Umami DAO Treasury Update — February 2024
By Steven-T
What a productive month it has been for the Umami ecosystem! Our GM Vaults have experienced remarkable growth, with the TVL surpassing $7 million. Additionally, our lead developer, Toki, garnered attention at ETH Denver, where valuable networking opportunities with blue chip projects were seized, planting the seed for promising partnerships. These efforts continue to lay the groundwork for a thriving protocol.
Amidst a soaring crypto market, Umami’s treasury position and runway look promising. Despite the crypto market surge testing Umami’s GM vaults, they have performed admirably, capitalizing on market volatility and liquidations.
Now, let’s take a dive into February’s numbers:
Overall Performance
Treasury value, excluding UMAMI token holdings:
- End of January, $3,671,179
- End of February, $4,074,163
In the month of February, there was a Net Treasury gain of $402,984 or 11%.
For comparison:
- The total crypto market cap was up 39% to $2.201T
- The price of Bitcoin was up 44% to $61,161
- The price of Ether was up 46% $3,342
Gross Yield: $28,144 which constitutes a 8.3% APR return for the whole treasury!
- 5.2 ETH ($17,312)
2.22 wETH from GLP, 4.94 wETH distributed to marinatoors
0.08 ETH from Liquidity pools
2.88 ETH from vaults profit - Liquidity pools($8,977)
USDC — $4,418.00
ETH — $263 (0.08)
ARB — $2258 (1,158) - GMX V2 ARB incentives
ARB — $2,038 (1158) - XGrail Dividends ($2,123)
Net Yield was $11,651 using Gross Yield — Marinator Payout.
Expenses: Umami’s OpEx was $84,451 in February. The monthly USDC break down:
Fixed OpEx was $81,280
Variable Expenses $3,171
Asset Appreciation for Umami’s treasury is a net appreciation of $475,783 or 11.7%, using this formula:
Asset Appreciation = Net Treasury Gain — (Gross Yield — Expense Outflows — Marinate Payout)
Treasury Breakdown
Currently the breakdown of our treasury is as follows:
Liquid Runway: is $2,602,976 or 26 months (assuming new monthly opex of $100k). This is the value of any blue-chip liquid treasury holdings. It constitutes our GMX positions; treasury stables + ETH and our Vendor positions. It does not include UMAMI, ARB, esGMX or xGRAIL.
GMX
The treasury is actively adjusting its market exposure by trading its GLP position for wBTC and ETH to take advantage of the bull market. The enhanced performance of GM pools was prominently showcased during recent market volatility. Even amidst a bull market, liquidation fees have surged, bringing traders’ net Profit and Loss back to equilibrium. Remarkably, the pools reached record fee generation with liquidations, underscoring their robust performance and resilience.
The 1% rise seen in the Price Per Share of Umami’s ETH and USDC vaults has notably enhanced the APR, solidifying their status as a leading liquidity strategy. This superior performance underscores the effectiveness of our capital-efficient approach. Credit goes to our automated internal netting strategy, underpinned by ChainLink technology and crafted by our based devs, for driving these significant gains.
Liquidity Pools
As the treasury has recently acquired more Bitcoin, we aim to accumulate ETH as well. By taking single-sided WBTC/ETH support positions, the treasury can earn fees while filling our orders for more ETH at attractive ratios.
Sperax
We’ve recently launched a UMAMI/USDS farm on the Sperax.io platform. Leveraging the Sperax stablecoin USDS, this farm offers customized liquidity incentives for up to four tokens simultaneously. With the LPs’ liquidity depth increasing as demand grows, we have the flexibility to customize and scale the incentives accordingly
Defi Edge
Defi Edge has launched a 25k ARB incentive program for their UMAMI/ETH liquidity strategy, powered by Camelot’s Nitro Pool system. This automated liquidity system ensures capital-efficient positions that remain within the desired range. Starting March 12th, users will have the opportunity to stake their Defi Edge LP position in the Nitro Pools. Visit the UMAMI/ETH Camelot LP page to participate!
Vendor Finance
Vendor pools continue to see high demand while the treasury has leant out $327k in ETH and USDC at 24% APR. Look for an announcement soon as we add more liquidity for the community to borrow.
ARB Short Term Incentive Program
The oARB STIP redemption period concluded on February 19th, with 47,225 ARB out of the program’s 750,000 ARB remaining unclaimed, and an additional 96,559 oARB left unused. Starting March 16th, the remaining ARB will be disbursed directly to our GM vaults, funding the conclusion of our ARB incentives program for this month. This remaining ARB will enable us to launch our new ARB and BTC vaults and effectively scale with ARB emissions.
The STIP updates can be found here
GMX Grant
The 100k ARB grant has significantly bolstered our TVL, enabling us to highlight the impressive yields offered by our vaults while rewarding the Umami community with consistent 36%-60% APR through the month. Although this program will conclude on the 15th, ARB emissions will continue for vault stakers for the remainder of the month using the remaining 47k ARB from the STIP.
GMX Grant updates can be found here
vUMAMI
Moving forward, we are actively investigating efficient methods to incentivize the retention of Umami’s TVL and to reward UMAMI token holders. We plan to pilot a vested UMAMI incentive system funded by ETH raised from our STIP, building upon the successful passage of the vUMAMI DAO proposal. This system will provide an alternative path beyond the current ARB emissions, offering additional incentives to our community.
Final Thoughts
The team continues to explore new systems and strategies to implement within our ecosystem in order to create maximum efficiency and maximum value for the Umami community. To everyone here now you are in luck! Get excited for what we are growing 🌳
As always, feel free to reach out to me regarding any questions or feedback. See you next month!
🍔
