EDG DAO Financial Bulletin: First Fortnight of January

(** the figures mentioned in this report are our personal opinions, so please don’t consider this as an investment advice)

Part 1: EDG Performance

Source: Coingecko

• The overall crypto markets were trading at lower levels in the last period and it was a similar case with EDG, which was also trading at lower levels than usual.
• There were a couple of spikes in the prices and volumes traded, first between 4/1/22 and 5/1/21 with the prices going up close to 0.0095 USD and volumes were around 1m USD.
• The second spike was around 14/1/21 with prices going up to 0.008 USD and volumes were around 301k USD
• The movement of EDG price is in alignment with the global markets, so there are no visible fundamental factors driving down the price of EDG.
• Based on the financial models, we can find that the returns are expected to be around 5-6% over the next period.

Part 2: Comparative Analysis

• Period = 2 weeks (1/1/2022 to 15/1/2022)
• Beta = Volatility Factor
• Rf = Risk-free return (Approximately 4%) (Government Bonds)
• Rm = Return from Equity market (Approximately 10%)

• Beta = 1.47 (Beta is more than 1 which shows EDG was more volatile than BTC)
• The approximate Return over this period from EDG was about 7.83%
• The approximate Return over this period from BTC was about -6.91%
• **Considering the above data, the expected returns from EDG can be expected to be about 12.8% Approximately over the next periods.

• Beta = 0.98 (Beta is less than 1 which shows EDG was less volatile as compared to DOT over the considered Period)
• The approximate Return over this period from EDG was about 7.83%
• The approximate Return over this period from DOT was about 3.78%
• **Considering the above data, the expected returns from EDG can be expected to be about 9.9% Approximately over the next periods.

• Beta = 0.65 (Beta is less than 1 which shows EDG was less volatile as compared to KSM over the considered Period)
• The approximate Return over this period from EDG was about 7.83%
• The approximate Return over this period from KSM was about 1.35%
• **Considering the above data, the expected returns from EDG can be expected to be about 7.9% Approximately over the next periods.

• Beta = 1.35 (Beta is more than 1 which shows EDG was more volatile as compared to ETH over the considered Period
• The approximate Return over this period from EDG was about 7.83%
• The approximate Return over this period from ETH was about -10.16%
• **Considering the above data, the expected returns. from EDG can be expected to be about 12.1% Approximately over the next periods.

• Beta = -0.12 (Beta is Less than 1 and negative which shows EDG was less volatile as compared to AVAX, but in the opposite direction, over the considered Period)
• The approximate Return over this period from EDG was about 7.83%
• The approximate Return over this period from AVAX was about -17.56%
• **Considering the above data, the expected returns from EDG can be expected to be about 11.01% Approximately over the next periods.

• Beta = -0.01 (Beta is lesser than 1 which shows EDG was less volatile as compared to ALGO over the considered Period)
• The approximate Return over this period from EDG was about 7.83%
• The approximate Return over this period from ALGO was about -16.72%
• **Considering the above data, the expected returns from EDG can be expected to be about 10.4% Approximately over the next periods.

Conclusion:

Over the period considered for analysis, the EDG token was less volatile as compared to DOT, KSM, ALGO, AVAX, and more volatile wrt ETH and BTC. Based on the financial models, **the returns over the next period can be expected to be positive and around 7% to 10% **

Part 3: Treasury Spendings

Treasury Proposals

• Treasury Proposal #43 - Kabocha Technical Steward Milestone 1- Decent Partners - 7,200,000 EDG