2Q25 Budget Proposal for Sector Finance

Mandate

Sector Finance continues to focus on:

• Expanding protocol functionality and infrastructure.

• Strengthening solving and market-making capabilities.

• Ensuring security and reliability in protocol design and execution.

• Driving protocol adoption through strategic marketing, partnerships, and business development.

Our mission remains: to provide infrastructure that sustainably scales the DeFi ecosystem and onboard the next generation of users.

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Recent Developments and Context

CowSwap Solver Progress

Our CowSwap solver has continued to perform well this quarter. However, despite growth in the number of CoW rewards, lower ETH prices and declining CoW prices have affected overall earnings and treasury value.

Quarterly Milestones:

• Launched CowSwap solver on Arbitrum and Base.

• Continued optimization of solving strategy.

• Exploring expansion into adjacent solving and market-making opportunities.

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1Q25 Review

Revenue Summary

| Revenue Source | Amount |

|--------------------------|-----------|

| CoW Solver | $47,574 |

| Other Earnings / Offset | $0 |

| Total Revenue | $47,574 |

Expense Breakdown

| Category | Forecast | Actual | Variance |

|--------------------------|-------------|-------------|------------|

| Engineering | $150,000 | $127,330 | $22,670 |

| Biz Dev & Ops | $40,000 | $37,500 | $2,500 |

| Marketing & Community | $3,500 | $3,000 | $500 |

| Operating | $20,000 | $12,300 | $7,700 |

| Total | $213,500 | $180,130 | $33,370 |

Net Earnings: -$132,556

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Treasury Overview (End of 1Q25)

| Asset | $ Value | % Allocation |

|---------|-------------|--------------|

| USDC | $0 | 0% |

| stETH | $124,500 | 57% |

| ETH | $93,634 | 43% |

| Total | $218,134 | 100% |

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2Q25 Objectives

Product Development

• Optimize solver for Ethereum, Arbitrum, and Base.

• Research additional intent-solving and market-making opportunities.

• Finalize DAO vote to deprecate paused vault strategies and reallocate focus.

Business Development

• Expand partnerships aligned with solving/market making.

• Deepen integrations with DeFi protocols and aggregators.

Operations

• Maintain lean structure with necessary operational support.

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2Q25 Budget Proposal

| Category | USDC Compensation | SECT Compensation |

|------------------------|-------------------|-------------------|

| Engineering | $150,000 | $0 |

| Biz Dev & Ops | $40,000 | $0 |

| Marketing & Community | $3,500 | $0 |

| Operating | $20,000 | $0 |

| Total | $213,500 | $0 |