Q4 2022 Financial Report

Q4 2022 Financial Report

@Llamaxyz would like to present our Q4 financial report to the community.

Q4 Financial Report

Q4 has seen significant developments within the Aave ecosystem, the launch of Ethereum V3 is near. The protocol has also engaged in long term contracts with Llama, Chaos Labs and the renewal of the Gauntlet contract.

Q4 presented challenging market conditions for Aave and the ecosystem as a whole. The fallout from FTX has been felt across the market. Annualized revenue, however, has remained strong. Over a 12-month period, revenue is expected to exceed $16.4m.

Q4 has been similar to Q3. Slight drop offs in utilization has reduced revenue by 35% since Q3. It is however positive to see a 84.8% decrease in governance and grants expenditure.

Revenue for the quarter totalled $3.7m, year to date revenue is in excess of $24m.

We are working on developing a comprehensive set of metrics to track the performance of the Aave ecosystem. As this is a progressive journey, we encourage all community members to share on this thread any financial metric they would like developed. Our vision is to build out the financial metrics for the community that enables anyone to publish accurate financial content on Aave. We have introduced some very high level aggregate data metrics in this quarterly report.

Contributors to the report: @Elliott @MatthewGraham @scottincrypto @HelloShreyas @schlabach

6 Likes

Hey @Llamaxyz thank you for the report.
Just wanted to inform you about a little mistake i found, nothing big, but still.
image
You mixed up the launch date of v1 & v2.

Have a nice weekend

1 Like

Great report!
Is there a way to see a detailed explanation regarding the expenses for each 3rd party vendor?
What was the focus regarding the bored ghost developing expense, AAVE companies or AAVE Grants DAO?
image

Have a nice weekend

Thanks for catching this, @EzR3aL! We’ll update it in the next financial report.

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Hi @Araison, thanks for the question. On page 9 of the full runway analysis report, you’ll find links to the relevant governance proposals for each 3rd party vendor (click the purple box next to the vendor name). For several of these third party vendors, we did our best to estimate what future payments might look like, but do note that final payments might come in above or below our estimation.

For example, since the runway analysis was published, a proposal was made to renew Aave Grants DAO for $3.25m rather than our estimated $4m. This proposal will soon go live on Aave governance.

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Hi there, seems the current protocol revenue (16MM) cannot cover all the expenditures (26MM). Is this sustainable for the protocol? Also, the treasury has only 130MM left, in10ys we will see it running out.