ATM Council – Monthly Updates

DAO Programs & Initiatives Arbitrum Treasury Management Council
2

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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