Forum link : https://forum.inverse.finance/t/analytics-working-group-s2-proposal/410

Proposal for Inverse Finance DAO to cover operations of the Analytics Working Group (AWG) in Season 2, running for 6 months from May 1, 2024 to October 31, 2024.

1. Introduction

This proposal outlines the agenda for Season 2 of the Analytics Working Group (AWG) within the Inverse Finance DAO. Leveraging the success and lessons of Season 1, we aim to deepen our data analytics capabilities to guide strategic decision-making and stimulate growth. For transparency purposes this proposal will be provided with detailed annexes about the AWG achievements last season (Annex I) as well as the cost involved (Annex II) and available on the (this) forum.

2. Analytics Working Group Overview

2.1 Role and Importance within Inverse Finance DAO

The AWG's primary role is to analyze, interpret, and leverage data for strategic decision-making, through the provision of analytics tools and infrastructures, thereby offering invaluable insights, identifying growth opportunities, and highlighting improvement areas.

2.2 Achievements of Season 1

In Season 1, the AWG enhanced its operational excellence. Leveraging Docker, we streamlined our infrastructure, cutting costs to $455 monthly and doubling computational capacity. Our day-to-day operations—developing data queries, producing reports, and managing data inquiries—remained strong. We improved our subgraph availability with The Graph team, quickly resolving service disruptions.

Significant achievements include :

• Maintaining and monitoring the stability and efficiency of our systems 24/7 (inverse.watch and associated services)
• Building - and using - a blockchain simulation framework on Inverse Watch,
• Building various dashboards relying on those systems including :
  • Analytics Weekly Highlights dashboards ;
  • 1 Inch & Curve Price Simulator Dashboards ;
  • DBR Rewards and Virtual Auction ;
  • sDOLA & DOLA Savings Account ;
  • FiRM Positions per User ;
  • DOLA health dashboard.
• Integrating LLM bots for our documentation and machine learning pipelines,
• Integrating discord bots to continuously monitor DOLA prices or smart contract functions,
• Launching an advanced graph visualization mode on Inverse Watch,
• Implementing an API documentation on inverse watch

These initiatives improved our analytics, risk modeling, and made transactional data more intuitive, reinforcing the platform's role in strategic decision-making for the DAO.

More details are available in the Annex I.

2.3. S1 Success Metrics

• Number of Weekly AWG Insights Reports Published: During Season 1, we successfully published 19 out of 21 planned weekly AWG Insights reports since their launch, providing consistent and valuable analysis to the DAO.
• Effectiveness of Insights Generated: Assessing the direct impact of insights generated proved challenging due to the low use of the data request forum on discord that allows to track thematically and timely those topics. However our internal alert systems have allowed risk and treasury to monitor markets continuously, facilitating proactive decision-making in those channels in response to market events (alert statistics available in the Annex).
• Infrastructure Robustness: We aimed for less than 0.1% downtime across our systems and tools, including dashboards and alert systems. While our systems maintained near 100% availability (as indicated on status.inverse.watch), there were isolated instances of downtime, particularly affecting a key product hosted on The Graph decentralized network. We acknowledge these challenges as opportunities for improvement and remain committed to enhancing our infrastructure resilience and reliability in Season 2.

3. WG Goals for Season 2

For Season 2, the AWG is set to broaden its analytics capabilities, further refine our tools, and strengthen our collaboration with other working groups, aiming to create a more cohesive and data-driven DAO.

3.1 Strategic Objectives

Our mission is to empower the DAO with robust data-driven decision-making tools. We are committed to preserving our infrastructure's integrity, enhancing our visualization capabilities, and incorporating cutting-edge machine learning and AI technologies to support the DAO's strategic initiatives.

3.2 Usual Objectives

The main objective of the AWG is to continue operating and maintaining its systems “as-usual” in order to ensure their availability and stability and guarantee their effectiveness.

3.3 Additional Projects for Season 2

We plan to introduce more simulation tools and enhance and advertise the use of our LLM-powered bots. Additionally, we aim to apply more advanced analytical techniques for transaction and anomaly detection to improve the DAO's operational resilience and decision-making precision.

• Advanced Data Connectors and Visualization Tools : Our objective to integrate more diverse data sources and improve our visualization tools has been achieved, we now aim to continuously improve them.

• Machine Learning and AI Capabilities : We are planning to expand our application of machine learning and AI, aiming to build predictive models and conduct trend analysis that can anticipate market movements and inform strategic decisions.

• Bots and Automation Projects : We plan to further develop and enhance our suite of AI bots and infobots, improving community engagement and operational efficiency through advanced automation and AI capabilities.

• Alert monitoring page : We plan to build a mechanism on inverse Watch that would allow team members to collaborate on and manage the alerts built and triggered by our system.

3.4. Success Metrics for S2

Success in Season 2 will be quantified through metrics such as infrastructure uptime, the frequency of insight report publication, and the completion of the above listed projects.

3.5. Responsibilities and Focus Areas

• Data Strategy Development and Governance : Our focus remains on refining our data strategy to ensure it aligns perfectly with the DAO's goals. This involves comprehensive data management and governance, ensuring data integrity, security, accessibility and affordability.

• Tooling, Infrastructure Maintenance and Improvement : The AWG is dedicated 24/7 to maintaining and improving the robustness of its platform and tools, ensuring they operate efficiently and are continuously improved to meet the DAO's evolving needs.

• Data Analysis, Interpretation, and Insight Provision : We will continue to utilize and improve our tools to delve deeper into data, offering clear, actionable insights that can significantly influence the DAO's strategic directions.

• Dashboard & Report Generation : The generation of detailed reports on various topics remains a priority. These reports play a crucial role in guiding risk decision processes in the DAO.

• Alerting System and Automated Socials Enhancement : We aim to further refine our sophisticated alerting system, ensuring we remain vigilant and responsive to any operational or financial risks that may arise.

• Collaboration, Consultation, and Data Literacy Advocacy: By enhancing our collaboration with other working groups, we seek to provide essential data support and promote a culture of data literacy across the DAO, empowering all members with the tools & knowledge to make data-informed decisions.

• Other AWG Activities : Like other team members @naoufel is on standby 24/7 on the following Multi Sigs :

  • Fed Chair
  • Treasury Working Group
  • Policy Committee

4. Decision-making Power and Governance

The AWG will maintain its decision-making authority over analytics infrastructure and tooling. This autonomy ensures we can efficiently allocate resources in alignment with our strategic goals, driving forward our analytics capabilities.

5. SecOps Responsibilities and Enhancements

Our ongoing collaboration with the Treasury and Risk working groups highlights our vital role in providing the technical expertise and analytical support necessary for the DAO's operational and risk management strategies.

6. Budget for Season 2

1. S1 Budget summary and remainder

The budget for S1 originally included $5,048 with an additional $3,800, totaling $8,848. However, the total cost for season 1 amounted to only $4,527.08, which is notably lower than anticipated. This surplus allows for coverage of expenses for several months beyond what was initially planned for season 1 (namely March and April). Such fiscal efficiency provides flexibility for potential future expenses or investments and reflects effective budget management during season 1.

For The Graph network cost, an optimization in the platform queries has led to lower our GRT consumption considerably a few epochs ago which led us to spare the budget allocation reserved for GRT tokens market purchases.

Detailed budget considerations for tooling, infrastructure maintenance, and potential project expansions will be provided separately, ensuring transparency and accountability in the allocation of DAO resources.

2. Contributors

Name	FTE	Band	Pro-Rata Monthly Salary	Total for Season 2
Naoufel	1	B	12,000	72,000

3. Ad-hoc & Tooling

• Quicknode : 49 $ / month
• Digital Ocean : ~500$/month
• GRT Tokens: $1,200 for S2 (unused in S1)
• OpenAI : ~ 0 to 50 $/month

4. Flexible Budget

AWG requests a flexible allowance of 500 DOLAs to cover tooling unforeseen expenditure that arises during the Season.

5. Summary

A	S2 $DOLA allowance	S2 $INV allowance
Contributors	72,000	0
Ad Hoc & Tooling	3,594	0
Flexible Budget	1,700	0
Total	77,294	0

10. Conclusion

The AWG's achievements in Season 1 have laid a robust technical foundation for future advancements in data analytics within Inverse Finance DAO.

With Season 2, we aim to build upon this success, introducing innovative strategies to enhance decision-making and operational efficiency across the DAO.