June 2023 Financial Report

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The June 2023 financial report for the community, presented by Llamaxyz, showed a monthly revenue of $1.2m, total treasury holdings of $122.9m, and deposits of $8.5b. Despite the DAO operating at a loss, the financial health is stable with a runway of about 7 years, and potential income from GHO could significantly boost future revenues.

The community's financial report for June 2023 was presented by Llamaxyz, revealing a monthly revenue of $1.2m and total treasury holdings of $122.9m, with 68% of it being AAVE. The report also noted deposits amounting to $8.5b1. Benhoneill raised several questions about the protocol finances, including the significant increase in April revenues on Arbitrum v3, the DAO's operating loss, and the volatility of 3rd party expenses2.

In response, Llamaxyz clarified that the majority of the Arbitrum revenue in April came from the ARB airdrop and that the DAO would decide how it is allocated. They also explained that the DAO is operating at a loss, but the runway dashboard at community.llama.xyz/aave/runway provides a more accurate projection of the runway estimate. They noted that the revenue estimates do not include potential income from GHO, which could be significant. If the ARB airdrop revenue and January's Ethereum V2 revenue are removed, the monthly revenue would be $1.2 million, resulting in a vendor deficit of $300k/month. With Aave's stablecoin position of $25.9m, the stablecoin runway would be approximately 7 years3.

Llamaxyz also addressed Benhoneill's queries about the "Runway Analysis" and "Financial Data Analytics" initially proposed, stating that both have been completed. They mentioned that they published their first runway analysis in December 2022 and their runway dashboard earlier this spring, with outflows updated in real-time and revenue number assumptions updated monthly. They also noted that the Financial Data Analytics was removed from their updated proposal after community feedback suggested narrowing their scope3.

In conclusion, the community's financial health appears to be stable, with a runway of approximately 7 years. The DAO's operating loss is being managed, and potential income from GHO could significantly impact future revenues. The community's feedback has been instrumental in shaping the scope of the financial analysis, demonstrating the importance of active participation in the community's financial management.

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Last updated 08/12 04:39