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.
1Q24 Review
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We ended the quarter in a $72k surplus compared to our forecast driven primarily by lower engineering costs and no audits conducted during the quarter. The significantly lower engineering costs was driven by lower usage from the Robo Labs Team.
DAO & Treasury The DAO treasury benefited from the increase in ETH and overall crypto markets over the last few months.
At 1Q24 end, our treasury operations fund is as such.
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Scout - Our Intents AggregatorThis quarter we’re excited to have released our Intents Aggregator, Scout!
Scout provides quotes from various intents swap protocols to ensure the best prices and transaction transparency. We’re releasing it as a public good with no fees on usage or swaps to improve the DeFi user experience.
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As new models emerge to swap digital assets and new protocols arise, one challenge is effectively comparing rates across diverse intent-based protocols and traditional automated market makers. Intents-based swap-centric protocols are often harder to compare given their unique and varying mechanisms for filling orders, off-chain APIs and quoting systems.
Scout aims to streamline this process, standardizing and aggregating information about fees, rates, and token values across each protocol and ensuring the most optimal trades for the user. Network costs, whether paid by users or Fillers, are displayed in the UI and included in the final “Rate”. This breakdown increases transparency and allows users to accurately compare net costs across quotes. Quotes are sorted and compared by their final “Rate” — a sum of all token value received minus network costs and fees.
Full report: https://medium.com/@Sector_Fi/announcing-scout-an-intents-aggregator-b4e42d60e8ba
Automated Liquidity Management In the last quarter. we published our detailed research and findings on our ALM strategies on concentrated liquidity. These operate on concentrated liquidity with the first series of products focused on protocol owned liquidity. We are furthering our goal of addressing DeFi infrastructure by allowing protocols to optimize their assets and provide sustainability and flexibility for DAO management. https://twitter.com/sector_fi/status/1699792139079889022
The report highlights optimizing LP levels, improving capital efficiency, and supporting DAO token prices. The report uses Y2K as a case study and we are publishing our next findings on randomly generated price paths instead of historical pricing. We have also begun the backtesting and research on consumer oriented strategies for concentrated liquidity.
Sector has begun piloting a portion of our own POL into our strategy and are fine tuning the backend and frontend. Business development has already begun with communication directly with protocols and protocol integrations.
We have also published a Part II Report: https://twitter.com/sector_fi/status/1719122421184360885. This report looks into the general
2Q24 Budget Breakdown
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2Q24 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 updates where we share our goals and progress.
Internal testing of strategies utilizing Sector liquidity and capital Leverage expertise and development in Scout into new market making opportunities Build own market making capabilities utilizing intents and Scout Add additional features to Scout like swaps and additional integrations Maintain and build upon existing Phase 1 Vaults and Delta Neutral strategies and Concentrated Liquidity strategies by canvassing current DeFi market and adding new strategies and integrations Continue researching changes and opportunities in DeFi around intents and swaps
