Umami Finance — Treasury Transparency Report (FTX Meltdown)

A quick transparency update from your Treasury Manager, 0xWenMoon

Main Points

Firstly, the treasury team is happy to announce that the Umami Treasury has/had ZERO exposure to FTX, FTX US or Alameda Research! All the assets the treasury holds are viewable on-chain at all times, and to this day the treasury has not held any assets on any CEX or with any CeFi entity.

Key statistics

Treasury value (as of 11/11/22 1:00 UTC)
USDC — $1,997,997
GLP — $1,367,150
Other — $1,187,128

What steps did we take

Overall, this news broke out relatively quickly, leaving little time to react. In hindsight, it would have been a good idea to have been hedged more but at the same time a situation like this was quite difficult to forsee.

Next Steps

Going forward, we expect to reallocate the USDC into GLP plus some other strategies, as we hinted to in October’s Treasury Update, once the majority of the volitilty as a result of FTX’s Meltdown has blown over.

Final Thoughts

Although its hard to see silver linings in events such as these, I think there are a few important points to consider for Umami. Firstly, the fact we spent the past few months of treasury management focusing on extending a lengthy runway will likely payoff in the long-term here. It’s very likely that crypto may find itself in an extended winter, and although this event took a hit to our runway it was nowhere near as bad as it could have been if we did not take those measures to reduce the portfolio beta of the treasury and consolidate into liquid assets.



Sustainable, Risk-Hedged Arbitrum Yields

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