Treasury Management
In January, new OAT-approved deployments and strategies continued to take place, while a part of the treasury management portfolio was also reallocated.
The Arbitrum Foundation finalized the staking of 3.5K ETH through etherfi’s weETH by depositing the final 120 ETH with the protocol. As communicated in the previous month’s update, the OAT approved a ~$3.6M reallocation from OpenEden’s TBILL to Spiko’s USTBL, which was executed over the latter half of January.
The covered calls pilot program on 10M ARB continued during the month, but will be potentially paused in February, pending OAT review and decision, due to negative market movements. A similar strategy was approved on 3.5K ETH by the OAT in December, and it was initiated with 1.75K ETH in January. The rest of the approved ETH is set to be deployed during February.
The OAT also approved the withdrawal of ETH & wstETH from Camelot and ETH from Fluid, as the liquidity position on Camelot was approaching the range edge, and both of the positions have produced returns below the benchmark rate for an extended period of time. The Camelot withdrawal was completed in early February, resulting in 803 ETH and 5 wstETH that can now be allocated. Due to recent market instability, the withdrawal from Fluid is currently on hold to ensure users aren’t negatively affected, and to let the market stabilize at a new equilibrium. The ETH from both of these withdrawals has been approved to be used to upsize the covered calls strategy mentioned above.
Finally, the DAO received its second revenue-share transfer (0.36 stETH) from Lido at the end of the month. More in-depth information regarding January’s developments will be shared in the upcoming Treasury Management Monthly Report.
Incentives: DRIP
Entropy recently posted a more comprehensive January update on behalf of the DRIP committee. Season One entered its final phase, as we distributed a total of 2.135M ARB over Epochs 10-12. Season One will close with a total spend of ~16.7M ARB.
Despite a broader lending market contraction in January, the decrease closely tracked with the fall in ETH’s price. The ecosystem also showed resilience in specific areas: Morpho defied the trend as the only protocol to grow (+17.1%), and yield-bearing stablecoins supply surged over 51%. We also welcomed two new eligible assets for the final epochs, infiniFi and Reservoir. A comprehensive retrospective analysis will be published in the coming weeks after the season officially concludes next week. Information and details surrounding Season Two will also be shared soon.
Ecosystem Data
The Data Team:
- Arbitrum Analytics v0: We are excited to unveil v0 of Arbitrum Analytics, starting with the DAO’s $100M AUM Treasury Management Program. This is just the first iteration. Stay tuned for more analytics about Arbitrum in the coming months!
- Variational Airdrop Simulator: The Variational Omni Points program launched in late December 2025 with 3,000,000 points retroactively distributed to existing traders. It’ll be followed by protocol distributing 150,000 points every Friday through the end of Q3 2026. This dashboard explores different scenarios for the Variational token airdrop based on this points program and provides a simulator so users can tweak parameters.
- DRIP Season 1 Arbitrum Network: The Arbitrum DRIP began on Sept 3 and during its first 10 epochs, over 13.5M ARB was allocated to incentivize users of participating lending protocols. As the program nears completion in roughly 1 month, we’ve built a dashboard to help you track incentive allocations.
Arbitrum GTM Support:
- Social Media Campaigns:
- Arbitrum Analytics v0 announcement
- Media Quotes:
- CoinDesk quoted our Robinhood Dashboard
Governance Operations & Other Initiatives
Code of Conduct and DAO Procedures
The Code of Conduct and DAO Procedures were extended by the Arbitrum Foundation to be active through March 31st, 2026. The first community feedback call was hosted last Friday on February 6th. As mentioned in the last monthly update, we believe that OpCo is best suited to own this initiative for the long term. Our team, the AF, and OpCo have begun syncing regularly to work through this iteration of the Code of Conduct and Procedures and align on how to best position it for the future.
Stylus Sprint
On behalf of the Stylus Sprint committee, Entropy provided a January update. To date, a total of 5,173,036 ARB has been disbursed, representing ~57.5% of the total budget. January saw the processing of 407,667 ARB across five payments, alongside three submitted milestones. Notable highlights include the AssemblyScript SDK integrating its first external community contribution and the initial marketing for the Move-to-Stylus compiler gaining significant traction following Vitalik’s recent post about the L2 roadmap.
Entropy hosted the first Demo Day on January 21st with 7 teams presenting. With the Sprint officially concluding on February 28th, our focus shifts to finalizing remaining milestones and preparing a comprehensive retrospective report in the coming weeks. A second Demo Day is scheduled for March 5th to showcase an additional round of Stylus Sprint projects.
Watchdog
On behalf of the Watchdog reviewing committee, Entropy provided an update of the program’s progress up to today, February 10th. Since the last report on January 13th, the program received 11 new submissions, bringing the total unique case count to 49. The reviewing committee completed 7 investigations this month, identifying 5 valid instances of misuse; to date, 24 of the 33 completed investigations have been deemed valid.
Regarding KYC, while 2 additional reporters passed verification, a majority have yet to initiate the process. We suspect lost login keys may be a factor and encourage affected reporters to resubmit their findings with a note.
Financially, the Watchdog wallet currently holds 590,387 ARB, with no new funds recovered this month. After accounting for ~79.7K ARB earmarked for rewards and ~12.6K ARB for outstanding operational costs, the program’s working budget stands at ~498,082 ARB. The committee continues to evaluate potential updates to the compensation structure.
Requests from the DAO
Please continue to reach out and pass along requests to Entropy Advisors, or visit our bi-weekly office hours on Tuesdays at 12:15pm EST. Our team is always open to input from DAO members and encourages delegates to use this time to ask Entropy questions regarding any initiative.