Stake DAO Annual Report — 2021

Agenda

  • TL;DR (Introduction + 2022 Roadmap)
  • Total Value Locked
  • P&L
  • Sanctuary/ Palace
  • Treasury
  • Trading & Wallets analysis
  • Platform traffic analysis
  • Yields
  • Roadmap for 2022

Data Source

Highlights

  • TVL as of 31th Dec 2021 across the Platform exceeded $830M, marking a 100%+ increase in just the last quarter from $400M;
  • Cumulative Protocol Earnings nearly at $9M
  • SDT Implied Price/Earnings ratio of 3.62, Market Cap/TVL ratio of 0.13

Immediate objectives

  • Release of a new product range, Liquid Lockers, in Q1 to Q2 2022, which will allow Stake DAO to scale on many chains and beyond Curve to many protocols
  • Implementation of new tokenomics to position the DAO for accelerated growth
  • Release new strategies powered by Stake DAO NFTs
  • Development of the Options vertical with the objective of tripling TVL by the end of Q1 2022

Quantifying the successes of Q4 2021

  1. Develop the Options Strategy vertical by launching a BTC and USD strategy. This has been successfully achieved with a 30x increase in TVL, now exceeding $60m TVL
  2. Continue the liquidity acquisition program with Olympus. We have reached $1m of liquidity and have now paused the Olympus pro bonds as we are satisfied with this result. We will keep acquiring our liquidity by using our performance fees, as voted by SDT holders.
  3. Develop a new architecture. This has been the main focus of the quarter. We are slightly late on schedule but will target to release a new product during Q1 2022.

Total Value Locked

Passive Strategies

  • An increase in deposits in existing strategies over the last months. In particular, the Passive Frax Strategy increased from $30M in September to over $90M by the end of December.
  • The multi-chain agnostic vision has become more concrete with the deployment of a Passive USD Strategy on Avalanche, which now accounts for more than $100M in TVL.

Options Strategies

  • The Ethereum Covered Call Strategy reached $26M in TVL, marking a 11x increase from October to December
  • The Bitcoin Covered Call Strategy reached $20M in TVL, marking a 63x increase from October to December
  • The Ethereum Put Selling Strategy reached $16.3M just two months after launch
  • Optimal strike selection
  • Efficient auction mechanism ensuring a fair risk/reward
  • Working collateral, generating additional revenues
  • Limited fees (only 0.5% withdrawal fee, equivalent to staying between one and three weeks in the strategy)
  • Incentives paid in SDT and FXS to generate additional yield
  • Overall performance is ~3x higher than competition

Protocol staking

  • Avalanche validators received many delegations, leading to a steep increase in TVL from Staking-as-a-Service.
  • Introduction of new Validators also drove higher TVL toward the SaaS vertical. Newly introduced Harmony validators account for 3% of the entire TVL: $2.8M in Retail Validator and $14.3M in Foundation Validator.
  • Favorable market conditions have increased the $ amount staked in Validators.

P&L

  • Gas Costs: These are accounted under the Strategies Vertical. They hugely increased due the acceleration in smart contract activities, new contracts deployed and increased Ethereum gas costs
  • Devops costs and taxes: These are recorded under the Protocols vertical and take into consideration all the costs linked to running and maintaining validators and servers. Costs have been increasing due to the introduction of a new validator, an adjustment to Avalanche validator requirements, and the preparation of new validators.
  • Core Contributor Rewards: since August, the DAO has compensated the team with a total amount of c.27k sdam3CRV LP tokens monthly to reward the efforts of 20 to 30 contributors.
  • Other costs: refer to OpenSea fees charged when selling NFTs.

Sanctuary/ Palace

Treasury

  • Assets in wallet: $1,283,214
  • Deposits: $3,548,438
  • Debt: $1,535,965
  • Other Assets (LPs and sd tokens): 4,276,079
  • Locked Assets (locked CRV): 17,853,909

SDT Performance

Yield

Platform Traffic & Community Overview

Q1 2022 Roadmap

  • Release Liquid Lockers
  • Release new veSDT tokenomics
  • Release of new strategies powered by Stark and Pondergeist NFTs
  • Go cross-chain on options and launch governance token vaults to triple our TVL. New chains: Avalanche, Polygon, Solana. Governance token vaults: AAVE, UNI, SUSHI, LINK
  • Move our liquidity towards Curve

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