Introduction

GARD is the world's first algorithmic stablecoin on Algorand's blockchain, pegged to $1 in value. Thanks to GARD, Algorand users can collateral its ALGOs as Collateral debt positions(CDP) to in turn get GARD in return.

In more detail, GARD aims to be the first truly decentralized dollar and the first algorithmic stablecoin on Algorand by improving on ideas from prominent DeFi projects such as MakerDAO, TerraLuna, and it has been created for those seeking the most utility from their capital.

In the near future GARD will target not only Algorand Governance participants but also it will spread across chains to drive demand, growth, and composability. While the protocol is launching with exclusively ALGOs for collateral, other assets from new chains, including Bitcoin, may also serve as collateral in the future to leverage new techniques to facilitate loans that reward the GARD Protocol’s users.

Methodology

Because of we want to take a look at the collateral positions and the amount of ALGO put as collateral as well as the total GARD minted thanks to that, we will need to know something more about what is the mechanism of the platform. Lets go deeper.

The protocol is distinct in a few key ways. First of all the blockchain takes collateralized debt position structure (CDP) and collateral the ALGO provided by users. Then, first and foremost, by building on Algorand, the protocol uses the only blockchain to solve the blockchain trilemma. Furthermore, the way CDP positions are structured incentivizes "borrowers" to mint GARD and keep their positions open since this is more capital efficient. Finally, it's important that CDPs are backed by ALGOs and not a floating, made-up token to ensure ample liquidity and prevent users from falling victim to a liquidity issue or bank run as experienced by many other stablecoin offerings.

Finally, for the Gard minted, we need to know that GARD is minted by Algorand Governors who choose to participate in governance through the GARD Protocol instead. These new governors i.e. GARDians will now send their ALGOs to a smart contract account and commit their ALGOs to create collateralized debt positions (CDPs).

Results

As said before, in this dashboard we are gonna take a look at the collateral debt positions users are taking on by putting their ALGOs up as collateral and getting some GARD in return. The metrics evaluated are:

• Chart how much GARD has been minted by day
• Chart how many wallets mint GARD each day.
• How much has Gard.Money generated in ALGO fees? Show the fees accumulation over time.
• What is the total amount of ALGO collateral currently backing the GARD?

As we can see, the daily number of users minting GARD and then, collateralizing their ALGO has not been so high during this time of period. It can be seen how the amount of users are below 50 in the major of the evaluated days. But in the middle of the chart, we can see how there was an spike between April 11th and April 14th when the daily users increased below 100 in all of these days. The peak was located in April 11th with almost 600 users minting GARD. The current accumulated number of users that collateraled some ALGO is 1754.

In the second chart, we can see the number of users putting ALGO in collateral splitted by first collateralization or user recollateralizing.

In terms of GARD minted over time, we can see how during the first days, more GARD were minted in comparison with the last days. However, coinciding with the peak, in April 12th was a spike on the amount of minted GARD achieving the highest daily value with more than 1M of GARD minted. The current cumulative number of minted GARD is 1.75M.

Finally, this last chart shows the amount of paid fees over time when users put their ALGO in collateral. As it depends on the amount of ALGO put in collateral and then, the amonut of GARD minted, this charts looks pretty similar to the previous one. Then, we can see how the fees are higher during the first days and the peak was registered in April 12th with more than 29k ALGO paid in fees. The current cumulative paid fees are around 45k ALGO right now.

Conclusions

In this dashboard we have studied a new way to collateral ALGO on Algorand network, with which users can mint another token when do it. The token is called GARD. Through this analysis, we have seen the daily number of users collateralizing their ALGOs and then, minting GARD tokens. As well, we have represented the amount of minted GARD over time as well as the total paid fees in ALGO in a daily basis over time.

Source:

• Algogard webpage
• Algogard Whitepaper