Financial Transparency Reporting
Pepperoni Joe (on behalf of r3gen.finance)
r3gen Finance are a team of specialist web3 financial service operators who have worked with major ecosystem participants including Aave, Gitcoin, Index Coop, SquidDAO, Aragon, Coordinape and Treasure DAO.
Transparency, accountability, credibility, and trust are the foundations of a successful web3 community. That’s why we want to work with the grants program to produce DAO Financial Transparency Reports to add significant value to CoW Swap’s users, contributors and broader community.
Aziz Aiden and Lokp Ray have already proposed the creation of an analytics dashboard to offer insights into key metrics surrounding the protocols performance.
We think this can be taken one step further with the development of a holistic, fully GAAP compliant Financial Transparency Report. A breakdown of the key deliverables that will be included within the Financial Transparency Report can be found below. Please note this is not an exhaustive list and we can tailor additional deliverables to CoW Swap’s needs.
|Profit/Loss account||A detailed profit and loss that enables the organisation to analyse performance and draw trends from the data to ensure the business is aware of changes in the market and how this may be sensitive to revenue generation. It is also key to understanding cost control and break even points|
|Balance Sheet||Understanding an organisation is key to building a balance sheet that accurately reflects the assets of the business but also its obligations in the form of liabilities. We will work with the team to ensure a complete balance sheet is produced encapsulating both off and on-chain information|
|Treasury Holding Analysis||Treasury holding over time presented both at the current market valuation but also including a cost convention analysis showing potential gains/(losses) both realised and unrealised on the transactions since genesis.|
|Historical spend review||Understanding historical spending is important for benchmarking and also providing a review of what has worked in the past and what has not. Enabling better budgeting decisions to be made. This will also feed into the runway and budgeting analysis.|
|Quarterly Financial report||For the First grant r3gen will build and deliver CS its first compliant financial report. In time this will progress to a longer term engagement where we can provide reports at a cadence suited to the community and the core team|
|Runway analysis and review||For the organisation to grow in a sustainable manner, sufficient capital must be kept safe to guarantee the longevity of the community. Runway analysis enables organisations to make better decisions and model the effect this could have on the treasury and the ability for the organisation to fund its operations.|
|Budgeting & Forecasting||This will enable the organisation to facilitate financial planning, goal setting and performance measurement. By allocating resources effectively, CoW Swap will be able to make informed decisions and identify potential challenges and opportunities. Forecasting future performance will enable proactive measures and enhance resource management, such as cash flow.|
Unlike alternatives such as Messari, Token terminal and Dune analytics, our team of experienced web3 accountants will complete bookkeeping for all on-chain (and off-chain if required) transactions, fully compliant with appropriate accounting standards. This unlocks a far more granular and insightful breakdown of the DAO financial data. This allows us to produce Financial Transparency Reports which create value for CoW Swaps contributors, users and community.
We believe that funding this grant will drive the following impact for the CoW Swap Users, Contributors and Community.
|Users||Reports and insights pushed out through content channels, enhancing the credibility and reputation of the DAO in the eyes of existing users and improving user retention rates. Stand out from competitors and demonstrate it is a secure, responsible and reliable DeFi protocol. Building this reputation will attract new users and support user growth.|
|Contributors||Stay up-to-date on CoW Swap’s financial performance and make informed, data-led decisions. Consistently making better decisions ultimately create a high impact organisation. Aids contributors to provide accurate resource allocation and assists in projecting future revenues, expenses, and cash flows. This supports the long term growth, sustainability of the DAO.|
|Community||Greater transparency of operation will help empower and engage the community in discussion around the protocol and improve community participation. This commitment to accountability fosters trust within the community. This will help CoW Swap build and maintain a supportive community that champions CoW Swap success across web3|
We would need to complete a scoping exercise to assess the number and complexity of on-chain transactions before we can provide a final quote for Financial Transparency Reporting to CoW Swap.
As such, this grant submission represents a formal request to the DAO for support in starting the scoping process. It would represent a commitment by the Grants Committee to support r3gen in collecting the information on wallets needed to complete this scoping exercise (and Grants Committee, don’t worry, it’s not too much work!)
|Milestone 1||August 14th||$0|
|Milestone 2||August 22nd||$0|
Complete Financial Transparency Report scoping for CoW Swap
Present a final quote and detailed outline of deliverables for Financial Transparency Reporting at CoW Swap
Demonstrate to your users and community CoW swap is a credible DAO committed to the values of transparency, accountability and trust!
due to limitations on the number of embedded images we have compiled additional demo GIF screenshots here.
By submitting this grant application, I acknowledge and agree to be bound by the CoW DAO Participation Agreement and the CoW Grant Terms and Conditions.