Crypto Unicorns Treasury Report 2022 Q4
Originally released on 27 January 2023 on Governance News channel on Crypto Unicorns Discord server
We started the quarter with a balance of $25,142,627 on October 1, 2022 and ended the quarter with a balance of $18,830,451 on December 31, 2022.
We’ve earned a total of 24,163 USDC ($24,163) from our yield rewards as well as 13.46 ETH ($16,095) on secondary sales and 90.54 ETH ($108,285) from the Land Vending Machine primary sales.
Q4 has been really eventful for us - much more than Q3. We’ve launched multiple marketing campaigns, prepared for Staking v2 and continued building our protocol-owned liquidity for UNIM, among others. Let’s look at the the major operations for the quarter.
✨ Highlights
Retracted the bb-a-USD position we deployed as part of the treasury diversification plan in Q3 of 2022.
Converted USDC to fiat for Q3 and Q4 expenses.
Continued building our protocol-owned liquidity for UNIM.
Recaptured the UNIM and RBW from the attack on the Game Bank.
Paid Peckshield Inc. for the Staking v2 contract audit.
Distributed NFTs for the Coinbase Marketing Campaign.
Purchased and distributed NFTs for the Great Corn Drop Campaign.
Purchased additional NFTs for future marketing campaigns.
Sponsored the Philippine Web3 Festival event.
Listed RBW on a CEX.
Redirected the gauge weights from our RBW/wETH LP gauge to bb-a-USD gauge as emissions for our RBW/wETH LP has been reduced due to a proposal later implemented by the Balancer DAO.
Claimed BAL, bb-a-USD, and LDO from our positions converting to USDC.
Earned ETH from Secondary NFT Sales and from Land Vending Machine Sales.
Disbursed grant payouts to Ecosystem Fund Grant recipients.
Before we delve into the details of this quarter’s operations, let’s take a look at our holdings as of December 31, 2022.
📊 Summary of Holdings
As of December 31, 2022
Now that we’ve seen our end-of-quarter holdings, let’s look at our holdings at the start of the quarter. From here, we will work our way until we get to all the operations in the fourth quarter.
💼 Liquidity Positions
In the third quarter of 2023, we passively deployed USDC and ETH assets on the Ethereum Mainnet to earn low risk yields. We wanted 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) Migrating the bb-a-USD to a new gauge
On October 3, 2022, we migrated our bb-a-USD position to a new gauge in response to a proposal approved by the Balancer DAO.
9,867,126.11 bb-a-USD was withdrawn and 9,976,356.95 was redeployed.
2) Withdrawal of our bb-a-USD position
On November 11, 2022, in response to the dialogue with the greater community, we retracted our bb-a-USD position and exchanged our DAI and USDT for USDC.
9,982,838.85 USDC were added back to the treasury upon the withdrawal of our bb-a-USD position.
1,931,070.63 USDC, 1,966,739.48 DAI and 6,093,980.71 USDT were received upon withdrawing our bb-a-USD position.
1,966,728.74 USDC was received in exchange for 1,966,739.48 DAI.
6,085,039.48 USDC was received in exchange for 6,093,980.71 USDT.
Other than these two operations, we did not deploy additional assets for investment during the fourth quarter.
⚙️ Operation Spending
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.)
1) Q3 Operations Expense Exchange for Fiat
On October 3, 2022, we’ve made a withdrawal of 2,400,000 USDC from the Ethereum Treasury for the Q3 Operations Expense.
2,400,000 USDC was withdrawn from the ETH Treasury for the Q3 Operations Expense.
2) Q4 Operations Expense Exchange for Fiat
On December 16, 2022, we've made a withdrawal of 2,600,000 USDC from the Ethereum Treasury for the Q4 Operations Expense.
2,600,000 USDC was withdrawn from the ETH Treasury for the Q4 Operations Expense.
3) Building Protocol-owned Liquidity
In August 2022, we started building 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. To continue what has been started, we purchased more UNIM in Q4 to fill the pool.
In Q4 232,724.32 USDC was used to obtain 60,413,513.89 UNIM.
We intend to continue filling the pool in the coming months using the same strategy.
4) UNIM and RBW Recapture for the Game Bank
On October 18, 2022 the Game Bank was attacked and most of its holdings were taken. To refill the Game Bank, USDC was used to repurchase the UNIM and RBW that entered the market from the Game Bank.
117,046.11 USDC was used to purchase 1,650,374.66 RBW and 50,000 USDC was used to purchase 15,565,037.86 UNIM.
1,650,374.66 RBW and 20,065.037.86 UNIM were transferred to the Game Bank. 4,500,000 of the UNIM came from the POL UNIM supply.
5) Staking v2 Audit Fees
In preparation for the launch of the Staking v2 contract, we commissioned Peckshield Inc. to perform the audit on the Staking v2 contract prior to deployment.
24,000 USDC was paid to Peckshield Inc. for the Staking v2 contract audit.
📽️ Marketing Spending
As prefaced in the Q3 Treasury Report, we continued to purchase unicorns, lands and some shadowcorns into Q4. These NFT assets will be used for marketing campaigns to support our efforts to spread the corn fever in all of the space.
1) Coinbase Partnership Distributions
The Coinbase partnership was initiated in the Q3 of 2022. The NFTs used for this campaign were purchased in the Q3 of 2022 and is reflected in the Q3 treasury report.
As a recap of our spending Coinbase-related spending in Q3, 47,433 USDC was used to purchase 350 Unicorns and 147 Lands and 27,491 USDC was used to purchase RBW. From these purchases, 136 Unicorns, 88 Lands and 76,508 RBW has been distributed.
136 Unicorns, 88 Lands and 76,508 RBW have been distributed for the Coinbase partnership.
2) Great Corn Drop Marketing Spending and Distributions
In addition to the Coinbase campaign, we’ve also started the Great Corn Drop campaign. We had aimed to target known wallet addresses of long-term players in Polygon. To do this, we made NFT purchases for the purpose of the Great Corn Drop campaign. Some NFTs have yet been claimed and will be used for future campaigns should they remain unclaimed.
200,000 USDC was used to purchase Unicorns, Lands and Shadowcorns
200,000 USDC was swapped for 151.93 ETH.
151.16 ETH was used to purchase 2,253 Unicorns, 1,064 Lands and 10 Shadowcorns.
1395 Unicorns, 665 Lands and 10 Shadowcorns were distributed.
3) Future Marketing Campaign Spending
Apart from the Coinbase campaign and the Great Corn Drop campaign, we expect to continue running new campaigns through 2023. In preparation for these upcoming campaigns, we continue to purchase Unicorns and Lands.
25,025 USDC was used to purchase Unicorns, Lands and Shadowcorns.
25,025.07 USDC was swapped for 20.67 ETH.
19.22 ETH was used to purchase 331 Unicorns and 195 Lands.
During the growth phase, we should expect to see more transactions like this in our bid to onboard new users and increase our DAU.
4) Philippine Web3 Festival Spending
Apart from online marketing campaign, we also participated as a sponsor for a web3 conference in the Philippines, the Philippine Web3 Festival.
23,000 USDC was paid for the web3 conference expenses.
5) RBW-USDT Listing
136,700 USDC was used for all the related RBW-USDT listing operations.
136,700 USDC was exchanged for 136,646.22 USDT.
40,000 USDT and 800,000 RBW were used to enter the CEX.
35,000 USDT was used for the USDT-RBW listing.
30,000 USDT was used as a deposit.
21,146.22 USDT was used to top up the USDT-RBW balances.
10,500 USDT was paid to Flowdesk for the marketing of the USDT-RBW listing.
💰 Earnings
Now that we’ve discussed all our investing and spending activities, we will now discuss the inflows to our treasury.
1) Yield Rewards
In the Q3 Treasury Report, we mentioned all wETH and USDC deployments we’ve made on Ethereum Mainnet. However, as mentioned above, we have withdrawn our bb-a-USD position. To recap, here are our positions after the said withdrawal.
Our RBW LP no longer generates yield for our LP gauge on Balancer. With how the Balancer DAO limited how much gauge weight we can allocate, it was no longer feasible to direct gauge to our LP. Because of this we’ve shifted the gauge weight to the bb-a-USD Boosted Pool to earn rewards there instead.
The table below shows all our yields for the quarter.
We harvested 1,973.52 bb-a-USD and 4,123.98 BAL from our positions!
The table below shows the USDC received after exchanging our bb-a-USD and BAL.
We received 24,163.48 USDC from swapping our yield rewards.
2005.01 USDC was received from swapping 1973.52 bb-a-USD.
22,158.47 USDC was received from swapping 4,123.98 BAL
2) NFT Sales
NFT sales, both secondary and primary, continue to generate ETH inflows. In Q4, we’ve seen an increase in the ETH inflow from both the secondary NFT sales and the LVM sales.
We’ve earned 104 ETH ($124,381) from NFT sales!
13.46 ETH came from secondary sales and 90.54 ETH came from LVM sales!
NFT sales for Q4 are higher compared to Q3. In Q3, secondary sales account for 10.10 ETH and LVM sales 56.46 ETH.
ETH from the LVM sales are collected from the Game Bank. On November 11, 2022, we have moved the ETH from the LVM sales from the Game Bank to our Polygon treasury to properly account for the inflow.
📗 Ecosystem Fund
Ecosystem Fund Grant payouts are disbursed at a monthly cadence to Ecosystem Fund Grant recipients. Ecosystem Fund Grants are based on approved ecosystem fund grant governance proposals. These are the four approved grant proposals:
Knowledge Base, Price Bots, and Tools (to start disbursing from January 2023)
The table below shows how much RBW were disbursed in Q4 of 2022.
That wraps up all the operations in Q4! We intend to continue releasing treasury reports at the end of every quarter - maintaining the same level of transparency and supplementing when necessary. As for the next quarter, we expect to maintain our existing yield positions, continue building our UNIM Liquidity Pool and expand our reach by launching more marketing campaigns.