This article answers the following questions

• What is the total value locked in the Opyn Squeeth (osQTH) contract?
• Where does osQTH draw its value from?

Questions

Approches

What is the total value locked in the Opyn Squeeth (osQTH) contract?

• We will find the TVL from ETH value locked where user_address is the Controller, which is already given. We query from flipside_prod_db.ethereum.erc20_balances.
• We also plot average monthly TVL from January to June.

Where does osQTH draw its value from?

• We analyze the correlation between TVL and ETH price, and ETH volume.
• We also analyze all of these correlating with market status by using BTC price.

Total Value Locked in the Opyn Squeeth (osQTH) contract

The current TVL is about 1.25 million dollars, with price 1,123.49 USD/ETH and volume 6,584.27 ETH.

As the token is launched in January, the average TVL data is plotted monthly from January to June. The TVL keeps rising from January to April (10M to 15M USD) and then keeps dropping until now (to 9.3M USD).

Where does osQTH draw its value from?

Below is the graph of average ETH price and volume in the Opyn Squeeth (osQTH) contract.

Conclusions

• Current TVL in the Opyn Squeeth (osQETH) contract is about 1.25 millions dollars
• TVL keeps going up from January to April, and keeps dropping until now
• What draw the value of osQTH is its various interesting utilities as a financial tool
• What mainly drives the surge of TVL is the utilities of token as the volume in the contract keeps going up from the start until now
• What mainly drives the dropdown of TVL is the market status as shown by BTC and ETH price

As the information about osQTH from a Medium artcle, osQTH has many interesting properties as a financial tool. For example Long Squeeth: we can leverage position with unlimited ETH² upside with no liquidation, and Uniswap v3 SQTH-ETH Liquidity Providers: "LPing in the SQTH-ETH pool is similar to being long ETH^1.5, which is constantly rebalanced or continuous ETH 1.5x leverage.". This is what osQTH draw its value from.

We can see that the total volume locked keeps increasing from time to time. This indicates that people are still interested in osQTH utilities as a financial tool.

Meanwhile, the main cause of TVL drop is the bear market. As the BTC price is plotted below, the price keeps going down since April to now from 45.5k to 19.6k (-57%), corresponding to osQTH price acting the same behavior 879 to 67 (-92%).

Another one powerful direct cause of osQTH price drop is "ETH price drop" because osQTH LP is paired with WETH. ETH price from April has decreased about 70% (from 3.5k to 1k), making osQTH price and TVL to decrease.

"TVL" alone in this article means TVL in the Opyn Squeeth (osQTH) contract