Umami Finance Treasury Update — November 2022

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

Overall Performance

Treasury value, excluding UMAMI token holdings:


GLP data showed a large spike in daily fees due to the volatility in the markets. This resulted in one week in November where GLP was paying over 50% APR! Obviously, we re-accumulated our GLP position, from our transparency report, to take advantage of this as soon as it was possible to place hedges once again.

Vendor Finance

This month we have tried out using Vendor Finance with the treasury. Vendor are one of our favorite partners. For those unfamiliar, vendor is a p2p non-liquidatable lending marketplace which allows borrowers and lenders to come together and create fixed-term loans by agreeing on certain parameters.

Altcoin Positions

Continuing with our strategy of focusing on bluechip assets and extend our OpEx runway, we’ve remained under allocated to Altcoins. We have taken no new positions in this category this month but will always be keeping a keen eye on accumulating partner tokens at the right prices.

Reflections on FTX collapse

As promised, we have been looking into other hedging avenues as a result of watching how liquidity played out during the FTX collapse.

Final Thoughts

Overall looking at treasury performance measured by asset depreciation compared to the market, the treasury performed relatively well this month. Also, the yield we generated was again one of the highest at 66 ETH and so was the volume in our LPs. In fact, we just smashed through 300 ETH distributed to marinators. These are all healthy signs as we enter the v2 vault rollout phase. That being said, the lessons we learnt from this event will also make the treasury more resistant and our strategy more robust for the next months of this bear market. This will be in no small part to the partnerships we have consolidated this month, after all, Umami is not just best-in-class for its off-chain partnerships but also its many on-chains ones!



Sustainable, Risk-Hedged Arbitrum Yields

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