Entropy Advisors Monthly Update: July 2025

DAO Programs & Initiatives Entropy Advisors Updates
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Recap of July 2025

  • Stylus Sprint: Teams are continuing to execute on their outlined milestones. Entropy has posted an update on behalf of the Stylus Sprint committee that recaps the work completed in the month of July. We are excited to share that CoBuilders is the first team to complete their Stylus Sprint work: Stylus Cache Manager.
  • Arbitrum DAO 2025 Events Budget & Consolidation of USDC: On July 14, Entropy posted a proposal to consolidate idle USDC into the ATMC’s stablecoin balance. As part of that proposal, the 2025 Events Budget will remain active, but its funds will now earn yield while idle.
  • Treasury Management v1.2 & STEP & Arbitrum Treasury Mgmt. Consolidation: The various treasury-related forum sections have been consolidated into a single unified category titled Arbitrum Treasury Management Council to streamline communications and improve transparency around treasury management. A kickoff update was posted summarizing deployments, including RWAs, ETH strategies, and stablecoin allocations. As part of the consolidation proposal, Steakhouse was offboarded as the STEP 1.0 program manager at the end of June, with the program’s reporting now falling under the ATM initiative. STEP 2.0-related allocations were finalized in July, with in-depth details being made available through the ATM’s monthly and quarterly treasury management updates. The Treasury Management Dashboard remains available and is being updated to reflect new metrics and live fund movements for those seeking real-time insights. On July 14, Entropy posted a proposal to consolidate idle USDC into the ATMC’s stablecoin balance. The proposal outlined reallocating the 2025 Events Budget ($1.04M USDC), unused ARDC V2 funds ($1.5M USDC), and any remaining ADPC Security Subsidies to the ATMC. The Snapshot vote to consolidate the USDC in these programs passed on July 31st.
  • Watchdog Program: Entropy completed the necessary customizations to the Watchdog portal in July. Additionally, the reviewers from the Arbitrum Foundation and SeedGov have been onboarded. The remaining required network changes are pending completion by the Foundation, more details can be found in the proposal’s thread.
  • Updating the Code of Conduct & DAO’s Procedures: In July, Entropy posted an updated proposal to extend and revise the Code of Conduct and DAO’s Procedures. It passed on Snapshot on July 25 with ~159M votes in favor (90.75%), marking the start of a second trial period through January 31, 2026. This version includes revised language for the Code of Conduct and introduces three key changes to the DAO’s Procedures, which include a fallback process for if a DAO-elected member steps down and needs to be replaced, as well as cancellation requirements for ongoing initiatives, and the removal of the Responsible Voting Policy due to enforcement challenges. Shielded elections and predictable voting schedules remain, and the Holiday Break is scheduled for December 18 to January 5. Refined versions of both documents have been posted in the Guides and Documentation subcategory. The DAO can revisit its procedures and evaluate whether the Code of Conduct should be formalized into the Arbitrum Constitution following the conclusion of the second trial.
  • Strategic Objective Setting (SOS): In July, L2BEAT hosted two SOS workshop calls to initiate DAO-side discussions on Objectives and Key Results. Entropy is actively participating and has been exploring ways to modify the SOS initiative’s structure to ensure participation from key parties as well as meaningful progress and finalization.
  • DeFi Renaissance Incentive Program (DRIP): Entropy posted a short update regarding Season 1 of DRIP last week. To summarize, Objective Labs (optimization + evaluation) and Merkl (distribution + frontend) were onboarded as the Evaluation and Distribution partners. A third service provider was engaged to create professional branding for the program. Season 1 will focus on ETH and stable looping strategies: incentivizing users to borrow against ETH and stablecoin yield-bearing assets.
  • ARDC V2: The ARDC V2 extension vote was brought to Snapshot on July 4 and concluded on July 11. With ~140.1M votes (79.83%) voting not to extend, the program has now formally concluded. An ARDC V2 Final Update & Concluding Report was published on July 23 and final invoices have been processed by the Arbitrum Foundation, marking the conclusion of the ARDC.
  • Wind Down the MSS + Transfer Payment Responsibilities to the Arbitrum Foundation: The MSS has fully dissolved, and all responsibilities have been transferred to the Arbitrum Foundation. No active workstreams remain under the MSS, and the post-mortem marks the formal conclusion of the initiative.
  • Entropy Advisors Exclusively Working with the Arbitrum DAO, Y2-Y3: Following forum discussions and community feedback, the proposal for Entropy Advisors to continue exclusively working with the Arbitrum DAO through Years 2 and 3 moved to Snapshot on July 9 and passed with ~163.6M votes (79.15%). The Tally vote is now live and will conclude on August 7th.
  • Arbitrum GTM Support:
  • The Data Team:
    • Fluid Lending: Part of the Ecosystem Support initiative, this dashboard covers Fluid Lending, a protocol that enables users to earn yield by supplying assets. Designed for simplicity and efficiency, it connects directly to Fluid’s unified liquidity layer, offering seamless access to optimal rates without requiring fund migration.
    • Fluid Liquidity: This dashboard tracks the Fluid Liquidity Layer, which unifies liquidity across the ecosystem to support Lending, Vault, and DEX protocols. By removing the need for each protocol to source its own liquidity, it boosts capital efficiency and ensures smooth interoperability for users and builders.
    • Arbitrum Governance Proposals (Enhancement): Following the recent DAO vote to reduce the constitutional quorum from 5% to 4.5% of total votable tokens, we updated our governance dashboard to reflect this change.
    • Arbitrum RWA Landscape (Enhancement): With the finalization of STEP 2.0 deployments, Arbitrum DAO has now allocated capital to 3 additional RWAs through the Treasury Management Program: Franklin Templeton’s BENJI, WisdomTree’s WTGXX, and Spiko Finance’s USTBL. The dashboard now tracks these positions, including holdings, APY, and interest calculations.
    • Arbitrum Network Overview (Ongoing): This in-progress dashboard is designed to provide a comprehensive view of Arbitrum One. It will cover network metrics, revenue, key protocols, and other core indicators, offering both the DAO and broader ecosystem a unified source for assessing Arbitrum’s overall health and growth.
    • Franklin Templeton: BENJI (Ongoing): This dashboard supports the DAO’s STEP initiative and broader treasury management efforts by highlighting the Franklin Templeton BENJI allocation. It aims to promote the collaboration between Arbitrum DAO and Franklin Templeton, while also educating the DAO and the wider industry about tokenized assets. By analyzing BENJI across multiple blockchains, the dashboard helps contextualize Arbitrum’s positioning within the tokenization landscape and contributes to increased transparency around the DAO’s real-world asset strategy.

Current Initiatives

  • Stylus Sprint: Our team’s focus remains on monitoring progress, ensuring timely milestone evaluations, and working with OCL’s marketing team to amplify deliverables when appropriate.
  • Arbitrum DAO 2025 Events Budget: With the Snapshot vote to consolidate USDC now passed, Entropy is coordinating with the Arbitrum Foundation and the ATMC to complete all transfers. The Events Budget process remains unchanged through 2025, while idle funds from ARDC V2 and ADPC will be routed to the ATMC to be deployed at its discretion.
  • Updating the Code of Conduct & DAO’s Procedures: Following the successful Snapshot the proposal is now in effect, extending the trial period and introducing clearer processes for initiative cancellation and member replacement. Entropy and the Foundation will continue observing how these updates function in practice, with an eye toward possible constitutional inclusion after January 2026.
  • Treasury Management v1.2 & STEP & Arbitrum Treasury Mgmt. Consolidation: Now that all treasury management-related initiatives have been consolidated into a single forum thread, the ATMC will begin posting full monthly reports covering the portfolio’s performance, reallocations, new deployments, etc. The first report will be posted in the coming days, pending a few data requests to the Foundation. In parallel, Entropy is updating our treasury-related dashboards (here & here) and building a DAO-wide budget and runway framework to formalize the DAO’s financial planning over the coming months. A full quarterly treasury report should be expected to be posted in early October.
  • Watchdog Program: Pending the completion of the final network updates, the Watchdog portal is complete. Marketing materials are being prepared in anticipation of an official launch.
  • Strategic Objective Setting (SOS): Entropy will continue collaborating with key stakeholders, delegates, and other AAEs to push the initiative forward.
  • DeFi Renaissance Incentive Program (DRIP): Entropy is continuing to coordinate with stakeholders, service provider partners, and participating protocols to ensure a structured rollout of Season 1. The details of the first season’s design in regards to epoch structure and allocations are being finalized and will be shared shortly. DRIP’s brand is close to being finalized, and Merkl will soon begin building the landing page. Leading up to incentives going live, DRIP Season 1 will be marketed across Arbitrum, Entropy, and participating protocols’ accounts to amplify the program and its opportunities. It is our goal to launch Season 1 by the end of August; however, this is subject to change based on the readiness of all parties involved.
  • ARDC V2: Following completion, remaining funds will be reallocated per the ATMC strategy, as outlined in the Consolidate Idle USDC proposal. Entropy’s work with the ARDC V2 has now concluded.
  • Entropy Advisors Exclusively Working with the Arbitrum DAO, Y2-Y3: Entropy’s Y2-Y3 mandate is now undergoing onchain ratification via Tally until August 7th. If approved, the new term will begin on September 1st and focus on transforming Arbitrum into the most effective capital-allocating DAO in crypto through disciplined treasury deployment, structured incentives, real-time analytics, and high-leverage special initiatives.

Goals for August

There is a lot of groundwork that must be done as we begin to narrow our focus on the main verticals we laid out in Entropy’s Years 2&3 proposal, which looks poised to pass on Tally.

  • Arbitrum Treasury Management Council: We remain in the process of getting all of the funds deployed that have previously been allocated as part of treasury management. We are also creating the standardized frameworks for monthly and quarterly reporting, while also fine-tuning our Treasury Management dashboard to include additional helpful metrics and track all of these activities.
  • DeFi Renaissance Incentive Program: As the necessary details come into place, we are hopeful to launch Season 1 of DRIP by the end of August. However, Entropy will be monitoring feedback from participating protocols to determine if they need more time to prepare for Season 1.
  • Watchdog Program: Entropy remains in communication with the Arbitrum Foundation on the status of the pending network updates. Following the completion of these, the program is ready to launch. We are hopeful that this can occur in August.
  • Stylus Sprint: As the first teams begin to near the completion of their work, Entropy is in the process of working with OCL marketing to promote the Stylus Sprint and its outputs more heavily.
  • Data Team:
    • Launch the Franklin Templeton: BENJI dashboard to support the DAO’s RWA strategy under STEP
      Launch the Arbitrum Network Overview dashboard to provide a holistic view of network activity and ecosystem metrics
    • Enhance the Treasury Management Program dashboard to include new deployments: Aave, Camelot, and Active Strategies
    • Scope out the analytics framework for DRIP
    • Begin work on a new protocol as part of the Arbitrum Builder Support initiative
    • Host the second Arbitrum Data Workshop, focusing on DAO governance and delegates

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 1:15pm ET. Our team is always open to input from DAO members on which problems we should dedicate our efforts towards.

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