ATM Council – Monthly Updates

DAO Programs & Initiatives Arbitrum Treasury Management Council
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This forum thread will be utilized by the Arbitrum Treasury Management (ATM) Council to post monthly updates.

For a short overview of the ATM council and helpful resources related to the initiative, please refer to the Arbitrum Treasury Management (ATM) Council Details forum post.

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Kickoff Update

To kickstart this thread, below is a short summary of the current deployment statuses and potential developments in the short term.

DAO-approved Deployments

RWA-related Deployments

  • The DAO’s active RWA portfolio is currently worth ~$28M
  • ~$3.5M worth of USDM was redeemed in May, following Anchorage Digital acquiring Mountain and announcing the wind-down of USDM
    • Prior to the ATM council’s ratification, a Snapshot proposal was passed in the middle of June to reallocate the redeemed funds as follows: WisdomTree WTGXX (30%), Spiko USTBL (35%), Franklin Templeton BENJI (35%)
    • Capital is currently being deployed by the Arbitrum Foundation
  • Roughly half of the 35M ARB allocation for STEP 2 has been liquidated to stablecoins. Once completed, the stablecoins will be allocated in similar shares to those described above
  • To date, the DAO has earned ~$900K in interest from its RWA deployments

ETH-related Deployments

  • The full 2.5K ETH deployment into Fluid was finalised at the end of June
  • 5K ETH has been staked and subsequently wrapped through Lido, which required bridging to and from Ethereum Mainnet to avoid slippage, with 84% of the wstETH to be deployed into Aave and 16% of the wstETH to be deployed into Camelot by the Arbitrum Foundation

Actively Managed Stablecoin Deployments

  • 15M of ARB reserved for the stablecoin strategies has been converted into ~4.9M USDC
  • This allocation is set to be split equally between three managers: kpk, Avantgarde, and Gauntlet
  • The ATM Council is currently working with the managers to finalize the details of the deployments

For an overview of each live deployment’s performance, please refer to Entropy’s Treasury Management dashboard. Note that the dashboard is in the process of being updated with additional metrics, graphs, and assets/deployments as funds get allocated.

Deployments Proposed to the DAO

Entropy recently posted a proposal to consolidate idle USDC to the three active managers mentioned above. If passed, ~1M USDC from the Events Budget, ~1.5M USDC from the recently discontinued ARDC V2 that would otherwise be sent back to the treasury, as well as any non-reserved USDC from the ADPC Security Subsidies budget, would be moved to the three active managers to ensure that the DAO isn’t unnecessarily holding idle stablecoins and is instead earning yield.

Going Forward

The ATM council will begin posting complete monthly updates at the end of July, covering the monthly performance of the different deployments as well as updating the DAO on any possible capital reallocations or new initiatives. In tandem, Entropy is updating our treasury management-related dashboards and working towards establishing a DAO-wide budget as well as a runway management framework for initiatives that require USD-denominated funds. The first quarterly treasury management report will be released at the end of September.

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July '25 Update

Entropy is pleased to present the first full Arbitrum Treasury Management Monthly Report for July. The attached report provides an overview of the DAO’s Treasury Management portfolio and offers detailed insights into RWA holdings, ETH and ETH-correlated positions, and actively managed stablecoin deployments.

We have also updated our Treasury Management Dashboard with the latest deployments and metrics. This dashboard will continue to be expanded in the near term as additional deployments are executed.

If there are specific charts, data points, or other adjustments you’d like to see included, please reach out to @BricksIntern on Telegram.

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A few things that would be nice to haves in future reports:

  1. overall DAO runway estimator. based on total earmarked, planned spend, and spent funds for the last quarter or monthly period AND revenue from timeboost and treasury management.
  2. percent of AUM being managed by each manager. I want to be able to easily see which manager has the best strategy this month, and then judge them harshly.

overall, good report. many wins in here and its reported quite well. Incredible work on the Dune dashboards especially.

[I made a post summarizing the report.](https://x.com/CupOJoseph/status/1956406769317802095)

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When the actively managed stablecoins are deployed, it would be great to have a yield minus expenses (to the extent there are expense not reflected in the yield) so that it can be compared to the tbill funds, which pay their own expenses before providing yield.

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Thanks to Entropy and the ATM Council for this first monthly update — it’s a strong start for improving transparency around treasury activities. I’d like to suggest two areas for further development:

1. Financial Reporting & Cashflow Visibility

  • One area we’d love to see expanded is financial reporting. Beyond deployment snapshots, it would be very useful to incorporate the token flow report so the community can better connect the two reports to understand and track movement of tokens.

  • Even better to take it to next level, standardized financial statements would give delegates a fuller picture of the DAO’s financial health:

    • Balance Sheet: assets across RWA, ETH, stablecoin deployments, and idle funds.

    • Income Statement: yields and rewards net of DAO expenses.

    • Cashflow Statement: inflows/outflows, including program spending, grants, and service provider costs.

  • This would allow the community to evaluate not only gross yields but net performance after expenses.

  • A public report library with historical statements would further improve accessibility and institutional memory.

2. Risk Management Oversight

  • Transparency on returns is really valuable, but we’d also like to touch on risk management. Is there a regular process in place to assess the risk profiles of each position, counterparty, protocol, and strategy?

  • We would also like to inquire about the current risk management policy: for example, what are the maximum allocations permitted to a single asset, counterparty, or strategy, and how are those limits enforced?

  • Even a “risk dashboard” highlighting exposures, diversification levels, and any red flags would greatly enhance our understanding of how treasury safety is being managed.

We’re grateful for this kickoff update and see it as a strong foundation. Adding structured financial statements and making risk oversight more visible would take reporting to the next level, giving the DAO the ability to evaluate both returns and risks holistically.

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August '25 Update

Entropy is pleased to present the second Arbitrum Treasury Management Monthly Report. The attached report provides an overview of the DAO’s Treasury Management portfolio and offers detailed insights into RWA holdings, ETH and ETH-correlated positions, and stablecoin deployments.

If there are specific charts, data points, or other adjustments you’d like to see included, please reach out to @BricksIntern on Telegram.

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