Project Spotlight: Forge DEX

Summary

Forge is a decentralized exchange (DEX) that dominates the Evmos ecosystem, capturing 75% of the TVL. Forge has made significant strides in Q2 2023, harnessing the strengths of Uniswap v3’s concentrated liquidity to introduce a capital-efficient trading environment and a community-centric protocol that empowers users and liquidity providers. By eliminating fees, Forge aims to accommodate a wider range of users.

The Launch of Forge Inferno

The Inferno incentives program is a strategic initiative launched by Forge to stimulate liquidity and foster growth in the Evmos DeFi ecosystem. Designed to run for 84 days, this 12-week program was divided into four periods of 21 days each. The program incentivizes liquidity providers (LPs) by offering rewards through stEVMOS and STRD tokens. By focusing on Liquid Staked tokens, Forge aims to optimize its capital efficiency, positioning itself as the most capital-efficient DEX in the Cosmos ecosystem. Since its introduction, the Inferno program has successfully and significantly boosted Forge’s TVL.

Two weeks following the inception of the Inferno incentives, Forge saw its TVL surpassing $2.2M and transaction volume exceeding $5M, indicating the program’s initial success. By the end of Q2 2023, the TVL on Forge stood at $1,567,449.

Partnerships and Collaborations

Against the backdrop of the successful launch of Inferno, Forge strengthened its partnership with Stride, a liquid staking derivatives provider. Stride, often referred to as a “zone”, serves as a catalyst for liquidity related to staked tokens. The Stride DAO committed a sizable 84,000 STRD to incentivize three liquidity pools during the Inferno program. This collaboration resulted in a surge of TVL in Forge to nearly $2,000,000 within 24 hours of Inferno’s launch, and trading volume exceeding $400K.

Additionally, in a strategic move to enrich the Evmos ecosystem, a collaboration was formed with Revert Finance. The partnership received immense community backing, with more than 80% of the community endorsing the funding proposal. Forge’s integration with Revert Finance brings an array of analytics and management tools designed to optimize concentrated liquidity directly to its platform. These tools not only enhance the capabilities within the Forge ecosystem but also empower LPs to optimize their Uniswap v3 positions, significantly enhancing the overall user experience and liquidity management processes. Additional tooling includes: encompassing position analytics, top positions listing, incentives programs, initiator tool, auto-compounding, and a position management interface. All of these tools are available to use on Forge, giving their user’s an edge while trading. Looking forward to the rest of the year and beyond, Forge is excited to unveil a host of partnerships. Stay tuned.

Key Performance Indicators

Total Value Locked (TVL):

• The average TVL during this period was around $1,000,010, suggesting that, on average, Forge had about $1M worth of assets locked in its protocol.
• The maximum TVL recorded was approximately $2,256,632, representing the highest value of assets Forge managed to lock in its protocol during this period.
• The standard deviation in TVL was around $811,012, showing a substantial variation in the value of assets locked in Forge over time.

Volume:

• The mean daily trading volume was approximately $50,324.
• The highest single-day trading volume peaked at about $729,547.78.
• The standard deviation in daily trading volume was approximately $146,932.05, showing a high fluctuation in daily trading activities on Forge.

Revenue (swap fees paid by users):

• The mean daily fee was approximately $92.79, indicating that on an average day, Forge generated around $92.79 in swap fees.
• The maximum daily fee achieved was around $379.62. This represents the highest daily revenue Forge generated from swap fees during this period.

APY:

• The average APY across all liquidity pools was about 1.46%, while the average base APY was also 1.46%. The average APY over the past 30 days was higher, at about 2.09%.
• The maximum APY, base APY, and 30-day average APY were 3.66%, 3.66%, and 3.59%, respectively. These represent the highest yields offered by Forge’s liquidity pools.

APY, Base APY, and 30-Day Average APY vary significantly across pools. Pools like ‘steEVMOS-PEVMOS’ and ‘uniEVMOS-USDC’ stand out with high APYs. A larger TVL does not necessarily correspond to a higher APY. Interestingly, some pools with smaller TVLs, like ‘steEVMOS-PEVMOS,’ offer higher APYs, suggesting that they might implement more aggressive or higher-risk strategies to attract liquidity. It seems the “degen’’ strategy of hype-marketing never fails, even under the most strenuous market conditions. The pie chart also reveals that ‘uniEVMOS-USDC’ and ‘uniEVMOS-USDT’ command the largest share of TVL. The data indicates a fairly competitive and diverse DeFi environment on Forge.

Discussion & Analysis

Forge DEX’s Q2 2023 performance highlights a remarkable period of growth and dominance within the Evmos ecosystem. With the platform’s average TVL (Total Value Locked) for the quarter standing at an impressive $1M and reaching a peak of over $2.25M, Forge has successfully attracted substantial capital. By capturing 75% of the TVL within the Evmos ecosystem, Forge has positioned itself as a leading and influential entity.

This achievement can be attributed to several positive factors that reinforce the stability and attractiveness of Forge’s offerings. Strategies such as the introduction of incentive programs like Inferno, forging new partnerships, and actively aligning with the prevailing sentiment towards DeFi, have all played a role in shaping Forge’s promising trajectory.

About Evmos

Evmos is an EVM-compatible, IBC-enabled blockchain in the Cosmos ecosystem designed for cross-chain dApp development.

The Evmos Core Development Team is on a mission to create and ship the foundational tools necessary for building the cross-chain applications of the future. With groundbreaking roadmap features like EVM Extensions, the Evmos SDK, and the Evmos dApp Store, Evmos gives developers the freedom to take advantage of the IBC and connect their smart contracts to the Cosmos Ecosystem.

This revolutionary technology frees developers from the confines of today’s siloed blockchains.

The future is cross-chain.

Helpful Resources

💻 Developer Documentation: https://evmos.dev/

👾 Official Discord: https://discord.gg/evmos

🐙 GitHub: https://github.com/tharsis/evmos

🕊 Twitter: https://twitter.com/EvmosOrg

📯 Telegram: @EvmosOrg

📄 Medium: https://evmos.blog/

🖥 Evmos Website: https://evmos.org

🌋 Evmos Jobs Board: https://boards.eu.greenhouse.io/evmos

Evmos is the EVM stack for building natively cross-chain decentralized applications.

We encourage you to read the Evmos Manifesto and learn more about our plans to build a cross-chain future.

DISCLAIMER: None of this is financial advice. This content is strictly for educational purposes. It’s not investment advice or a solicitation to buy or sell any assets.