On November 1st we will finally see The Animal Farm launch after a long wait and a couple of postponements. All for the best, right? I’m expecting so, but we will know very very soon now.
To be able to get a clear view on the effect of the go-live of this huge platform, I thought it would be helpful to take a snapshot just before everything starts rolling. Not only the on-platform metrics but also for example the DRIP metrics being part of the broader ecosystem.
In this article we will just introduce several metrics and the current state. At a later moment, in about a month or so, we can use these numbers to compare to the that moment in time.
Note: snapshots taken at 10–31–2022, ~14:00 CET.
The Animal Farm numbers
Total Value Locked (TVL)
The Total Value Locked for the Animal Farm at this moment:
TVL consists of:
- PIGS staked in Pig Pen
- PIGS/BUSD LP deposited in Piggy Bank
Expectation
TVL will explode once people will be able to deposit their stakes in the farms and pools once those open. As a reference we saw the TVL of Animal Farm V1 shared in the Telegram channel, it was at around $ 330 Million at the top. I’m expecting the TVL to surpass that number very fast after launch.
Pig Pen numbers
Pig Pen is one of the few active products at the moment.
Numbers explained:
- Total PIGS locked: All PIGS staked in the Pig Pen by investors. This is the “owning the platform” part
- Total Value Locked: As you can see this is almost similar to the overall TVL since its actually the only active true product at this moment.
- BUSD in Rewards Vault: This number grows based on transaction fees* people pay for interacting on the platform. 3% Of this number is being distributed to all Pig Pen stakers every day. The higher the number the bigger the 3% reward distribution is.
- PIGS in Rewards Vault: This number grows based on deposit/withdrawal fees* on unpaired AFP/BUSD LP from the Piggy Bank. 3% of this number is being distributed to all Pig Pen stakers every day. The higher the number the bigger the 3% reward distribution.
- PIGS Circulating Supply: All PIGS in circulation in any product or wallet
- PIGS Burned: PIGS burned by the protocol taken out of circulation forever.
*Fees and tokenomics for these interactions can be found on the wiki.
Expectation
I expect most of these numbers to increase fast. The Pig Pen is the End Game as stressed by Forex Shark. All mechanics in the platform are optimized to bring the highest values and rewards towards the Pig Pen and its stakers.
Although the number of staked PIGS might not really explode, a lot of people already own PIGS for a long period of time and the only thing they could do is stake it in the Pig Pen or get involved in the Piggy Bank but based on TVL we can conclude most PIGS are allocated to the Pig Pen.
Regarding the others numbers:
- If the value of PIGS will go up the TVL will increase, this I expect will happen.
- BUSD will be collected on all interactions over the platform so that will explode at launch for sure. After the launch period we have to see how this develops. The collected fees have to outpace the 3% daily for the number to continue growing. As we have seen in version one, the team also still have capital on the side collected during the earlier phases of the platform to inject into the rewards pool.
- The number of the PIGS in the Reward Vault will increase based on the the volume of unpairing from the Piggy Bank. I don’t really have an idea what to expect here.
- PIGS circulating supply will probably increase since a lot of investors will start utilizing the pools and farms to earn DOGS and in turn stake their DOGS to earn PIGS. This will introduce new PIGS into circulation. However, based on the dynamic supply algorithm, more or less PIGS will be generated in the farms. In less bullish times for the PIGS token, PIGS token will be burned as well.
- The burned PIGS number will increase only of course, since burning means burning forever. The pace is based on two things, 3% of the sales tax on the DOGS token and 3% of the PIGS token when sold.
Piggy Bank
The following numbers are related to the Piggy Bank. I’m not really into the detailed dynamics of the Piggy bank. You can see some of the numbers being similar to those of the Pig Pen since both products are utilizing the PIGS token.
I’m putting it here just as a reference for our comparison in the future.
DRIP Garden
The DRIP Garden is a sort of a Miner game. The contract contains locked DRIP/BUSD LP.
The DRIP Garden pays out up to around 3% a day to it’s investors. We have seen the contract balance crossing 500K some weeks ago, but towards the launch of the Farm it decreased again. Most probably people are claiming their days rewards as LPs in order to stake them in the DRIP/BUSD Farm which is one of the core farms of the platform.
Expectation
Since this is not the first time the Animal Farm launches while the DRIP Garden is live already, we can look back at what happened around the V1 launch. I’m not going to dig up any charts, you have to believe me on this.
Around the previous launch event (V1) we saw the contract balance decreasing because of the reason I explained above. People were collecting their DRIP/BUSD LPs to stake in the farm. After the launch the contract balance started to grow. That’s what I expect will happen here again as well.
PIGS ($AFP) token value
The PIGS token is the governance token for the Animal Farm.
In the run up to the launch I honestly expected the token to get to a higher price based on hype and FOMO. However, we have seen a sell off just before and since the October 18th. Although I get people were disappointed that the launch didn’t happen, I don’t understand why people were selling the PIGS tokens before the launch date. Those sellers must have been speculators and not long term investors.
Expectation
Once the platform is alive and kicking it will promote itself heavily. This, I expect will attract more attention to the platform and this particular token. Furthermore, if the mechanics for the Pig Pen play out as intended and explained by Forex Shark people want to be in it for the long run. In addition there are buy and sell mechanics in play which will realize buy pressure for this token. So I do expect the price to increase but I don’t have a clue about the speed in which it may happen.
DRIP ($DRIP) token value
DRIP is the foundation of the ecosystem. Below you can see the chart of the DRIP token price of the last four months. Note: this is the price on PCS, whereas the native DEX will show a higher price because of tax differences.
A lot of people have been shouting price predictions for DRIP the past months. The community in general is positive about the DRIP price going up once the farm is live, but based on what?
There are three main reasons why people are bullish on the DRIP price as far as I have seen. The first one is simple, its FOMO and hype. A bullish event creates positive energy and hype, attracting people who see it for the first time and FOMO in, increasing buy pressure and the cycle starts.
The second thing is the newest mechanic which was introduced in the previous 1.5 week regarding the DRIP/BUSD Farm. I cannot explain it better than the team did in their latest Medium article:
First, the multiplier for the DRIP Farm was modified to be the highest of any non-native Farm on the DOGS Master Chef contract. Secondly, the fees associated with the DRIP/BUSD LP token will be used to buy back DRIP. The DRIP portion of the LP will be sent to the tax vault. The BUSD portion of the LP will be used to buy DRIP directly and send it to the tax vault. This removes DRIP from the sell side of the order book while adding BUSD to the buy side, having a compounded positive impact on DRIP price, while sending up to 3x more DRIP to the tax vault than the initial concept!
The third reason is the opening of the DRIP/BUSD farm itself. The overall sentiment seems to be that people will buy even more DRIP to pair with BUSD and stake into the DRIP/BUSD farm. This would mean buy pressure for DRIP.
Expectation
Although I understand these arguments, I’m not convinced about the big impact on the DRIP price to be honest. Being a DRIP investor myself, of course I hope it will make the token appreciate big time. But I wouldn’t dare to lay down a price prediction myself. Current price being the floor and any double digit price for 1 DRIP would be very very nice already in my opinion.
Wrapping up
We have discussed several interesting metrics which are available for us know and elaborated on the potential impact of the Animal Farm related to those metrics. On November 1st and beyond we will see the impact the launch will have on these numbers and we can compare those at a later moment in time.
My referral
If you decide to invest in The Animal Farm yourself, after having done your own research, please consider using my referral link. It’s very much appreciated, thanks!
References
Website:
Wiki
Telegram channel The Animal Farm:
Telegram channel Forex Shark Calls:
