Umami Finance Launches New Bonds & Updates Its Treasury Strategy

Three new bonds & other exciting updates!

Umami Finance is delighted to announce it has issued three more bonds that diversify its treasury into some of the most exciting projects on Arbitrum.

Umami is now bonding DPX, GMX and MAGIC. The assets give Umami exposure to Arbitrum-native exchanges Dopex and GMX as well as TreasureDAO, the most popular gamified NFT-marketplace on Arbitrum.

The bonds open up new opportunities for Umami to generate yield for its treasury and deepen its partnerships on Arbitrum. For example, Umami plans to support Dopex’s upcoming launch of its veDPX governance token by locking its DPX in exchange for veDPX.

See details on Umami’s partnership with Dopex here.

Higher Returns With V2 Bonds

The new bonds are also Umami’s first to pay out in staked UMAMI, much like OlympusDAO’s new V2 bonds. There are a few key features of V2 bonds every UMAMI HODLer should know:

  1. The bonds are denominated in sUMAMI, which begins accumulating rebase rewards from the moment the bonds are purchased. The rebase rewards boost bonder overall returns and ensure that any discount >0% is a profitable deal for bonders.
  2. Bonds pay out at the end of the 5-day vest period, rather than linearly over 5 days.
  3. Once your bonds vest, your UMAMI is already staked! No more need to pay gas-fees to stake your bond payouts. Just stake and chill!

An Enhanced Vision For Umami’s Treasury

Along with shipping the new bond offerings, the Umami team has been developing a detailed vision for maximizing value from its treasury holdings and is excited to share some updates!

Long Term Stability

Umami’s long-term focus requires its treasury to be resilient in the face of unpredictable market swings. The Umami team has developed guidelines for asset allocations to optimize its exposure to market risk.

  1. 40% — stablecoins or other “delta neutral” assets.
  2. 25% — crypto “majors” such as ETH.
  3. 25% — OHM tokens and LPs (see details of our OlympusDAO partnership here).
  4. 10% — adjacent projects on Arbitrum (GMX, DPX etc.).

Going forward, these guidelines will inform Umami’s bonding and capital deployment decisions to ensure that new opportunities never compromise Umami’s long-term stability.

Upcoming Capital Deployments

Umami is also moving quickly to put all of its treasury assets to work. It already has deployed ~$3m in gOHM and MIM to JonesDAO and Curve Finance (read more here) and is preparing for additional deployments soon:

  1. Depositing ~$500,000 in BTC to Curve Finance renBTC pool on Arbitrum.
  2. Issuing gOHM-ETH bonds and deploying the LP on Sushiswap.
  3. Swapping MIM and FRAX for crypto “major” assets such as ETH to maintain an optimized level of market exposure.

Community Input & Governance

The Umami team wants input from you, our community, on some of its proposed treasury allocations. From now on, Umami will issue snapshots to HODLers on major decisions, with the most voting power given to our committed marinators.

Here’s a preview of some upcoming proposals:

  1. Rebalance overweight stablecoin holdings into ETH, BTC or GLP (GMX’s high-yielding index token)?
  2. Swap existing BTC for ETH?

Umami will share more updates on governance and upcoming snapshot proposals soon!

Forward March

Umami is also preparing even more updates on its treasury strategy and tokenomics soon, so stay tuned!

Umami Finance is the premier market-maker and liquidity network for Arbitrum.

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Umami Finance

Umami Finance

Umami Finance is the premier market-maker and liquidity network for Arbitrum.

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