ArbitrumDAO Factsheet: USDG Launches on Arbitrum

Announcements
1

USDG Launches on Arbitrum as Arbitrum Joins Global Dollar Network

  • Global Dollar (USDG), issued by Paxos, is live on Arbitrum
  • Arbitrum has joined Global Dollar Network as one of its 150+ partners
  • Ten partners support USDG from day one across trading, lending, collateral and on- and off-ramps.
  • A Foundation integration programme is open to builders and a proposal before the DAO seeks to put 100M ARB and treasury assets behind USDG’s growth
  • As a network partner, the Arbitrum ecosystem shares in the rewards earned on USDG held across it, with supply and adoption tracked publicly at arbdata.com/usdg

What happened

With much of Arbitrum’s activity priced in stablecoins, the choice of dollar is a strategic decision for the ecosystem. Over the past year Entropy Advisors, Offchain, the Arbitrum Foundation and Arbitrum OpCo reviewed the stablecoin landscape to inform that decision. The outcome is USDG, issued by Paxos under supervision in Singapore and the EU, backed one for one with US dollar reserves and with more than $3 billion in circulation across the networks on which it is issued.

From today, USDG is natively issued on Arbitrum One with its principal uses in place at launch. It trades on Fluid and Uniswap. It earns in Morpho vaults curated by Gauntlet and Steakhouse or through syrupUSDG on Maple, while on GMX it serves as the deposit asset in the GLV(USDG) vault.

Kraken supports deposits and withdrawals on Arbitrum One, while routes from other chains run through Stargate on LayerZero and Li.Fi. Fhenix is the next protocol to integrate.

Why this matters

Approximately $4 billion of stablecoins are held on Arbitrum, pricing its markets and backing its loans. Until today the ecosystem has had no direct share in the economics those balances generate. Global Dollar Network distributes rewards to its partners according to the USDG demand they create. Arbitrum has joined as a partner, so rewards earned on USDG held across the ecosystem now accrue to the Arbitrum ecosystem, denominated in dollars and scaling with supply.

The value of that position depends on adoption, which is the purpose of two further measures announced today:

  • The Arbitrum Foundation has opened its USDG on Arbitrum programme, which provides hands-on integration support to eligible teams building with USDG.

  • Entropy Advisors, with Offchain, the Foundation and Arbitrum OpCo, has published a governance proposal asking the ArbitrumDAO to adopt USDG growth as a core strategic initiative.

The proposal requests an additional 100M ARB for DRIP (refocused on USDG), the deployment of treasury assets through the Arbitrum Treasury Management Council to support USDG liquidity and the conversion of AEP fees to USDG. Each request runs through a programme or entity the DAO has already approved and remains under that body’s existing oversight.

Entropy Advisors would lead the initiative within its current mandate at no additional cost and the Foundation would retain custody of DRIP and treasury funds. The proposal sets out the full terms and the voting timeline.

Entropy Advisors tracks USDG supply and adoption on Arbitrum One at USDG Supply · Arbitrum Analytics & Dashboards and will include USDG reporting in its monthly updates to the DAO. Any reinvestment of rewards during the growth phase would beis subject to the same requirement for two-thirds approval by the DRIP Season Selection Committee as other DRIP spend.

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