Introduction

So we start of with understanding What Algorithmic Stablecoins are.

They are crypto tokens that use price stabilization algorithms to maintain the value of an asset. The value can be linked to anything that has a stable value, for example a central bank issued currency like USD or EURO etc. The price is maintained using code and a set of rules that is usually in the public domain.

How Algorithmic Stablecoins Work?

Algorithm-based stablecoin protocols act as a ‘central bank.’ Stabilization of crypto assets can be achieved by increasing the supply of a token when the value goes up and reducing it when the price goes down. The rules for such actions by the algorithm are available in smart contracts in embedded form and it is possible to change the rules only by leveraging social consensus or through votes associated with governance or seigniorage tokens.

But what is the need for them ? Weel, they are essential for a number of reasons.

1. Payments : They have now become a vital component of the modern financial system. They allow for the reliable exchange and storage of value. Because of their inherent nature of stability, users can trade and hold without the fear of its value dropping.
2. Banking : Stablecoins on Algorand give users full custody over their money. They also provide 24-hour access to financial services so users can access their savings or make payments even when there is little or no network connectivity.
3. Store of Value : Algorithmic stablecoins, in particular, may make a significant impact in the event of an economic catastrophe, such as a sinking currency

For more details, read more on the official blog. https://www.algogard.com/news/how-do-algorithmic-stablecoins-work-and-why-are-they-essential-to-algo.html

Objective

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

We shall go through each one of them, one by one

1. Chart how much GARD has been minted by day

While the average number of GARDS minted over time is 100 in the last 10 days, We can see that there was a significant spike just before that. The total Gard minted is clost to 100K gards That is on April 12. On April 12, Around 52 Thousand were minted. Could it possible that the sharp increase be caused by whale? let's check it out.

Well it's as we guessed. One whale (or rather a humpback whale) "4KZR4J2BNG7USEHLO7A4BWYW4OKBXPQPHY2DSNY2PM2FJNXIQPLYT5GWDI" was responsible for the massive spike as he minted around 50000 gards.

2. Chart how many wallets mint GARD each day.

We now look at the number of minters each day who are involved in minting gards by depositing algorand.

We again observe that the peak occurs around April 11 and 12. Was this because of the ripple effect of the humpback whale. Well it certainly looks so, as the number of minters since has reduced drastically and saturated in the past few days.

3. How much has Gard.Money generated in ALGO fees? Show the fees accumulation over time.

Lets first understand how to calculate fees for algorand and gard. When a user deposits his/her algorand for a gard, then he has send it to a certain address, the transaction fees of this transaction are sent to another address held by gard. According to the question , Fee Address: MTMJ5ADRK3CFG3HGUI7FS4Y55WGCUO5CRUMVNBZ7FW5IIG6T3IU2VJHUMM - Fees will be sent to this address when adding a collateral debt position.

We now look at the fees generated by gard. Both on a daily basis and a cumulative approach.

Well it is to be expected, April 12th when a majority of the gards were minted. So onc could expect the transaction fee to be also highest then. A total of 25k algos were collected by the gard smart contract.

4. What is the total amount of ALGO collateral currently backing the GARD?

When a user wants gard, he she stakes his algorand and receives gard in return. Okay, so we now check how many algos have been locked into the contract because of the stable coin gard. The ratio of staking can be different from 1:1 as it commonly is.

So we see that a total of 3.83 Million algos have been staked or collateralize.

Summary :

1. We looked at the trend of gard minting, other than the whale, the number of gards minted have considerably reduced, now averaging int lower hundreds.
2. The Day April 7th 2022 spike can be a ripple effect of the whale.
3. The Total fees collected is close to 25K algos
4. Gard has a backing of 3.83 Millions algos

References

If you are more interested about the working of algorand gard and stable coins. then go through the below resources

1. https://www.algogard.com/news/how-do-algorithmic-stablecoins-work-and-why-are-they-essential-to-algo.html
2. whitepaper - https://www.algogard.com/white-paper.pdf