April 2022 Review
What a whirlwind of a month we have had for April. As the year continues we’re noticing less and less new opportunities develop in the market due to global financial tightening. This means we simply need to be more patient moving forward and wait for our trades taking less trades while sizing in accordingly.
Along with trading, a key part of April was our incubation program. Snow Thrive launched first in April and was disappointing to say the least. We feel like we really let the whole Digits DAO community down with our genesis farming emissions. Unfortunately Snow Thrive did not last long enough to see it flourish so no return was made on that project for our treasury.
Shortly after our second incubated project Scrub Finance launched. Scrub Finance is a tomb fork pegged to SVN on top of the MMF ecosystem on CRONOS. Scrub had a lot of demand raising at the time over $100mm in SVN for the launchpad. In exchange for 10% of the share token TIGER vested linearly over 1 year Digits DAO provided initial operating capital, 2 audits, community moderators, social media marketing team, and developers for Scrub Finance. Shortly after launch the pegged token LION was going 30X over peg so we started taking profits on our yield we were generating in the Scrub.
An MMF community in uproar and an MMF medium article put a lot of FUD on Scrub. We don’t particularly feel it was warranted, but the community felt otherwise.
In an act to compensate those affected by the FUD Digits DAO has burned its entire stake of 186.839 TIGER and 112258.47 LION.
Moving forward Digits DAO will not be entitled to any emissions of Scrub and will still support the Scrub team in an incubation capacity.
For April we focused heavily on the CRONOS ecosystem which paid off for our treasury in a big way. We generated Over $880,000 profit in RFV bringing Digits DAO’s total RFV to over $2,000,000!
As much as we love incubating projects April was a great wake up call for our team in realizing that incubation takes our focus away from the thing we do best, trading. As valuable as incubating is, Digits DAO just does not have the capacity to continue incubating projects in this way.
Going forward a much healthier way for Digits DAO to contribute to projects would be through seed investment and/or an advisory position.
This will allow us to get back to trading, and get back to what Digits DAO was made for. All of that being said we still think we’re performing remarkably well as a FaaS DAO.
Our treasury gains have been large in a sea of red for months and grew from $100,000 RFV to over $2,000,000 RFV in just 3 months!
That’s a 20X, or 2,000% increase in risk free value, over a 3 month period.
We’ll keep working hard for the Digits DAO treasury every month and will do our best to keep outperforming the overall market.
