Arbitrum Token Flow Report - September 2024

Arbitrum DAO - Treasury

Arbitrum Stable Treasury Endowment Program (STEP)

Following the successful deployment of 35M ARB into USD30.45M of stable, liquid real-world assets to generate yield for the DAO. Emphasis was placed on attracting service providers to the Arbitrum ecosystem, therefore achieving both treasury diversification as well as incentivising users within Arbitrum.

STEP Allocations

15m

11m

9.6m

10m

6m

6m

5.2m

5.2m

4m

4m

4m

3.5m

3.5m

3.5m

5m

0

Securitize BUIDL

Ondo USDY

Superstate USTB

Mountain USDM OpenEden TBill

Backed Finance blB01

ARB Allocation

USD Allocation

During September, a Snapshot was proposed to outline the potential shortfall in funding available for the program manager: - 100k ARB was allocated towards program management costs in the AIP, but Steakhouse Financial was voted as the manager with a quoted fee of $174k - the 100k ARB could only be converted into $87k The DAO voted in favor of keeping Steakhouse as the program manager at their full fee, and will use the yield generated from the STEP assets to cover the $87k shortfall. There is also a forum thread outlining the plan to diversify a further 35M ARB for the next edition of the STEP, aiming to convert to at least $30M and to further boost the RWA ecosystem within Arbitrum.

Treasury Management

The DAO is progressing discussions around managing its treasury, with particular highlighted areas being: - service provider shortfalls, such as in the ARDC, where USD liabilities are settled in ARB and therefore exposes service providers to ARB price depreciation - deployment of capital and generating yield on the DAO's treasury - productive use of sequencer ETH There are some proposed solutions, such as establishing Treasury and Growth committees to drive these processes forward, but no votes have been passed giving clarity on next steps. There is also no agreed-upon DAO-wide budgeting mechanism, an issue that has been raised by numerous delegates and ecosystem participants.

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