Fabric Ventures: A complete overview of the "Internet of Value" quantitative indicators
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
Crypto Valley Live (ID: cryptovalley)
, Author: Max Mersch, translation: DUANNI YI, reproduced by Odaily with authorization.
After researching 7 VC funds, we are convinced that key metrics play a pivotal role in evaluating a company's performance, such as:
"What is the current growth in MRR?"
"Which of your different customer segments are you churning?"
"What is the net profit contribution rate of each of your customers?"
All of the above are very important indicators for measuring Web 2.0 business models, but they are not applicable to all Web 3.0 business models. Trying to force it into Web 3.0 won't show any positive results, just as one doesn't judge a bank's performance by "daily active mortgage customer numbers" nor should we The number of user interactions to analyze the health of the MakerDAO ecosystem. Likewise, MRR growth rates and churn rates mean nothing when none of the core companies can deliver those revenues.
As an investor in the Web 3.0 space, Fabric Ventures has improved different types of metrics used to evaluate the web according to specific use cases and business models. From hash rate, gas usage, locked value, etc., this article will delve into these native Web 3.0 indicators.
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BTC: The premier native asset, primarily used as a store of value
Hash rate: The hash rate of the BTC network is the total work put into the system by all miners, and it is a manifestation of network security. Due to the probabilistic finality in BTC, any party with 51% of the hash rate (that is, more than half of the computing power of the entire network) can create a longest chain consensus: a higher hash rate means that the attack network The difficulty is also higher.
Number of miners controlling 51% of hashrate: Indicates network concentration around certain miners and pools. The lower the number, the higher the risk of collusion to attack the network.
Transaction volume: can be used to represent the use of the network as a medium of exchange, but does not fully reflect the use of the network as a store of value. Because it can be manipulated by machine algorithms that send a large number of low-value transactions, the real transaction volume may be distorted; on the other hand, a transaction can encode transmission through batch processing or side chain/lightning network technology.
Total Transaction Value: The total value of all transactions over a certain period of time, showing the value transferred over the network.
Block rewards available to miners: This reward is the main source of income for miners securing the network. The block reward, multiplied by the price of BTC, represents the value available to exchange hash power.
Transaction fees paid to miners: are a source of income for miners and will increase in importance as the block reward halving continues. The fee is expected to be the main source of income for miners securing the network for decades to come.
BTC’s hash power recently hit an all-time high — Source:
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Lightning Network: Layer 2 Scaling Solution for BTC
(This part was written by Casa's Jeremy Welch)
Network Capacity: Points to the total amount of BTC committed to the Lightning Network. Because transaction channels are completely private, this metric is the primary measure of how much money is being transferred on the system.
Number of nodes with active channels: The total number of nodes represents the number of nodes actively transacting on the Lightning Network and also routing funds for other nodes on the network.
Average number of channels per node: This will likely increase as more Lightning use cases emerge, then decrease as network density increases (easier to route through other nodes than directly).https://explore.casa/
Number of TorOnion service nodes: The default lightning connection code includes the IP address and port of the node. IP addresses can be used to determine the physical location of nodes, which is a major operational security risk. It is now possible to use Tor Onion services without revealing your geographic location.
Total Lightning Network Capacity and Highest Capacity Node — Source:
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Ethereum: The largest smart contract platform for application developers
Hash rate and transactions can be measured by some of the same metrics as BTC, but more:
Total Gas Usage: A metric that represents the number of transactions/smart contracts used and the complexity of the used smart contracts. This metric is also used to illustrate the overall usage of the Ethereum network as a decentralized computing platform (note that transaction spam can skew this metric significantly).
Average gas usage per transaction: illustrates the complexity of smart contracts/computations used on the Ethereum network.
Locked Value in DeFi: Decentralized Finance (DeFi) core applications are mostly built on Ethereum, and ETH is the main currency used for collateral in this system. The value of assets locked in it represents the usage of DeFi applications and has a positive impact on ETH price. MakerDAO is the main one, but there are also Compound, Uniswap, Dharma, and Synthetix.https://defipulse.com/
The number of developers using Truffle/Ganache/Zeppelin: As a smart contract platform, how many people develop applications based on Ethereum is one of the most important indicators. Probably the easiest stat to quantify is Truffle/Ganache/Zeppelin user counts (including developer counts for other libraries), keeping in mind that each download does not equate to one more user/active developer.
Currently, about 2% of ETH is locked in the DeFi ecosystem — Source:
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MakerDAO & DAI: The Largest Decentralized Stablecoin Lending Platform
Total Loans: Total token usage on the MakerDAO platform, similar to other Web 2.0 loan providers.
Number of open CDPs: Considering that the number of open CDPs is the closest to MakerDAO's "active users", it can be used as a proxy for the total number of users on the platform.
Stability Fee Value: Derived from the current stability fee of 16.5% per annum and the total amount of outstanding loans. The value of the stability fee is burned in MKR, because the reduction in supply should theoretically cause the MKR token to increase in value.
Guaranteed Value: Refers to the value of all assets locked in CDPs (only ETH currently) as security for outstanding loans.
Collateralization ratio: The ratio of the total value locked in CDPs to the outstanding loan value, representing the risk rate of the entire system (CDPs below 150% will be automatically liquidated).
MKR Voting Participation: The community of MKR holders participates in governance decisions about increasing the stability fee. For a coin that largely bases its value on governance, this will be a useful metric to track going forward.
DAI Stability/Peg: A result of market incentives instituted by MakerDAO to keep DAI supply and demand within a similar range. Changes can be made by increasing or decreasing the stability fee and the future daily savings rate.
MakerDAO’s total collateralization has grown steadily to $450 million — Source:
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Work Tokens: Supply side tokens such as Keep, Augur or Livepeer
Staking participation rate: A metric used to track how many token holders are active in the network economy. Networks aim to reach a certain amount of participation, and when staking participation drops below a certain threshold, they can increase their block rewards (e.g. Livepeer increases its inflation rate every day until it reaches 50% activity).
Staking income generated from block rewards: income provided to active participants in the network as a rebalancing method from passive holders to active holders. In a network that uses tokens purely to incentivize supply, the value of passive holders should not be increased, but rather diluted.
https://www.scout.cool/livepeer/mainnet
Work Activity: The amount of work done on a given network: securing Keeps on the Keep Network, resolving a marketplace on Augur, or transcoding a video on Livepeer. This metric shows the actual usage of the network and is currently still low or non-existent on most networks because they are just starting or getting off the ground.
