Dear Finbloxers,
We're happy to provide our eleventh monthly Transparency Report, which is designed to bring some peace of mind to our users so that they know where their funds are being deployed. The allocations presented below are subject to change depending on strategy performance, future yield projections, and the evolution of the customer deposit mix.
*The report is subject to market changes and numbers shown are a rough estimation
**Target asset allocation is for reference only and subject to change per market conditions and business strategies
Markets
No material crypto-related bankruptcies in April! Yes, hacks and exploits (there’s always hacks and exploits) totalling $113 million in April, according to Certik, but this feels like some sort of positive progress for the year. BTC and ETH ended the month essentially flat, but despite the lack of sustained market direction, there were significant and/or interesting developments.
Shapella: Many questions arose about the amount of withdrawals and resulting potential ETH sales that could happen as a result of the upgrade. The withdrawal queue saw high activity, but deposits outpaced withdrawals after four days, a sign of confidence in both the network and liquid staking derivatives.,Lido saw their liquidi staking token stETH TVL reach 6mm ETH.
Since then, ETH activity has resulted in elevated fees. This is good for the burn mechanism and sustained deflationary status for ETH. However, this means higher costs to transact, especially for complex smart contract interactions.
The altcoin subset of memecoins has made a comeback with the creation of PEPE tokens. We’ve added PEPE to our token list and started offering market-leading yields. Exercise caution as these have unique trading patterns, and there have been 114 memecoin scams in just the last 50 days (thanks to @ZachXBT for this stat).
Another big event was the long awaited Arbitrum airdrop sent to users of the chain. We’ve also listed ARB earlier in April and now offer 4% yield on that token.
One likely sign of BTC price optimism is the network hash rate reaching an all-time high at the end of April of 347 EX/s (measured as 30 day average). Miners bringing new machines online are costly and a sign of miner optimism. The previous low of 188 EX/s was July 2022
Metamask scam emails, tweets and social media posts have been on the rise, trying to get users to provide their private keys. Remember to never share your private keys or seed recovery phrase to anyone.
April Yield Changes
We’ve updated our rates in mid-April and start of May and the following assets have changed:
RON: RON Staking has gone live and we’ve added RON assets to this strategy along with our existing strategies for diversification.
ARB: We’ve introduced an ARB yield of 4% after most of the volatility of the airdrop has settled down.
PEPE: We recently listed PEPE and also are providing an introductory rate of 20%.
BUSD: Strategies are performing well and seem to be sustainable.
APE: The platform TVL has increased from 12mm APE at launch to over 70mm+ in the last few weeks, reducing yields for participants.
MATIC: Staking yields have been under pressure the last month and we’ve had to reduce rates in accordance.
DeFi Allocation Increase & Risks
We’ve made no material changes to our allocations between Defi and CeDefi/CEX exposure. All current customer assets remain in DeFi protocols/projects or self-custody wallets. Defi remains at risk of protocol and smart contract exploits.
Target Allocations
We did not make any significant changes to our allocations.
Our target allocations for customer assets that were initially set in July and updated in November 2022 have not changed:
DeFi protocols: 40-90%
Centralized exchange (CEX): 0-5% (used for temporary asset bridging between networks, i.e. USDC_ETH → USDC_POLY and vice versa)
Self custody: 5-15%
CeFi platforms: 0%
As of the end of April, our allocations are as follows:
DeFi protocols: 58.6%
Centralized exchange (CEX): 0%
Self custody: 41.4%
CeFi platforms: 0%
We believe in providing transparency to our users on the company's activities and aim to increase our users’ view of where their coins and tokens are and how they are performing. As always, we'd love to hear more feedback about the types of info you want.
All the best,
The Finblox Team