The new report offers a detailed outlook on the treasury’s performance, reflecting our commitment to transparency and marking a step towards increased automation. A significant improvement is the distinction between farming and non-farming results:
Farming Results: these include outcomes from deployed strategies and positions, such as fees from LPs, rewards from various stakings, and rebasing of assets.
Non-Farming Results: these encompass outcomes from market conditions and activities unrelated to treasury management, like price variation and external cash flows.
In July, the treasury operations focused on improving market liquidity on Gnosis Chain through Balancer, executing the second step of GIP-57, and deploying a $GNO loan position on Spark. Here’s a summary of the month’s executed tasks:
Increased funds in various pools on Balancer GC (wstETH/WETH, EURe/agEUR, BAL/GNO/wstETH-WETH/WXDAI).
Migrated funds from the tricrypto pool on Curve to Balancer in GC.
Created a loan position on Spark with $GNO as collateral and deposited borrowed DAI in the DSR module.
Used farming rewards to repay ~$1 million of DAI debt in MakerDAO.
Sent $GNO rewards to Hop and Curve and provided GC incentives through StakeDAO and Votium.
Unstaked total balance steCRV in Convex and withdrew funds from Curve.
Executed the second phase of GIP-57 and sent USDC to SuccinctLabs for essential ZK-SNARK-enabled bridge infrastructure.
Results
We achieved ~$815K in farming results. Our overall strategy remains focused on building the Gnosis ecosystem, optimising returns, and mitigating risk.
Exciting projects are being successfully deployed on Gnosis as we continue to foster a healthy ecosystem with attractive use cases and opportunities. We look forward to another month of growth and innovation! Your questions, comments, and suggestions are always welcome.
In August, the treasury activities went around increasing market liquidity on Gnosis Chain through Balancer and Aura, capturing the enhanced DSR opportunity, and partially repaying DAI debt. Here’s a summary of the month’s executed tasks:
Created and increased funds in various pools on Balancer GC (staBAL3, wstETH/staBAL3, EURe/staBAL3, wstETH/GNO, wstETH/WETH, wstETH/AURA/BAL).
Migrated several Balancer pools after a vulnerability was detected. No funds were lost.
Following its launch on GC, staked Balancer GC LP tokens on Aura.
Removed funds from the cDAI+cUSDC pool in Curve and the CRV/GNO pool in Honeyswap GC.
Bridged a total of 115K GNO, 6.5K ETH, 137K AURA, and 5M COW from Mainnet to GC to continue with the Treasury migration plan for increasing GC support and TVL.
Increased the borrowed DAI in both MakerDAO and Spark to capture an enhanced DSR opportunity of 8% that lasted for 3 weeks. Repaid this exposure afterwards.
Used farming rewards to repay ~$3 million of DAI debt in MakerDAO.
Deposited wstETH as collateral and minted GHO on Aave v3.
Staked the total balance of PNK in the General Court on Kleros.
Sent GNO rewards to Curve and provided GC incentives through StakeDAO and Votium.
Executed a second payment of GIP-70, sending ~200K DAI and ~2K GNO to Gateway to cover their services from May to August.
Migrated the Idle Finance position from the Lido Tranche to the Instadapp Tranche to improve returns.
Deployed updated Roles Modifier presets to increase its scope and add new developed actions.
Results
The Treasury activities allowed for approximately $600K in farming results for August. We were able to progress with the bridging of funds to GC in order to build both the Gnosis Chain and the Gnosis ecosystem.
Your questions, comments, and suggestions are always welcome.
In September, the treasury tasks centred on moving the funds from Mainnet to Gnosis Chain, bolstering its growth and development. The treasury’s network allocation now stands at 60-40, a significant shift enabled by debt repayments freeing collateral, fresh protocol deployments on Gnosis Chain, and the introduction of new pools to enhance market liquidity.
Here’s a summary of the month’s executed actions:
Progressed with the Treasury migration plan, bridging wstETH, WETH, AURA, and BAL to the Gnosis Chain.
Migrated funds from wstETH/LDO pool on Balancer-Aura to ETH/LDO on Curve-Convex.
Deployed updated presets for the Roles Modifier Disassembler.
Boosted Gnosis Chain liquidity by contributing to wstETH/WETH, wstETH/GNO, wstETH/COW, wstETH/AURA/BAL pools on Balancer and sGNO/rGNO on Curve.
Withdrew funds from the Instadapp Tranche on Idle.
Sent incentives to Curve and Hop.
Acquired B-80BAL-20WETH and locked it for veBAL on Balancer, increasing the DAO’s voting power.
Renewed expired locks on Aura to preserve the DAO’s voting influence.
Voted for pools on Gnosis Chain on Balancer, Aura, and Convex.
Withdrew WXDAI and GNO from Agave for utilisation on Spark.
Swapped wstETH for DAI and repaid DAI debt while withdrawing wstETH from the WSTETH-A vault on MakerDAO.
Borrowed USDC and withdrew wstETH from Aave v3.
Acquired GHO, deposited in GHO/USDT/USDC pool on Balancer, and staked in Aura.
Results
The treasury generated ~$460K in farming results. To foster Gnosis Chain’s development and outreach, treasury resources are being used to improve liquidity and drive projects, affecting financial outcomes. The goal is to provide the means for building an attractive and successful ecosystem.
Additional remarks
It’s important for the community to understand the rationale behind the allocation of funds. Under karpatkey’s stewardship, the GnosisDAO Treasury is instrumental in creating a healthy DeFi ecosystem that serves as the backbone of the Gnosis Chain, actively supporting projects to foster continuous building, evolution, and expansion within the industry. On a high level, the purposes of the positions are as follows:
Ethereum
Aave v3, Angle, MakerDAO, and Spark: these positions are utilised for lending assets like wstETH and GNO to borrow stablecoins. This strategy leverages capital efficiency and facilitates stablecoins liquidity for the Gnosis Chain.
Ankr, Aura, Balancer, Bancor, Convex, Lido, and MakerDAO: positions in these protocols are primarily for farming purposes. By engaging in activities like staking ankrETH, auraBAL, various liquidity pool tokens, or depositing DAI in the DSR module (sDAI), the treasury aims to earn rewards and generate yield.
Aura, Balancer, and Convex: by locking assets within these protocols, the DAO secures voting power, enabling it to influence emissions for the Gnosis Chain.
Uniswap v3: maintained to provide liquidity, ensuring market stability for the $GNO token.
Gnosis
Agave, Azuro, Connext, Stakewise, and Curve: these protocols on the Gnosis Chain are used for creating DeFi use cases.
Aura, Balancer, Honeyswap, SushiSwap, and Swapr: these positions are deployed to provide liquidity to various token pairs, ensuring sufficient market liquidity on the Gnosis Chain, facilitating smooth token trades, and supporting the overall health of the Gnosis ecosystem.
We regret any inconvenience caused by a minor delay in publication, which was due to a technical issue. Your questions, comments, and suggestions are always welcome.
Thanks for the summary, as always nice to read. Are you also providing the usdc incentives for sDAI/EURe Balancer pool or who is doing this? Seems a good idea to me to have this pool but wonder why it’s necessary to spend money instead of voting power on it. Or are there any reasons a gauge might not get approval?
Hey Refri, thanks for you question. We are not providing USDC incentives, we are just voting with Gnosis DAO vlAURA and veBAL. However, Balancer made a mistake when deploying the original staBAL3/EURe pool, doing it with protocol fees on the rate provider. This means that they took a 50% off every time that Euro appreciated vs USD. For context, this pool was previously a boosted pool and was redeployed when Balancer found the vulnerability. The pool was already set in recovery mode (turning fees off) and was redeployed without protocol fees and using sDAI instead of staBAL3 (this was already the plan anyways). Since this was a mistake, Balancer is distributing back these fees to LPs as USDC - these are the USDC the we are seeing as “incentives” in the UI. You can read with further detail here.
This maybe a dumb question but i am working on the hardware at present and eventually will be working on purchasing GNO to host a node. When i get to that point would purchase the “tokens” here or at coinbase? And it is still the case that the requirement is 10 tokens? Heck this may be the wrong place to ask this question altogether as i am not sure where else to ask it i am asking
best to buy the token directly at a dex on gnosischain cause most cex will let you withraw only to ethereum. In this case you have to bridge afterwards to gnosischain to use it for validating. You need 1 GNO for each validator but running just 1 validator on a node, although great for the network, will not be profitable. You can run multiple validators on a node to increase your rewards without additional cost for hw, but will need more gno ofc.
In October, the treasury operations focused on diversifying the holdings by increasing the exposure to stablecoins, improving market liquidity on the Gnosis Chain through Balancer, executing GIP-89, and creating the first deposits for Spark and Aave’s launches on the chain. Here’s a summary of the month’s executed tasks:
Increased stablecoins holdings by swapping accumulated farming rewards for DAI, USDC, and USDT to improve market liquidity on the Gnosis Chain.
Repaid outstanding DAI debts in MakerDAO and Spark, withdrew wstETH from WSTETH-A vault on MakerDAO, and created a new wstETH-DAI loan position on Spark.
Continued with the Treasury migration plan, bridging DAI, USDC, USDT, wstETH, and GNO to the Gnosis Chain.
Swapped bridged DAI for sDAI and improved liquidity for stablecoins on the Gnosis Chain by depositing in sDAI/USDC/USDT, sDAI/wstETH, and sDAI/EURe pools on Balancer.
Executed GNO and B-80BAL-20WETH OTC deals through Hedgey.
Withdrew funds from the GNO/ETH pool on Uniswap v3 to encourage all GNO activity to happen on the Gnosis Chain.
Sent wstETH rewards to the EURe/x3CRV pool on Curve.
Partially withdrew stablecoins funds from Agave.
Seeded initial liquidity on Spark and Aave following their deployment on the Gnosis Chain.
Locked B-80BAL-20WETH for veBAL, AURA, and CVX to increase and maintain the DAO’s voting power and voted for Gnosis Chain pools on Balancer, Aura, and Convex.
Executed GIP-89 and sent USDT for services to Blockscout to support the annual renewal of their SLA and hosting services.
Deposited funds on Diva Early Stakers stETH vault on Enzyme.
Results
We achieved ~$560K from treasury activities. Our strategy focuses on developing the Gnosis ecosystem by utilising the treasury to ensure market liquidity and to onboard new projects.
Gnosis Chain continues to grow and mature, and we look forward to another month of expansion and innovation! We welcome your questions, comments, and suggestions.
If I understand the context correctly, is Consensys the counterparty in this case?
I’m also interested in learning more about the overall buyback strategy. The trades executed via Hedgey, in my view, are highly beneficial for the intrinsic value. I’ve noticed that in the last 20 days, you’ve conducted additional buybacks on CowSwap exceeding 20k GNO. This is already quite noticeable in the price. Is the decision to buy back purely an internal one, or has there been a vote on this matter, with you executing a specific strategy?
We are strategically increasing GNO exposure as outlined in GIP-20, recognizing its suitability for the treasury based on the valuation of GnosisDAO holdings and investments. This initiative is integral to the broader strategy aimed at strengthening the ecosystem and boosting its value, in line with our ongoing efforts in market-making, partnerships, and governance participation.
The Hedgey deals, which facilitate OTC transactions, are designed to mitigate market volatility and prevent disruptions while effectively meeting specific investor needs.
Furthermore, our continued focus on developing GNO’s use cases and driving demand is central to enhancing its overall value. These efforts align with our commitment to supporting community members, increasing activity on the Gnosis Chain, raising awareness, and bolstering liquidity within the ecosystem.
Would you be willing to share information about the Venture Investments made by GnosisDAO? I’ve conducted some basic research myself and will be sharing it here soon, but getting the information directly from you would undoubtedly be the best option. My research is based on incomplete data, on-chain information, and various blog posts from specific projects.
Having these data about Venture Investments neatly compiled, similar to how Karpetkey does with monthly reports, would be extremely beneficial. It would surely contribute to the value of GNO.
We have been compiling a comprehensive document outlining this to provide a clear overview of the strategy, the supported projects, and their potential impact. However, there are still some decisions to be made regarding the format and content of the document, and we want to ensure that it is as informative and useful as possible.
could you maybe share whether the wsteth-gno pool on aura has any mean to increase its APR again ? with the 5M+ usd now staked in it apr is at below 5% and it is now counterproductive to stake in it for an outside investor/participant in the network. Alternatively do you have any view on giving room for an option to provide liquidity with or stake gno outside of running a validator in a not too improfitable way ? stable-gno pool have too high IL, ankor staking has limited capacity, stakewise offers anemic returns. all options are really miserable currently.
So I bought my Gnosis on Coinbase as I have a Coinbase One account. I had 6.5 gnosis but we, my Wife and I, became stuck in Anchorage, Alaska the weekend of 10 thru 12 November 2023 for a Service Conference of Non Profit Fellowship that ive been heavily involed in for 30 + years. Anyway we flew into a blizzard and flew out right as one was starting up. I delayed or flight so as to aviod the worst of it hence the need to liquidate 1 GNO.
I still hold 5.29 GNO and I have a Gnosis NFT that is a gnosis.gift which according to everything ive read is redeemable for 1 GNO and according to this NFT it divides into like 15 separate NFTs HELP!
In line with our commitment to delivering transparent and valuable information, we have made enhancements to the report. Our goal is to present the treasury’s performance more clearly by separating positions based on their purpose. We have transitioned from the farming and non-farming framework to a new structure comprising Operations and DeFi funds.
Operations funds: these positions are tailored to meet specific requirements like market making, and are not focused on yield generation.
DeFi funds: these positions highlight the outcomes of treasury allocations aimed at yield generation.
November Highlights
In November, the treasury operations focused on diversifying the holdings by increasing the exposure to stablecoins and improving the markets on the Gnosis Chain through deposits on Aave v3. The value of the treasury doubled due to the acquisition of Gnosis Builders funds and the rising prices of ETH, GNO, and COW. Here’s a summary of the month’s executed tasks:
Progressed with the Treasury migration plan, bridging DAI, wstETH, and GNO to the Gnosis Chain.
Deposited WXDAI, USDC, EURe, GNO, WETH, and wstETH on Aave v3 to provide liquidity following their launch on the Gnosis Chain.
Repaid USDC debt and partially withdrew wstETH from Aave v3 on Ethereum.
Increased stablecoins holdings by swapping wstETH for DAI and acquired sDAI on the Gnosis Chain.
Migrated funds from the agEUR/EURe pool to the stEUR/EURe pool on Balancer on Gnosis Chain.
Locked B-80BAL-20WETH for veBAL and AURA to increase and maintain the DAO’s voting power and voted for Gnosis Chain pools on Balancer and Aura.
Sent wstETH rewards to the EURe/x3CRV pool on Curve.
Executed GNO and B-80BAL-20WETH OTC deals through Hedgey.
Unstaked the GHO/USDT/USDC position from Aura and withdrew the funds from the pool on Balancer.
Results
We attained ~$615K in DeFi results from treasury activities. The strategy remains with a focus on developing the Gnosis ecosystem by providing market liquidity and creating exciting opportunities.
We regret any inconvenience caused by a minor delay in publication, which was due to a technical issue with the new structure. We welcome your questions, comments, and suggestions.