OneRing — Buyback & Bribes: The Eternal Fountain of Yields
Real Yield Fueled by Passive Token Appreciation
Since its inception, OneRing has set out to be DeFi pioneers and has since grown massively in popularity. The Fellowship has been a staunch supporter of the ve3,3 ecosystem and has deployed its treasury to accumulate their governance tokens. Owing to these protocols’ recent success and upsurge, OneRing’s treasury has grown massively and reached record highs. As it currently sits, the protocol’s treasury is worth a whopping $2.3 million with the vast majority of its holdings in veAERO & veVELO (vote-escrowed tokens) — a detailed breakdown of its holdings is provided as follows:
1) Base Multisig: 1.1m veAERO
2) Optimism Multisig: 2.63m veVELO
The Fellowship has leveraged its holdings to deliver consistent yields to $RING Liquidity Providers (LPs) on the ve3,3 dexes Velodrome and Equalizer; taking advantage of their flywheel model (farming & locking tokens to foster $RING liquidity), we’ve offered a persistent yield of 200%+ with liquidity providers benefiting from this lucrative farming opportunity. Currently, $RING boasts over $600,000 in liquidity which reflects the trust and status that OneRing enjoys as the yield machine.
Depleting RING holdings: The Problem at hand
OneRing’s recent growth has been fueled by being OG supporters of the ve3,3 ecosystem across a multiplicity of chains — namely Optimism, Base, and Fantom. The yield stems from providing voting incentives (A.K.A bribes) to governance token holders (such as veAERO, veVELO, etc.). As it sits, OneRing has been incentivizing its liquidity at 1m $RING every epoch (1 epoch=1 week) and RING held by its treasury has been depleting steadily. The recovery of 21m RING tokens thanks to the team over at Lossless merely prolonged the inevitable and the treasury is set out to run out of tokens by next month at current rates. On the other hand, RING has never had any sort of token minting privileges and its total supply has always remained fixed at 100m.
A New Dawn: Real Yield Fueled by Passive Token Appreciation
All protocols must evolve and behold — so shall The Fellowship! Rivendale has opened new gates for the Hobbits and Aragorn has an ace up his sleeve which we shall dive into.
$RING’s market cap has remained sluggish relative to its treasury. Albeit appreciating over 150% since the start of its year, it still amounts to a fraction of its behemoth treasury (you read that right). Effective from the following month, the treasury shall use its governance holdings to bribe-chase and increase its revenue; we anticipate this figure to be over $8,000–10,000/epoch (which amounts to over a staggering $416000 per annum). The protocol’s new operations will revolve around deploying up to 75% of its weekly proceeds to buying back $RING and using the proceeds for incentivizing its liquidity across the existing ve3,3 dexes that it is on. The remaining funds shall be used as a reserve fund for any emergency situations that may arise and as salaries for its core contributors.
This strategy effectively promotes passive price appreciation for RING, allowing its marketcap to catch [potentially] up to speed with its treasury while continuing to reward its LPs that have trusted OneRing as its ultimate yield source for the past two years. The changes to net voting incentives from this strategy are minimal and we forecast the APRs on dexes to hover around the same level.
The Future: OneRing’s Successful Completion to Farm Them All
As the bull market approaches speed in full swing, OneRing anticipates its treasury holdings to further appreciate. While not set in stone, in the event that the team feels that its treasury has reached a sufficient value, it may liquidate its holdings and distribute the majority of its funds to RING holders — this amount will far outweigh the token’s current market cap.
However, please note that this is mere speculation and circumstances may change. The team remains committed to keeping its community up to date on any situations as they arise — please follow us on our socials to stay up to date on all things OneRing.
Legal Disclaimer: The preliminary analysis of proceeds from governance holdings are done at the current value and may change as market situations evolve. This analysis shall not serve as financial information, nor does it intend to incite speculation around the price of $RING. DeFi has its embedded risks and users are encouraged to hedge their risks accordingly. By agreeing to purchase, hold or LP for RING, the user agrees to take the sole responsibility of abiding to the laws of their jurisdiction and waives OneRing of any legal claims and/or liability related to damages, restitution of treasury holdings, and objections regarding decisions related to treasury management. Please act responsibly and conduct your due diligence before investing in new and rising technologies.
About OneRing
OneRing is the first multi-chain cross-stable coin yield optimizer in the space. The goal of OneRing is to take away the complexity of DeFi and make things easy for the user. By this, we will be able to open the DeFi space for a whole new layer of users that want to receive yield on their stables instead of just having them sit in their wallets. With a strong network of partners, KOLs, advisors, and such, OneRing aims to go right to the top and set new benchmarks for DeFi.
