Treasury Management
During the month of July, capital from the TM portfolio was transferred to the Arbitrum Foundation following the passing of the Continued Funding for the Arbitrum Foundation onchain vote in late June. To fulfill the 1.74K ETH requirement, the DAO’s position in the GMX GLV WETH-USDC vault was divested into roughly 2K ETH, with the surplus tokens having been staked through Lido as wstETH. Additionally, $10.2M worth of BUIDL and $5.6M worth of USDY were transferred to the AF, with roughly $300K worth of USTBL still to be transferred. The TM portfolio also received a $7M injection through funds sent over from the AGV.
Covered calls were written on 6.75K ETH notional in late July, and the DAO received 0.23 stETH from the Lido Reward-Share Program during the month, covering the Q2 period. The APY earned on the TM portfolio’s ETH holdings steadily increased during the month, rising from 2.9% at the beginning of July to 5.2% EoM.
Withdrawals from Gauntlet’s USDC Core vault on Morpho were initiated. To date, $1.63M has been withdrawn, with the DAO still holding $116K in the vault. $8.6M USDC was deposited into Spark’s sUSDC.
Incentives: DRIP
As stated in our previous updates, there are several strategic developments in flight that materially affect what an effective Season 2 should be designed around. These conversations are still ongoing and unfortunately until they are confirmed we can not share many details publicly. To reiterate, the OAT, OpCo, Offchain, and the Arbitrum Foundation have been looped in throughout these discussions.
Ecosystem Data
The Data Team:
- Robinhood Chain Analytics Expansion: Expanded the coverage to 50 protocols across the ecosystem and gave the industry a single view of where activity and liquidity actually sit on the chain.
- Variational Analytics: Supporting the growth of Variational, an Arbitrum native protocol, with a dedicated analytics product.
- Arbitrum Founder House: Ali gave a presentation, breaking down Arbitrum’s technology and economics for the builders on Arbitrum.
- Indexed Podcast: Discussed Robinhood Chain analytics on the Indexed podcast, covering the strategic rationale behind the chain and Arbitrum’s role and opportunities with this expansion.
Governance Operations & Other Initiatives
Watchdog
Over the last month the Watchdog Program only received 1 new report, which was found to be invalid. The committee is still investigating the case mentioned in last month’s update and is also awaiting for its conclusion to post the prepared proposal to ban projects found of high severity misuses, as outlined in the 6-month retrospective posted in April.
The 2 earmarked payments for reporters that had not started KYC were forfeited in July following the passing of a 3 month deadline. Given that no additional ARB was recovered in July and these payments are now forfeit, the program’s working budget sits at ~561K ARB. With the finances of the program in a steady state, the Watchdog committee will begin working to move the program’s payment & KYC capabilities over to the OpCo.