Finance Nest - A Thread of Monthly Financial Report Publications

[Finance]

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

[JosephKnecht]

@Finance Any progress on this?

@Finance - A Thread of Monthly Financial Report Publications

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

[ElliottWatts]

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

[sixtykeys]

“However liquidity mining
and impression mining incentives were zero this month,
which have historically been a large cost.”
How come no rewards were paid out for Impression Mining for the month of March?

[shawn16400]

@Finance -
Thanks for these reports. I find them to be informative and easy to read. As I look to learn more, it is possible to post up an outline or a links to any operational / investment accounts? I am not looking for a balance sheet or statement of cashflows, but it would be interesting to know where to look if I want to get a better picture of flows in and out of accounts.
thanks

[Matthew_Graham]

Hi @shawn16400,

Ethereum Investment Account: 0x462A63D4405A6462b157341A78Fd1baBfD3F8065
Ethereum Operations Account: 0xFafd604d1CC8b6B3B6CC859cF80Fd902972371C1
Ethereum Protocol Owned Liquidity Account: 0x3a36b94689f303aAf9BFE761068Efb8F78912023
Polygon Operations Account: 0xDECC5b013C74d8d3cEf1F8918768DDa17490B505

Do note: The vast majority of transactions are related to the launch of products GMI and icETH, and in providing POL. There is also this github directory which probably is out of date now, but should contain all the wallets addresses. We only just created the POL account and will be moving POL from the Operations Account to the POL Account in time. This will reduce the amount of capital held in one wallet along with a number of other benefits.

IndexCoop/address-book/blob/master/working-group-address-book.csv

[shawn16400]

Thank you very much for this!

[Finance]

Index Coop 2022 Q1 Financial Review

Finance Nest is pleased to present the 2022 Q1 financial review for the Index Coop! The report takes a deep dive into the Index Coop financials and performance looking back over the last 3 months.

Here is the pdf version of the report:
Index Coop Q1 2022 Financial Report (3).pdf (4.9 MB)

Or alternatively, grab yourself a hot or cold drink and join your favourite hosts @Hammad1412 and @ElliottWatts to run you through a high level overview of the report.

Index Coop 2022 - Q1 Finance Presentation

Below we provide some key highlights from the Q1 financial review.

• Revenue totaled $877K, down 56% from the previous quarter

• Total Q1 loss stands at $1.7M

• The largest contributor to revenue to date is ETH2x-FLI accounting for 59% of the total revenue

• Our community treasury stands at $42.5M ($INDEX makes up 77%)

• We have released 7 new products since the last quarter!

• Total TVL is down 33% from Q4 from $362.5M to $239.2M

• We have also seen aggregate trading volume on a 7 day moving average drop to $4.43M a 59% decrease

• Total unit supply for all products increased from 1.9M units at the end of December to 2.9M at the end of March, largely due to the launch of our FLI product suite on polygon. This has accounted for nearly 1M units in March.

• For season 1 and the first two months of Q1 we have seen an average of $268k worth of spend being paid in stablecoins
• Stablecoin holdings are $8.7M
• 33 month stablecoin runway, calculated at the gross burn rate - treasury tables / stables average monthly spend

• Two standout performers are DPI and ETH2x-FLi which has amassed $5m for the Coop since launch and contributed to 82.68% of total revenue for Q1 of 2022.
• Also worth noting here that not all of the rebalancing costs are borne by the Index Coop and Set pay for the gas costs, in the coming months set is positioning to transfer this cost over the Index Coop.

You can find the product profitability metrics since launch in the presentation alongside the review for the polygon product suite.

• Contributor rewards are 11% down compared to January spend (which was the last month before the start of season 1)
• Other expenses are down by 7% since January largely due to impression mining costs being down 53%

Dive into the report for a budget vs actuals review of the whole quarter.

You can find the detailed financial statements (profit/loss statement, token flow statement and balance sheet) within the report. As always, please let us know your thoughts and if there is anything else you’d like to see in the next iteration.

[mestigoit]

Thanks for sharing. One question: the slide with the product profitability BTC2x-FLI2 is missing the rebalancing costs. Aren’t there any?

[Hammad1412]

I have updated the presentation and slide above. The rebalancing costs for the quarter were $17.15K, and total profit for BTC2x-FLI therefore was $8.53K.

[overanalyser]

Thank you @Hammad1412 these summaries are an excellent resource for the community and $INDEX holders.

I’m not sure I agree with the classification of the $INDEX given to GMI stakers as “Liquidity mining”. As I recall, all the incentives were given to people who staked 100% $GMI (and so contributed nothing to $GMI liquidity, if anything the incentive was to NOT provide liquidity).

[Finance]

Index Coop - April 2022 Financial Report

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

At the end of April 30th 2022, Index Coop held ~$44M, of which approximately 79% are INDEX tokens.

Key Takeaways

• MoM revenue was up 1%
• Gross profit is higher at $179.6K
• Net loss saw a significant drop decreasing by $60k
• Streaming fee revenue was predominantly driven by ETH2x-FLI, generating $165k in fees or 59% of total revenue during April
• icETH has reached ~$19M in TVL

Index Coop - Treasury Report - April 2022 Glossy.pdf (308.8 KB)

[Hammad1412]

Hi OA,

That’s a good spot I’ll make the change to ‘staking incentives’ and going forward classify it under that category.

[Hammad1412]

Index Coop 2022 Q2 Financial Review

Authors: @Hammad1412 and @ElliottWatts

We are pleased to present the 2022 Q2 financial review for the Index Coop. The report takes a deep dive into the Index Coop financials and performance looking back over the last 3 months.

Here is the pdf version of the report:
Index Coop Q2 2022 Financial Report.pdf (5.0 MB)

Below we provide some key highlights from the Q2 financial review.

• Revenue totaled $877K, down 30% from the previous quarter, with ETH being down 31% in the same period
• Total Q2 loss stands at $1.3M
• The largest contributor to revenue continues to be ETH2x-FLI, accounting for $322K of the revenue in Q2
• Our community treasury stands at $23.3M as of June 30th 2022 ($INDEX makes up 62%)
• Total TVL is down 77% from Q1 from $239.2M to $54.09M

• Q2 average monthly spend in stablecoins equals $290K
• Stablecoin holdings are $7.66M
• 26 month stablecoin runway at the end of June, calculated at the gross burn rate - treasury stables / stables average monthly spend

• Two standout performers are DPI and ETH2x-FLI which have amassed 79% for the Coop this quarter in streaming fees

The product profitability metrics for the polygon product suite can be found in the full report.

• Overall spend totalled $1.7M down by 5% from Q1
• Contributor rewards are down 7% with total spend for quarter coming in at $1.49M
• June (with one payment to be made in July) involved the severance payout for departing core contributors, which will total $209K paid out in USDC

You can find the detailed financial statements (profit/loss statement and balance sheet) within the report. As always, please let us know your thoughts and if there is anything else you’d like to see in the next iteration.

[Finance]

Index Coop - July 2022 Monthly Finance Report

Authors: @Hammad1412 and @ElliottWatts

We are pleased to present a financial review of Index Coop for July 2022.

Index Coop - Treasury Report - July 2022 Glossy (4).pdf (239.5 KB)

The publication of the document will follow a trend of monthly finance reviews. The one pager highlights our monthly financial performance, growth metrics, products and any major development’s. It is also accompanied by the following financial statements:

• Income statement
• Balance Sheet

Key takeaways

• Net loss for the month totalled ($339,887), a decrease of $210k from June
• Revenue up 11.3% MoM
• Portfolio value of $21.37m as of 31st July 2022
• Index Coop has finalized incorporation in the Cayman Islands

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

[Finance]

Index Coop - August 2022 Monthly Finance Report

Authors: @Hammad1412 and @ElliottWatts

We are pleased to present a review of the DAO’s finance’s for August 2022.

Index Coop - Treasury Report - August 2022 Glossy.pdf (237.0 KB)

The publication of the document will follow a trend of monthly finance reviews. The one pager reviews our monthly financial performance, growth metrics, products and highlights any major development’s. It is also accompanied by the following financial statements:

• Income statement
• Balance Sheet

Key takeaways

• Net loss for the month totalled ($296,452), a decrease of $43k from July
• Revenue down 27% MoM partially due to the late claim of revenue in July
• Portfolio value of $16.4m as of 31st August 2022, 51% in INDEX holdings
• Stables balance of $7.5m
• Exploring options with Debt Dao and other providers to secure a line of credit that can be used to support our operations

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

[Finance]

Index Coop - October 2022 Monthly Finance Report

Authors: @Hammad1412 and @ElliottWatts

We are pleased to present a review of the DAO’s finance’s for October 2022.

Index Coop - Treasury Report - October 2022 (1).pdf (390.1 KB)

The publication of the document will follow a trend of monthly finance reviews. The one pager reviews our monthly financial performance, growth metrics, products and highlights any major development’s. It is also accompanied by the following financial statements:

• Income statement
• Balance Sheet

Key takeaways

• Net loss for the month totalled ($380,929), a increase of $149k from September
• Revenue up ~1% MoM
• Portfolio value of $12.3m as of 31st October 2022, 39% in INDEX holdings
• Stables balance of $7.32m

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