In-Depth Analysis #3: Unprecedented Growth Continues

The previous installment, covering the run of growth that preceded this one:

Nolus Team · 4 min read · 2024-01-11

In-Depth Analysis #2: Nolus Protocol’s Explosive Growth

Welcome to the second episode of our series ‘In-Depth Analysis.Read more →

Unprecedented Growth in Transactional Volume

Since our last summary, Nolus has seen a staggering $25 million in transactional value channeled through Spot Margin and Earn. This marks an impressive 72% increase since January, showcasing a robust and growing interest in the platform’s offerings.

Surge in Loan Grants and Margin Positions

Over the past eight months, Nolus has granted a total of 6,739 loans, with a near 70% surge in just the last two months. Notably, 40% of these loans were issued in the recent 55-day span, indicating a consistent pattern of growth and adoption. Margin positions have doubled since our last report, reaching $14.5 million, with an average position size per user of $2,300, up by 10%. This steady increase in the average amount, coupled with the exponential growth in the number of loans granted, points to a vibrant and expanding protocol.

Asset Diversification and Leverage

The composition of the margin positions showcases a diverse asset portfolio: 20% in ATOM (including all LSDs), 20% in OSMO (including all LSDs), followed by AKT, TIA, NTRN, WETH, BTC, and others. The platform used $6.1 million in down payments to open these $14.5 million margin positions, translating to an average leverage of 137% above the down payment. This indicates a healthy risk level for margin calls. USDC.axl emerged as the most popular down payment asset, evidencing strategic asset utilization by users.

Record-Setting Performance and Loyalty

NTRN loans have been particularly noteworthy, with 426 loans opened for a total of $1.2 million in margin positions, demonstrating the asset’s strong performance. Additionally, the protocol has seen a surge in the number of high-value positions, with 110 positions exceeding $10k each in the past two months. The best performing day was March 1, with an astonishing 170 positions opened for a total of $330k.

Currently, there are over 1,400 open margin positions, funded by $1.5 million in down payments for positions valued at $3.5 million. Impressively, 84% of these positions are profitable, with an average return on investment (ROI) of 40%. Notably, wETH and wBTC positions have yielded an ROI of over 110%, highlighting the lucrative opportunities within the platform.

We also extend our congratulations to the most loyal Nolus user, who has opened a remarkable 211 margin positions and achieved profitability in over 90% of them, especially with AKT and AXL positions.

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 spot margin 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.