October Update
October proved to be a challenging test for the Matching Pool, as the broader crypto market’s multi-year “Uptober” trend was decisively broken. The pool’s ETH holdings were directly impacted by severe market volatility, most notably the flash crash around 10/10, which saw ETH prices tumble significantly from early-month highs of around $4700 and triggered record-breaking liquidations across the ecosystem, with ETH currently sitting around $3150. The environment has also seen impacts in DeFi as leverage demand waned, and yields on stables compressed in the second half of the month.
In an aftershock, the beginning of November saw the Balancer v2 and Stream Finance xUSD events, which led to knock on effects felt across the whole ecosystem, as DeFi liquidity was significantly impacted. We have detailed this here in the most recent report on the DAO treasury. The Matching Pool had very limited exposure at the portfolio level (~0.57% of current AUM), which has been segregated and vault tokens transferred out to original deposit address and we are pursuing recovery off-chain.
The Matching Pool now sitting at $11.5m, with ETH exposure at 63% and Stables exposure at 37%.