1st AFC Monthly Report - Part of May and June 2025

[Poggi_Luca]

GM Astar community!

With the end of June and the beginning of July, it’s time to release the first Astar Finance Committee (AFC) Monthly Report, which covers the activities carried out by the AFC during June and part of May 2025. It was decided internally to publish the first monthly report at the beginning of July, as the activities in May were largely dedicated to preparatory tasks necessary for the proper functioning of the AFC.

Since its formation, the AFC has been actively working on the management of DAO allocation assets and the implementation of strategies aimed at fostering value creation, diversifying reserves, and deploying liquidity responsibly across ecosystems.

Below is a summary of our efforts and key updates for the period covering part of May and June 2025.

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Activities Overview

All on-chain activities listed in this section can be verified by any member of the Astar community using any blockchain explorer relevant to the blockchains where the activities took place.

2^nd Week of May | 5^th – 11^th May 2025

• AFC Members were introduced: https://forum.astar.network/t/introducing-afc-member/8490

• Preparatory activities: KYC of members, setup of private communication channel (Telegram group), setup of shared workspaces (Google Drive and Notion), ordering of Ledger hardware wallets

3^rd Week of May | 12^th – 18^th May 2025

• All members have received their personal Ledger devices

4^th Week of May | 19^th – 25^th May 2025

• AFC Weekly Meeting (22^nd May 2025):
  • Each member was introduced
  • It was agreed to hold weekly calls on Wednesdays, with the option to shift to a bi-weekly cadence based on the volume of updates
  • Members opened and setup their individual Ledger devices and shared their wallet addresses
  • Marcelo Alvarenga took on the task of creating a risk assessment framework, including the total size of each initiative, a risk analysis, and the expected ROI or outcome
  • It was agreed that test transactions would be carried out and initial strategies would be proposed and evaluated during the following meeting

5^th Week of May | 26^th May – 1^st June 2025

• AFC Weekly Meeting (28^th May 2025):
  • Setup of pure proxy (ZEyDXf6563rc78ibEtYQAkHTSKLzMES1m2BrPNdLcma57Tg) + multisig (a47KfkpbXdvKP5jG1tk21kSgtyUCR81aLNokY9JaqFmE59F) on Astar native: pure proxy to be used to control funds (source of truth) and make operations on Astar native; multisig to be used for parachain operations funded by the pure proxy
  • Setup of multisig (0xDEa0061c12756F276a7df2Faa3865de187AB1e5C) on Astar EVM
  • Setup of multisig (0xDEa0061c12756F276a7df2Faa3865de187AB1e5C) on Soneium
  • Performed some test txs on Astar native, Astar EVM and Soneium
  • Marcelo Alvarenga proposed risk assessment framework draft document: the purpose of this policy is to set out the principles, strategy, and governance framework that guide how the Astar Finance Committee identifies, assesses, and manages risk while deploying the Astar ecosystem treasury into DeFi opportunities. The overarching goal is to generate sustainable yield and long-term value for ASTR token-holders without compromising the security or liquidity of treasury assets.
  • Mingshi proposed initial strategies document

1^st Week of June | 2^nd – 8^th June 2025

• Astar Foundation transferred the DAO allocation to the AFC pure proxy on Astar native

• AFC Weekly Meeting (4^th June 2025):

  • Risk assessment framework proposed by Marcelo Alvarenga was reviewed:
    • It was decided to implement a 2-step approach: in the short term use a simpler version, whitelisting of DeFi protocols considered safe and secured by AFC members, take a low-risk approach; in the long term develop the complete procedure
    • It was decided to use ASTR value-based for NAV
    • It was decided to create a public Google Drive folder so that everyone in the community can check versions of the risk assessment framework document (first public version still to be published)
  • The initial strategies document proposed by Mingshi was discussed, and the first operations to be carried out were agreed upon: part of these operations include allocating a portion of the treasury to dApp Staking, while simultaneously working on the procedure and developing more sophisticated strategies

• Transferred 5M ASTR from AFC pure proxy on Astar native to multisig on Hydration

• Iceberg Nodes sent 500 HDX to multisig and each AFC members addresses on Hydration (HDX amount needed in order to perform multisig operations on Hydration)

• Added 3M ASTR and 1.8M ASTR (in two separate txs) to Hydration LP and joined vDOT and HDX farms | Updated total amount in Hydration LP: 4.8M ASTR

2^nd Week of June | 9^th – 15^th June 2025

• Added the remaining 200k ASTR to Hydration LP and joined vDOT and HDX farms | Updated total amount in Hydration LP: 5M ASTR

• Staked 200M ASTR on Astar native dApp Staking (a selection of dApps from projects that provide valuable services to the Astar community was made, services for which the Astar Foundation currently covers the costs. By nominating these dApps and helping them climb the ranking in dApp Staking, the rewards they receive increase, allowing them to fully or partially cover their operational expenses. This, in turn, reduces the financial burden on the Astar Foundation, freeing up more funds to be allocated to other initiatives, while simultaneously benefiting the Astar ecosystem as a whole):

  • 50M ASTR staked on OnFinality dApp
  • 60M ASTR staked on Astar Safe dApp
  • 90M ASTR staked on Community Treasury

• AFC Weekly Meeting (11^th June 2025):

  • Performed on-chain operations in sync (see below)

• Claim accrued rewards on Hydration

• Transferred 5M ASTR from AFC pure proxy on Astar native to multisig on Hydration

• Added extra 2M ASTR to Hydration LP and joined vDOT and HDX farms | Updated total amount in Hydration LP: 7M ASTR

• Iceberg Nodes sent 20 BNC to multisig and each AFC members addresses on Bifrost Polkadot (BNC amount needed in order to perform multisig operations on Bifrost Polkadot)

• Transferred 15M ASTR from AFC pure proxy on Astar native to multisig on Bifrost Polkadot

• Minted about 11,935,367 vASTR with 15M ASTR on Bifrost Polkadot

• Transferred about 11,935,367 vASTR from multisig on Bifrost Polkadot to multisig on Hydration

• Added about 11,935,367 vASTR (unfortunately it was done using several txs due to Hydration limits) to Hydration LP and joined vDOT and HDX farms | Updated total amount in Hydration LP: 7M ASTR + 11,935,367 vASTR

• Transferred 20M ASTR from AFC pure proxy on Astar native to multisig on Astar EVM

• Transferred 15M ASTR from multisig on Astar EVM to multisig on Soneium

3^rd Week of June | 16^th – 22^nd June 2025

• AFC Weekly Meeting (18^th June 2025):

  • Performed on-chain operations in sync (see below)
  • Discussed about the cap on Hydration LPs: we will add liquidity incrementally when possible
  • Discussed about the possibility for AFC to manage the Astar Treasury’s liquidity positions in the Hydration Omnipool, currently held via the Astar Sibling Sovereign Account on Hydration, for more active and strategic utilization of these positions as part of the AFC initiative
  • Decided what to do with claimed rewards (HDX, vDOT, VELO and ASTR)
  • Luca Poggi proposed monthly report draft document

• Added the remaining 3M ASTR to Hydration LP and joined vDOT and HDX farms | Updated total amount in Hydration LP: 10M ASTR + 11,935,367 vASTR

• Claim accrued rewards on Hydration

• Transferred remaining 5M ASTR from multisig on Astar EVM to multisig on Soneium

• Minted about 4,528,489 nsASTR with 5M ASTR on Neemo Finance dApp on Soneium

• Added about 5,238,078 ASTR / 4,528,479 nsASTR to Velodrome LP and staked LP tokens to earn VELO

• Minted about 4,814,370 wstASTR with 5M ASTR on Astake dApp on Soneium

• Added about 1,080,580 ASTR / 4,814,096 wstASTR to Velodrome LP and staked LP tokens to earn VELO

Note: in adding liquidity for ASTR/nsASTR and ASTR/wstASTR was kept a very low range for the lower bound and a wide range for the upper bound (because our assumption is that most arbitrage bots will buy nsASTR and wstASTR to push the price higher), in this way we don’t need to move the LP more often than once for 2-3 months period, and at the same time we can keep the range relatively narrow.

4^th Week of June | 23^rd – 29^th June 2025

• Transferred 15M ASTR from AFC pure proxy on Astar native to multisig on Astar EVM

• Transferred 10M ASTR from AFC pure proxy on Astar native to multisig on Hydration

• Claim accrued rewards on Hydration

• Enable DCA Trade for HDX on Hydration: swap 5,714.2857 HDX for USDC (Polkadot AssetHub) every ~1 day with a total budget of 40,000 HDX over the period of ~1 week

• Transferred 15M ASTR from multisig on Astar EVM to multisig on Soneium

• Added 4.5M ASTR to Hydration LP and joined vDOT and HDX farms | Updated total amount in Hydration LP: 14.5M ASTR + 11,935,367 vASTR

• Enabled borrow on Hydration in order to supply assets in the lending pool

• Claim accrued rewards on dApp Staking

• AFC Weekly (25^th June 2025):

  • Monthly report draft document proposed by Luca Poggi was reviewed
  • Decided to continue to DCA selling HDX for USDC (Polkadot AssetHub) every week
  • Decided to secure at least 500 DOT by the end of July for Polkadot Coretime
  • Decided to burn dApp Staking rewards quarterly
  • Mingshi proposed to provide liquidity in WaveX (a GMX-based Perp DEX): temperature check on-going
  • Marcelo Alvarenga proposed to use part of dApp staking rewards for AFC members payment but no majority consensus towards its approval, so we will not proceed with the reimbursement. This topic will be bring up again after the first payment has been done and checking community sentiment.

• Re-Staked 200M ASTR on Astar native dApp Staking due to new voting cycle:

  • 50M ASTR staked on OnFinality dApp
  • 60M ASTR staked on Astar Safe dApp
  • 90M ASTR staked on Community Treasury

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Asset Allocation

As of 29^th June 2025, the assets managed by the AFC are allocated as follows (addresses with negligible balances are excluded from the report):

• Pure proxy on Astar native:

  • 200M ASTR locked in dApp Staking
  • 148,473,390 ASTR transferable amount

• Multisig on Hydration:

  • 14.5M ASTR in LP
  • 11,935,367 vASTR in LP
  • 5.5M ASTR transferable amount
  • 439 vDOT
  • 44,559 HDX
  • 340 USDC

• Multisig on Soneium

  • 18,681,342 ASTR transferable amount
  • 5,238,078 ASTR / 4,528,479 nsASTR Velodrome LP
  • 1,080,580 ASTR / 4,814,096 wstASTR Velodrome LP
  • 10 nsASTR
  • 274 wstASTR

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Earned Amounts

Since the start of AFC operations up to 29^th June 2025, the amounts earned (mainly from dApp staking, liquidity provision, and farming) are as follows:

• dApp Staking: 887,284 ASTR —> as decided by AFC members, this amount of ASTR tokens will be burned on 18^th July 2025. Subsequent burning events will follow a quarterly cadence.

• Hydration LP:

  • vDOT farming: 439 vDOT
  • HDX farming: 78,344 HDX (of which about 34,285 HDX swapped to about 340 USDC Polkadot AssetHub)

• Velodrome LP: the first claim tx (of about 780 + 1,548 VELO) was executed on 2nd July 2025, for this reason will be counted on next monthly report

• Additional rewards, not directly quantifiable until the moment of redemption or swap of the liquid staking token, are represented by holding the tokens of liquid staking protocols: Bifrost (vASTR, vDOT), Neemo Finance (nsASTR), and Astake (wstASTR). These tokens appreciate over time relative to their underlying assets, as they continuously accumulate staking rewards.

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The Astar Finance Committee (AFC) is a dedicated governance body with the responsibility to manage the Astar Treasury assets assigned to it for generating sustainable revenue streams, accelerating ecosystem growth, and ensuring long-term value returns to the Astar ecosystem.

We encourage all Astar community members to review this monthly report. If you have questions, suggestions or want to get involved in any upcoming discussions, open a topic on the Astar Forum, tag us or drop a message in this discussion.

AFC members:

• @Maarten
• @xxphua
• @Mingshi
• @marcelo
• @Poggi_Luca

AFC observer:

• @you425

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Astar Finance Committee

July 2025

[EMANUCT96]

Thanks for the Report and I’m happy to see updates already.
It was impossible to do more detailed than this, dividing month by month the activities and moves that have been implemented, compliments to Luca and all the members

[SimonB]

Wow, I was really looking forward to this first AFC report to see how everything would be structured… and I have to say: NICE WORK!!!

It’s incredibly detailed, yet explained in such a clear and simple way that anyone in the community can follow and understand what’s going on — even across multiple chains and protocols. This is exactly the kind of transparency and professionalism we need to build long-term trust. Hats off to the whole AFC team

From an operational point of view, I noticed that after the initial phase — focused on setting up the technical infrastructure (wallets, multisigs, internal coordination, risk framework, etc.) — the committee quickly moved into active treasury management.
You’ve already started allocating ASTR across different ecosystems and earning rewards: ASTR from dApp Staking, which is set to be burned, HDX from farming, which is being converted into USDC to begin diversifying the treasury.
I’m increasingly convinced that the AFC’s role in actively managing part of the treasury funds is truly valuable and important for the entire ecosystem!
Great job, everyone!
These reports are super insightful and a great way to keep the community aligned and informed. Keep it up!

[FFR23]

Do we need a discussion on risks considering what just happened to Neemo?

[MrKarahanli-Emre]

First of all, I must say that your contributions and their value are truly wonderful. It is very valuable that you are active in multiple areas in such a short time and that you demonstrate this transparently to the community. In addition to your observations, your constant presence in the field is also motivating.

I also noticed some small details during this process and would like to share a few suggestions.

When I looked at the projects invested in ASTR, I noticed that Astar Safe was not listed on the Ecosystem page. It can only be viewed on the Astar Portal. The fact that a dApp such as Astar Safe, which is one of the basic security components, is not listed here may make it difficult for those who want to review the project to notice it. Improving this visibility issue could be beneficial.

Another issue is related to dApp staking rewards. Are these rewards held for 3 months and then burned? Or are they burned periodically only in the 3rd, 6th, 9th, and 12th months of the year? If these rewards are indeed held for 3 months, ideas such as re-staking them during this period or using them for boosting purposes in some LP pools could be considered. At the end of the third month, these assets could be withdrawn from the pool and burned. This way, the funds would be actively utilized during the 3-month period rather than remaining idle.

Finally, I would like to briefly mention Soneium. Currently, many dApps and DEXs are approaching their TGE. Most have established a points system for LP providers and seem to be planning to award native token rewards based on these points in the future. Could locking ASTR and LRT ASTR tokens in LP be considered for such projects? This would not only provide liquidity but also enable gains from the projects’ native tokens and direct contributions to the AFC treasury. In the long term, this would generate revenue for the treasury and allow for earlier integration into new opportunities within the ecosystem.