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The Revolutionary CHSB Yield 2.0: Promises and results

20 January 2022

CHSB Yield 2.0 review
Bastien Muster  Chief Analytics Ofiicer

Bastien Muster

Chief Analytics Ofiicer

On the 19th of November 2021, we launched CHSB Yield 2.0, the first program of its kind implemented in the crypto space. The program was conceived to accelerate the wealth of our users in the long term and improve the health of our ecosystem. But, more than that, CHSB Yield 2.0 embraced the core mission of SwissBorg: to democratise wealth management. 

In this article, we will transparently review the impact of the program, since its launch, on the health of the ecosystem, highlighting some of the key metrics that we want to share with our community.

But first, if you aren’t familiar with CHSB Yield 2.0, here’s a quick explainer video:

Number of CHSB in the yield program

One of the goals of the ecosystem and dynamic we put in place is to increase the scarcity of CHSB tokens. By making the yield program more attractive to new investors, we wanted to drive up demand for CHSB, thereby putting pressure on the supply and supporting the token’s price. With this approach, whatever the market conditions are, the CHSB token will have limited supply with a wide distribution among a large number of token holders with a healthy concentration. 

The simplest way to measure how the CHSB Yield 2.0 Program reduced supply is simply by measuring the amount of CHSB locked in yield wallets, and whether the amount being added to those wallets increased.

The charts below show the evolution of the number of CHSB in the yield wallet in time and the monthly net change before and after the launch of CHSB Yield 2.0, where we see a significant acceleration of new CHSB in the yield.

Monthly new CHSB in the Yield
Monthly new CHSB in the Yield

We have seen both an increase in new users joining the yield wallet (there are more than 80K token holders in the yield wallets at the time of writing) and a slowdown in the number of redemptions since we launched CHSB Yield 2.0.

The chart below highlights the ratio between the number of users who subscribe to the yield wallet every month and the number of users who performed a redemption. 

This ratio increased significantly and, today, for each user performing a redemption, we have almost three users subscribing to the yield.

Ratio Yield Subscription / Redemption for CHSB
Ratio Yield Subscription / Redemption for CHSB

Conversion of new users to CHSB Yield 2.0

Another goal of CHSB Yield 2.0 was to accelerate the growth of new token holders (from existing app users) and improve the conversion to CHSB when a user enters our ecosystem. In other words, we wanted to make CHSB attractive and increase its discoverability. 

The chart below shows that we gained a significant amount of new investors in the first month after the launch of CHSB Yield 2.0 in comparison to October (+58% in November and +19% in December).

New CHSB investors and improvements Vs October
New CHSB investors and improvements Vs October

In addition, we also noticed that the conversion rate from a deposit to a first CHSB investment increased significantly from the previous month, which allows (even though the number of new users is slowing down with current market conditions) us to maintain a good amount of new CHSB investors.

Improvement on conversion from Deposit to Buy CHSB for new users
Improvement on conversion from Deposit to Buy CHSB for new users

We also noticed that existing CHSB holders are more likely to invest in more CHSB due to this new feature. Today, historical CHSB holders bought more CHSB 44% of the time, as presented below.

What users are doing with their investment in CHSB
What users are doing with their investment in CHSB

Growth of new users in the yield program

Both of the above charts lead to a high likelihood of more users joining the CHSB yield wallet for the first time. It's indeed what we observed since the launch of CHSB Yield 2.0 with a significant amount of new “yodlers” or those who yield while they hodl (growth of +80% in November).

New Users in CHSB yield
New Users in CHSB yield

User asset concentration

Last but not least, how has the asset concentration evolved since the beginning of CHSB Yield 2.0? Indeed, one of the ideas of this feature is to increase the health of the ecosystem. 

We invite you to check how this feature works to improve the “lost utility” (an indicator of asset concentration) in the CHSB Yield 2.0 white paper. To summarise, the lower the lost utility is, the more equally distributed the wealth. In other words, if everyone had exactly the same amount of CHSB, this value would be at its minimum. 

As shown below, this metric is going down slowly, which shows an improvement in asset concentration among CHSB token holders. One very positive aspect is that we did not notice a big drop initially, which would only be the case if big token holders were to dump the token massively. At the current speed, we could expect to reach a coefficient of 0.85 at the end of the year. It looks slow, but it's the goal to have a smooth transition to reach values close to the major cryptocurrencies.

Lost utility (modified Gini coefficient) vs time
Lost utility (modified Gini coefficient) vs time

This increase in the health of the asset concentration has been induced by an increase in the percentage of total holdings in the 1k-10k and 10k-50k CHSB categories. In the table below, we see that users with less than 50k CHSB now hold more than 30% of the CHSB in the SwissBorg app. In a transparent manner, this table presents the asset concentration and the breakdown in CHSB locked. The table also demonstrates that our big token holders’ trust is still high, with a significant percentage of CHSB locked.

Conclusion

Two months since the launch of CHSB Yield 2.0, we have witnessed a positive trend in most of the metrics we are following:

  • CHSB adoption and conversion of new users
  • CHSB scarcity
  • Improvement of the asset concentration trend

The positive metrics of the CHSB Yield 2.0 Program’s first two months give us confidence in our ecosystem’s future. Even though the price did not experience an uptrend in the short term, today’s situation is different from this time last year when the entire market was experiencing a bull run. The fact that CHSB has maintained stability in a falling market helps demonstrate the strength of the token.

In an ecosystem with a scarce token, with more token holders, improved concentration, and better conversion, we believe that the law of supply and demand should continue its positive effect in the medium to long term. At the same time, the price should be less and less sensitive to large downtrend movement while a massive uptrend should have more impact.

Try the CHSB Yield 2.0 today!

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