Financial Update for May 2021
Every month the Lisk Foundation provides a financial report in which monthly expenditures are transparently broken down.
Total Assets Held
An overview of all fiat currencies, stablecoins, cryptocurrencies, and managed assets currently in possession of the Foundation is illustrated below.
Lending and Buybacks
The Lisk Foundation is continuously liquidating BTC in order to have enough fiat on hand to cover expenses for 12 months. As previously announced, we have now implemented an additional strategy to purchase the stablecoin USDC to cover our expenses for a further 24 months. This minimizes our risk profile as owning both fiat and stablecoin assets simultaneously, provides us with the option of utilizing both assets to finance 36 months of expenses, therefore minimizing the necessity to liquidate our crypto assets during periods of high market volatility and less favorable conditions.
Therefore, during the period from the 9th of April until the 31st of May, the Lisk Foundation liquidated 300 BTC into 15’172’124.89 USDC at an average price of 50’573.74963 USDC per BTC.
Stablecoins have the advantage that they can be actively utilized within the crypto industry to increase our net worth and generate additional income, whilst simultaneously not sacrificing the required liquidity. We are using a BlockFi account that offers market-leading yields in an interest-bearing account, which today is currently earning 8.6% APY. Therefore, starting from May we are earning passive income on BlockFi. In May we earned 38’424.66 USDC in interest, as the majority of our BTC was still being liquidated into USDC.
Using the interest accrued on this account, we began purchasing LSK tokens with the help of Bitcoin Suisse on a daily basis, at the beginning of June. These LSK tokens will be used to finance our ongoing community campaigns such as the Lisk Grant Program. For June we are not transferring the total interest accrued to Bitcoin Suisse, in order to achieve a round number of USDC which will be held in our BlockFi account.
Therefore, we have transferred 10’548.95 USDC to Bitcoin Suisse to purchase LSK tokens, and currently have a total amount of 15’200’000.00 USDC in our BlockFi account.
The overview shown below depicts the overall expenditures from the Lisk Foundation last month and is broken down into 3 main categories.
This includes all marketing-related expenditures such as public relations, influencers, merchandise, events, advertisements, Lisk Centers, and giveaways.
This includes all operational expenses of the Lisk Foundation which consist of the following: salaries, financial and legal, office rental, contractors, e.g. legal advisories, accountants, auditors, and finally taxes.
This covers the monthly invoice from Lightcurve to the Lisk Foundation. This amount is calculated using a daily rate per employee and encompasses all services provided by Lightcurve. The daily rate only applies to employees of the Research, Development, and Marketing departments. Employees of the Operations department do not receive any extra remuneration.
This includes all related costs of the Research team members at Lightcurve who are working on the Lisk Improvement Proposals.
This includes all related costs of the Development team members at Lightcurve who are working on Lisk Core, Lisk SDK, Lisk for Desktop, Lisk for Mobile, and Lisk Service.
This includes all related costs of the Marketing team members at Lightcurve who are working on all facets of Lisk.io, such as managing public relations, events, business development, promotional activities, design creation, and documentation.
This includes all operational costs of Lightcurve, such as taxes, office rental, utilities, hardware/software, servers, accounting, and legal, as well as the operations and management team members that are also covered via the daily rate basis in the research, development, and marketing departments.
Disclaimer: All information contained in our monthly Financial Updates is of informational value only. Differences from their actual state may occur due to time variances of the booking of expenses and inflows. Thus, this information cannot serve as an accurate reference point for the Lisk Foundation finances.