Q4 2022 Financial Report

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The Q4 2022 Aave ecosystem financial report revealed a 35% revenue drop since Q3, despite robust annualized revenue, and an 84.8% decrease in governance and grants expenditure. Concerns were raised about the protocol's sustainability, with current revenue unable to cover all expenditures and the treasury potentially depleting in 10 years at the current spending rate.

The Q4 2022 financial report for the Aave ecosystem was presented by Llamaxyz, highlighting significant developments such as the impending launch of Ethereum V3 and long-term contracts with Llama, Chaos Labs, and Gauntlet. Despite a challenging market, the annualized revenue remained robust, projected to surpass $16.4m over a year. However, a slight decrease in utilization led to a 35% revenue drop since Q3, with the quarter's revenue totalling $3.7m and the year-to-date revenue exceeding $24m. The report also noted an 84.8% decrease in governance and grants expenditure.

EzR3aL identified an error in the report concerning the launch dates of v1 & v2, which Llamaxyz acknowledged and committed to rectify in the subsequent report. In response to Araison's request for a detailed breakdown of expenses for each 3rd party vendor, Llamaxyz referred to the full runway analysis report on page 9, which includes links to relevant governance proposals for each vendor. They also mentioned a proposal to renew Aave Grants DAO for $3.25m, lower than the estimated $4m.

However, RapidsCapital expressed concerns about the protocol's sustainability, noting that the current revenue of $16m cannot cover all expenditures of $26m. They also highlighted that the treasury only has $130m left, which could be depleted in 10 years if the current spending rate continues. This discussion underscores the need for prudent financial management and strategic planning to ensure the long-term sustainability of the Aave ecosystem.

Posted a year ago

Last reply 10 months ago

Summary updated 2 months ago

Last updated 05/12 01:14