Finance Nest - A Thread of Monthly Financial Report Publications

Index Coop - June 2021 Financial Report

I am pleased to present Index Coop’s June 2021 Financial Report. As June marks the end of Q3, Index Coop’s first quarterly report will be published in later in the month. :owl:

Index Coop continues to see strong month on month revenue growth with ETH2x-FLI revenue surpassing DPI’s contributions to be the main revenue earner during the month of May.

Key Takeaway:

  • Index Coop’s transition towards profitability has began with a significant improvement in overall capital efficiency.
  • A 32% reduction in MoM Gross Profit was more than offset by a 50% reduction in Liquidity Mining spending.
  • Total units across all products increased by 12% MoM with ETH2x-FLI growing at 19% MoM, MVI growing at 12% MoM and DPI growing at 3% MoM.
  • Liquidity Mining continues to be Index Coop’s largest cost at $0.59M during June with $0.49M being spent on supporting DPI liquidity on Uniswap V2.
  • Index Coop made a loss of $0.5M during June which is a significant improvement on the $1.2M loss during May and heavily influenced by Liquidity Mining incentives.

Many thanks goes out to all those within the community who helped pull this together.

Please do drop a comment below and let us know what you think.

Index Coop - Treasury Report - June 2021.pdf (335.8 KB)

Original forum post: Index Coop - June 2021 Financial Report
Author: @Matthew_Graham, @ElliottWatts and @prairiefi

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Index Coop - July 2021 Financial Report

I am pleased to present Index Coop’s July 2021 Financial Report. At the end of July the Index Coop treasury has a market value of $57.67M, of which 85.1% is INDEX tokens. :owl:

Key Takeaways:

  • Index Coop experienced a meaningful 7.6% MoM improvement in profitability despite volatile market conditions.
  • Revenue increased 6.5%, Liquidity Mining costs decreased by 14.5% and Contributor Rewards increased by 20%.
  • The revenue growth was driven by a meaningful 18.8% increase in DPI and a tidy 5.6% increase on BTC2x-FLI.
  • Unit Supply across all product offering was up 18.8% which is an increase of nearly 245,000 units. BED was 13,357 unit on 1st August. ETH2x-FLI and MVI both experienced 38.3% increases in circulating unit supply.
  • Overall profitability improved from a $0.55M loss in June to a $0.50M loss in July. The improvement was driven by an improvement in capital efficiency.
  • AUM increased by 45% MoM from $165.3M to $241.7M.
  • Looking the continual drop in Liquidity Mining incentives is expected to drive further improvements in capital efficiency.

For those that want to go deep into the July numbers, please read the medium article here.

Many thanks goes out to all those within the community who helped pull this together.

Please do drop a comment below and let us know what you think.

Index Coop - Treasury Report - July 2021.pdf (275.7 KB)

Medium: Index Coop July 2021 Financial report | by Elliott Watts | The Index Coop | Medium

Original forum post: Index Coop - July Financial Report
Author: @Matthew_Graham, @ElliottWatts and @prairiefi.

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Index Coop - August 2021 Financial Report

I am pleased to present Index Coop’s August 2021 one-page Financial Report and the longer form deep dive article which has been posted on medium - link here .

At the end of August, the Index Coop treasury has a market value of $85.3M, of which 90% are INDEX tokens.

Key Takeaways

*Index Coop at a gross profit level experienced its first profitable month a direct result of reduced LM incentives on DPI. ETH 2x-FLI stole the show generating fees of $348k alone.

  • Revenue increased 77.2%, Liquidity Mining costs decreased by 58.7% and Contributor Rewards increased by 270%.
  • Contributor rewards are up significantly this month, a direct result of FTE vesting contract cliffs being reached.
  • Unit Supply across all product offering was up 8.1% which is an increase of nearly 124,000 units. The largest gain in unit supply BED growing 48% with MVI also adding 33% growth in supply
  • Overall profitability worsened from a $0.50m loss in July to a $0.77m loss in August. When excluding the FTE rewards the DAO would have generated a loss of $0.35m
  • AUM increased by 53% MoM from $227.4m to $348.4m.
  • The reduction in liquidity mining incentives is expected to significantly improve the profitability of DPI as a product and drive further improvements in capital efficiency.

Please do drop a comment below and let us know what you think.

Index Coop - Treasury Report - August 2021.pdf (262.0 KB)

Medium: August has seen the Index Coop grow from strength to strength both from a financial standpoint and… | by Elliott Watts | The Index Coop | Medium

Original forum post: Index Coop - August 2021 Financial Reports
Authors: @ElliottWatts, @prairiefi, @AcceleratedCapital and @Matthew_Graham.

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Index Coop - September 2021 Financial Report

The TWG is pleased to present the Index Coop’s September 2021 one-page Financial Report.

At the end of September, the Index Coop treasury has a market value of $69.9M, of which 89.1% are INDEX tokens.

Key Takeaways

Index Coop at a gross profit level experienced its second profitable month as a result of no LM incentives on DPI. ETH 2x-FLI continued to be the best performing product totaling $322.3k 64% of total revenue generated for September.

  • Revenue decreased by 7.6%, Liquidity Mining costs decreased by 100% and Contributor Rewards decreased by 41.2%.
  • Contributor rewards reduced during September. August costs were high as a direct result of FTE vesting contract cliffs being reached, none were exercised in September.
  • Unit Supply across all product offerings was up 16% which is an increase of nearly 273,000 units. The largest gain in unit supply BED grew 33% although with a much lower base, with the largest absolute gain on ETH2x-FLI adding 16% growth in supply
  • Overall profitability improved significantly from a $0.77m loss in August to a $0.24m loss in September
  • AUM held steady at $343m a slight decrease from August
  • September also saw the release of the Data Economy Index (DATA)

The TWG is also excited to provide the community with the annual financial accounts which we are hoping to release next week, this will include full financial statements and a deep dive video on the success’ over the last year.

Please do drop a comment below and let us know what you think.

Index Coop - September 2021 one pager.pdf (239.1 KB)

Original forum post: Index Coop - September 2021 Financial Report
Authors: @prairiefi, @ElliottWatts, @AcceleratedCapital, @Ahuja, @Matthew_Graham

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Index Coop - October 2021 Financial Report

The Finance Nest is pleased to present the Index Coop’s October 2021 one-page Financial Report.

We have also prepared a longer deep-dive article which will be published to medium shortly (we will update this link when published)

At the end of September, the Index Coop treasury has a market value of $51.9m, of which 75.96% are INDEX tokens.

Key Takeaways

The DAO at a gross profit level experienced its 3rd consecutive profitable month as a result of no LM incentives on DPI or MVI. ETH 2x-FLI continued to be the best performing product totaling $393k, 63% of total revenue generated for October.

  • Revenue increased by 21% and Contributor Rewards increased by 10%
  • Gross profit was at its highest ever for the DAO up 15% MoM
  • Contributor rewards increased during October. With some FTE vesting contracts being exercised now the 6-month cliff has been reached for certain contributors
  • Total unique wallet address exposure at month-end was ~ 27k, approximately 90% of those wallets only hold one of our products, further research is being completed to review why accounts do not have exposure to multiple products
  • Overall profitability declined slightly from 0.174k loss in September to 0.183k loss in October a 5.42% movement
  • AUM grew significantly now totaling $460.8m a 45.6% increase from September, which is a result of positive asset price movement across the product offering.

The Finance Nest is constantly working to level up our financial reporting and key investor relations documents.

Please do drop a comment below and let us know what you think. Along with and further insights you wish to see in the future.

Index_Coop - Treasury Report - October 2021.pdf (245.9 KB)

Original Post: Index Coop - October 21 Financial report
Authors: @Ahuja, @ElliottWatts, @prairiefi, @Matthew_Graham, @Hammad1412

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Index Coop - November 2021 Financial Report

The Finance Nest is pleased to present the Index Coop’s November 2021 one-page Financial Report.

We have also prepared a longer deep-dive article which will be published to medium shortly (we will update this link when published)

At the end of November, the Index Coop treasury has a market value of $45.5m, of which 71.45% are INDEX tokens.

Key Takeaways

Index Coop at a gross profit level experienced its 4th consecutive profitable month as a result of no LM incentives on DPI or MVI. ETH 2x-FLI continued to be the best performing product totaling $498k, 69% of total revenue generated for November.

  • Revenue increased by 14.5% and Contributor Rewards decreased by -14.8%
  • Gross profit was at its highest ever for the DAO up 8% MoM
  • Overall profitability increased slightly from 0.183k loss in September to 0.176k loss in November a 3.65% movement
  • Cumulative net dollar inflows saw a -98% decrease since October, but MVI saw strong inflow of $5,261,282
  • AUM grew slightly totalling $478.8m, a 2% increase from October

The F.Nest is constantly working to level up our financial reporting and key investor relations documents.

Please do drop a comment below and let us know what you think. Along with and further insights you wish to see in the future.

Index Coop - Treasury Report - November 2021 - Glossy V3.pdf (439.9 KB)

Original forum post: Index Coop - November 21 Financial Report
Authors: @ElliottWatts, @prairiefi @Ahuja, @Matthew_Graham, @Hammad1412

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Index Coop - December 2021 Financial Report

Finance Nest is pleased to present the Index Coop’s December 2021 one-pager Financial Report.

At the end of calendar year 2021, Index Coop held $43.35M, of which 71.59% are INDEX tokens.

Key Takeaways

Gross Profits is continuing to trend higher, but seen a notable pull back compared to a stellar November performance. The Finance Nest made its first deployment of funds, depositing near on $400K into the new Balancer Boosted Pools.

  • MoM revenue was down 14.5%
  • ETH2x-FLI continues to be the best ROI product generating $421.0K in revenue during December
  • DPI & ETH2x-FLI generate 91.71% of Index Coop’s revenue, up from 90.25% during November
  • Net Loss increased from $176.7K in November to $612.5K in December
  • Two Months of Contributor rewards distributed during December cost $904.1K in total
  • Total Unit Supply of all products increased by 62,995 units MoM
  • N$F the @MrMadila indicator, 28 DMA trend turned from -$682.3K to $44.8K during December

Please do drop a comment below and let us know what you think. Along with and further insights you wish to see in the future.

Index Coop - Treasury Report - December 2021 - Glossy.pdf (265.4 KB)

Authors: @Matthew_Graham @ElliottWatts @Hammad1412 @prairiefi and @Ahuja

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I can see why product launches are such a high priority, we have a 90% revenue concentration from two products. Does the finance nest view this as a risk? With experience in a traditional business setting, if we had a 90% customer concentration we would view that as a huge problem. Does product concentration apply in the same manner, or are there other metrics that make this situation different?

Hi @asira,

Yes, Finance Nest does consider the concentration of revenue a risk. Our revenue dips when the ETH prices dips, so if market conditions turn, it is fair to assume revenue will turn as well. This risk is further compound with protocol liquidity as this centres around high vol assets. We are very much running a barbel strategy, lots of risk on assets and then very risk off assets to try balance it out.

The work @ChrisG, @afromac and @allen are doing with launching the first inverse FLI products will help reduce this risk profile. See forum post: IIP-119: Launch iMATIC, iETH, BTC2X, iBTC FLIs on Polygon. We can definitely do with a broader range of product offering and a more evenly distributed revenue base. We are fortunate to have two really strong products and to be growing out the capability to have many more.

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Index Coop - Q4 Financial Review

Finance nest is pleased to present to you the Index Coop’s Q4 financial review. Within this review, we take a high-level look at the financial performance to date, coupled with a review of our Q1 2022 forecasts along with a summary of budget vs actuals.

Please do provide us with feedback on what you would like to see analyzed in our next iteration of this report.

Authors: @ElliottWatts , @Hammad1412 and @Matthew_Graham

4 Likes

Index Coop - January Financial Review

Finance nest is pleased to present to you the Index Coop’s January financial review on Medium. This takes a deep dive into Januarys’ performance and also provides an overview of our P/L, Balance sheet and N$F statement. Please do let us know what you would like to see analyzed in the next iteration.

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Hi Elliott,

Next month, would it be possible to show the monthly P/L by project?

Cheers,
JK

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We can absolutely provide a breakdown by product. We will incorporate this next month.

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Index Coop - January 2022 Financial Report

Finance Nest is pleased to share the Index Coop’s January 2022 one-pager Financial Report.

At the end of January 2022, Index Coop held $29.6M, of which approximately 67% are INDEX tokens.

Summary

January was a tough month where streaming fee revenue and TVL shrunk by ~ 50%. Operational expenses continue to be the most significant influence on overall profitability. However, with multiple product launches and the overall crypto market showing signs of stabilization, our monthly revenue and profitability are expected to reverse the MoM downtrend of the last couple of months and come back strong.

Index Coop - Treasury Report - January 2022 Glossy.pdf (268.7 KB)

Contributors: @Ahuja @prairiefi @ElliottWatts @Matthew_Graham & @Hammad1412

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Index Coop - February Financial Review

Finance nest is pleased to present to you the Index Coop’s February financial review on Medium. This takes a deep dive into February’s’ performance and also provides an overview of our P/L, Balance sheet and N$F statement. Please do let us know what you would like to see analyzed in the next iteration.

1 Like

Any update on providing profit/loss by product?

Finance Nest is pleased to share the Index Coop’s February 2022 one-pager Financial Report.

At the end of February 2022, Index Coop held $25.79 M, of which approximately 65% are INDEX tokens.

Key Takeaways

  • MoM revenue was down 18.7%
  • Gross profit is higher at $111.8K due to drop in LM cost
  • Streaming fee revenue was predominantly driven by ETH2x-FLI, generating $164.3k in fees or 61% of total revenue during Feb
  • February saw the launch of our first inverse FLI products - iETH-FLI and iMATIC-FLI


Index Coop - Treasury Report - February 2022 Glossy.pdf (271.7 KB)

Authors: @Ahuja, @prairiefi @ElliottWatts @Matthew_Graham @Hammad1412

4 Likes

Finance Nest is pleased to share the Index Coop’s March 2022 one-pager Financial Report.

At the end of March 31st 2022, Index Coop held $42.56M, of which approximately 77% are INDEX tokens.

Key Takeaways

  • MoM revenue was up 2%
  • Gross profit is higher at $172.3K due to zero LM costs
  • Streaming fee revenue was predominantly driven by ETH2x-FLI, generating $155.4k in fees or 56% of total revenue during March
  • $Index price was up 110%
  • March saw the listing of $INDEX and $DPI on Gemini.

Index Coop - Treasury Report - March 2022 Glossy (3).pdf (307.1 KB)

Authors: @Hammad1412, @ElliottWatts and @Matthew_Graham

2 Likes

@Finance Any progress on this?

@JosephKnecht Product analysis will be included in the quarterly report, planning to release this next week.

1 Like