The October 2025 Joint Treasury Report is now available on kpk’s website.
kpk is pleased to present its Community Update for the month of September to the broader Safe Community, to increase awareness and transparency of its activities.
Market Update
October was a reset month for crypto markets. Risk premia widened across majors, funding conditions softened, and market participants rotated more aggressively into stablecoin positions.
Market Performance
BTC traded lower throughout the month, with spot prices unable to maintain support above $105,000. It closed October at approximately $97,800, down 13.5% month on month. The repricing reflected slower spot ETF flow momentum, reduced marginal buying, and a weaker macro backdrop.
ETH underperformed BTC for a second month, closing October at approximately $3,130, down 23.8% month on month. The liquidation episode on 10–11 October triggered forced unwinds of high-leverage ETH perpetual positions. Liquidations during that 48-hour period accelerated the drawdown, with cascading sell pressure pushing ETH perpetual funding lower and driving double-digit intraday moves across several L1 and L2 tokens, as visible in Hyperliquid onchain perpetual data.
Across the broader market, mid-caps and long-tail assets lagged as traders de-risked into more liquid majors and stablecoins. Exchange-related tokens (OKB, CRO, MNT, KCS) also retraced after several months of prior outperformance.
Institutional Flows
ETF flows weakened materially in October. Bitcoin spot ETFs recorded net outflows of approximately $940M, while ETH spot ETFs saw modest net inflows of $120M (BitMEX Research ETF Tracker). Market makers cited the 10–11 October liquidation window as the point where RFQ volumes and appetite for directional exposure contracted.
Market Structure & Dominance
Bitcoin dominance remained broadly unchanged month on month, holding in the mid-50% range. This indicated that the retracement was systemic rather than a rotation between majors.
Total digital asset market capitalisation closed October at approximately $3.36T, a 9.7% month-on-month contraction, reflecting the repricing across majors and the broader de-risking.
Funding & Derivatives
Funding rates moved lower following the 10–11 October deleveraging event.
Off-chain funding (Binance)
• BTC: ranged 1% to 7%
• ETH: ranged 2% to 9%
On-chain funding (Hyperliquid)
• BTC: ranged –2% to +18%
• ETH: ranged –5% to +22%
Open interest also compressed after the liquidations:
• BTC perpetual OI declined from approximately 127k BTC to 115k BTC by month-end
• ETH perpetual OI declined from approximately 2.68M ETH to 2.41M ETH by month-end
SAFE & Gnosis Token Updates
SAFE fell 36.99% over the period, continuing to underperform relative to BTC and ETH, which declined 5.35% and 8.88%. GNO also trended lower, ending the month down 13.41%. The divergence highlights that the broader drawdown affected all four assets, with SAFE showing the steepest correction.
The current circulating supply of the $SAFE token stands at approximately ≈660 M SAFE (~66% of total supply), reflecting a monthly unlocked expansion of around 2% based on the initial tokenomics. In comparison, the $GNO token currently has a circulating supply of about 2.64 M GNO out of 3 M total, meaning roughly 88% of the total supply is already in circulation.
The latest correlation analysis shows that SAFE remained closely aligned with both BTC and ETH, at 0.865 and 0.919. GNO exhibited similarly high relationships with BTC and ETH, at 0.901 and 0.966. The correlation between SAFE and GNO, at 0.922, indicates that the two tokens moved in a broadly comparable manner, although not identically.
JT Update
SafeBoost Program
SafeBoost launched on 6 February 2025 to reward Safe users for their onchain activity on Gnosis Chain. The programme was paused on 3 March and resumed on 20 May with additional partner integrations, expanding the range of eligible interactions and reward sources.
SafeBoost assigned points based on activity executed through a Safe account, including transactions, asset management, and engagement with DeFi protocols. The restart introduced partner programmes that enabled users to earn further incentives by interacting with supported applications.
The final phase ran from 02 September to 20 October 2025. During this period, activity with PoolTogether, Beefy, and Contango generated a 3× points multiplier, complemented by incentives provided directly by each partner. This phase was structured to encourage sustained participation and highlight opportunities for Safe users across the Gnosis Chain ecosystem.
A points booster was implemented to recognise early participants. Users who earned points before the programme pause and again after the restart had their pre-pause points doubled.
At programme completion, a total of 3,683,713.71 points were earned across the first 2,000 eligible users. All 250,000 SAFE allocated to the programme were distributed through five batches. Individual allocations ranged from 80.44 SAFE to 13,025.78 SAFE, with no tokens left unallocated.
To support transparency, kpk will provide a Dune dashboard detailing the full distribution and programme metrics.
This concludes the SafeBoost programme.
Financial Update
Asset Allocation
- Joint Treasury’s AUM stood at $14.94M at the end of October, with 74.7% in $SAFE, 14.39% in ETH, and 8.94% in stablecoins.
- Asset utilisation remains low at 32.3%, as most of the Joint Treasury remains concentrated in $SAFE with limited onchain usage. Virtually all non-$SAFE assets are deployed to generate yield or support $SAFE liquidity.
- Usage of Joint Treasury assets can be divided into three broad categories:
- SAFE Usage: 10.8% of $SAFE is currently being used for providing on-chain $SAFE liquidity on both Uniswap v3 Ethereum Mainnet and Balancer Gnosis Chain;
- ETH DeFi: 99.1% of ETH is currently being used to earn yield on Liquid Staking Protocols (Lido, Stakewise), and the remaining 0.9% is used to provide on-chain $SAFE Usage on Uniswap v3 Ethereum Mainnet.
- Stablecoin DeFi: 100% xDAI currently held in sDAI on Gnosis Chain, earning the DAI Savings Rate.
$SAFE On-chain Liquidity Management
- The primary avenue for on-chain $SAFE liquidity management is Uniswap V3 on the Ethereum Mainnet, utilising multiple ranges to maintain sufficient liquidity during market volatility.
- $SAFE liquidity remained healthy on mainnet, and $10k swaps can be conducted with the following levels of slippage:
- $10k Purchase (ETH → SAFE) can be conducted with 190bp price impact on Uniswap v3; on CoW, the slippage is 41bp.
- $10k Sale (SAFE → ETH) can be conducted with a 100bp price impact on Uniswap V3; on CoW, the impact is 5107bp.
Next Steps
With the decision to transition to the next phase of the Joint Treasury structure, this was the last monthly report. A dedicated post will provide a comprehensive update on the execution of the agreed wind-down steps, settlement preparations, and the operational conclusion of kpk’s mandate.
kpk appreciates the collaboration with both communities throughout this mandate, and we are happy to have supported SafeDAO and GnosisDAO in this joint initiative safely and transparently.