Entropy Advisors Monthly Update: September 2025

DAO Programs & Initiatives Entropy Advisors Updates
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Treasury Management

Entropy published the August ATMC Report, which showed the portfolio increasing by $8.3M to $87.9M. This growth was primarily driven by a 20% rise in ETH’s price and a $2.9M injection from the Events Budget, ARDC V2, and ADPC Subsidy Fund. Deployment activity included 249 wstETH LP’d into Camelot and $4.5M USDC allocated to Gauntlet’s Prime Vault on Morpho. RWAs remained unchanged, earning $138K in interest. The ATMC’s forum section and dashboard continue to serve as the central source for real-time updates. The first full quarterly report will be posted in October.

In late September, Entropy posted a snapshot proposing to transfer 8,500 ETH from the DAO treasury to the Arbitrum Treasury Management Council for deployment into yield-generating ETH strategies. The Snapshot vote ran from September 25 to October 2 and passed with 113M votes FOR. However, to properly address feedback and make sure delegates are as aligned as possible, the Tally vote has been pushed back and a community call has been scheduled for Thursday, October 9th. During this call, Entropy will also share a high-level draft of an Investment Policy Statement, focusing on weighing ecosystem growth and yield opportunities.

Looking forward, contracts for kpk and Avantgarde are being finalized by the Arbitrum Foundation legal team, after which the remaining $3.3M USDC will be deployed across the two managers. Entropy continues to iterate on the Treasury Management dashboard and budget framework.

Incentives: DRIP

September marked the launch of DRIP Season 1. Since then Entropy has posted two updates, one recapping the launch and a recent recap of epochs 1 & 2. Overall, we are pleased with the early results, both on the campaign front but as well as the marketing/visibility we were able to achieve on launch.

To briefly recap the September update, while Entropy originally projected spending 15% (2.4M) of the program’s base budget (16M) during the discovery phase, only 1.62M ARB of the base was allocated due to an adjustment made in epoch 2 to focus more heavily on stablecoin markets. This decision was influenced by the high cost of attracting the ETH levels required to enter into loops. The epoch structure of DRIP made it possible to adapt quickly to changing market conditions and this remains a top priority as we monitor the effects of other recent high profile incentive campaigns/chain launches.

Looking forward, October marks the shift to the 3-month performance phase, which is designed to maximize efficiency and competition. During this phase, markets and projects that are more successful will receive a greater share of the total incentives. Lastly, more resources will start to be placed towards Season Two ideation and preparation.

Ecosystem Data

Arbitrum GTM Support:

The Data Team:

  • Builder Support:
    • Euler Liquidity: This dashboard supports DRIP Season 1 protocols by tracking Euler’s liquidity on Arbitrum and comparing Arbitrum’s dominance against other networks.
    • Morpho Liquidity: This dashboard supports DRIP Season 1 protocols by tracking Morpho’s liquidity on Arbitrum and comparing Arbitrum’s dominance against other networks.
  • Program Analytics:
    • DRIP: These 3 dashboards are designed to highlight DRIP’s impact on liquidity and usage across key lending markets, showcasing Arbitrum’s position as the leading environment for capital-efficient DeFi activity. It provides the community, delegates, and broader industry with transparent data to evaluate program effectiveness, while also tracking performance across lending markets to enable data-driven decisions and optimize the efficiency of every dollar allocated.
    • DRIP Data Workshop: We hosted the second Arbitrum Data Workshop to educate delegates on DRIP and how to analyze its growth and adoption on Arbitrum. The session covered three key dashboards: DRIP Lending Protocols, DIRP USD Assets, and DRIP ETH Assets.

Governance Operations & Other Initiatives

The revised Code of Conduct and DAO Procedures are now active, with Entropy and the Arbitrum Foundation continuing to monitor implementation and assess readiness for potential constitutional inclusion after January 2026.

Stylus Sprint

Entropy published a September update on behalf of the Stylus Sprint committee, highlighting continued progress across participating teams. To date, 3,233,536 ARB has been disbursed, representing approximately 35.9% of the total program budget. Entropy is continuing to review milestone progress to ensure teams remain on track for the January 2026 deadline and collaborating with OCL’s marketing team to prepare highlights where appropriate.

Watchdog

With the Watchdog portal launching in September, the program has begun receiving reports of suspected grant misuse. The committee consisting of Entropy, the Arbitrum Foundation, and SeedGov are now actively coordinating to investigate the incidents and determine their validity.

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 and encourages delegates to use this time to ask Entropy questions regarding any initiative.

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would love your take on what a Delegate Incentive Program for Arbitrum should look like, if you even think there should be one in the first place at all.

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