Your monthly Umami treasury update from Wen Moon and Steven-T
By Wen Moon and Steven-T
GM Umami community! Another exciting month for crypto as Uptober was in full effect. Bitcoin led the way with a ~28% move thanks to positive sentiment towards the inevitable spot ETF approvals. Altcoins couldn’t help but follow and we now know Blackrock has also filed for a spot ETH ETF.
The team continued checking off many important tasks including preparing the UI for Umami vaults’ ARB incentives. Everything is ready to launch and we expect the campaign to be up and running within the week.
Some marinatoors might have noticed a bump in their ETH yield. The team has successfully launched a module for the Umami Vaults revenue. The module automatically converts the accumulated revenue into ETH and distributes 50% to marinatoors. Similar to the previous marinate module, core contributors will make sure distributions are made at least once a week, but like the GLP module, anyone can execute the distributions. (Contract information has been updated in the #resources). Congrats to our loyal marinatoors receiving the juicy ETH yield they deserve🍔
Now, let’s take a dive into October’s numbers:
Overall Performance
Treasury value, excluding UMAMI token holdings:
- End of September, $3,878,770
- End of October, $3,815,878
In the month of October, there was a Net Treasury loss of $62,892 or 1.6%.
For comparison:
- The total crypto market cap was up 19% to $1.257T
- The price of Bitcoin was up 28.5% to $34,661
- The price of Ether was up 8.6% to $1815
The treasury performed in a hedged way considering expenses.
Gross Yield: $28,396 which constitues a 8.9% APR return for the whole treasury!
- 15.47 ETH ($28,355)
8.4 wETH from GLP, 18.9 wETH distributed to marinatoors
0.32 ETH from Liquidity pools
6.75 ETH from vaults profit - Liquidity pools($1,253.50)
USDC — $41
ETH — $580 (.32)
UMAMI — $632.50 (126.5)
Net Yield was -$5,943.19 using Gross Yield — Marinator Payout.
Expenses: Umami’s OpEx was $101,371 in October. The monthly USDC break down:
Fixed OpEx was $101,000
Variable Expenses $371
Asset Appreciation for Umami’s treasury is a net appreciation of $81,475 or 2%, 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 $2,397,328 or 15 months (assuming monthly opex of $160k). This is the value of any blue-chip liquid treasury holdings. It constitutes our GLP position; treasury stables + ETH; GMX hedges and our Vendor positions. It does not include ARB, esGMX or xGRAIL.
GMX
GMX V1 traders continued their winning streak, boasting an impressive $7.3m in winnings this month. Even with traders winning, GLP price still managed to move from $0.969 to $1.053. This is a testament to the fine structures in place to protect liquidity providers.
Looking at Umami’s WBTC vault performance we can see the benefits of choosing your exposure. Although PPS vs BTC is down, the risk on vaults were still able to perform better than holding GLP alone.
With V1 open interest heavily skewed towards long positions, GLP and its associated vault products will maintain their role as capital-efficient instruments for those looking to hedge or adopt a bearish stance in the market.
A glance at GMX V2 stats is all you need to understand our excitement about launching the new V2 vaults. Not only have the APRs been consistently higher, but traders have also experienced overall negative returns on the platform. This only fuels our determination to swiftly implement our vault strategies on V2. We’re charging ahead with full steam!
UMAMI Liquidity Pools
For keen observers, you might have noticed the initiation of a new Camelot V3 LP, along with a $75,000 infusion of ETH support into the UMAMI LP. While we didn’t actively accumulate UMAMI from the market this month, our commitment to enhancing value for token holders remains unwavering. Stay tuned for some innovative farming opportunities in the works, we will update the community when everything is in place.
Vendor Finance
Vendor borrowing pools are back! Right off the bat there was a spike in demand from those looking to leverage their cmUMAMI as collateral. Currently over $150k is being utilized with just over $40k USDC remaining. For more information on the pools visit the vendor finance page.
ARB STIP Program
As mentioned earlier, we’re all set to launch Umami vault incentives. Simultaneously, we’re actively seeking ways to safely and efficiently utilize our treasury resources to generate ARB and ETH yield. Keep an eye out for forthcoming adjustments in our yield strategy — exciting changes are on the horizon!
Arbitrum Frontier
With the ARB short term incentive program under way we’ve got some exciting partnerships and collaborations on deck to get the community excited and ready to earn! Watch out for Umami’s Tweet drips💦
Final Thoughts
ETH remains at an interesting level sitting just above the yearly central pivot of $1989. Bulls and bears will battle out this level as one must be victorious.
Be sure to take note of the improvements in our Discord server as we ramp up engagement efforts ahead of the GM vaults launch. Drop a “gm” in our gm discord channel to get in on the fun and prizes!
As always, feel free to reach out to us regarding any questions or feedback. See you next month!
🍔
