Authors: @Bruno , @fei.saver , @Elee

As discussed in the Discord, we are preparing the first financial report related to the second quarter (Q2), considering April, May and June. We considered some references: Index Coop Report 1 4, Index Coop Report 2 4 and Yearn 2.

The motivation for elaborating the financial report is to increase Fei Protocol transparency and raise awareness around the financial strength of Fei Protocol. It has an educational and communication potential to bring new users and investors to the protocol. It can also be a tool for the community to make good and informed decisions.

After initial discussions, we are proposing the following structure for the Q2:

Income Statement

Balance Sheet

Comments

→ Selling FEI for US$ 1 ETH in the bonding curve, add US$ 1 FEI liability and US$ 1 ETH asset , so it does not impact the income statement.

→ Buying FEI in the reweights with US$ 1 ETH, reduces US$ 1 FEI liability and US$ 1 ETH asset, so it does not impact the income statement.

→ Buying with the stabilizer (considering the 0.95), reduces the US$ 1 FEI liability, and US$ 0.95 ETH, registering US$ 0.05 ETH result in the income statement.

→ FEI loans, register US$ 1 FEI liability and US$ 1 fFEI asset. The asset increases its value as the interest is accrued, and the result impacts the income statement.

→ We did not consider PCV Deployment Results inside the revenue because it can increase or decrease in value (eg.: DPI price can go down or up). It would be weird to have a negative revenue. Revenue is dedicated only for operations.

The guidelines for calculating each line are in the spreadsheet: here 9.

Next steps

We will collect the onchain data, populate these 2 statements and share here.

We are open for feedbacks.