnet since May 2022, acquiring over 40k users. However, SpaceFiโs TVL was insignificant, remaining around $20K.
42 /
Only recently, SpaceFi saw a marked increase in users, TVL, and activity. On February 21, 2023, SpaceFiโs whole product was planned to be launched, and as part of the incentive program,ย Evmos proposal #109 suggested bringing 1M EVMOS to start, then $4-$8M native liquidity.
Only recently, SpaceFi saw a marked increase in users, TVL, and activity. On February 21, 2023, SpaceFiโs whole product was planned to be launched, and as part of the incentive program,ย Evmos proposal #109 suggested bringing 1M EVMOS to start, then $4-$8M native liquidity.
43 /
While the proposal was also controversial, with the number of YES votes barely surpassing the threshold with 55.22% of YES votes,ย this incentive program stimulating over ~ a 5000% increase in TVL is notable.
While the proposal was also controversial, with the number of YES votes barely surpassing the threshold with 55.22% of YES votes,ย this incentive program stimulating over ~ a 5000% increase in TVL is notable.
44 /
SpaceFi now has 42.25% dominance in the Evmos dApp ecosystem, outpacing Diffusion Finance.
SpaceFi now has 42.25% dominance in the Evmos dApp ecosystem, outpacing Diffusion Finance.
45 / PagolinDEX Launches on Evmos
Pangolin DEX is a DEX in the Avalanche network that aims to offer users a fast and user-friendly experience across different blockchain networks.
Pangolin DEX is a DEX in the Avalanche network that aims to offer users a fast and user-friendly experience across different blockchain networks.
46 /
This integration will likely draw the attention of DeFi users and EVM developers to Evmos and introduce them to a new audience of IBC users.
This integration will likely draw the attention of DeFi users and EVM developers to Evmos and introduce them to a new audience of IBC users.
47 /
With convenient bridging in the works, the DEX will provide a much more accessible gateway to the Evmos network.
With convenient bridging in the works, the DEX will provide a much more accessible gateway to the Evmos network.
48 / New Features Onboarding
One of the persistent issues in DEXs is the existence of multiple representations for a single token. As tokens are transferred via bridges, the same token can have different representations such as AXLUSDC, CEUSDC, or GRAVUSDC.
One of the persistent issues in DEXs is the existence of multiple representations for a single token. As tokens are transferred via bridges, the same token can have different representations such as AXLUSDC, CEUSDC, or GRAVUSDC.
49 /
This complexity can frustrate users and degrade their overall experience.
This complexity can frustrate users and degrade their overall experience.
50 /
With the new feature Signle Token Representation, Evmos is able to group variations of the same token.
With the new feature Signle Token Representation, Evmos is able to group variations of the same token.
51 /
Now, users can interact with the Evmos assets app which automatically creates a single representation for these variations, thus significantly improving the user experience.
Now, users can interact with the Evmos assets app which automatically creates a single representation for these variations, thus significantly improving the user experience.
52 / What Now?
Evmos has faced backlash for its perceived lack of fundamental utility, but this issue is likely the result of long-standing disputes over community pool spending and incentivization
Evmos has faced backlash for its perceived lack of fundamental utility, but this issue is likely the result of long-standing disputes over community pool spending and incentivization
53 /
The recent success of SpaceFiโs incentive program has demonstrated the potential for Evmos to experience significant growth with the right incentives.
The recent success of SpaceFiโs incentive program has demonstrated the potential for Evmos to experience significant growth with the right incentives.
54 /
Building consensus within the Evmos community and raising awareness of the networkโs potential is more important than ever.
Building consensus within the Evmos community and raising awareness of the networkโs potential is more important than ever.
55 /
Together, letโs align our community and incentivize developers and dApps for a stronger and more robust ecosystem.
Together, letโs align our community and incentivize developers and dApps for a stronger and more robust ecosystem.
56 /
Donโt miss out on the action! If you liked this thread, delegate with us on @0xPolygon, @Aptos_Network, @osmosiszone, @JunoNetwork, @StargazeZone, @EvmosOrg, @_MediBloc, and @cosmoshub to support our mission and earn rewards.
Donโt miss out on the action! If you liked this thread, delegate with us on @0xPolygon, @Aptos_Network, @osmosiszone, @JunoNetwork, @StargazeZone, @EvmosOrg, @_MediBloc, and @cosmoshub to support our mission and earn rewards.
https://twitter.com/yubinpxrk/status/1630201126787387393?s=20
57 /
This thread is the condensed version of the original article. If you'd like more details, please refer to my medium.
bit.ly/3IyiHpJ
This thread is the condensed version of the original article. If you'd like more details, please refer to my medium.
bit.ly/3IyiHpJ
58 /
Any feedback? I would appreciate and welcome every and all kinds of comments :). Calling Evmos ecosystem frens and validators out there!
@EvmosOrg @fekunze @spacefi_io @OniValidator @luisqagt @Cryptocito @TrickyCrypto2 @bittybitbit86
Any feedback? I would appreciate and welcome every and all kinds of comments :). Calling Evmos ecosystem frens and validators out there!
@EvmosOrg @fekunze @spacefi_io @OniValidator @luisqagt @Cryptocito @TrickyCrypto2 @bittybitbit86
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