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# SMS Budget Explanation
## Background
After the introduction of YIP-66, the Strategists MS (SMS) was asked to request a budget from ybudget to support its operations. On March 31st, we asked for a $200k/mo budget for the next 6 months (a total of $1,200,000). The 6 months period ends by the end of September, hence we requested a new budget. This new budget was only for the 2022 4Q, and the amount request was: $125k/mo (total of: $375,000). Please, refer to this [link](https://github.com/yearn/budget/issues/96) for more information.
## Summary:
| | Total|
| -------- | -------- |
| yBudget Approved | $1,200,000 |
| Expenses | $823,200 |
| Result | $376,800 |
## Revenue
We received the following transactions from yTreasury:
| Date | Amount (DAI) | Payment method | TX |
| -------- | -------- | -------- | -------- |
| 2022-Apr-06 | 200,000 | Lump Sum | [Link](https://etherscan.io/tx/0xa22370c523f54a3679250fc1a117a0b8afa40020db00cc492014c85fd0f5206c) |
| 2022-May-16 | 200,000 | Lump Sum | [Link](https://etherscan.io/tx/0x310b83e258281fbdf231fd7de28c2247992ffbbf44e58e497b3a7c83a668e629) |
| 2022-Jun-05 | 200,000 | Lump Sum | [Link](https://etherscan.io/tx/0x9d8fc48fe2f552a424fa2e4fa35f2ddbe73eb9f1eae33bb3b7b27466b8dbb62f) |
| 2022-Jul-07 | 355,642.28 | Llamapay | [Link](https://etherscan.io/tx/0x636a68d3acf6eed74e2546aba2d56e73a6ece0143929f1846e2f7e6779e87ff5) |
| 2022-Aug-25 | 180,711.96 | Llamapay | [Link](https://etherscan.io/tx/0xa4afa5ac1b00604e233331c08dcbd3b64b0e8c57f8a8e555fcbe459976307c4e) |
| 2022-Sep-01 | 53,078.94 | Llamapay | [Link](https://etherscan.io/tx/0xcfb0c1c5f723216efbee6c727f7e4b62d7cc2285d6420a1c274905358fbff591) |
| -------- | -------- | -------- | -------- |
| Total | 1,189,433.18 | | |
We still have a [stream](https://llamapay.io/salaries/Ethereum/0x16388463d60FFE0661Cf7F1f31a7D658aC790ff7) from which we can withdraw (atm): ~$185,0000.
*Basically, we ended up receiving (atm) $174,433 more than what was approved.*
## Expenses
Over the last 6 months we spent a total of: $823,200.00. The funds were mainly used to pay grants for contributors (~95% of the total spent). Please, refer to [this spreadsheet](https://docs.google.com/spreadsheets/d/1zGQDA_T35WgnXRI1IM2ofJ14ieDmdkBQq1lmwFQteWg/edit#gid=0) for detailed information.
The other relevant expense is strategy testing. We used barely a 4% of the total spent amount to test different strategies in a recurring way, so there is no need to constantly renew this amount, but having a 50k (one-time) grant for this purpose gives the SMS enough flexibility to test several strategies at the same time.
Finally, there are some minor infrastructure expenses for the different projects/initiatives we are running. (~$2k).
## Estimated 2022 4Q expenses
In [this spreadsheet](https://docs.google.com/spreadsheets/d/1zGQDA_T35WgnXRI1IM2ofJ14ieDmdkBQq1lmwFQteWg/edit#gid=0) we have also detailed how much we expect to use for the last quarter of 2022 (~$343,400).
## Conclusion
As a conclusion, the following table summarizes the SMS budget situation for the current grant (Apr-Sept) and the future one (Oct-Dec).
| | Apr-Sept | Oct-Dec | Total |
| -------- | -------- | -------- | -------- |
| yBudget Approved | $1,200,000 | $0 | $1,200,000 |
| Extra Income | $174,433 (*) | $0 | $174,433 |
| Expenses | -$823,200 | -$343,400 | -$1,166,600 |
| Result | $551,233 | -$343,400 | $207,833 |
(*) *depending when current stream is shut off*
Under the current circumstances and after analyzing all our flow of funds, we decided to withdraw the current SMS budget request and we will use the remaining funds from the first approved grant to cover our expenses for 2022 4Q.
By the end of December, we will present a new detailed report of our expenses and if needed we will request a new budget.