In-Depth Analysis #2: Nolus Protocol’s Explosive Growth
Welcome to the second episode of our series ‘In-Depth Analysis.’ In these articles, we provide a current statistical overview of all milestones and achievements attained by Nolus. Let’s explore the significant developments that have occurred in the last 50 days since our previous report.
Transactional Value
Nolus has witnessed an astounding surge in transactional value, with a total of $14.5 million flowing through its Earn and Lease features. This represents a staggering 190% increase since mid-October. On average, users have completed approximately $250,000 in daily volume over the past 50 days.
DeFi Leases Growth
In the six months of its existence, Nolus has granted a total of 4,067 loans. Impressively, more than 60% of these loans were granted in the past 50 days alone, marking a 153% increase since the last reported date. The DeFi lease positions on the platform now total $8.6 million, with an average position per user amounting to $2,110.
This growth is noteworthy because it emphasizes a significant rise in the number of loans granted rather than the average loan amount. While the average loan amount increased by 13.5%, the almost double surge in the number of loans indicates adoption growth and more users participating in the Nolus ecosystem.
Asset Distribution
Breaking down the $8.6 million in DeFi leases: 26% were in ATOM (including LSDs), 24% in OSMO (including LSDs), 15% in AKT, 11% in TIA, 7% in WETH, 7% in and WBTC, 2% in each STARS, AXL and CRO, while the remaining almost equally distributed between Juno, SCRT, EVMOS.
Margin Levels
Users have used $3.7 million in down payments to initiate the $8.6 million DeFi lease positions, resulting in an average leverage of 133.6%. This level of leverage demonstrates extremely healthy margin call risk levels.
Notably, the most commonly used downpayment asset is USDC making up 36% of all leases, followed by ST_ATOM at 16%, AKT at 13%, and equal distribution between OSMO, ATOM, and ST_OSMO at around 8% each. TIA was used as a downpayment in 5% of all leases, primarily to purchase more TIA. This reflects a shift towards using more USDC for down payments compared to using other assets, as was observed back in October.
Interestingly, more than 54% of all loans used a different downpayment asset compared to the final leased asset.
Gains and Leverage
The largest individual loan on Nolus was in OSMO for almost 90,000 units, resulting in a solid 602% gain on investment, with an entry price below $0.5 and an exit above $1.3. Additionally, 162 DeFi Leases were opened for more than $10,000 each, representing 33% of all DeFi Leases based on value. The top 10 largest positions, predominantly in ATOM, OSMO, and wBTC, have shown substantial gains, with seven of them already closed at an average gain of 125% per loan. Three positions remain open, currently standing at an impressive 476% gain on their initial investments.
Performing Days and Trends
Nolus had its best performing day on December 16, 2023, with total DeFi leases reaching $280,000. December 12th and 15th also stood out, each exceeding value of $235,000 in DeFi leases.
In January 2024, the Protocol saw a rapid surge in activity, with a total of $1.36 million in DeFi Leases taken out in just 10 days. January 5th and 6th nearly reached historical highs with $225,000 and $260,000 in granted loans, respectively.
The standout assets in the early days of 2024 so far are AKT and TIA, accounting for 50% of all new loans.
Profitability
Currently, there are 1,032 leases on Nolus, double the number since the last report, funded by $1.1 million in down payments to secure $2.6 million in DeFi leases. These leases, on average, were opened 29 days ago and have achieved a remarkable 69% return on investment since opening, equivalent to 875% annualized. The most profitable position is in OSMO, currently standing at a 345% gain on investment, and an impressive 87% of all leases are currently in profit.
Remarkably, around $6 million in leases have been closed, with three-quarters of them resulting in profit. In terms of numbers, the total profit from all closed positions averages to an impressive 81% ROI per loan.
Liquidation Rates
Nolus has experienced a solidly decreasing number of liquidations, with only 0.5% of the $8.6 million lease positions undergoing liquidation. Approximately half of these positions underwent partial liquidations, preserving users’ initial down payments, a significant advantage compared to other protocols where such positions are often fully closed, resulting in a total loss of equity.
Conclusion
The upward growth trend of Nolus highlights the rising adoption and confidence that users have in the Protocol. Notable advancements, minimal liquidation rates, and a varied portfolio of assets demonstrate a developing and strong DeFi ecosystem. With ongoing innovation and adaptation, Nolus is positioning itself as a key contender in the DeFi arena in 2024.
This article aims to provide a comprehensive analysis of Nolus’s performance, underlining its significant growth and the dynamic changes in its operational landscape. The data reflects the increasing adoption of DeFi Leases and the evolving preferences and strategies of its user base. All data related to these statistics is available on-chain and represents normal operational flow that can be conveniently extracted using a Rust ETL client, accessible here.
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