BUILD Finance Treasury Update — October 2021

A brief review of treasury assets and allocations.

In line with much of the overall DeFi market in Q3 2021 the BUILD Finance treasury has seen positive appreciation compared with earlier quarters. We will review treasury performance at the end of the article, both in isolation and in the context of the wider market.

BUILD Treasury Update:

Correct as per block 1,344,1672 (18 Oct 2021)

• New Treasury Address: 10 DAI; 5,849 BUILD; 130,209 METRIC ($944,557 equiv.)
• Balancer Pool (3 Asset): 101,162 DAI; 6,617 BUILD; 15,404 METRIC ($303,486 equiv.)
• Balancer Pool (5 Asset): 58,756 DAI; 4,019 BUILD; 9,439 METRIC; 95,987 BCRED; 272,457 UPDOWN ($293,780 equiv.)
• Multisig Wallet: 26,273DAI; 530 METRIC; 10,702 BCRED ($36,306)
• Old Treasury Address: 80 BAL; 98,890 UPDOWN, 140 DAI, 5 BUILD ($23,286 equiv.)
• Fee Collection Address: 1500 DAI; 6 BUILD ($1,590 equiv.)
• Unclaimed Balancer Rewards: 407 BAL ($8,884 equiv.)

NET TOTAL ASSETS: 187,841 DAI; 16,496 BUILD; 155,582 METRIC; 106,689 BCRED; 371,347 UPDOWN; 487 BAL.

NET $ EQUIVALENT: $1,611,889.

CURRENT BUILD MARKET CAP: $1,987,700

TREASURY:MARKET CAP RATIO: 0.81

In review, it can be seen the treasury has increased in dollar denominated terms by 308% since August 2021 ($522,536), largely due to price appreciation of BUILD and METRIC tokens. Whilst this is positive, and the treasury is in a much healthier position, it does reinforce the rather unstable nature of a treasury that contains project tokens in large proportions. Moving forward it is proposed that treasury provision of liquidity is reduced in order to safeguard a greater proportion of the treasury in low-volatility asset classes, subject to formal on-chain consensus.

METRIC Treasury Update:

Correct as per block 1,344,1672 (18 Oct 2021)

NET TOTAL ASSETS: 258,414 METRIC

NET $ EQUIVALENT: $1,535,176

CURRENT METRIC MARKET CAP: $3,802,765

TREASURY:MARKET CAP RATIO: 0.40

METRIC has seen a large (c. 500%) increase in the overall value of the treasury since August 2021, entirely based upon price appreciation of the underlying token. METRIC suffers from problems of low liquidity and it is considered desirable that moving forward the treasury should look to both distribute some of its METRIC holdings to the community, and look to diversify the treasury assets into a broader spectrum of low-volatility assets. Economic proposals for the most advantageous means of achieving this will be raised in the discord for wider discussion.

Conclusion:

Both BUILD and METRIC have substantially outperformed the overall crypto market capitalization since the previous update in August 2021 (30% increase to date). This is great news for BUILD and METRIC holders, and moves the DAO to a much stronger position from which to attract new dev and ops talent. Furthermore it means we are in a position to finance a wider range of activities relating to the development and promotion of our interests and partnerships. The team at BUILD believe that as the treasury increases in value it would be prudent on behalf of all token holders to diversify the range of assets held by the DAO. This will ensure that the DAO can successfully weather all market conditions, and secure funding along an appropriate runway to deliver the applications that the market needs.

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