Q1 2023 Financial Report
Happy Spring!
With 2022 coming to an end and a new breath in the markets early this year, all was looking like smooth sailing for the crypto industry. This first quarter of 2023 was full of excitement.
At Honey, we weathered this storm well, shipping new products weekly, defending our treasury, and growing as a protocol and community.
As Honey evolves along its multi-chain journey, the team is working overtime to ensure that all feedback gets responded to. As mentioned in the previous report, at Honey, we have begun integrating feedback-driven development into our development cycles. This feedback allows us to iterate faster, shipping and resolving most critical issues in under two weeks.
Diving into the Quarterly breakdown:
Throughout this quarter, we have continued to reduce our burn. We aim to obtain the current output level with a weekly expenditure of 10–12,000 USDC per week.
These costs are separated into two significant categories, Development and Communications. We can see this breakdown below:
Our share of Communication expenses continues to increase as we expand with marketing, customer acquisition, and support.
With Honey’s deployment on Arbitrum and recently Polygon, 3.5 ETH(<6,000 USDC) was spent on acquiring NFTs and tokens for various giveaways and rewards. This was allotted as part of the communications budget for obtaining users and marketing Honey’s products.
With Honey growing cross-chain, many partnerships are being formed on Polygon, Arbitrum, and Solana. Positioning Honey as the back-end infrastructure and liquidity for NFTs across multiple chains and protocols, a move the team is thrilled to explore.
Review of Holdings:
This image does not include 88,000 USDC currently deposited into our Llama Pay streaming pools or the funds used to seed our lending markets.
A quick aside on the stablecoin “drama” from earlier last month. When USDC regained its peg, the multi-sig decided to keep around one month of expenses in both USDT and LUSD — swapping into these other stables right as USDC regained its peg. We continue to maintain a large USDC holding as this is the sole asset with which we pay our contributors, as is determined in their contracts with the HDA.
Looking back over this quarter, a lot can be examined, so let’s dive straight in.
We have been successful in lowering costs. However, this task remains a top priority as we reduce the gap between spending and profits. We will continue solidifying our market share by being implemented in aggregators, partnering with other protocols, and focusing on customer acquisition.
Honey is finally multi-chain! We finally get to show off our excellent EVM codebase. Our EVM devs have been working on this for some time now. Make sure to test out our Polygon or Arbitrum versions of the Dapp and leave feedback in our feedback and alpha testers channels in the discord.
Creating multi-chain and permissionless NFT infrastructure is one of core missions at Honey. We will continue to build and develop outstanding products, continuing with our mission of “Ship Ship Ship.” Follow our Honey Updates channel to get weekly release notes from our founder Tom, where we dive into all the updates over the week.
With the deployment of Multi-chain Honey has also turned on fees. We will do a more in-depth dive into profits, TVL, and volume in the following report.
Looking towards the future:
As Honey continues to grow, there are many things to remember. As was said above, our goal is to supply the products and services for NFTs as NFTfi continues to boom across chains. To ensure the Honey ecosystem is at the center of the “bloom,” we are looking to maintain and build partnerships on Solana, Arbitrum, and Polygon.
We aim to utilize tokenomics, our SDK, and the entire ecosystem of Honey products to achieve success as a protocol and community. Follow our updates page and join our AMAs to hear the latest news and plans for the Honey ecosystem.
Lastly, we will continue to add/update collections, partnerships, and chains to solidify the Honey ecosystem wherever NFTs might be.
With this Financial report ending, I would like to conclude by quoting Honey’s mission statement.
“Honey empowers people to utilize their most valuable assets by connecting them to global markets.”
See you all in July for the Q2 report for 2023.
Have a wonderful couple of months, everyone, and keep on buzzing,
Sailor ⛵️🍯
