Arbitrum Treasury Management Council - Consolidating Efforts

[maxlomu]

gm, I am generally aligned and this sums up my view.

@GozmanGonzalez

• One council, one strategy:
• DAO still in control:
• Lean, cost-effective ops:
• Built-in context awareness:
• Execution capacity:

@Tane

has clearly led to inefficiencies and misalignment among treasury strategies.

Inefficiencies are clear. Could you outline the misalignments you’ve observed so the DAO and the new Treasury Committee can address them?

@juanbug

TMC to maintain a live dashboard or periodic public reporting portal, providing real-time or near-real-time visibility into treasury allocation, deployment status, and performance metrics.

This is a great call and I think it should be added into the requirements. It’s much more effective than a static report, and I’m sure Entropy’s data team can craft a useful interface.

@Camelot

Camelot believes there is significant margin to create yield strategies for the DAO with well-balanced risk through the utilization of Arbitrum protocols, so that we realize both revenue for the DAO and growth of the ecosystem. We think this point should be of primary importance in the initiative.
There is even more merit to this approach because Entropy is positioned to manage the DRIP initiative if that vote passes. While the initiatives are totally different, from a practical standpoint Entropy would then be able to manage both incentive assets and treasury assets.

@TodayInDeFi

Would it be possible to describe how the allocation strategy will look? For example, will the AUM be divided into several sub-portfolios (e.g., stablecoins, ETH, RWAs) to diversify risk and align with the previous mandates of STEP, TMC, and GMC, or will you pursue a single, unified portfolio approach?

I want to emphasise the points raised by Camelot, JoJo and TID.

The treasury has four objectives IMO:

1. Generate yield so the DAO is self-sustaining. This is the core of the Entropy plan and matches the focus of previous committees.

2. Grow the DAO’s real-world-asset exposure and diversify risk.

3. Support established Arbitrum protocols.

4. Bootstrap liquidity for new Arbitrum projects. Early liquidity means other users feel confident to deposit funds, and all the DeFi flywheels that protocols enable can actually work.
   One million dollars spread across nascent protocols is probably far more valuable than the same sum parked in T-bills.

This is distinct from the DRIP incentives proposal; here I am speaking about direct liquidity provision, for example:
• The DAO provides backstop liquidity to tokenised houses from Estate Protocol at a predefined floor to anchor prices.
• $200k of liquidity is supplied to a new perpetual exchange to compress funding costs.
• $500k is lent to solver pools so intents can settle promptly (RIP Chain Abstraction Proposal ).

The Treasury Management Council should publish its intended allocation split for the year and retain discretion to redeploy capital quickly into high-impact liquidity pools.