Now that IPT is formally on the Velodrome Flywheel here is the report as I promised.
On 3/19/2024 Velodrome formally whitelisted IPT and gave us a couple gauges for IPT. What this means is that we can incentivize the pool to get veVELO votes that drive VELO emissions.
I choose to use the IPT purchased during the firesale and my own personal funds to fund the following:
Sequence of transactions that can be followed on my IPTMan.eth wallet on Optimism.
https://optimistic.etherscan.io/address/0x5fee8d7d02b0cfc08f0205ffd6d6b41877c86558
Starting with
- 535962.7 IPT deposit through the optimism bridge. - https://optimistic.etherscan.io/tx/0x14b9bcbe7dad33c1cbd9acded1ae9e1d8b1abbcbc124172be56df560ce6dd11c
- 2597 USDC transferred in from another wallet - https://optimistic.etherscan.io/tx/0xd9dcfdd58e1fd585ed96ef6babc48d4c03086cf7b619cc005b6b3dff7b154493
- Initialize IPT:USDC price and pool liquidity. I started small because I knew I would likely need to adjust price before adding more liquidity - 1000 IPT and 43USDC to initialize the new pool. - https://optimistic.etherscan.io/tx/0x7dc6447c318b3838718f77d8b90c841910ec935abdee74c0b64ed2f36b34dced
- I was happy it all worked well and even though IPT had a mainnet price of $.04 there was little buy side liquidity till about $.015 and lots of sell side liquidity above $.05. So I decided to just add more liquidity at current price of .043. - 2554 USDC with 59395 IPT - https://optimistic.etherscan.io/tx/0x16c58b4017b98b4935899c917b73c37237cddab93669bfa7ce521144de6abb11
- Execute a test sell of IPT to adjust price down a bit. - 1531 IPT for 64USDC - https://optimistic.etherscan.io/tx/0x935ec6d68fef4e1bec75cd827bab3b1bf955fb4ed235e14f721a08bd4314758d
- Transfer more cash 1786 USDC and 7053 (total 8839 USDC) to put up LP position 7117 USDC + 170850 IPT - https://optimistic.etherscan.io/tx/0x352f88622b5504876bfceaadabc7503f72e210a1b4034e3e7a6b0157dff1eda6
- Incentivize pool with 10K IPT - https://optimistic.etherscan.io/tx/0x5f2ada40c841903fc5a15ced3b50c9b75325fce306ce42eedf46985725dbeaf2
- I needed more cash to buy the VELO to make the veVELO NFT to vote with - so another 2101 USDC added and 9893 VELO purchased for 1786 USDC. - https://optimistic.etherscan.io/tx/0x346be561f2b09f447859c6a938956a2e2c603a79d95d4cd3c2d10b13db1be4b1
- Spent another 100USDC to buy 555 VELO - I wanted to be above 10K locked veVELO in case we got any $OP for buying and locking (there is no VELO locking reward anymore). - https://optimistic.etherscan.io/tx/0x71a848acc5c3a49bd9b145da092aa00062e312c60378a01769d896786feddf7d
- Locked 10448 VELO for 4 years. - https://optimistic.etherscan.io/tx/0x0f7481c34871f81b78b70f6e27d354068927295f3486877f74cb2bb16d1ae8d0
- Stake all the LP I had purchased above. https://optimistic.etherscan.io/tx/0x6e199b47fd62d100b8146a3c9c0d03a74bc886ee16f34a4ced8a7d69df605d90
At this point the sequence is vote the NFT - collect my share of bribes. Collect VELO rewards, swap for USDC/IPT and bribe again.
- Collect voting rewards - https://optimistic.etherscan.io/tx/0xd60fd7d68791ddb5e2b119d33ad9ef585f8ecdd99b69ac9a0fb85e57fe878b6e - Turns out voters picked this up and we got 420K veVELO voting for our gauge and got back 248IPT for our 10.4K voting. (this is called bribe recycling and we only got 2.48% of the 10K IPT back)
The above 420K voting drove 4674 VELO emissions to the LP holders. You can look at the sequence of transactions with that wallet. They are all basically claim VELO for the LP and sell for USDC and/or buy IPT. The idea here was to cycle the VELO earned via the LP and voting rewards back into bribes.
My net cash in (not counting cash to buy the IPT) is 13537 USDC. I still have 2K USDC to work with (trying to keep that constant) about 293K left of IPT to bribe with, and the staked LP with
8470 USDC : 265202 IPT (price .03194)
Total LP is
17023 USDC : 533013 IPT - someone I know took another LP chunk and happily collecting VELO returns on this earning around 200% APR (about .6%/day)
Wallet has
2,151.86 USDC, 293,409 IPT I bought some ETH to cover gas. Still have some GNODE in there.
So rather than continue with the tedious details I will just post the relevant protocol metrics as seen by Velodrome
I will spare everything the gory details and just go to the Velodrome analytics
The data taken from https://dune.com/0xkhmer/velodrome Velodrome protocol analytics page.
Here are the numbers:
| Epoch | Pool Symbol |  |
 |
 |
Votes | %Votes | Fees | Bribes | Fees & Bribes | %Fees & Bribes | Fees APR | Bribes APR | Fees & Bribes APR | Reward/10K $VELO | Bribe ROI | Bribe Tokens List | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Epoch 98 | vAMM-USDC/IPT | |
|
|
537,659 | 0.05 % | $ 2.8 | $ 2.8 | 0.00 % | 0.11 % | 0.11 % | $ 0.05 | 124 % | ||||||||||||||||
| Epoch 97 | vAMM-USDC/IPT | |
|
|
537,659 | 0.05 % | $ 9.2 | $ 1,002.0 | $ 1,011.2 | 0.08 % | 0.37 % | 39.98 % | 40.35 % | $ 18.81 | 194 % | 20635.395282687186 IPT, 64.0 OP, 600.0 VELO | |||||||||||||
| Epoch 96 | vAMM-USDC/IPT | |
|
|
520,714 | 0.05 % | $ 2.1 | $ 710.4 | $ 712.5 | 0.07 % | 0.08 % | 26.48 % | 26.56 % | $ 13.68 | 264 % | 5020.868955883607 GNode, 13420.711815169958 IPT, 138.0 USDC, 221.13663422174616 VELO | |||||||||||||
| Epoch 95 | vAMM-USDC/IPT | |
|
|
420,362 | 0.04 % | $ 473.8 | $ 473.8 | 0.05 % | 35.67 % | 35.67 % | $ 11.27 | 10000.0 IPT |
Returns to IPT:USDC in terms of VELO emissions to the LP pools
Velo Emissions, $$ value and Yield APR on the LP pool
| Epoch | Pool Symbol | |
 |
Emission | Emission Value | Yield APR | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Epoch 98 | vAMM-USDC/IPT | |
|
5,819 | $ 1,240 | 189.56 % | |||||
| Epoch 97 | vAMM-USDC/IPT | |
|
5,700 | $ 1,381 | 210.49 % | |||||
| Epoch 96 | vAMM-USDC/IPT | |
|
4,674 | $ 1,252 | 195.00 % | |||||
| Epoch 95 | vAMM-USDC/IPT | |
|
So far our bribeROI above 100% (we only get 1/2 of the emissions due to only owning 1/2 the pool) so we don’t get 100% bribe recycling into VELO emissions into our wallet but we did get a 64 $OP match last epoch and 600 VELO from my friend to help with the bribe value which generates veVELO votes that drive the VELO emissions. As you can see we have pretty much maintained a slowly growing VELO emissions (value about $1.2-1.4K/week) leading to a ~200% APR on LP depending on VELO and IPT pricing.
All in all getting a very solid LP return (.6%/day isn’t bad honestly) to encourage people to pair their IPT with USDC and LP. $.031 price more due to my friend taking some profits from his cheap IPT at my expense than anything else. I am going to try to keep the bribe pool value up in the $700-1K/epoch range but this is going to cost us some IPT. I still have 293K IPT (started with 300K) so feel pretty confident we are doing quite well with using IPT value to get VELO emissions for LPrs.
We have not gotten much LP traction and people really still don’t know about the project and application on Optimism. Once we get some ability to use Velodrome CL liquidity as collateral (and stake this for our share of VELO emissions) probably a game changer on Optimism and Velodrome. We should finally get some PR and announcements from Velodrome on this which will help get us some recognition and hopefully some interest in IPT token. If we can get IPT token price up off the .03 level to something closer to .05 or even .1 10K/epoch(week) for $1K voting bribe incentives should be doable.
Once I this settles down and I have a format for weekly posts on this these posts should be much smaller.
Enjoy everyone!