Umami DAO Treasury Update — March 2024

Umami
5 min readApr 10, 2024

By Steven-T
Another productive month unfolds for the Umami team as we chart our course towards a flourishing future. Core contributors of the Umami DAO have presented a groundbreaking proposal for Bonsai DAO — a pioneering metadao structure poised to propel our endeavors across new blockchain horizons while fortifying the value of newly launched protocols. Our commitment remains rooted in community empowerment, as we diligently craft innovative products tailored for the DAO’s benefit.

Aligned with DAO proposal #7, our focus remains steadfast on constructing sustainable, scalable systems that accrue maximum value for the community. To expedite the realization of our innovative product pipeline, we’ve optimized internal expenses in order to contract and recruit new Solidity developers — adhering to the stipulated expense limits outlined in the proposal. As we persist in our scaling endeavors, we remain committed to the established guidelines until further community consensus.

Bonsai’s model empowers the community to explore the development of tailored dApps, hardcoded token redemption features, and custom shelf-life dApps — a testament to our commitment to fostering a truly decentralized ecosystem. Liberated from concerns over treasury yield, our treasury can pivot its focus towards expansion and compounding our investments, ensuring sustained growth.

Now, let’s take a dive into March’s numbers:

Overall Performance
Treasury value, excluding UMAMI token holdings:

End of February, $4,074,163
End of March, $4,079,684
In the month of March, there was a Net Treasury gain of $5,521 or 0.1%.

For comparison:

The total crypto market cap was up 18.7% to $2.614T
The price of Bitcoin was up 16.4% to $71,214
The price of Ether was up 9% $3,642

Gross Yield: $25,634 which constitutes a 7.2% APR return for the whole treasury!

6.11 ETH ($22,253)
3.74 wETH from GLP, 6 wETH distributed to marinatoors
0.40 ETH from Liquidity pools
1.97 ETH from vaults profit
Liquidity pools($2,475)
ETH — $1,464 (0.4019)
BTC — $1,011 (0.0142)
XGrail Dividends ($2,370)
Net Yield was $3,789 using Gross Yield — Marinator Payout.

Expenses: Umami’s OpEx was $65,734 in MArch.
The monthly USDC break down:
Fixed OpEx was $63,400
Variable Expenses $2,334

Asset Appreciation for Umami’s treasury is a net appreciation of $67,467 or 1.6%, 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 $2,686,012 or 26 months (assuming new monthly opex of $100k). This is the value of any blue-chip liquid treasury holdings. It constitutes our GM Vault positions; treasury stables + ETH and other liquidity positions. It does not include UMAMI, ARB, esGMX or xGRAIL.

GMX + GM Vaults
As the bull market persists, the Umami treasury maintains its agility, strategically positioning itself to capitalize on prevailing market trends. Accordingly, we have shifted our focus away from providing liquidity in GLP and GMX’s GM pools, opting instead to accumulate exposure to ETH and BTC while scaling Umami’s vaults.

One key strategy involved redeeming WBTC with proceeds from our GLP position. This approach ensured a low fee to exit from GLP while maintaining bullish exposure. By leveraging WBTC, we can then participate in the BTC/ETH liquidity pools to accumulate ETH. This dual approach allows us to farm liquidity fees while bolstering our ETH allocation, which will be instrumental in our forthcoming protocol expansion efforts

As part of our ongoing efforts to scale, the team is gearing up for the launch of the highly anticipated GM ARB vaults. Additionally, we are actively exploring optimal strategies to introduce leverage for our GMUSDC vaults. We eagerly anticipate enhancing the utility and demand for our USDC vaults.

UMAMI Liquidity
The DeFi Edge ARB incentive program remains active for their automated UMAMI/ETH liquidity strategy. Utilizing Camelot’s Nitro Pool system, the LP currently boasts $120k in assets under management and continues to offer a respectable 200% APR!

Vendor Loans persist in providing liquidity for the UMAMI token, with borrowers maintaining a 24% APR. With $38k still available, the pools remain stable in their current configuration for the time being.

ARB Short Term Incentive Program
As the Arbitrum STIP concluded, Umami’s launch of the BTC vault propelled us to achieve our $10 million TVL target for the program.

To summarize our accomplishments:

  • K.P.I. of $10m TVL target reached
  • GLP Vaults scaled to $6m
  • Launched innovative GM Vaults
  • Distributed 850,000 ARB to the Umami community
  • Boosted user growth and retention
  • vUMAMI

During the STIP period, the treasury accumulated over 45,000 ARB. As previously announced, we are currently allocating these ARB emissions over the month of April. These emissions are projected to sustain GM Vaults incentives until the STIP Bridge, which aims to allocate 50% of the previous ARB distribution to eligible protocols, potentially making Umami eligible for 375,000 ARB. Consequently, we have decided to postpone the vUMAMI system to avoid conflicting incentive systems. This strategy also allows the treasury to accumulate the remaining ETH earned from the oARB STIP program, providing us with a clear understanding of the available ETH for future incentives.

Final Thoughts
We’re excited to introduce our newest addition to the treasury, $Boop, to the community. Umami has initiated a position and provided ETH liquidity support through Camelot’s recently launched V3 incentivized liquidity pool. We recognize the potential of $Boop and anticipate supporting the rapidly growing community.

A dog’s love is like a never-ending hamburger: unconditional, fulfilling, and always leaving you wanting more.

With protocol optimization and enhanced strategies, the Umami community strategically positions itself to expand and thrive, delivering maximum value to all stakeholders.🌳

As always, feel free to reach out to me regarding any questions or feedback. See you next month!

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