Wonderland Treasury Report
December 2022 — Ruian, Financial Officer
This report contains a treasury spreadsheet showing positions as of the end of December 2022 as well as a mid-December sheet for the redemption whitelist. ETH declined 7.4% between sheets and Wonderland has been paying out over 10% APY on staked wMEMO in our farm. Our liquid backing declined by under 1% during this period despite this. Let us begin by going over major market news. I will cover our view and strategy afterwards as well as any notable TMPs. The most current treasury spreadsheet is at the bottom with our expenses.
A Look Around the Market
December was a quiet month for crypto on the whole. We saw a decline of about 4% month over month on BTC and 8.4% on ETH (note that spreadsheets differ due to time of snapshot). Most investors are still on the sidelines waiting to see how far the FTX contagion continues to spread. Concerns are currently with DCG (Digital Currency Group) which owes Genesis billions. We have no direct exposure here, but a collapse could trigger another market selloff.
There were public concerns about Binance’s solvency with DeFiLlama showing approximately $9bn in outflows from the exchange month over month. We were not and are not worried about Binance’s solvency.
With the Fed winding down rate increases in Q1 2023 we may be nearing a bottom but remain cautious.
Our View and Strategy
We believe the market will continue to trend sideways through Q1, though we may see some further downside depending on contagion spread. Our directional exposure is mostly limited to ETH and GLP (which contains ETH and BTC primarily outside of stables). Sifu Vision maintains some exposure here as well.
We are planning to increase stable yields as much as possible while we wait for the market to turn the corner. This will be done primarily by sourcing farms as we have been doing and leveraging bLUSD on UwULend. This will give us high yields and increase revenue to a project we hold a stake in. Wonderland will have exclusive access to high yielding stable farms on Interport when the project officially launches.
High yielding public stable opportunities are increasingly challenging to find in this bear market but we continue to work to find the best ones for our holders.
TMPs
The bulk of Treasury Management Proposals (TMPs) were created to deploy into stable yield farms and Chicken Bonds (bLUSD). We were able to pass a TMP to invest into Interport, which is providing the stable farm opportunity above.
A deal to OTC our Betswap (BSGG) position was attempted but fell through. Around a third of our position is in a v3 style (near zero slippage) position on Kyberswap for purchase at an initially agreed upon price. We will refill the position if it’s purchased. Until then we will distribute BSGG tokens to our users to do what they like with in this low liquidity environment. Users can sell or stake their coins to participate in revenue sharing there if they wish.
Treasury Spreadsheet
Note that the ETH price declined by 7.3% during the period between sheet snapshots. We are also paying out over 10% APY to staked wMEMO during this period.
Total liquid value starting December: $108,738,829
Total liquid value ending December: $107,687,351
wMEMO backing price starting December: $28,412
wMEMO backing price ending December: $28,146
Month over month growth: -0.9%
Expenses
5 Officers at 0.25 wMEMO each (1.25 total)
TO salaries at 0.515 wMEMO each (1.03 total), and 6,085 USDC.e each in commissions (12,170 total)
Tech contract and maintenance at 5,794 USDT
Community Allocation and initiatives totaling $20,116
Total: $102,253
Note — TO salaries and commissions are for the entire quarter (plus some prorated time). Tech expenses are also for the entire quarter. These expenses are not monthly. Those expenses are already reflected in the treasury spreadsheet above. The liquid backing figures given are accurate.
