Treasury Update 3

Overview

ValiDAO is dedicated to transparency, and in line with this commitment, we are pleased to present the third edition of our monthly treasury and liquidity report. This report provides DAO members with a comprehensive and precise overview of our project's financial status, including holdings and liquidity. Our goal is to equip members with the essential information needed to make informed decisions and to fully understand the financial underpinnings of our project.

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 current ValiDAO treasury value is $780,298 and the composition of it is as follows:

Over the past month the treasury market value has decreased, starting at $1,279,067 and ending at $780,298, this represents a roughly 47% decrease 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 $1,500,000.

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 $29.6k 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 VDO tokens making up the bulk (52.2%) of the treasury:

Reviewing the individual assets within the treasury, we observe that the VDO balance was down month-over-month, showing a -9.27% growth rate. This was due to the successful distribution of the airdrop to Dymension airdrop to delegators. 150,000 VDO was sent to the airdrop contract. Thus far, ~12k VDO has been claimed from ~360 addresses. The remainder of the airdrop will be clawed back, and a yet-to-be-determined amount of VDO will be redistributed to those who did claim.

Meanwhile, the ETH balance concluded the month with an increase of 5.26%, with intra-month lows of -20%. A few key events contributed to this variance:

1. ValiDAO earned 12.8 ETH  in Trading Fees

2. Regular expenses - a decent proportion of infrastructure costs were paid due to quarterly payment plans. 2.9 ETH was withdrawn for this reason.

VDO Liquidity

The total liquidity pool size for VDO/ETH is currently $534,000. 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 17% lower than at the beginning of the month.

ValiDAO owns 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.