(Note: in the two above charts, 0 is the asset ID of ALGO token, and 226701642 is the YLDY token of Yieldly Finance.)

The four last charts show the most popular tokens to swap to and from gALGO3.

We can see that gALGO3 <> ALGO (asset ID 0) and vice versa is the most popular swap pair. The only other token with which users have been swapping gALGO sometimes is Yieldly Finance's YLDY (asset ID 226701642).

Author

This analysis was created by catscatscode (Flipside, Twitter) for Flipside Crypto's "What Are Users Swapping gALGO3 For?" Algorand bounty.

To enable Algorand governors to continue using their liquidity in a given quarter, Folks Finance, a defi protocol on top of the Algorand L1 blockchain, introduced the gALGO token aka 'governance algo':

• gALGO can be minted during the commitment period (a window of time prior to the voting period where users commit their ALGOs), or later during the voting period, although the latter gALGOs will not be eligible for the Folks Finance yield.

• It always maintains the peg of 1 gALGO = 1 ALGO.

• gALGO has a number at the end (e.g. gALGO3) which corresponds to the governance period. E.g. gALGO3 is the twin token for the ALGO locked in the governance period #3.

One may wonder to how and what extent Algorand governors have been taking advantage of this newfound liquidity. How much are they swapping, where, and for which tokens?

This dashboard examines the swaps that users have been performing with gALGO3 in the current governance period to answer these questions with on-chain data.

Method

This dashboard calculates swap activity for the gALGO3 token (Algorand asset ID 694432641), namely:

• the number of swaps to and from gALGO3 daily,

• the amount (volume) of gALGO3 involved in these daily swaps,

• a breakdown of these daily swap counts & swap volumes by decentralized exchange (DEX) where the swaps take place,

• top assets that users trade to receive gALGO3, and

• top assets that users receive when they swap away their gALGO3.

This dashboard looks at the entire time period for which gALGO3 has been circulating in swaps, without artificially limiting the time period of the analysis.

Data Analysis

1a. Show the number of trades to gALGO3 and from gALGO3 by day:

1b. Chart the volume of trades to gALGO3 and from gALGO3 by day:

1c. Are there any notable days? If so, what may have caused this?

A notable spike in both the number and the volume of GALGO3 swaps took place on 13 April 2022 (and the 3 days following).

This peak in swaps, and residual high-ish swaps for several days following, could be explained by the deadline for registration for the current governance period #3 on 14 April (see the first image at the start of this article).

These are likely governors either getting their gALGOs just in time for the deadline of the commitment period, and also governors beginning to use their new liquidity.

A percentage of out-swaps from gALGO3 could also be users who had changed their mind and were exiting gALGO before the commitment period closed (until that point the buy-in into gALGO is fully reversible).

2. What DEXes are users swapping gALGO3 on? Show the breakout of number of gALGO3 swaps (to or from) by day for each DEX:

The above two visualizations show the swap breakdown by DEX. Most swaps with gALGO3 have been taking place on Tinyman, and a small number on PactFi.

3a. What are the most popular tokens to swap from to get gALGO3?

(Note: in the two above charts, 0 is the asset ID of ALGO token, and 226701642 is the YLDY token of Yieldly Finance.)

3b. What are the most popular tokens to swap to from gALGO3?

Intro

$gALGO is a proxy or twin token which gives back liquidity for ALGO that is locked in governance.

Algorand operates on a decentralized governance model. I discussed the Algorand governance model in more detail in a previous dashboard, but to briefly summarize, Algorand users can lock their ALGO tokens for a governance period (a quarter) and in exchange receive voting rights for that governance period, and claim rewards (as well as unstake their original tokens if they do not plan to participate in the next governance quarter) at the end of it. However, these governors are missing out on the liquidity by having their ALGO tokens locked for this considerably long stretch.

Image source: Algorand Foundation, 30 April 2022.