Introduction

On December 13th, 2021 - The Algorand Foundation launched the Aeneas Liquidity Program, which is Phase II of its $300m Viridis Fund. Aeneas is the Foundation’s first official liquidity incentive program, centered on the “three pillars” of DeFi.

Its goal is singular yet ambitious: to bootstrap all three pillars simultaneously

• Robust bridges for newcomers and migrants.

• AMM DEXs for aspiring traders and merchants.

• A borrowing & lending architecture for capital efficiency and commerce.

Mints (i.e. add liquidity) and burns (i.e. remove liquidity) started with 1 mint and 2 burns on Feb 21, 2022, increased sharply to 97 mints and 21 burns on the following day then fluctuated in a range (36 max) till Mar 31, 2022. On Apr 1, [mints, burns] started to take off from [98, 13], increased sharply on Apr 8, and peaked at [442, 88] on Apr 15, 2022, then have decreased gradually till now.

Next, we'll look at mints of each pool in each month to see what pools are popular to liquidity providers (LP).

Mints of Feb 2022 and Mar 2022 are relatively small vs Apr 2022. Top 3 pools (rank by mints) of the first 2 months (in descending order) are ALGO/USDC, ALGO/TINY, and ALGO/STKE.

As mints started to take off from Apr 1, 2022, top 3 pools also changed. In Apr 2022 (month to date), top 3 pools (in descending order) are ALGO/goMint, ALGO/USDC, and ALGO/goETH.

Let's take a look at daily mints of the 3 pools ALGO/goMint, ALGO/goBTC, and ALGO/goETH to see the incentive program effect on the mints of each pool.

On Apr 7, mints of [ALGO/goMint, ALGO/goBTC, ALGO/goETH] were [24, 4, 15] and it was the highest mints day until then. On Apr 8, the mints increased sharply to [31, 62, 22] and slightly increased in the following days before trending down gradually till now, except for ALGO/goMint which saw a peak on Apr 6 and some small increases after that.

With majority of boosted rewards go to these pool, it clearly boosted mints of these pool.

Pact + Algomint

As part of the Aeneas Liquidity Program, on Apr 8, in a partnership with Algomint, PactFi launched the 1 million ALGO boosted reward liquidity program.

Below is the boosted pool in the program:

Let’s see the impact of the program on Algorand DeFi by looking at mints and burns of the Pact.Fi pools and answering some questions below.

• What are the total mints and burns by day across all pools?
• What are the most popular pools wallets are minting LP for?
• Do we see an increase in mints in the ALGO/GOMint, ALGO/GoBTC, and ALGO/GoETH pools from the AlgoMint incentive?
• Folks Finance is offering incentive in the ALGO/GoETH starting on April 8th, do we see an increase in mints in this pool from the incentive?
• Are there any notable days of for an increase of mints? What pool is causing that increase if there is and is there an event tied to the increase?

Note: The last 2 questions about Folks Finance are very confusing, there was no ALGO/goETH starting on Apr 8, 2022.

Method

• Identify mint and burn transactions based on the transaction message in the algorand.application_call_transaction table.
• Link with asset_name in algorand.asset table to breakdown mints by liquidity pool.

Key Takeaway

• Users have been able to add (mint) and remove (burn) liquidity on PatchFi since Feb 21, 2022. However the numbers were small. Only when some liquidity incentive programs launched in early Apr 2022, mints and burns on PatchFi started to take off.