From the events of yesterday, I think it’s even more important to build confidence in the backing price, and the number on the dashboard is implied to be a liquid value that can be used to buy back all TIME in circulation.
Here’s what’s available from public sources, as of 12:00 UTC on 18Jan2022 (in (000’s)
- 1,038,079 (Debank balance of 4 treasury wallets)
- (300,847) TIME in wallets
- (90,219) 1/2 of wMEMO-MIM LP
- (9,855) 1/2 of wMEMO-MIM LP
- 637,158 Total non-TIME balance
For the backing calculation:
- 1,116,495 Total supply of TIME
- (248,019) DAO-held TIME
- (8,237) TIME in DAO-owned LP
- (82,559) underlying TIME in DAO-owned wMEMO LP
- 777,860 Circulating TIME
- 15,936 wMEMO equivalent of circulating TIME
That results in a backing of $39,982 per wMEMO.
However, I think it’s inaccurate to say the protocol could buy back all circulating tokens at this price. First, for the protocol to buy back 15,936 wMEMO at $39982, the stable half of the LP would have to grow by $637M, but we’re already counting the LP stables as backing. We can’t use LP stables to buy back circulating tokens.
Second, $64M of the treasury are BSGG tokens. I understand that some or all of these tokens are subject to lock-up, and can’t be sold. And even if they can be sold, their nominal value far exceeds the available liquidity, and therefore can’t really be used to buy back wMEMO, since it can’t be converted to MIM at anything close to their nominal value.
Backing out LP stables and BSGG from treasury, we get $473.4M, or $29,700 per wMEMO.
It may very well be possible to defend the $57,000 price stated as backing on the dashboard, but the statement “we can buy back all circulating tokens at this price,” is not supported by publicly available evidence.
If there are additional treasury resources not visible or priced in Debank, I would love for my accounting to be corrected. Thus the proposal.