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; or
(iii) a recommendation or endorsement of any protocol, asset, or strategy.
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.
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.
Highlights
- vlSDT audit
- A vulnerability was exploited on Votemarket leading to the payment of a white hat bounty
- Launched the lending UI and the frxUSD vault
Product (Strategy/Smart contracts/UI/Development)
March retrospective
- vlSDT audit
- Launch of the lending beta UI
- Voter dashboard on Votemarket
- Manage the technical implications of the VM vulnerability
- Several tasks linked to the migration from vePENDLE to sPENDLE
Focus for April
- Build risk assessment and monitoring tools for the curation division
- Launch vlSDT and start migration
- Improve the lending UI
- Test the work on ZK proofs using Succint for Votemarket
Business development
March retrospective
- After strong performances on Balancer, the news of the potential shut down, followed by the plan to move away from veBAL were very disappointing for the DAO which was finally generating good increase in metrics on the Balancer vertical.
- March was marked by an exploit on Votemarket. Based on the information available following the incident and subsequent review, no material impact on core protocol operations, user positions, or treasury assets has been identified. Mitigation measures were implemented promptly, and systems resumed normal operation. However, as with any decentralised infrastructure, residual or indirect risks cannot be entirely excluded.
- The incident relates to vulnerabilities in peripheral or integrated infrastructure and does not imply custodial responsibility by the Association. Participation in decentralised systems inherently involves technical and economic risks, including the possibility of exploits. The Association’s role was limited to coordination, mitigation, and communication in accordance with governance mandates.
- In March was launched successfully the frxUSD Morpho vault, exceeding quickly $6m. This unlocked the last instalment of the Morpho grant (15k MORPHO).
- Strong performance of the vlCVX delegation again, reaching 8m vlCVX delegated (+14%)
- March saw a flattish and gloomy market, with ETH growing 2% over the month, while CRV lost 16%. In this context, Stake DAO gained additional market shares on Curve: 32.6% is going through OnlyBoost (v/s 27.9% in Feb) and 27.9% of CRV inflation was directed to the Stake DAO locker (20.3% in mid-January)
- Stake DAO contributors participated in ETH CC to identify and build future development opportunities for the DAO.
- Strategies KPIs were good in March, following a dip in February :
- Total TVL in strategies: $141.5m (+$11.9m / +9% MoM)
- Number of strategies above $1m: 24 (+4 / +20% MoM)
- Number of strategies above $0.1m: 98 (+5 / +5% MoM)
References to third-party protocols or infrastructures are provided for informational purposes only. The Association does not operate, control, or assume responsibility for such third-party systems.
Focus for April
- Ensure a smooth transition towards vlSDT
- Build a clean framework to develop the Morpho curation business
- Build a new Morpho vault
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
March’s flat market accompanied with sell pressure on sdCRV let to a drop in value of strategic assets.
Net treasury cash flows
From a business perspective, this month was characterised by an increase in metrics in market share and a drop in CRV price, which led to a drop in Lockers and Strategies’ revenues. Votemarket reached an ATH in terms of total deposits, but low efficiency coming from negative CRV price action didn’t allow those largest deposits to convert into fees. However, the revenue of Votemarket neared ATH in March.
Furthermore, this month had several exceptional items: two very old merkel airdrops came to expiry, leading to a $332k exceptional inflow.
A vulnerability was exploited in Votemarket leading to the payment of a white hat bounty for approximately $45k.
Association grant use report
This month was the last one with team incentivisation (spread over three months for cash flow considerations) and costs are normalising. Given market considerations and the recent hack, it was decided to not organise any event at ETH CC and save the event budget. This combined with the MORPHO grant received (which wasn’t budgeted), explain the $92k unspent amount in March.
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
With total inflows amounting to $559k (ATH, mainly coming from ~360k of exceptional revenues) and total costs amounting to $192k (including a $45k exceptional cost for the white hat bounty of Votemarket), the comprehensive P&L reached $365k in March. Adjusted for exceptional events, the overall net result of the DAO comes back in positive territory.
An additional 46k SDT were bought back, reaching the 1m SDT bought back since the start of the buyback program.
Legal & governance
March retrospective
- vlSDT migration proposal and new governance framework
Focus for April
- Kick off the official whitepaper workstream
- First LMAP proposals
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.