Arbitrum DAO - Treasury contd.
Stable Treasury Endowment Program 2.0
During February 2025, an AIP outlining STEP 2.0 was passed on Tally. The key details of the program were: - diversify a further 35M ARB into real world assets that are stable in value, liquid in conversion and have yield uncorrelated to crypto markets - diversify the DAO's treasury and generate ecosystem growth for Real World Asset protocols on Arbitrum The proposal aimed to achieve 3 broad objectives: - Show that Arbitrum has a plan for the RWA vertical and projects in this sector should build on the chain, by building a regular cadence to the STEP program as the flagship program for RWA support; - Let the DAO directly own stable RWAs through a competitive selection process for providers, instead of paying 1% AUM to treasury managers for selecting and holding low risk assets on our behalf. Use yield from the products to cover operational expenses by sweeping it as USDC to the ARB DAO treasury; and - Provision funds ahead of time for optimal execution and take advantage of tailwinds when they arise for diversifying the treasury. Building up an endowment will let us weather even bear markets from an abundance mindset. The proposal outlined a similar committee structure to STEP 1.0, with each of the below committee members receiving 25k ARB compensation (10k ARB on completion and 15k ARB via a Hedgey stream over 3 years): - GFX - Northlake - Nethermind - Karpatkey - Devansh Meta (who subsequently stood down and was replaced by Entropy who waived their fee) as a non-voting facilitating member
All funds remain in the Foundation-controlled multisig.
Treasury Management V1.2
During March 2025, Snapshot votes closed to decide on the next steps in the Treasury Management proposal.
TMC Stablecoin Recommendation
The DAO voted YES to allocate 15M ARB (to be converted into stablecoins by the Foundation) to: - Karpatkey - Avantgarde & Myso - Gauntlet
Funding will be split equally between the above parties.
TMC ARB Recommendation
The DAO voted NO to allocating 10M ARB to: - Karpatkey - Avantgarde & Myso for ARB-only strategies.
GMC's Preferred Allocations (7,500 ETH)
The DAO voted YES to allocating 7.5k ETh as outlined below: - 5k ETH to Lido for liquid staking - 4.2k ETH to Aave to encourage LRT borrowing against wstETH in collaboration with Lido, Aave, Renzo, and Kelp - 2.5k ETH to Fluid to lend on their Arbitrum platform - 0.8k ETH to Camelot as single sided liquidity into the wstETH/ETH liquidity pool on Camelot V3
Note the 4.2k ETH for Aave and the 0.8k ETH for Camelot are stETH (as wstETH) from the 5k ETH allocated to Lido (i.e. the stETH from Lido will be deployed on Aave and Camelot).
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