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
- vsdCRV incident leading to a drop in TVL and an exceptional loss
- Sunset of Balancer related products
- Strong performance of all products before the hack leading to higher fee generation
Product (Strategy/Smart contracts/UI/Development)
May retrospective
- vlSDT boost marketplace in testing phase
- Major overhaul of the automation stack: migrated all bots to the Maestro orchestrator (new VPS, multi-workers), added Telegram alerting on every failure and overdue run, and automated submit_roots for vlCVX, Spectra, FXS and sdCRV with AI verification and a 3-hour alert window
- Started the Balancer vertical sunset including the exceptional distribution
- Adapt Stake DAO’s documentation to integrate the Skill and offer AI agent access
- Reacted to the vsdCRV hack to protect user funds and limit the losses
- Proceeded to a major overhaul on all Stake DAO contracts, reviewing privileged accesses and transferring them when needed, and rotating all signer private keys. Built new processes for contract deployment. Ran AI scans on Stake DAO’s contract stack including Firepan, Olympix and Hypernative
Focus for June
- vlSDT boost marketplace shipped
- Improvements to the lending wrapper
- Integration of new AI scan products and push on security throughout the stack, notably in the light of new powerful AI tools being potentially threatening for any DeFi protocol
- vsdCRV hack compensation plan
- Improvements to the liquidation bots for Stake DAO’s Morpho markets
Business development
May retrospective
- Solid performance of Stake DAO products until the hack, which led to a massive leakage of liquidity on the yield strategies side, and a limited churn on Votemarket side
- This flight to security was combined with a broad market crash which also typically leads to drop in TVL both in value and token amount.
| Metric | May 2026 | MoM |
|---|---|---|
| OnlyBoost share of CRV inflation | 22.5% | -10.9 ppt |
| Stake DAO locker share of CRV inflation | 18.8% | -9.9 ppt |
| Total TVL in strategies | ~$77.4m | -$63.7m / -45% |
| o/w Curve strategies | ~$76.4m | — |
| Side-chain TVL | ~$5.9m | — |
| Number of strategies above $1m | 17 | -1 / -6% |
| Number of strategies above $0.1m | 89 | -10 / -10% |
Focus for June
- Rebuilding trust after the security incident
- Reach out to new categories of prospects for the risk curation vertical
- Support Coinbase with their cbETH liquidity
- Work on the integration of Stake DAO’s strategies on FIRM and Alchemix
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
May’s market downturn, combined with the $87k loss of our vsdCRV LP position, led to a sharp drop of treasury balance.
Net treasury cash flows
On its operating performance alone, May would have posted a strong +$63.9k net treasury cash flow, a +28% MoM rebound in product fees plus $24.0k of exceptional revenue, against a normalised monthly cost base of $110.5k. However, the exceptional ~$87.05k treasury loss booked for the May 27 vsdCRV incident more than offsets these gains, turning the net treasury result negative at -$23.2k for the month.
Association grant use report
The Association received a $110.5k grant tranche and spent $105.97k, leaving an unspent grant of $4.5k for the month. The Association cash balance ended May at approximately $166.3k. No exceptional costs were incurred at the Association level during the month.
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), the month came in at approximately +$36.4k, down from $123.4k before accounting for the incident loss, bringing the year-to-date comprehensive result to roughly +$288k. Excluding the one-off incident loss, the underlying business performed well; the month is effectively around breakeven once the loss is absorbed.
Nearly $75k of value was returned to SDT holders in May, $55.0k through veSDT distributions and $20.0k of buybacks (161,375 SDT acquired at an average price of ~$0.12). Year-to-date, ~$309.2k has been returned to SDT holders.
Legal & governance
May retrospective
- Started working on the legal structuring of the risk curation effort
- SDGP #68: Sunset of Stake DAO’s Balancer-related products
- First LMAP to add frxUSD/sUSDS as collateral to Stake DAO’s frxUSD vault
Focus for June
- Submit to governance the list of products and chains to sunset in order to reduce the protocol’s attack surface.
- Complete the post-incident compensation effort.
- Investigation and work with the authorities following the hack.
- Continue lending-market governance under the LMAP framework with 2 to 3 more markets reviewed
- Continue the work around legal structuring of the risk curation effort
- Continue the work on the official whitepaper
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.