SIP: 3Q25 Budget

Mandate Sector Finance continues to advance:

High-performance intent-based infrastructure

Scalable solving and market-making systems

Financial sustainability and treasury strength

Long-term alignment with the DeFi ecosystem

Recent Performance and Outlook Solver Revenue Growth In Q2, Sector Finance generated $74,350 in revenue—a 56% increase QoQ—driven primarily by improved performance from our CoW solver, especially in June (~$50K). While April and May were relatively muted, strong execution and increased market activity led to our best month yet.

Looking Ahead In Q3, we aim to:

Expand solver deployments to Avalanche and Polygon

Continue optimizing CowSwap solver performance

Explore partnerships in solving and market-making beyond CowSwap

Begin treasury diversification with potential ETH DCA sales

With improving market conditions and operational leverage, our north star remains achieving break-even while preserving long-term optionality.

Q2 Review Revenue Summary | Revenue Source | Amount |

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

| CoW Solver | $74,350 |

| Other Earnings / Offset | $0 |

| Total Revenue | $74,350 |

Expense Summary | Category | Forecast | Actual | Variance |

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

| Engineering | $150,000 | $105,880 | $44,120 |

| Biz Dev & Ops | $40,000 | $21,800 | $18,200 |

| Marketing & Community | $3,500 | $2,000 | $1,500 |

| Operating | $20,000 | $6,899 | $13,101 |

| Total | $213,500 | $136,579 | $76,921 |

Net Earnings: –$62,228

(Improved vs. –$132,556 in Q1)

Treasury Overview (End of Q2) | Asset | $ Value | % Allocation |

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

| USDC | $1,180 | 0% |

| stETH | $129,750 | 55% |

| ETH | $106,760 | 45% |

| Total | $237,690 | 100% |

Note: Gradual ETH DCA purchases planned in Q3 to balance cash reserves with protocol-aligned asset exposure.

3Q25 Objectives Product & Protocol Development Deploy solver on Avalanche and Polygon

Continue tuning for higher CoW reward extraction

Explore integrating other RFQ/MM protocols

Business Development Pursue strategic solving/MM partnerships

Expand reach across DEX aggregators and L2 ecosystems

Treasury & Operations Begin strategic ETH-to-USDC rebalancing to increase resilience

Manage expenses in proportion to revenue run rate

Improve financial reporting and internal tooling

3Q25 Budget Proposal | Category | USDC Compensation | SECT Compensation |

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

| Engineering | $140,000 | $0 |

| Biz Dev & Ops | $30,000 | $0 |

| Marketing & Community | $2,500 | $0 |

| Operating | $15,000 | $0 |

| Total | $187,500 | $0 |

Commentary Engineering slightly reduced vs. forecast to align with actual burn

Biz Dev trimmed with focus on outcome-based compensation

Operating remains lean while supporting upcoming deployments

No SECT compensation planned for Q3

Closing Note We enter Q3 with positive momentum and growing proof of execution. While market conditions remain dynamic, Sector Finance is better positioned than ever to scale impact while maintaining financial discipline. Continued strong solver performance, pipeline expansion, and treasury stewardship will be key to achieving breakeven and long-term protocol sustainability.