Hop Protocol & DAO Q1 ‘24
Welcome to our Quarterly report on the progress of Hop Protocol, the leading crypto bridge focused on enhancing blockchain modularity. In this update, we’ll highlight key advancements achieved over the past quarter, from technical upgrades to protocol and DAO growth.
Hop Protocol
In Q1 2024, Hop Protocol’s volume surpassed the $5 billion mark. Hop Protocol currently supports transfers between the following networks; Ethereum mainnet, polygon, gnosis, optimism, arbitrum one, arbitrum nova, base, linea, and polygon zkEVM.
The total volume this quarter was a 63.62% increase from last quarter with a total volume of $478 million vs $292 million Q4 2023. The total volume this quarter was higher than each quarter in 2023.
While Hop V1 has been around since 2021 and has successfully bridged over $5 billion, Hop V2 is around the corner as development inches closer to mainnet. Significant progress has been made with off-chain infrastructure as the front-end, explorer, etc. for V2 is complete after ongoing testing. Additionally, on-chain contract development is progressing well, with a focus on transaction simulations taking place in the testnet.
The bonder network continues to perform and is preparing for changes coming up with V2 and its push to decentralize the bonder role.
Hop supports liquidity pools in Ethereum mainnet, polygon, gnosis, optimism, arbitrum one, arbitrum nova, base, linea, and polygon zkEVM . The TVL of Hop’s liquidity program is roughly $28.4 million with 76.2% TVL being in ETH. USDC.e comes in second place with 6.3% of the TVL and DAI in third with 5.5%. The protocols with greatest liquidity mining TVL are Arbitrum One with 33.6%, Optimism with 26.2%, Base with 19.9%, and Polygon with 12.5%. The upgrade of the USDC bridge to CCTP has launched and this move supports cheaper and more efficient native USDC transactions and the upgrade to Hop V2.
The list below shows each source chain’s most frequented destination chains during Q1 ‘24
Ethereum > Polygon
Polygon > Ethereum and Base
Optimism > Base
Arbitrum One > Ethereum and Base
Base > Ethereum
Linea > Optimism, Arbitrum, and Base
The lifetime transfer count is roughly 3.7 million and 74.10% of transfers have been in ETH. USDC is second with around 13.64% of transfers. The average weekly transfer counts this quarter was 29k transfers.
The current circulating Hop token supply is around 75 million which represents around 7.5% of the total token supply.
The table below demonstrates that the Hop token’s current liquidity is around $682,711 in various exchanges and chains.
Hop DAO
The DAO has approximately 1.47k governance participants and 78 delegates that have been actively participating recently according to karmahq.xyz/dao/delegates/hop.
During this quarter the DAO has had five passing Snapshot votes while Tally has had three passing votes and one failed vote. The failed vote was [HIP-39] Community Multisig Refill (4) which failed due to lack of quorum.
This quarter the DAO passed the following proposals: Treasury Diversification for Ongoing DAO Expenses (HIP44), Treasury Diversification and Protocol Owned Liquidity, Delegate Incentivization Trial (Third Cycle), Community Moderator Role and Team Compensation, and finally, Head of DAO Ops Role and Election.
There are three main proposals that are currently live in the forum: Grants Committee Renewal and Redesign, Protocol Financial Stability Part 1, and Hop Single Sided Liquidity.
Topics for future discussion: Migrating to L2 for Voting and Token Redelegation.
This report solely represents the views and research of the current Head of DAO Operations which could be subject to errors. Nothing in this report includes financial advice.