The MetricsDAO treasury saw a lot of activity in March, as we both received inflows from our grants pipeline, and paid out MDAO members for both bounty-related and operational contributions. Within the first week of the month, we paid out over $8000 (8545 USDC) to our hot wallet, to pay out CVX contributors, in CRV, via Polygon. This bridged payout system of Gnosis > Hot Wallet (ETH) > Hot Wallet (Polygon) > Contributors, highlights operational challenges the DAO’s treasury team faced prior to our Parcel Finance integration. Moving the treasury to Parcel has allowed us to send gasless payouts to all bounty hunters, reviewers, and DAO contributors. To date, MDAO has saved over $5000 in gas!
The gasless transactions proved to be beneficial as we sent out over $33,000 in March, mainly denominated in USDC. The MetricsDAO payments and treasury teams worked to clear out our Accounts Payable, paying H3L 8280 USDC for their contributions to the MDAO website design, as well as 13,600 USDC to our MDAO monthly contributors. On top of these payments, we paid out 1340 USDC to members of our Refinery pod who help review our UNI questions. While it is our mission to pay all bounty hunters in protocol-native tokens, paying internal reviewers in USDC is operationally more efficient.
As for non-USDC denominated cash flows, the MDAO treasury paid out just over $2,200 in UNI (233 UNI) to members of the DAO who either submitted, or answered bounty questions. Offsetting our cash outflows this month, the treasury received a partial payment from the OlympusDAO grants program. The payment, 952 OHM, was agreed upon when the price of Ohm reflected a $26,500 payment to MetricsDAO; however, when payment was received, the USD value was nearly 40% higher than anticipated ($36,500). From reception (3/24/2022) to end of month, the price of OHM dropped, where our grant is now worth $32,853, still 20% over expected
Overall, the MetricsDAO treasury had net outflows of $147. However, favorable market conditions towards the end of March gave the treasury a boost. In total, our portfolio gained 1.15% in the market, resulting in portfolio growth of 1.03% which is back-to-back months of treasury appreciation.
In line with our cash balance, total MDAO assets (cash+accounts receivable) also increased, by roughly 1.48%. That being said, the MetricsDAO treasury pod is monitoring our overall treasury health. Large monthly cash outflows, to support bounty and contributor payments are in alignment with our core goals and will be common. Overall asset growth is crucial to creating a sustainable treasury and achieving the long-term mission of the DAO. Efforts to grow the treasury and its portfolio are discussed below.
Treasury & Balance Sheet
Treasury Portfolio Value
As discussed in our February Report, we ended last month with roughly $127,000 in treasury-controlled assets. In march, between token price appreciation and net inflows to the treasury, our treasury grew 5.16% to $133,441.68, as of 3/31/2022.
|Treasury as of||3/31/22|
|Token||Units||Price||Value||% of Total||Performance|
Balance sheet asset values as of 03/31/2022 total $208,441.68:
|Cash and Cash Equivalents||133,441.68|
Cash and Cash Equivalents
MetricsDAO considers all assets residing in the metricsdao.eth GnosisSafe as liquid cash and cash equivalents; as of 3/31/2022, MDAO’s total liquid assets are valued at $133,441.81, as of 3/31/22.
In addition to the assets residing within the multi-sig, MetricsDAO has numerous Accounts Receivable, totalling $75,000, from existing grants programs. Total token allocations of Accounts Receivable are determined based on token price on delivery date. Both our UNI and OHM balances reflect our second installment of the grants program for Uniswap and Olympus, respectively.
MetricsDAO has a substantial holding of NEAR currently held by Flipside. One of MetricDAO’s core values is to pay bounties and rewards in a protocol or blockchain’s native token, enhancing user growth and acquisition. Receiving payments in NEAR continues to be an issue the treasury faces with cross-chain grants. Currently, the treasury pod is reviewing the most cost-effective ways to pay MDAO participants cross-chain. Prior to a decision being made on the best path forward, all cross-chain assets will reside within Flipside, which has the scale to support non-ETH L1s and L2s.
Balance sheet liability values as of 3/31/2022 total $53,562.75:
MetricsDAO’s main Accounts Payable for April are our ongoing grants programs with Uniswap and OlympusDAO. The $23,000 we are expecting to layout for UNI will bring our Uniswap grants program to a close, while we are beginning our Olympus program, with 50% of our total rewards slated for April.
Now that we have finished our initial “housekeeping” efforts for the MetricsDAO treasury, our sights are set on formalizing our processes and operational efficiencies to help the DAO push forward. The two biggest efforts we will take on in April and Q2 will be research & decision making surrounding active treasury management, and building transparency into our budget and channeled run-ways.
Initial conversations surrounding active management occurred when we received our OlympusDAO grant. Given Olympus’ famous (3,3) moniker, the MDAO treasury team researched and discussed staking our OHM for gOHM and paying our subsequent bounty payments out in gOHM. After an initial review, we will proceed with this staking process; however, for treasury reporting, we will continue to denominate our asset values in OHM rather than gOHM.
While we are taking an “active” approach to the OHM on our DAO’s books, we will not look to diversify our treasury outside of our existing positions, until we have established a stable runway and grants pipeline. The treasury team is currently working on rolling out health metrics for our treasury, in order to promote transparency between MDAO leadership, contributors, and members. We look forward to providing a deeper look into what the future holds for MetricsDAO.
- Full Balance Sheet
|Cash and Cash Equivalents||133,441.68|
|Total Shareholder’s Equity||154,878.93|
If you have interest in joining the Metrics DAO Treasury Pod, please contact me ql-crypto.eth|#9924 on Discord!