The September 2025 GnosisDAO Report is now available on kpk’s website.
kpk is pleased to present its Community Update for the month of September to the broader Community, to increase awareness and transparency of its activities.
Market Update
The digital asset market consolidated in September following the record highs of August. While volatility remained elevated, major assets saw a rebalancing of flows and relative positioning.
Market Performance
- BTC (+4.85.% for the month) traded lower after failing to reclaim its $124k ATH, closing September at ~$113k. Market sentiment around BTC weakened amid continued outflows from institutional products.
- ETH (-5.68% for the month) remained resilient, briefly testing the $4.7k level before closing the month at $4.11k. ETH remained the top institutional focus, with derivatives activity and treasury accumulation providing strong demand support.
Institutional Flows
Public ETF data showed that institutional flows cooled in September, with net inflows of ~$1.4 billion into Bitcoin ETFs, while Ethereum ETFs recorded net outflows of ~$669 million, reversing the prior month’s rotation trend toward ETH.
Market Structure & Dominance
- Bitcoin dominance declined from 58% to 55%, driven by ETH’s continued strength and increased participation in mid-cap assets.
- Exchange-related tokens remained in focus, though returns were more muted than in August: OKB (+22%), CRO (+14%), MNT (+8%), KCS (+5%).
- Other notable movers: LINK (+17%), ARB (+12%), DOGE (+9%), while POL (+3%) and PUMP (+2%) slowed after strong August gains.
Underperformers
Underperformers included BONK (-12%), PENGU (-9%), and SKY (-8%), all of which failed to recover from their losses in August.
Market Capitalisation
The total digital asset market capitalisation closed September at $3.72T, down 3.1% MoM, reflecting BTC’s retracement despite resilience across ETH and select altcoins.
Funding & Derivatives
- Off-chain funding rates (Binance):
- BTC: ranged between 4–9%, with open interest fell from 131 K to 127 K BTC.
- ETH: ranged between 6–11%, with open interest up slightly from 2.64M to 2.68M ETH.
- On-chain funding rates (Hyperliquid):
- ETH: ranged between -4–26%.
- BTC: ranged between 3-24%.
- Open interest remained balanced, with ETH and BTC both near $3.5B in OI by month-end.
DAO Financial Update
Operational Excellence
- Currently kpk manages, on behalf of GnosisDAO, 57 SAFEs that can be found within the report data.
- This SAFEs are divided into groups that pertain to specific purposes (Treasury Management, Yield Farming, GIP fulfilment, Gnosis Chain Infrastructure, Gnosis Pay Rewards, Gnosis DAO Operational Foundation)
- kpk maintains and reviews over 200 different alerts running concurrently on events and actions happening on all of the above
Yield generation initiatives on Gnosis Chain
In line with the objective of generating differentiated yield on Gnosis Chain, several initiatives have been implemented. GNO has been deployed as collateral to mint ZCHF, a Swiss franc–denominated stablecoin. Liquidity provision for ZCHF has been established through its pairing with EURe, and svZCHF, the yield-bearing version of ZCHF, has been integrated to enhance user experience and differential yield.
Review of liquidity parameters
A comprehensive parameter review has been initiated across Uniswap v3, Balancer Weighted, reCLAMM, and Dynamic Gyroscope pools. The assessment aims to evaluate efficiency and capital deployment under different automated market-making models, optimising pool behaviour and risk-adjusted yield.
Yield strategy on Mainnet
On Ethereum Mainnet, a special focus was given on how to accumulate wBTC and a plan was ideated to focus on single-sided positions in WETH/wBTC pools, designed to accumulate wBTC over time. This approach prioritises liquidity provision with asymmetric exposure, seeking to increase GnosisDAO long-term Bitcoin-denominated holdings.
Allocation changes on Mainnet in September included:
- Expiration of 2 Pendle positions PT-USDe ($2M) and LP-wstUSR ($3M) on 25th of September
- Stablecoin $1M deployment to RLUSD on AAVE to capture 10% APR in incentives
- Increased allocation by 200 ETH to the LiquidETH pool by Ether.fi, which shows a risk-adjusted return of around 5% APR
- New allocation of $800k in various ETH denominated assets to Balancer V3 pool to capture 12% APR via staking on Aura
Governance Improvement Proposals (GIPs) Fulfillment
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GIP-70: Gateway Payment of 55,555 DAI, corresponding to installment 35 of 36.
-
GIP-117: Distribution of wbTSLA completed on September 18th, totalling 1,839.27 GNO.
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GIP-135: One-time gEURO Payment of 50,000 DAI.
Fees
For these period, the management fee charged was $166,667 (1/12 of $2 million per annum). The performance fee is 20% of DeFi results from assets on Mainnet, which resulted in 26.69 ETH.
| Management Fee | Performance Fee (ETH) | |
|---|---|---|
| January | $166,667 | 33.72 |
| February | $166,667 | 25.07 |
| March | $166,667 | 36.04 |
| April | $166,667 | 42.20 |
| May | $166,667 | 26.07 |
| June | $166,667 | 33.44 |
| July | $166,667 | 26.51 |
| August | $166,667 | 21.33 |
| September | $166,667 | 26.69 |