Where’s my Money, Stanley?
The latest IPOR DApp upgrade brings transparency to the IPOR Asset Management contract that earns top interest for LPs from any unutilized liquidity.
With all of the transparency of blockchain that is baked into the protocol level, crypto as an industry has suffered from a lack of knowledge around one critical discipline: ALM. No, this isn’t the opposite of AML. ALM stands for Asset Liability Management. Literally, where is the money, or who owes what to whom and when?
The lack of transparency of assets has enabled major blowups from Mt. Gox to FTX, Celsius, and Genesis more recently. Let’s look at one case with Celsius where all of DeFi was tracking the entity’s known wallets repaying loans on Aave to liberate collateral to pay other debts.
DeFi’s transparency was the rest of the world’s only look inside of a failing machine.
Now, let’s take this particular feature of on-chain real-time transparency and embrace it. Old and new features in the app.ipor.io interface are visual wrappers of on-chain activity. Behold! The protocol features allow users, traders, investors, and farmers to track their assets in real-time.
DeFi might not be fully decentralized yet, but it is undoubtedly transparent.
Actually, “Open Finance” is a term that many in the industry prefer but hasn’t managed to stick since it’s not as catchy. “OpFi” doesn’t produce the same buzz, so we all stick with “DeFi,” although that’s more of a moving target.
Few “DeFi” protocols can be considered “decentralized” for various reasons. Financial protocols are usually too complex to implement with smart contracts (another cool marketing term largely unanchored to reality) on the first try, and effective community governance takes time to develop.
Regardless of where DeFi protocols stand on the decentralization spectrum, they are all transparent. The inflows and outflows of liquidity are recorded on-chain, and anyone with the right technical knowledge and/or Etherscan proficiency can quickly understand any protocol's past and current state.
But how about the newbies?
💎 The Crystal Clear Credit Hub
The IPOR DApp interface already features several pages that enable industry newcomers to get historical and up-to-date data about the state of the Protocol.
👀 The IPOR Index page displays information about the composition of the IPOR indices, the available USDC, USDT, and Dai liquidity on AAVE and Compound, and the supply and borrow rates offered there compared to the IPOR benchmarks. You can also see the IPOR rates overlayed with the 1-month US T-bill and the SOFR.
👀 More IPOR Protocol data can be found on the Statistics page, including open interest, LP profitability, notional and rate exposure per market, and distribution of the Protocol-generated fees.
👀 Finally, the IPOR Token page provides info about essential IPOR token stats, including protocol-owned liquidity, circulating supply, IPOR market price, and the total number of staked pwIPOR tokens (pwIPOR).
We believe that blockchain and crypto markets enable global, accessible, and free markets. Decentralized financial applications offer greater levels of transparency, auditability, security, and freedom than centralized systems.
🚀 Boosting Transparency Further
In alignment with the IPOR Manifesto quote above, the IPOR DApp interface was updated with another user-friendly stats page. The update focuses on one of the most important user groups for IPOR — liquidity providers (LPs) — enabling them to understand how the Protocol utilizes their IPOR-deposited liquidity.
🌟 The brand new Asset Management page lets LPs quickly learn where Stanley, the smart contract that manages unutilized Protocol liquidity, has deposited their funds and how much yield they are earning. It also helps with understanding how much of the available liquidity is used for swaps (Collateral), what’s the cash reserve, and what’s the value of other holdings.
⚠️ Finally, and perhaps most importantly for LPs, the new page displays the Protocol’s current and 30-day average APRs (Liquidity), the APR generated solely by Stanley (Asset Management), and the current and 30-day APRs of the money markets that Stanley can use (AAVE and Compound in the case of USDT and USDC, and AAVE, Compound, and DSR for Dai).
👂 Let us know your thoughts about the Asset Management DApp upgrade on Discord.
The IPOR DApp is currently undergoing an overhaul as part of the IPOR v2 upgrade. Soon all stats and data pages will be placed inside the new Stats DApp menu item for quick and easy access. Expect September to be packed with announcements.
Thanks for reading!
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