Monthly Treasury Report — May 2021

THORChain

2021-05-25 — 4 min read

The treasury comprises of $144m, funding protocol development, liquidity and paying out to community grants. The protocol has 190m in RUNE reserves. Planned Obsolescence July 2022.

Summary

The treasury is at $144m, sufficient for the roadmap. Community grants can be allocated.

The Protocol Reserves total 191,446,911.00 RUNE, worth $1.9bn. These are allocated for Chaosnet & Mainnet emissions.

Planned Obsolescence is set for July 2022.

Operational Treasury

The treasury comprises of $60m USD liquid and $84m in RUNE, total of $144m.

These funds are spent on protocol development, technical costs and community grants. The treasury has increased partly due to the rise in value of currencies as well as active yield-farming. THORChads will look for more ways to discharge the treasury into the ecosystem.

Treasury Drawdown

The treasury drawdown over the last month is for two reasons:

Around $2m was paid to refund Node Operators from MCCN and SCCN instability issues
Underlying asset prices have contracted around 40% since the local high 30 days ago

THORChads continue to look for the best ways to manage the treasury. LPing directly in the protocol is one, depositing in DeFi Yield Aggregrator vaults is another.

Liquidity Pools

Around $40m has been deployed into liquidity pools, across BEPSwap, Uniswap, Sushiswap and THORSwap. Seeding liquidity for multichain is important to ensure a smooth rollout that is sufficiently liquid for the protocol to function. The long term plan for this liquidity is to permanently deploy it, then successively re-deploy it into THORChain synths, composites and lending features in order to ensure deep liquidity up the layers.

Protocol Reserves

10.8m RUNE remains in the SCCN Reserve, currently paying out LPs and Nodes. Standby reserves are currently used for direct pool incentives, or node incentives. MCCN Reserve has been established and is now paying out Nodes and LPs. Over time, all the Reserve will end up in MCCN and the EmissionCurve will be set to target a healthy emission schedule.

Runway

The current project runway is at 18+ months and is more than sufficient

Community Grants

THORChads have actioned 9+ grants to help spike infrastructure, which will run for the next 2–3 months until mature. These are one-time costs.

Block Explorers (ViewBlock & PusherLabs)
Twitter/Telegram Bot (Block-42, TRX, Pusherlabs)
Wallets (XDefi, THORWallet)
Dashboards (Delphi, RUNEData, RUNEYield)
Midgard (Delphi & community-dev)
Social Management (THORSwap, LPUniversity)
Projects: BrokkrFinance, THORStarter

The process for being funded is:

Build a MVP product used by THORChain community.
If gets adoption, then it will be sponsored by a grant.

Planned Obsolescence

THORChads plan to hand over full control of the protocol, github, socials and its treasury around 13 months (~July 2022) and when the following is hit:

Mainnet, 4–5 chains
Decentralised
Adequate community support (wallets, exchanges, dashboards, bots)

Decentralising The Treasury

Any treasury after planned obsolescence will be likely be cut up and distributed to 5–10 dev teams/node operators/community members to manage the next 5–10 year roadmap of the project. If you are interested in being charged to manage a satellite treasury with your own focus on the protocol, become active and engaged now. There will likely be $50m+ for this purpose.