Final: Arbitrum Stable Treasury Endowment Program

I won’t dabble too much into the discussion of RWA asset.

I think passive income, denominated in usd, is key in a 4-5-6 bill treasury. Would also, personally, question, why the dao should incour the crypto risk with the fee on top while it would just make more sense to access t bill directly (higher yield, less risk in general), and not sure if this was mentioned yet.

But, going into the discussion that increasing liquidity on dexes could be key to enhance the stability of $ARB as asset in light of sells from grant programs, why don’t we try to solve for both the problems (diversification of treasury, enhancing liquidity to avoid fluctuations from grant programs) by

  • otc sale some arb for ETH, USDC
  • provide liquidity in the major dexes
  • plan to reassess this liquidity every quarter?

The reason is simple. By otc a portion, we would as first get exposure to different assets than arb.

By providing LP, we would provide utility to the market, in general.

By assuming that we are in a potential start of a new market cycle that could last maybe 18-24 months, we basically put this LP position as a constant limite sell of arb against the asset to which is paired with (eth, usdc), thus increasing exactly (well not exactly, will be the square root) accordingly to how much the market will value arb as a token and as an ecosystem these assets.

And, by assessing this position every quarter, we will be able to decide/vote if it’s time to reduce the portion of available dex liquidity, that hopefully will be increased by several folds in >1y, thus increasing runaway of the dao in non arb amount.

EDIT forgot to write the key part here. Idea would be to seed a pool of arb against an RWA asset, alongside what is already available.

EDIT 2: voted for, makes a lot of sense to move forward and get some RWA in the belly of the DAO. The amount is not such that will make a huge impact in term of yield, more in term of stash in usd terms, but is a start to get the toes wet on asset diversification.

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