Volta Treasury Report Q3 2023
The treasury spreadsheet showing positions as of the 30th of September, 2023 is included at the end of this article as always. Volta’s third quarter has brought a 28.9% return to holders (that’s 116% annually) after all fees. The backing value of Volta increased by $34.06 per token amounting to $33mm in profit. We remain dedicated to working tirelessly for our holders and look forward to the rest of the year.
A Look Around the Market
The total crypto market cap continued to decline last quarter. ETH began at $1867 with BTC at $30,600 from our last snapshot on June 29th. The current price of ETH is $1673 with BTC at $26,976, a decline of 10.4% and 11.8% respectively. The total crypto market cap declined around 20% and is sitting around $1T.
Bitcoin spot ETF (exchange traded fund) decisions have continually been delayed by the SEC with no decision expected this year. Binance, the largest exchange, continues to be targeted by enforcement agencies and has had to break up or sell off operations in several countries. These things provide lack of confidence for average investors and cause the slow bleed downwards that we have seen.
Other funds such as Scimitar Capital have closed down due to near 50% drawdowns YTD (year to date).
Our View and Strategy
Our thesis of rates staying higher for longer is playing out as expected. This adds a great deal of uncertainty throughout the greater macro economic landscape. We are consolidating into stronger products that provide higher risk adjusted returns and have strong product futures.
With that in mind, we acquired full control of UwU Lend at a cost basis of $3 per token while it trades at $16 per token. See here for more details.
We continue to look for good farming opportunities and are now holding large directional positions for an eventual market turn. Sifu tokens continue to rise from $62.50 to $67 and act as a hedge against directionals.
Interport continues to grow and now provides revenue share via LP staking in mostly stables. We have deployed an LP there to earn yield on our tokens. They are currently earning over 50% APR.
From the Treasury Operators:
We had a drawdown of approximately 4.5% due to the Multichain attack. This affects only the Degen Funds segregated wallet managing 10mm and not the main treasury. Some of the Multichain team were arrested in China and some of the funds issued on Fantom (and other chains) became unbacked. This caused wETH, wBTC, and most stables to become unbacked and nearly worthless in a short period of time. We managed to get some funds off Fantom but we were not able to rescue everything. Despite this loss, we managed to end down 4.5% while ETH and BTC suffered 10.4 and 11.8% drawdowns in the same period.
Savvy has recently launched and are currently attracting TVL. Volta remains a committed liquidity partner as we provide liquidity for their synthetic pools as we foster growth.
We continue to source dealflow with smaller projects that offer high risk adjusted returns such as Aark Digital that make sense for our portion of the treasury to deploy into.
Treasury Spreadsheet
Liquid treasury June 29, 2023: $126,536,467.00
Liquid treasury September 30, 2023: $146,720,002.00
Volta began with a supply of 1,000,000 tokens and buybacks have already reduced that number to 968,780. The effective Volta backing was $117.88 last quarter and sits at $152 today, a gain of almost 29%.
As always, LPs to buy back are deployed by Sifuvision and other users. We will continue to buyback tokens to reduce the supply if there are more sellers than buyers. We look forward to a strong 4th quarter to finish out 2023!
