Umami Finance Treasury Update — August 2022

Your monthly Umami treasury update from Wen Moon and Steven-T

Overall Performance

Treasury value, excluding UMAMI token holdings:

  • End of July, $6.16M
  • End of August, $5.47M
  • The total crypto market cap was 1.128T on July 31st and $1.024T on August 31st, which is a net decrease of 9.22%.
  • The price of Bitcoin was $23,288 on July 31st and $20,041 on August 31st, which is a net decrease of 13.94%.
  • The price of Ether was $1677 on July 31st and $1,553 on August 31st, which is a net decrease of 7.39%.
  • 62.94 ETH ($97,745.82)
    41.07 wETH from GLP, 49.78 wETH distributed to marinatoors
    21.87 ETH from Uniswap kept for reinvestment
  • 461.8 esGMX ($23,260.86)
  • Uniswap V3 fees ($65,451 Inc. UMAMI)
    21.87 ETH
    1,474.35 UMAMI
    23,847.34 TCR
    9,022 KROM
    3,584.34 USDC
    26,647 L2DAO

Treasury positions and changes:

Currently the breakdown of our treasury is as follows:

GLP & GMX

This month Marinatooors were able to experience enhanced wETH rewards thanks to our increased allocation to GLP. With over 41 wETH earned vs July’s 38 wETH, that’s a 7.9% increase in value given back to our community!

Uniswap v3

The UMAMI/ETH pair saw extraordinary volume with over $10,079,000 traded approximately. Compared to July’s high volume of $2,382,000, the monthly increase was due to a few factors including the excitement around Umami’s V1 USDC Vault. With a starting price of $29.46, the monthly unlock saw an elevated volume of profit takers and new investors. After $1.75M traded in the first two days we saw the price move to a relative all time high of $37.30. Later in the month, the announcement that Umami is pausing its USDC vault resulted in much higher volume then what we would normally see. The net result for our UMAMI/ETH LP was 20.54 ETH ($31,945) and 1,474 UMAMI ($25,677) in fees collected.

Altcoin Positions

This month, as mentioned, we decided to consolidate our core strategy by taking profits on some of our key altcoin positions and using the proceeds to lengthen our runway, by investing into GLP.

Final Thoughts

Overall, I truly think this has been a excellent month for the treasury and a true stress-test, our strategy proved effective when tested against the market. Despite the setbacks, our runway is looking lengthy, our yield is evolving in the right direction, our strategy is more focused and higher yielding overall and we had the chance to reduce the circulating supply of Umami for our holders. Going forward, we plan on continuing to accumulate more Umami if possible at these undervalued levels via these buybacks to increase value for remaining holders, especially on unlock days.

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Sustainable, Risk-Hedged Arbitrum Yields

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