Treasury Update 4

Overview

ValiDAO remains committed to transparency, and as part of this commitment, we are pleased to share the fourth edition of our monthly Treasury and Liquidity Report. This report offers DAO members a detailed and accurate overview of our project's financial standing, including holdings and liquidity. Our aim is to provide members with the critical information necessary to make informed decisions and to fully grasp the financial foundation of our project.

Whilst slightly delayed this month, this treasury update is for the period 1st July - 1st August. This will mean the current numbers as of posting differ from the month-end close dates we are referencing here.

ValiDAO Treasury

The ValiDAO treasury consists of 3 core holdings: VDO, ETH and UniV2 VDO/wETH LP tokens. These holdings fluctuate based on expenses, trading fees from LP and revenues. Each token may vary in price and thus the dollar denominated value of each holding varies based up this.

Total Treasury Value & Composition

The ValiDAO treasury value as of 1st August was $1,247,227 and the composition of it is as follows:

Over the past month the treasury market value increased from $923,071 on July 1st to $1,247,227 at close on July 31st, this represents a roughly 35.12% increase in the treasury value. The variance here is mostly related to the prices of the underlying tokens (VDO & ETH). The treasury achieved an intra-month peak exceeding $1,498,000.

Up until this early July, funds for operational expenses have generally been sent from the treasury’s multisig on an as-needed basis. Going forward, a monthly sum covering all OPEX, to the tune of ~$30k will be sent at the end of every month to a separate EOA owned by ValiDAO’s LabsCo to simplify operations.

When looking at the composition of the treasury, we can see that the relative proportion of each holding remained relatively constant throughout, with a small bump in proportion for the VDO token holdings, due to a relative price increase versus the other treasury holdings. AT July close, VDO made up the bulk (59.2%) of the treasury:

Reviewing the individual assets within the treasury, we observe that the VDO balance was flat month-over-month, with no changes.

Meanwhile, the ETH balance concluded the month down just 0.17%, with intra-month lows of -26.03%. A few key events contributed to this variance:

1. ValiDAO earned 9.046 ETH in Trading Fees

2. Regular expenses - 10.66 ETH were withdrawn from the treasury multisig to pay for monthly recurring expenses

VDO Liquidity

At July close, the total liquidity pool size for VDO/ETH was $759,000. Since it is a UniV2 style LP, the composition of the pool is exactly 50/50 VDO/ETH.

Throughout the month, we can see how these LP reserves fluctuated:

ValiDAO holds a substantial liquid stake in the UniV2 VDO/ETH liquidity pool (LP) as a proportion of the treasury value. The value of this stake varies due to trading fees accrued and changes in the prices of the underlying tokens. Throughout the month, the LP's value remained relatively stable but ended with a market value 21% higher than at the beginning of the month.

ValiDAO owns almost all of the LP, but has a substantial amount of their holdings locked in unicrypt Currently, ValiDAO’s locked LP makes up 53.09% of this LP. This remained constant throughout July.