Entropy Advisors Monthly Update: November 2025

[Entropy]

Treasury Management

At the beginning of November, the DAO approved the proposal to move 8.5K ETH from the treasury to the custody of the Arbitrum Foundation to be allocated by the ATM. Entropy collaborated extensively with the Arbitrum Foundation and OCL during the month as a result of the ETH addition to the TM portfolio and to reallocate certain stablecoin and RWA positions. The first ETH allocation suggestion was declined by the OAT, citing a desire for a higher-yielding allocation composition. The updated suggestion was approved by the OAT at the beginning of December, with 1.5K ETH being deployed into GMX, 3.5K ETH staked through ether.fi’s LRT, weETH, and 3.5K reserved for an ETH options strategy.

A suggestion to deploy ~$1.7M worth of stablecoins into Gauntlet’s USDC Core vault on Morpho’s Arbitrum deployment was approved by the OAT in the middle of November, and deployment took place in late November. The DAO’s RWA portfolio will see a slight restructuring in the short term as a result of a new opportunity to collaborate more closely with certain providers. The OAT additionally approved a pilot program for a 10M ARB covered call strategy, which will be initiated in early December.

With most deployment and reallocation suggestions now finalized, the ATM is in the process of restructuring more of the legacy positions in the portfolio, most notably ETH and RWA holdings. More in-depth information regarding the previous month’s developments will be shared in the November Treasury Management Monthly Report.

Incentives: DRIP

Earlier today, Entropy posted a November DRIP update.

The DRIP Season One performance phase continued to progress through Epochs 6 and 7, seeing a total allocation of 1.595M ARB from the base budget and 2.47M ARB from the discretionary budget. Following the Stream Finance insolvency event, the program shifted its focus back towards yield-bearing ETH assets. With rewards being resumed on Aave, Arbitrum has seen a significant increase in its WETH market size (~76k ETH) and Aave’s Arbitrum instance is now the largest of any L2. With rewards scheduled to begin tapering in December, soon, Entropy anticipates that the full 24M ARB budget will not be utilized before the end of Season One, which is still schedule to conclude on January 20th, 2026.

Ecosystem Data

Arbitrum GTM Support:

• Conferences:
  • Entropy had a strong presence at Devconnect in Argentina, with a few highlights below:
    • The team assisted in hosting the Arbitrum booth at Arbiverse and had a robust representation at La ArbiCasa, organized by OpCo, as well as ArbiPanadas, meeting with countless builders and DAO contributors.
    • Ali represented Entropy Advisors at DuneCon25, presenting on the Arbitrum DAO and our support for its treasury management. He covered how the DAO has diversified revenue beyond transaction fees and Orbit licensing to include Timeboost auctions and strategic asset deployment through the Treasury Management Program. The presentation emphasized how these initiatives are strengthening the DAO’s financial resilience and supporting long-term ecosystem growth.
    • Brick moderated a panel on Liquidity, Stability, and Access for Emerging Markets, held at the Arbitrum Bridge LATAM event organized by SEED Gov in connection with ArbiVerse. The discussion primarily covered the role of stablecoins with respect to adoption by retail and institutional users, particularly in South America, and how the vertical is expected to develop in the next 5 years.

The Data Team:

• Timeboost Academic Research Report:
  • Ali contributed on the data side to power an academic study on TimeBoost auctions, conducted in collaboration with OCL, Flashbots, and Matroos. The research analyzed how TimeBoost’s fast-lane auctions correlate with actual transaction value (MEV profits) and found that minute-by-minute bids are weak predictors of realized gains, though aggregation over longer intervals improves predictability. Our work helped provide the onchain data and analysis necessary to validate these findings, supporting the broader goal of demystifying TimeBoost mechanics, market incentives, and efficiency implications.
• Pendle Dashboard (WIP):
  • The team is developing a Pendle dashboard to provide a clear, data-driven view of the protocol, a flagship project on Arbitrum and a leading yield-trading protocol in the broader EVM ecosystem. The dashboard will cover Pendle’s core mechanics, including Principal Tokens (PT) and Yield Tokens (YT), PendleSwap’s AMM for yield trading, and market activity across different yield-bearing assets. Users will be able to track fixed and variable yields, liquidity provision, and trading performance in one place. It will also include financial metrics and notes to help stakeholders understand protocol dynamics and make informed decisions. This initiative continues Entropy’s focus on building analytics tools that make complex DeFi protocols more transparent and actionable.
• Enhancement of Treasury Management Dashboard:
  • The treasury management dashboard is being enhanced to provide deeper insights into the DAO’s revenue and investment strategies. It now tracks incentive APY from Merkl, incorporates new protocols including Spark, Compound, and Fluid, and supports newly deployed strategies such as KPK’s actively managed positions and the Gauntlet USDC Core Vault on Morpho. These updates allow stakeholders to monitor performance, yield, and risk across a broader set of treasury assets and strategies. The enhancements continue to strengthen data-driven decision-making and improve transparency around the DAO’s treasury operations.
• Enhancement of Variational Dashboard:
  • The Variational Dashboard has been upgraded to include a new Referral Rewards Distribution section, tracking rewards that are part of the protocol’s overall revenue. As a new Arbitrum-native perpetual DEX with $70M TVL, Variational’s dashboard enhancements allow stakeholders to monitor performance, engagement, and revenue attribution across loss refunds and referral rewards.

Governance Operations & Other Initiatives

The revised Code of Conduct and DAO Procedures remain active. As a reminder, the DAO’s holiday break begins after voting is concluded on December 18th.

@Entropy

DAO Holiday Break: December 18th, 2025 - January 5th, 2026

The DAO agrees to a holiday break to allow contributors a break and enable them to return refreshed for the new year. During this time contributors should aim to have no Snapshot or Tally voting occur from December 18th, 2025 to January 5th, 2026. To ensure this, temperature checks on Snapshot should begin no later than Thursday, December 11th, and Tally votes scheduled by Monday, December 1st. It is expected that proposal authors be cognizant of timelines and aim to have all voting wrapped up by Thursday, December 18th, if possible.

Stylus Sprint

Entropy posted an update on behalf of the Stylus Sprint committee earlier today. 4,269,369 ARB (about 47.44% of the total budget) has been disbursed to date, including 623,333 ARB disbursed this month as we processed 6 payments and saw 6 new milestones submitted from the following teams: Thirdweb, Wakeup Labs, Arbos-Foundry, and Angel.

A major highlight of the month was Devconnect in Buenos Aires, where the committee connected with a majority of our teams and Wakeup Labs hosted an intimate Stylus developer meetup. The committee also finalized two scope adjustments and milestone amount increases this month, adding 100k ARB to StylusFuzz and 200k ARB to Walnut.

As the Sprint deadline approaches, Entropy is actively discussing with the AF and OCL what continued support for participating teams can look like based on the 2026 roadmap for Stylus. Finally, we are weighing the necessity of small extensions for certain projects, but it is still our goal that teams are wrapped up by the end of January.

Watchdog

As of November 30th, there were a total of 55 reports, but in recent weeks the number of new submissions slowed and several of the new reports were duplicates. The reviewing committee is continuing to meet each week to work through all of the submissions.

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.