Overview

ValiDAO remains firmly committed to transparency, and in line with this promise, we are pleased to present the fifth edition of our monthly Treasury and Liquidity Report. This report offers DAO members a detailed and accurate overview of our financial position, including asset holdings and liquidity status. Our aim is to provide members with valuable insights to make informed decisions and gain a clear understanding of the project's financial foundation.

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 October was $681,498 and the composition of it is as follows:

Over the past month the treasury market value increased from $895,456 on September 1st to $1,361,110 at close on October 1st, this represents a roughly 52% 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 of $1,441,820 on the 27th of September.

Up until this early July, funds for operational expenses have been sent from the treasury’s multisig on an as-needed basis. Going forward, a monthly sum covering all OPEX, to the tune of ~$31k 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 (61.5%) of the treasury:

Reviewing the individual assets within the treasury, we observe that the VDO balance was down 3.6% month-over-month. The 41,927 decrease in VDO tokens is for the following reasons:

• Payment for council members

• Payment for salaries

Meanwhile, the ETH balance concluded the month down 19.1%, with intra-month lows of -44.2%. 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 Regular expenses - 10.66 ETH were withdrawn from the treasury multisig to pay for monthly recurring expenses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 September close, the total liquidity pool size for VDO/ETH was $652,473. 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:

The fluctuation in total LP value is due to the prices of the underlying assets, no material liquidity was added or removed.

ValiDAO holds a substantial locked 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 increased in market value, finishing 39% 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 August.