The initial allocation at the time of voting was 15M T tokens (valued roughly at $250k). As a recap, in the pilot the Aera vault will be doing the following:
Executing out of T tokens over time in a way that minimizes slippage
Moving the output into a volatility-targeted vault (15% volatility target as decided by the Treasury Guild) consisting of wstETH and Aave USDC (interest bearing USDC via supplying into Aave V3 on Ethereum mainnet).
Since starting the vault has executed out of 9.38% of the initial T allocation into this volatility targeted vault, all of which has had on-chain slippage less than 0.5%
You can see all of this information on our live app. The first chart you will see on the app is the total vault value and the proportions of assets in the vault. As you can see we are still largely in T tokens however this will shrink over time.
Below this you will see the realized volatility of the portfolio as measured over the past 15 days. The volatility we are measuring does not take into consideration the T tokens. It is only for the wstETH/WETH and aUSDC/USDC portion of the vault. You can use this chart to see how it compares to the target set by the DAO (15%):
Lastly you can see a transactions section that shows the vault weights over time as a percentage of the vault notional. Below that is a table showing the guardian submissions with links to the transactions on etherscan.
Wanted to give an update on the vault, the Aera team has been giving updates in the Treasury Guild calls on a weekly basis, and wanted to share the progress with the broader community here.
As a reminder, the vault was initialized with $250k of Threshold T tokens. The Aera vault has been selling out of T into wstETH and aUSDC to generate yield. The vault is now currently valued at $346k. This represents a ~38% increase in the value of the funds from inception.
All the T tokens have been sold out of per the initial scope (brown line in the chart below), all of which was executed with <0.5% onchain slippage and which yielded no discernable impact on the price of T!
Due to the recent volatility and ETH price action the Aera vault has experienced higher than normal volatility, however the vault has rebalanced into more USDC and the volatility has correspondingly dropped. Since my account is still flagged as a new user I can’t upload more than 1 image per post, please see the app for additional information
We have launched a few features on the app to better track the APY of the volatility targeted portfolio of the vault, the vault is currently getting an APY of 5.536% across wstETH and aUSDC
A few weeks ago during discussions with the TTG there was interest in adding a strategic holding of tBTC, the Treasury guild decided on a strategic holding of 10% tBTC allocation in the vault. We launched this feature a few weeks ago and you can see from the yellow line in the top chart that the vault is now holding 10% of its value in tBTC!
Overall we are thrilled with the pilot’s progress and plan on continuing to run the volatility targeting strategy in addition to the strategic tBTC holding. We are also keen on hearing from the community other ideas or features they would like to see in the Aera Vault for Threshold. We are looking into a new module that would allow a vault to hold LP positions on DEXes (i.e. T/ETH Curve LP position) to help bolster onchain liquidity, as well as levered eth staking and stablecoin yield optimization strategies. If there are any questions feel free to ask here!
The Aera Team would like to provide a quick update on the current state of the Aera Vault. As of April 17, 2024, the vault is holding the following assets:
tBTC: $40,520 (9.47% of vault)
waUSDC: $219,590 (51.31% of vault)
wsETH: $82,190 (19.21% of vault)
USDC: $90,130 (21.06% of vault, earmarked for withdrawal)
The total vault value stands at $427,929. The 90k USDC is ready for withdraw per Threshold team request.
In terms of volatility performance metrics:
Target Volatility: 15.00%
90 Day Realized Volatility: 16.81%
15 Day Realized Volatility: 18.45%
5 Day Realized Volatility: 19.39%
The vault has maintained a realized volatility close to the target of 15% over the past 90 days.
The yield-bearing assets in the vault, waUSDC (8.32%) and wsETH (3.24%), are currently generating a combined yield asset APY of 6.984% and a total vault APY of 4.860%.
Please let me know if you have any questions or if there’s anything else I can assist with regarding the Aera Vault or Threshold’s treasury management. We appreciate your ongoing support and engagement.
