Regulatory & Legal Notice
This document is provided for informational and transparency purposes only. It does not constitute, and shall not be construed as: (i) an offer, solicitation, or invitation to purchase or sell any financial instruments, crypto-assets, or rights; (ii) investment, legal, tax, or accounting advice; (iii) a recommendation or endorsement of any protocol, asset, or strategy; or (iv) a prospectus, crypto-asset white paper, or marketing communication within the meaning of Regulation (EU) 2023/1114 (“MiCA”) or any comparable regime.The information contained herein is provided “as is” and “as available.” The Stake DAO Association makes no representation or warranty, express or implied, as to the accuracy, completeness, timeliness, or fitness for any particular purpose of such information, and accepts no liability, to the maximum extent permitted by applicable law, for any reliance placed upon it. The information speaks only as of the date of this document and is subject to change without notice.
Participation in decentralised finance (DeFi) systems involves significant risks, including but not limited to smart contract vulnerabilities, oracle failures, liquidity risks, market volatility, and reliance on third-party protocols.
Certain features, interfaces, or strategies referenced herein may be experimental (“alpha” or “beta”) and subject to change without notice.
This document may reference third-party protocols, assets, or infrastructures. The Stake DAO Association does not control and is not responsible for such third parties.
This document is not intended for distribution in jurisdictions where such communication may be restricted or regulated, and it is the responsibility of each recipient to inform themselves of, and to observe, any such restrictions.
Any references in this document to security measures, enhancements, remediation, or the events of May 27, 2026 are provided for transparency only. They reflect ongoing operational improvements and shall not be construed as an admission of any prior deficiency, fault, wrongdoing, or legal liability on the part of the Association or any other person, and are made without prejudice to any matter currently under review.
Note: Certain statements in this document constitute forward-looking statements, including but not limited to planned developments, product features, and strategic initiatives. These statements are based on current expectations and are subject to risks, uncertainties, and changes. No assurance is given that such plans will be implemented or achieved. Such forward-looking statements speak only as of the date of this document, and the Association undertakes no obligation to update or revise them, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.
Highlights
- SDGP-70 approved: ~1.54m sdCRV voluntary, ex gratia distribution, made without any admission of liability, fault, or legal obligation, to eligible addresses in connection with the May 27 vsdCRV incident, with the Merkle claim ready to open early July
- First full month bearing the impact of the incident: product fees -43% MoM, but TVL stabilising (-9% after -45% in May) and CRV inflation shares recovering
- Security overhaul continued: continuous ownership verification, protocol-wide real-time monitoring with automated pause, on-call escalation
Product (Strategy/Smart contracts/UI/Development)
June retrospective
- vlSDT boost marketplace shipped
- Executed the technical side of the vsdCRV ex gratia distribution: affected-LP analysis on mainnet and Arbitrum, Merkle distribution deployed, claim integrated in the UI
- Continued the post-incident security programme: continuous verification that every deployed contract is owned by a known multisig, protocol-wide monitoring watchlists, automated pause extended beyond Curve with per-vault solvency triggers, on-call escalation for critical alerts, and Timelock upgraded to per-function delays
- Ran several internal and external scans on all parts of the infrastructure
- Improved the lending wrapper; migrated the frxUSD/msUSD and frxUSD/sUSDS markets
- Progressed the Balancer sunset: USDC Merkle claim for sdBAL holders (BIP-919/920), Votemarket veBAL/vlAURA switched to claim-only, claim-deadline notifications
- Completed the veSDT to vlSDT replacement across the app
- Further automation through Maestro (Votemarket top-ups, Morpho reallocation monitoring) and various UX fixes on Votemarket and the main app
Focus for July
- Next iteration of Votemarket with zero-knowledge proof verification
- Improved key management framework for bots/jobs, including an executor guard preventing transactions outside an allowlist
- New landing page
- Adapting to Convex’s new onchain voting
- Migrate the frxUSD/crvUSD Morpho market
Business development
June retrospective
- First full month bearing the impact of the May 27 incident and market stabilization at current low levels: product fees at $74.1k (-43% MoM), yield strategies most affected while Votemarket held up better
- TVL stabilised (-9% MoM vs -45% in May); Stake DAO’s share of Curve inflation and OnlyBoost BD penetration recovered markedly
- New market added as collateral to the frxUSD vault (sDOLA/frxUSD)
| Metric | June 2026 | MoM |
|---|---|---|
| OnlyBoost share of CRV inflation | 25.3% | +2.8 ppt |
| Stake DAO locker share of CRV inflation | 22.3% | +3.5 ppt |
| Total TVL in strategies | ~$70.1m | -$7.3m / -9% |
| o/w Curve strategies | ~$69.3m | — |
| Side-chain TVL | ~$5.6m | — |
| Number of strategies above $1m | 17 | +0 |
| Number of strategies above $0.1m | 90 | +1 |
| OnlyBoost BD penetration | 76.5% | +8.2 ppt |
Focus for July
- Continue rebuilding trust after the security incident
- Apply to the Curve risk RFP
- Add new markets to the frxUSD vault
- Finalise the integration of Stake DAO’s strategies on FiRM
- Reach out to new categories of prospects for the risk curation vertical
Financials
The financial information presented herein is based on internal estimates, blockchain data, and third-party tools. It has not been audited and may be subject to revisions.
Stake DAO treasury: DeBank | Your go-to portfolio tracker for Ethereum and EVM
Treasury ended June at ~$2.84m (-3% MoM), broadly stable after May’s sharp drop, with stablecoin reserves of ~$1.05m (~37% of treasury) cushioning continued weakness on strategic assets.
Net treasury cash flows
Product fees came in at $74.1k (-43% MoM), the first full month at post-incident TVL levels, with Votemarket contributing $40.4k. Total inflows reached $98.1k. Against a reduced $90.5k grant, $2.5k of gas top up and $21.9k of other costs (SDGP-70 ex gratia distribution cost), the net treasury result improved to -$16.7k (from -$23.2k in May).
Association grant use report
The Association received a $90.5k grant tranche and spent $104.9k, an expected excess spending of $14.4k absorbed by the Association’s cash balance, which ended June at ~$151.0k (meaning $151k lower spendings compared to the budgeted amount for the H1-26 grant, which will be rolled to the following semester). Costs remained under tight control (-2% MoM) despite the post-incident increased tooling and audit expenses.
Grant proceeds referenced in this report constitute restricted-use funds allocated for specific programmatic purposes and do not form part of the Association’s discretionary operating income.
Comprehensive view
On a comprehensive basis (treasury + veSDT distributions + Association), June came in at ~-$4.7k — nearly breakeven in the first full month after the incident — bringing the year-to-date result to ~+$282k.
Nearly $49k was allocated through the protocol’s veSDT and buyback mechanisms in June pursuant to governance-approved parameters: $26.4k of veSDT distributions and $22.5k of buybacks (230,560 SDT at ~$0.098 average, executed in accordance with the applicable DAO governance mandate and not for the purpose of influencing market price). Year-to-date: ~$358.1k.
For the avoidance of doubt, the protocol mechanisms described above operate automatically in accordance with parameters approved through DAO governance and do not constitute, and shall not be construed as, a distribution of profits, a dividend, or a return on investment to token holders.
Legal & governance
June retrospective
- SDGP-70 approved and executed: voluntary, ex gratia distribution, made without any admission of liability, fault, or legal obligation, of 1,535,421.76 sdCRV to eligible addresses in connection with the May 27 vsdCRV incident, funded mostly by the recovered vsdCRV backing, complemented by the treasury
- SDGP-69: claim deadline for sdPENDLE and sdBAL voting-power rewards
- LMAP framework: LMAP #2 (frxUSD/sDOLA LP market added to the frxUSD v2 vault) and LMAP #3 (migration of the frxUSD/msUSD market to a 91.5% LLTV market)
- Annual general assembly of the Association took place in Zurich
- Progresses were made towards the structuring of the curation vertical
- Progresses were made on the official whitepaper
Focus for July
- Proposal to also compensate asdCRV llamalend market users for the losses occurred during the vsdCRV incident
- Submit to governance the list of products and chains to sunset to reduce the protocol’s attack surface
- Review the SDGP-71 whitelisting request (3.Finance) and continue LMAP reviews
- Finalise the legal structuring of the risk curation effort
- File the official whitepaper to the relevant authorities
Disclaimer
The Stake DAO Association acts strictly in an execution-only capacity, pursuant to mandates adopted by the DAO through governance processes. The Association does not provide investment advice, does not engage in asset management on its own account, and assumes no ownership or custody over DAO treasury assets. Any contracts, payments, or services facilitated by the Association are executed solely as administrative and operational support for the DAO, and shall not be construed as creating legal or financial liability of the Association beyond such execution. The Association expressly disclaims succession to any past entity or foundation, and no assumption of legacy liabilities is intended or implied. Nothing in this document shall be construed as establishing any fiduciary duty, agency relationship, or discretionary management role on the part of the Association. The foregoing limitations and disclaimers apply to the maximum extent permitted by applicable law. Nothing in this document shall exclude or limit any liability that cannot be excluded or limited under applicable law. This document, and the Association’s activities described herein, are governed by and construed in accordance with the laws of Switzerland.