Arbitrum Token Flow Report - July 2024

Arbitrum DAO - Treasury

Arbitrum Stable Treasury Endowment Program (STEP)

The STEP aims to support the budding RWA ecosystem on Arbitrum by diversifying 35 million ARB from the DAO's treasury into assets that are stable in value with minimal volatility, liquid in conversion and provide yield uncorrelated to crypto markets that is at least commensurate with the so called "risk free rate of return" of US Treasuries. The program also allocated 300k ARB towards operational expenditure. The committee will comprise of 6 members (25k per member), and the Arbitrum Foundation will facilitate payment to legal counsel. There is then a budget allocated towards due diligence and to program management and oversight.

ARB Budget

50k

150k

100k

Committee Members 150k (50%) DD & Oversight 100k (33.3%) Foundation Legal Counsel 50k (16.7%)

The STEP committee examined applications and suggested the protocols to allocate funding to, which was submitted to a Snapshot vote. The outcome of that process was to allocate the 35M ARB across 6 service providers, which was approved by the DAO.

STEP Allocations

15m

11m

9.6m

10m

6m

6m

5.2m

5.2m

4m

4m

4m

5m

3.5m

3.5m

3.5m

0

Securitize BUIDL

Ondo USDY

Superstate USTB

Mountain USDM

OpenEden TBill

Backed Finance blB01

ARB Allocation

USD Allocation

Part of the STEP introduced a program manager, initially allocated a due diligence and oversight fee, who will take responsibility for the program. Voting was conducted via Snapshot, with steakhouse.financial being selected to oversee the STEP. The fee proposed for this is USD174k p.a. for a total of $522k over a 3-year period, equivalent to 793k ARB (at $0.658 per ARB). STEP Committee Members

Achieved ARB / USD Rate $0.87

Steakhouse Financial

Karpatkey

GFX Labs

North Lakes Legal

Arbitrum Treasury WG

Nethermind

25

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