By Wen Moon and Steven-T
The end of July marks the first full month the vaults have been running. The results of the month real deposit performance has been good especially considering GLPs lower performance recently. Despite expected hiccups along the way, TVL is also scaling in gradually as expected and as we work out how best to show real performance and fix API problems, as well as unveil partnerships, collaborations and integrations we expect this to continue over the next months.
As for the markets, this was another month of extreme lack of volatility and volume, despite all catalysts in both directions attempting to help us break-out. Generally, yields are also down across the board which really helps mark the “peak” of the bear market. Markets are more boring than ever, and almost immune to any news. Obviously, this is depressing for most traders, however real builders remain building.
Now, let’s take a dive into July’s numbers:
Overall Performance
Treasury value, excluding UMAMI token holdings:
- End of June, $4,837,554
- End of July, $4,647,258
In the month of July, there was a Net Treasury loss of $190,296 or 3.9%.
For comparison:
- The total crypto market cap was $1.156 on June 30th and $1.141 on July 31st, which is a net decrease of 1.3%.
- The price of Bitcoin was $30,468 on June 30th and $29,221 on July 31st, which is a net decrease of 4.1%.
- The price of Ether was $1,934 on June 30th and $1,856 on July 31st, which is a net increase of 4%.
The treasury performed in line with the market considering expenses.
Gross Yield: $29,392.15 at time of writing, which constitutes a 7.6% APR return for the whole treasury!
- 15.48 ETH ($28,735)
13.22 wETH from GLP, 7.3 wETH distributed to marinatoors
1.22 ETH from Liquidity pools
1.04 ETH from vaults profit - Liquidity pools($6,567)
ARB — $228 (198)
USDC — $429
ETH — $2,277 (1.22)
UMAMI — $3,633 (256.9)
Net Yield was $15,900.86 using Gross Yield — Marinator Payout.
Expenses: Umami’s OpEx was $113,929 in July. The monthly USDC break down:
Fixed OpEx was $108,212
Variable Expenses $5,717
Asset Appreciation for Umami’s treasury is a net depreciation of $92,267.90 or 1.9%, 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 $2,983,223 or 18.6 months (assuming monthly opex of $160k). This is the value of any blue-chip liquid treasury holdings. It constitutes our GLP position; treasury stables + ETH; GMX hedges and our Vendor positions. It does not include ARB.
GLP & GMX
The GMX platform experienced a quieter period this month, as the daily usage of GLP assets was notably lower compared to June, leading to reduced APRs. However, traders’ net PnL remained positive, with gains amounting to $1,384,093. With the V2 launch, we’ll be closely observing usage patterns and gauging the market’s response to the new trading and yield opportunities.
Early in August, GMX launched v2 which is an exciting product for GMX. We are watching closely the product in prod and returns that it generates. From a product perspective, if you are interested in our vision for v2 then take a listen to any one of the AMAs we have done (and will do). As for the treasury, we have already made in investment into v2 and will keep looking for opportunities here, but we will talk more about that next month’s report.
UMAMI Liquidity Pools
A significant portion of our UMAMI/ETH treasury liquidity has been successfully moved from Uniswap to Kyberswap’s Elastic pools. Our friends at Kyberswap are still incentivizing liquidity for UMAMI/USDC 1% using KNC and ARB, which has led to triple-digit APRs. Their aggregator and liquidity routing have brought $257k in UMAMI volume on their platform this month.
Camelot’s UMAMI/ETH pool continues to ensure reliable liquidity, generating $569K in volume. We’re actively collaborating with Camelot to explore synergies as they roll out their V3 farms and automated liquidity strategies.
Due to the liquidity concentration, Uniswap’s UMAMI/ETH pair witnessed $548k in volume, highlighting the efficiency of V3 LP curves.
Through liquidity pools and Kromatika Fee Earning Liquidity Orders, the treasury accumulated 4165 UMAMI at $12 and 2733 UMAMI at $10. We’ll persist in supporting and accumulating UMAMI at attractive valuations. Our goal is to maximize value for the Umami community by strategically removing UMAMI from circulation when beneficial. This approach will contribute to maintaining sustainable marinate APRs as the protocol establishes its yield foundation.
Final Thoughts
And that marks the end of this report. Again, not much happened in July in the markets and as a result not much changed with our treasury strategy. We kept this report short and sweet, but with the release of GMX v2 in August and our anticipated integrations, we hope next month’s report will be more exciting! We are also patiently waiting for volatility to return to the markets.
As always, feel free to reach out to us regarding any questions or feedback. See you next month!
🍔
