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Mandate
The Sector Budget will be utilized for expanding the protocol’s functionality, maintaining and operating existing smart contracts, and ensuring the safety and correctness of protocol design and implementation. In addition, the budget will be allocated toward marketing, business development, and fostering strategic partnerships to enhance growth and adoption.
The team’s mission is to provide the necessary infrastructure to sustainably scale the ecosystem and onboard the next generation of DeFi users.
2Q23 Review
We ended the quarter in a $77k surplus compared to our forecast driven primarily by lower engineering costs. During the quarter we hired a new Core member, however due to lack of alignment, we decided not to bring on the member full-time.
Sector has since brought on Robo Labs (https://twitter.com/robolabs_biz) and will be utilizing their team for engineering support in 3Q23.
We remain in-line with our runway forecasts.
Vault Development
Hedged LP: introduced the “Next Gen'' of these strategies. Integrations include AAVE, Camelot, Velo, Chainlink and Sushi. The strategies were launched on Arbitrum and Optimism.
Lending protocols: implemented more lending strats on Arb and OP across different protocols
Upgraded aggregator vault infrastructure for more efficient interactions and withdrawals
Platform Development
Implemented Protocol fee sharing with 100% of fees distributed to veSECT holders
Implemented boosted vault emissions based on veSECT holdings
R&D on larger scale infra products surrounding concentrated liquidity
Begun backtests and strategy research on Phase 2 and Phase 3 Products
Marketing/Partnerships
Strategic Partnership with NEWO: https://medium.com/@Sector_Fi/sector-x-new-order-strategic-partnership-6f9be7e9f64d
Panel with GMX, Sushi, and other Aribtrum DeFi platforms: https://twitter.com/i/spaces/1vAGRAVoezXKl
Immunefi Bounty: https://immunefi.com/bounty/sectorfinance/
Governance
The quarter includes governance on protocol owned liquidity, protocol fee distribution, and Treasury management.
3Q23 Budget Breakdown
Engineering
By bringing on the support of Robo Labs, our engineering costs will increase this quarter relative to last, but still within our projections as we will be utilizing them instead of a full-time hire.
Reimbursement of the New Order Loan’s for Sector Inception Costs
As discussed in the last budget, New Order provided a $250K no-interest loan for the team’s initial costs. This includes auditor expenses (Halborn), gas costs, team tooling (hardware & software), and 3rd party contractors for setting up the legal entities and the initial development entity. Sector has agreed to repay the loan in full in 3Q23 to New Order.
3Q23 Objectives
The following are the high level goals we have for the quarter segmented by what we want to accomplish on the product and business front. The team will continue with our weekly updates where we share our goals and progress.
Refine research and backtests on concentrated liquidity
Work on development of concentrated liquidity market making prototype that we can implement for our native token and can be utilized by other DAOs with protocol owned liquidity
Utilize product prototype and develop early ecosystem partners by solving core needs around DeFi infrastructure
Maintain and build upon existing Phase 1 Vaults and Delta Neutral strategies by canvassing current DeFi market and adding new strategies and integrations
Continue researching changes and opportunities in DeFi such as Uni v4 launch and any grant opportunities
Start building the foundation for the marketing push for the next series of products
