TL;DR

In Q2 Badger continued to focus on building the eBTC protocol and preparing to go to market. The eBTC protocol underwent intense review and auditing to assure a quality product. The Badger Treasury continued to bring positive returns in Q2 as crypto markets experienced volatility related to regulatory uncertainty.

Some highlights of the most important treasury events:

• $3.1M decrease in the notional value of treasury holdings due to price depreciation of treasury assets, more than half coming from decrease in Native asset value

• Decreased revenue due to falling yields of TCL

• Stablecoin inflow continues to extend BadgerDAO runway

• All remaining vaults were retired ahead of eBTC launch

More details in the report below.

Assets

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

  • BADGER: $2.86 -> $2.18 (-23%)

  • BTC: $28533-> $30381 (+8.2%)

  • ETH: $1825 -> $1927(+5.5%)

• For comparison: the S&P Cryptocurrency MegaCap Index gained +7.3% in Q2

• 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’s notional value is now ~$175k. Still another 8.4M WORK vesting over the next 27 months (~$82k)

• zeroDAO (BIP#50, BIP#96): 30% cut ($120k) of their raise still to be paid to us post-TGE (token generating event), plus 12% of $zeroDAO supply

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 decreased by 36%, due to yields on TCL positions falling

• A decrease was observed in vault based revenue (performance fee, withdrawal fee, minting/burning) due to further deprecation of products

• Overall costs increased due to an increase in gas cost, consulting and software. Additional consulting costs are mostly temporary development costs for the eBTC frontend.

• These effects combined resulted in non-native EBITDA being negative for Q2 (-$158k)

Cashflow

• During Q2 the Badger Treasury Council voted to formalize an annual operating budget for the Association Council (TCD#30)

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