Introduction

Before starting the analysis, we need to first understand what gAlgo3 is (or gALGO in general). and how it is related to the native token algo. And in order to understand the beauty of galgo, you need to know the basics of governance. So, we'll briefly read about

1. Governance
2. gAlgo
3. gAlgo3

Governance

In the algorand ecosystem, every user has the ability to take part in the decision making process. In other words, he/she can vote for new features or changes in the ecosystem in a truly democratic way. Community Governance enables all Algo holders to participate in the decision making process on the growth and development of the Algorand ecosystem. The Governance approach for the Algorand community is designed for simplicity and maximum participation.

To thank the governors and incentivise participation, a reward proportional to the amount staked is paid to the governor. Each governor must commit to keeping a certain Algo balance for each quarterly Governance period, which is close to 90 days.

A major disadvantage of this system would be that the Algo holders have to lock their Algo for a quarter losing the possibility to use their own liquidity for that commitment period. This is where, gAlgo from folks.finance can be helpful.

gAlgo (Algo Liquid governance)

Folks Finance designed a new system that allows the users who wish to participate in the Algorand Governance not to lose the liquidity for the voting period by distributing a liquid asset named gALGO, minted at 1:1 to the value of Algo. After the governance period has ended, all users can burn their gALGO for ALGO at a one-to-one rate and receive their algos back. Once rewards have been distributed by Algorand Foundation, all users that minted gALGO during the commitment period will be able to claim a corresponding amount of rewards.

gALGO3

gAlgo3 is nothing but the edition of governance algo corresponding to the third Algorand Governance protocol which started on march 31,2022.

Disadvantage: The only voting choice would be to vote with foundation if one were to stake using folk.finance.

Objective

In this article, we aim to analyse the usage of gALGO3 using different metrics. They are

1. Number of trades to gALGO3 and from gALGO3 by day.
2. Volume of trades to gALGO3 and from gALGO3 by day. Are there any notable days? If so, what may have caused this?
3. What DEXes are users swapping gALGO3 on? Show the breakout of number of gALGO3 swaps(to or from) by day for each dex.
4. What are the top 10 most popular to swap from to get gALGO3?
5. What are the top 10 most popular to swap to from gALGO3?

Methodology

Here we, state all the assumptions made by us and the methodology used for the analysis.

1. Number of trades : The number of distinct tx_group_id
2. Volume of trades : The toal amount of galgo3 traded.
3. Popularity : based on the number of unique sender addresses.

The asset_id of gALGO3 is 694432641. The algorand.swaps table has been used extensively for this article.

Analysis

Number of trades

We first analyse gALGO3 on the basis of number of swaps. we look at both the trades to get gALGO3 and trades where gAlgo3 were sent.

From the graph, it is clearly visible that the number of swaps peaked on April 13 2022. While, the the days 12th and 14th April are similarly very high. The registration for the 3rd Governance Period was set to end on 14th April, hence this could be a reason for the trade numbers spike during the closing sessions.

Another noticable thing is that both swap to and from galgo3 follow the same trend.

While the reason behind the spike on 25th April cannot be said with certainty, one of the reason, could be the announcement by algorithm community of the launch of carbon offsetting protocol.

Volume of trades

The graph of volume also shows the same trend as that observed in the graph of number of trades. Here too, we can see that the volume peaked on the last 3 days leading to april 14, the end of governance registration. and a small increase on April 25. While the reason behind the spike on 25th April cannot be said with certainty, one of the reason, could be the announcement by algorithm community of the launch of carbon offsetting protocol.

Another noticable thing is that both swap to and from galgo3 follow the same trend.

Popularity of DEXs

Swap from galgo3

We now look at which DEX is being used by the users to swap thier gALGO3.

It appears that tinyman and pactfi are the only two DEX facilitating galgo3 swaps. It can also be clearly seen that tinyman has a majority of the swaps when compared to pactfi. It also appears that the number of swaps on each DEX are highly correlated and follow the same trend.

Swap to glago3

The trend for cases where other assets were swapped for galgo3 also behaves in a similar manner. It appears that tinyman and pactfi are the only two DEX facilitating galgo3 swaps. It can also be clearly seen that tinyman has a majority of the swaps when compared to pactfi. It also appears that the number of swaps on each DEX are highly correlated and follow the same trend.

Share of swaps We saw that tinyman had a massive domination on the swaps market, but we had not quantised it. So we shall now look at how the share is.

It appears that, of all the trades made to get glago3, 89% were made on tinyman and only 11% on pactfi.

most popular assets to swap galgo3 for

We now look at what assets do users usually trade in, in order to receive galgo3.

It appears that only two assets are used, one being algorand the system coin and another being Yieldly. Out of these two algorand is the predominant one by far. Around 99.4% of the trades were done by swapping algo for gALGG3 and only 0.6 % of yieldly. As the graph shown above can be difficult to read, i have included the table also to make things easier

most popular assets to swap galgo3 from

We now look at what assets do users usually trade in, in order to send galgo3 and recieve something else in return.

This too follows a similiar trend as before. It appears that only two assets are used, one being algorand (the system coin) and another being Yieldly. Out of these two algorand is the predominant one by far. Around 99% of the trades were done by swapping algo for gALGG3 and only 1 % of yieldly. As the graph shown above can be difficult to read, i have included the table also to make things easier

Use of assets over day

As a bonus, We now look at the assets swapped to and when they were swapped and also visualise if there is any trend.

Well, this is surprising, All trades involving Yieldly took place only after April 20,2022 which is almost a week after the registration for governance closed. Users only started swapping to/from Yieldly only after the governance registration closed.

Now that the registration is over, we could expect the yieldly swaps to increase.

Conclusion

Ooof, this has been a long article, so it would be better if we summarise our findings.

1. A majority number of the trades occurred on the last 3 days preceding the registration closure (14 th April 2022)
2. A majority Volume of the trades occurred on the last 3 days preceding the registration closure (14 th April 2022)
3. Both swap to and from galgo3 follow the same trend.
4. Tinyman facilitates 90 % of the swaps while pactfi only does for 10 %.
5. Only two tokens, algo and Yieldly are swapped for and from galgo3
6. Only around 1 % of the trades were donr for/from yieldly and the rest 99% were done using algo
7. Yieldy has been used only the recent days, ie. after registration closed. Hence we could expect this to increase over time.

References

If you would like to read more, here are the resources i found useful

1. Algorand governance
2. Algorand rewards
3. Algorand going carbon negative
4. gALGO3 folks finance
5. gALGO3 contract
6. governance FQ