Crypto Unicorns Treasury Report 2022 Q3
Originally released on 21 Oct 2022 on Governance News channel on Crypto Unicorns Discord server
We started the quarter with a starting balance of $27,021,225.29 on July 1, 2022 and ended the quarter with a balance of $25,142,627.41 on September 30, 2022.
We’ve earned a total of 81,907 USDC ($81,907) from our yield rewards as well as 10.10 ETH ($13,415) on secondary sales and 56.46 ETH ($74,990) from the Land Vending Machine primary sales.
Q3 has been eventful on so many fronts! In this report, we will discuss all the treasury operations that brought us to today.
✨ Highlights
Transferred funds from the Polygon treasury to the Ethereum Mainnet treasury to activate the treasury diversification plan outlined here.
Deployed ETH and USDC assets on Ethereum Mainnet to earn yields.
Activated the RBW/wETH LP gauge on Balancer to earn emissions.
Staked veBAL to direct gauge weights to our RBW/wETH LP gauge for more emissions.
Built up protocol-owned liquidity for UNIM.
Purchased RBW and NFTs for the Coinbase Marketing Campaign.
Earned ETH from Secondary NFT Sales and from Land Vending Machine Sales.
Converted USDC to fiat for Q2 and Q3 expenses.
Before we delve into the details of this quarter’s operations, let’s take a look at our holdings as of September 30, 2022.
📊 Summary of Holdings
As of September 30, 2022
Now that we’ve seen our end-of-quarter holdings, let’s look at our holdings at the start of the quarter and work our way through the operations in the quarter.
📊 Summary of Holdings
as of July 1, 2022
💼 Investing and Spending
When crypto winter started setting in, we passively deployed USDC and ETH assets on the Ethereum Mainnet to earn low risk yields. Our primary motivation is to ensure treasury growth that will support and maintain our ecosystem while also mitigating risks by ensuring that all our assets are not contained on one chain.
1) USDC and ETH Transfer from Polygon to Ethereum
⚡ To start the deployments, we’ve established a sister Gnosis Safe on Ethereum Mainnet and transferred 22,638,515 USDC and 2,500 ETH from the Polygon Gnosis Safe.
2) Asset Deployments for Yields
Once the funds were in the Ethereum Mainnet, we deployed the USDC and ETH assets on Balancer and Curve.
🌱 2,500 ETH and 10,481,573 USDC were deployed to earn yields.
2,490 ETH was exchanged for 2,408 stETH/ETH and deployed on Curve for yield rewards.
10,000,000 USDC was exchanged for 9,867,126.11 bb-a-USDC to join the Balancer Boosted Pool for yield rewards.
398,143 USDC was swapped for 63,110 BAL needed to exchange for veBAL.
83,430 USDC was swapped for 50.56 WETH needed to exchange for veBAL.
63,110 BAL and 50.56 WETH were exchanged for veBAL and then staked to help direct gauge weight to our RBW/wETH LP for additional rewards.
** The bb-a-USDC position is at 9,976,357 after October 3. On October 3, we’ve had to migrate to the new LP that Balancer created. The value reflected here shows our position pre-migration.
3) Building a Protocol-owned Liquidity
In August, we activated our plan to build protocol-owned liquidity for UNIM. Instead of minting UNIM out of thin air to build the liquidity pool, UNIM was instead purchased from the existing UNIM supply.
In Q3 → 239,425 USDC was used to obtain 54,710,946 UNIM.
⚡ On September 15 → 20,563 USDC and 20,263,030 UNIM was used to seed the UNIM LP.
Majority of the USDC being used to fill the liquidity pool comes from the yield rewards exchanged for USDC. We intend to continue filling the pool in the coming months using the same strategy.
4) Marketing Campaign Preparations
As part of our bid to spread the corn fever far and wide, we partnered with Coinbase. To prepare for this, we purchased some RBW, corns and lands to be used for the rewards.
47,433 USDC was used to purchase Unicorns and Lands and 27,491 USDC was used to purchase RBW.
47,433 USDC was swapped for 38.06 ETH.
38.04 ETH was used to purchase 350 Unicorns and 147 Lands.
27,491 USDC was used to purchase 279,005 RBW.
As we begin the growth phase, we should expect to see more transactions like this in our bid to onboard new users and increase our DAU.
5) Operations Expense Budget Exchange for Fiat
⚙️ 2,000,000 USDC was withdrawn from the ETH Treasury for the Q2 Operations Expense.
To continually build the Crypto Unicorns IP, Laguna Games makes a quarterly withdrawal from the treasury. These withdrawals are made at the end of the quarter. (Ex. Q1 Operation Expense budget withdrawal is made by end of March or early April.)
On July 12, 2022, we’ve made a withdrawal of 2,000,000 USDC from the Ethereum Treasury for the Q2 Operations Expense.
While not part of the transaction dates covered in this report, it’s worth mentioning that a 2,400,000 USDC withdrawal was made on October 3, 2022 to account for the Q3 Operations Expense.
💰 Sales and Yields
Now that we’ve discussed all our investing and spending activities, we will now discuss the inflows to our treasury.
Our treasury inflow for this quarter come from two sources: NFT Sales (LVM and Secondary) and Yield Rewards.
1) Yield Rewards
As discussed earlier, we have deployed wETH and USDC on Ethereum Mainnet. To recap, here are our yield positions in Q3.
Our RBW LP also generates yield as we have activated the gauge for this LP on Balancer. With our veBAL staked, we’ve directed gauge weights to our RBW LP to further boost our rewards. While we had hoped to get more from this, a governance proposal was recently passed in the Balancer DAO that limits how much gauge weight we can direct to our LP. More information can be found by clicking this link and this link. Because of this we’ll be shifting our votes to the bb-a-USD Boosted pool to earn more rewards there.
The table below shows all our yields for the quarter.
We harvested 14,183 LDO and 7,503 BAL from our yield positions!
The table below shows the USDC received after exchanging our BAL and LDO.
We got 81,907 USDC from swapping our yield rewards!
The USDC earned from our yield positions is currently being used to support the building and filling of our UNIM Liquidity Pool.
2) NFT Sales
NFT sales continue to generate ETH inflows. In Q3, we’ve seen an increase in the ETH inflow after the introduction of the Land Vending Machine into the ecosystem.
We’ve earned 66.56 ETH ($88,404) from NFT sales!
10.10 ETH came from secondary sales and 56.46 ETH came from LVM sales!
That wraps up all the operations in Q3. Moving forward, we intend to release treasury reports at the end of each quarter. We expect to continue to earn rewards from our yield positions, build our UNIM Liquidity pool and work for marketing campaigns that will help us build a generational IP.