TL;DR

Q1 was a time for the Badgers to buidl. The framework for a new DeFi primitive called eBTC was introduced to the community (forum: introduction, update#1) while a boon to the Badger Treasury in Q1 stemmed from a strong market recovery for crypto in general.

Some highlights of the most important treasury events:

• $7.7M increase in the notional value of treasury holdings due to price appreciation of treasury assets

• Increased revenue despite low engagement from users

• Strong stablecoin inflow continues to extend BadgerDAO runway

• Emissions were set to zero, following the conclusion that they were not profitable on current vaults (TCD#25)

• BadgerDAO’s treasury grew its participation in influence markets by depositing and incentivising a new BADGER/WBTC gauge on Bunni (TCD#27)

More details in the report below.

Assets

• The treasury’s biggest positions saw upward price movements;

  • BADGER: $2.14 -> $2.82 (+31%)

  • BTC: $16,586 -> $28,583 (+72%)

  • ETH: $1,198 -> $1,825 (+52%)

• For comparison: the S&P Cryptocurrency MegaCap Index gained +66% in Q1

• Live dashboard of the treasury’s complete portfolio: https://lookerstudio.google.com/u/2/reporting/709ff9bc-23d3-46ed-b0aa-d7af77fe6ed9

Investments

• Opolis (BIP#49): the 17.9M staked WORK (~$210k) is now included in the “Other” assets section of the portfolio. Still another 8.9M WORK vesting over the next 30 months (~$104k)

• zeroDAO (BIP#50, BIP#96): zeroDAO raised $400k. They requested an extension on the 30% cut ($120k) to be paid out to BadgerDAO (rff), which was granted (vote)

Profit & Loss

Non-native (i.e. excluding BADGER and DIGG) P&L:

For a full profit and loss statement inclusive of BADGER and DIGG, please refer to this particular report: https://lookerstudio.google.com/u/2/reporting/24f03640-4369-4687-a92f-979fe946bb8b/page/p_z0k2snawyc

• Revenue has increased by 8%, due to TCL positions yielding more (+52%)

• A decrease was observed in vault based revenue (performance fee, withdrawal fee, minting/burning) due to deprecation of these products in the last quarter of 2022

• A reduction in consulting costs (no audits or substantial legal activities), and a shrinking of core contributors created savings in overall costs

• These effects combined resulted in non-native EBITDA being positive for Q1 ($225k)

Cashflow

• Partial divestment of the vote locked AURA into stablecoins (TCD#26) and the regular TCL harvests created a net positive inflow of stablecoins

• As a result, the most pessimistic stablecoin runway (zero revenue) was extended from 20 to 23 months

• However, if the average trailing revenue of the last quarter ($225k) is considered, it exceeds the burn rate ($192k) and thus turns cash positive. This does not consider any stablecoin inflows from divestments or other forms of rebalancing

• The BADGER runway however is looking more precarious, having decreased from 20 to 14 months. The Treasury council is focusing its attention on both decreasing BADGER burn rate where possible and increasing BADGER inflow

Restitution

The restitution program continued as agreed upon, in the form of deposits into remBADGER (73k BADGER) and emissions to remBADGER holders (95k BADGER).

The remBADGER program can be tracked live on this dashboard: https://dune.com/gosuto/remBADGER

Sources

• Most of the data presented here is sourced from various interactive reports created with Google Looker Studio, all updated at least once a day:

  • BadgerDAO Portfolio: https://datastudio.google.com/u/0/reporting/709ff9bc-23d3-46ed-b0aa-d7af77fe6ed9/

  • BadgerDAO P&L 2023: https://lookerstudio.google.com/u/2/reporting/24f03640-4369-4687-a92f-979fe946bb8b/

List of treasury’s on-chain addresses and corresponding links: https://github.com/Badger-Finance/badger-multisig#multisig-addresses

Be relentless. Be Badgers