Treasury House
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Treasury House
$15M in payouts, $225M assets imported, Introducing Coinshift Swaps - powered by Paraswap, etc.
🌈 Hey Coinshifters,
A big shout out to all our community members for supporting us all through the journey. This week has been super packed with product development, bug fixes, and Coinshift Swaps release.
Latest MultiSafe Stats
Total Users - 158
Payouts - $ 15M ✅
Total assets - $ 225Million ✅
How about sharing the newsletter with your peers or the ones you find would be interested.
Do you know - We spend a lot of time creating the best Treasury management software. And our driving force is your feedback. So reach out to us at - Discord Channel
Every response will be read. ✌️
🔥 This week in Coinshift
We’re super excited to announce Coinshift swaps for gnosis safe users — Powered by Paraswap
Learn more - https://bit.ly/2ZZuhHT
🔥 What’s new in crypto Treasury
👉 IndexCoop’s 2.0 workshop for the future of finance
This workshop was intended to walk the community through the roles and responsibilities of the various working groups along with creating a community plan for the finance of the future.
The image below is the roadmap that was shared in the first workshop and now the community has suggested few more edits that Index will work on.
Yellow represents items agreed upon
Orange represents the further discussion
As per the community, the Funding Council wallet should be removed and hive transactions and responsibilities for processing the transactions into the Operation account with signatories designated.
Click here to read the proposal.
👉 Fireblock seeks permission from the Aave Governance community for its approval as a whitelister on Aave Arc
Fireblock is on a mission to bring in more institutional participants into DeFi.
With 600 customers and over $1.25 trillion in digital assets, Fireblocks has gained the trust of leading crypto institutions and the world’s biggest banks
To secure digital assets,
Develop new yield generating strategies
Improve capital efficiency.
Whitelisting will help users to engage with the protocol as right now it works as a gatekeeper for the users of Aave Arc. Specifically for -
Conducting KYC/KYB checks on the user;
Onboarding the user with appropriate disclosures, terms, and conditions; and,
Granting specific permissions (e.g., borrow, supply, liquidate) to the Ethereum wallet address(es) provided by the user.
Click here to read the proposal.
👉 Yam Finance to buyback the profit and build DeFi and crypto products to generate revenue
The important consideration here is beyond generating the revenue how it is allocated. YAM is right now at the very early stage of the project and Rebalancing and rationalizing the treasury is the very first step of the strong foundation of YAM.
Typically crypto projects mint a large number of tokens and use them over time but this is not the best approach as the token might end after X years. The Model explained below can be beneficial in treasury and project growth.
Metrics that YAM considers while calculating the profit and find out how much YAM is purchased quarterly -
Variables
treasuryNow - The dollar-denominated value of the treasury at the current quarter snapshot, not including YAM reserves.
treasuryPrevious - The dollar-denominated value of the treasury at the last quarterly snapshot, not including YAM reserves.
productProfit - Subtract quarterly expenses (payroll, operating expenses, etc) from quarterly product revenues (UMA rewards, Yam Synths fees, sushi farming, etc).
investmentProfit - subtract productProfit from treasuryNow and then subtract treasuryPrevious from this value.
productProfitReinvestmentRate - % of Product Profit that are reinvested into the treasury
investmentProfitReinvestmentRate - % of investmentProfit that is reinvested into the treasury.
Process
Step 1: Determine if the treasury has grown quarter over quarter by subtracting treasuryPrevious from treasuryNow. If it has grown, proceed to step 2. If not, stop (no profit).
Step 2: Determine what portion of the treasury growth is from product revenue growth vs. investment value growth.
find productProfit
find investmentProfit
If one of the values above is negative, subtract it from the positive value. If both numbers are negative or this result is negative, then you probably miscalculated step 1.
Step 3: For positive values from step 2, multiply each by their respective reinvestment percentages
productProfit * productProfitReinvestmentRate and
investementProfit * investmentProfitReinvestmentRate
Step 4: the output of step 3 is reinvested into the YAM treasury and can be used to re-balance. This step will involve manual adjustment of what funds move where to meet token targets. For example, this bucket contains 50% sushi and 50% UMA, and we are above our target of sushi and below our target for UMA, we would deposit the UMA directly into the treasury, but sell the sushi to ETH, DPI, or stable-coins.
Step 5: For any funds leftover from step 3, we would convert to ETH and use this ETH to buy YAM from the ETH/YAM sushiswap pool and use that YAM to pay contributors or fund incentives.
Example
treasuryPrevious(Q2 treasury Snapshot) = $6,009,990 (not including YAM)
treasuryNow = $7,000,000.00
productProfitReinvestment = 90%
investmentProfitReinvestment = 95%
Q3 Revenues and expenses*
UMA = +$240,000
xSUSHI = +$110,000
INDEX = +$50,000
Total = +$300,000 in product revenues
Q3 Contributor Expenses from Treasury = $200,000 for Payroll
productProfit = $300,000 - $200,000 = $100,000
InvestmentProfit = $7,000,000 - $6,009,990 - $300,000 = $690,010
Amount reinvested into Treasury = ($100,000 * 0.9) + (690,010 * 0.95) = $745,509.50
Amount used to buy YAM = $790,010 - 745,509.50 = $44,500.50
Click here to read the proposal.
If you’ve got thoughts on what should be discussed or any other feedback. Join us at our - Discord Channel
👋 👀 See ya’ll next week!
About Coinshift
Coinshift aims to simplify crypto treasury management for Companies & DAOs - built using Gnosis Safe, IPFS & Filecoin.
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