Try Quests to earn cryptoMetrics On True Freeze
What is True Freeze?
Yet another interesting protocol on Ethereum blockchain playing around with some financial concepts by implementing possibilities of blockchain technology. True Freeze is Autonomous - Contracts are audited, deployed, and left to work by themselves without any group of developers or any team looking after them.
What are the concepts behind True Freeze?
I can name two main concepts implemented here: Time Preference & Proof of Patience. ==Latter derived from the former.==
> In economics, time preference (or time discounting, delay discounting, temporal discounting, long-term orientation) is the current relative valuation placed on receiving a good or some cash at an earlier date compared with receiving it at a later date.[1]
For example, imagine a case where you can cash your paycheck now or cash it one month later for 20% more. There is a price you have to pay for having early or instant free access to a commodity or anything else. In Defi, the action in which the user locks his/her assets for a longer period of time to be eligible for more rewards follows the same concept.
Proof of Patience is another interpretation and implementation of this concept, in which the more time you hold your assets, you’ll be entitled to more reward and less penalty. You gotta be patient my friend!
What can you actually Do With True Freeze?
You can Deposit your ETH (aka Freeze it), and receive frETH yield token for it. Also, you receive an NFT backed 1:1 with the frozen ETH representing your deposit.
frETH is not backed with ETH and its value represent the market patience for holding ETH. The more impatient market gets for selling ETH, the more valuable frETH gets.
So, you are thinking What do I get for being patient?
You get rewarded by other actors impatience, since they need to pay a penalty to unfroze their ETH earlier than initial lock date registered. The penalty is both in WETH and frETH and these are being paid to FRZ Stakers.
want to know more about this mechanism? check on their well documented gitbook.
Data & Analysis
Now without further due, Let’s get to the performance statistics of this recently launched protocol. I will start with some Headline information. As these are the Total statistics, you can also review more detailed information on daily and cumulative Numbers for each in the next two charts.
Due to being recently launched, There isn’t much interaction with True Freeze yet. As hard as it is to come up with ant pattern in such case, I presented metrics which will be automatically refreshed one or twice a day; So, a few month later, coming back to this dashboard will give you a much richer information.
Yet, another concept of importance as mentioned earlier, and one that the essence of true freeze is built upon is early redemption.
As a user, you have the option to freeze your ETH from 1 to 1100 days, but the only way you won’t get penalized by redemption is to do it after the locking period expired. Any early redemption comes with a 0.25% penalty on ETH amount and a variable penalty formula on frETH. That’s where being patient pays off!
Again, the visualizations below are more like templates for much richer and deeper interaction later. But for now that there is only one early redemption (Do not stigmatize the guy, please! LOL), you can see next informative charts.
Notes on Methodology
-
I used FlipsideCrypto database to query this information.
-
Not all the redemptions are early. Analysts should note the fact that mature redemptions don’t have any frETH burning involved and only needs the burning of NFT.
\
What will you find in this dashboard?
- Total number of depositors
- Total ETH frozen
- Daily and cumulative amount of frozen ETH
- Daily and cumulative number of deposits
- Top 10 Depositors in terms of ETH frozen, and their number of deposits
- Penalty paid to stakers for redeeming early
- Percentage of early redeemed ETH compared to total frozen ETH
- Daily and cumulative ETH redeemed
- Daily Penalty paid in frETH and WETH
