While we acknowledge that the GMC is actively iterating to make the program more inclusive toward a broader range of protocols, we want to express concerns regarding the current selection approach. We understand the rationale behind prioritizing the best risk-adjusted yields and security within the Arbitrum ecosystem, but the decisions so far reflect inconsistencies.
If the goal is a purely security-oriented approach, then selecting a protocol that has only been live on Arbitrum for a few months contradicts that standard. This is not to comment on the protocol itself, but to ojectively highlight that it does not meet the same criteria as the other selected protocols and therefore is a flaw in the selection process. Even if the primary objective is safe yields, there is no excuse for why Arbitrum-native protocols that are integral to the ecosystem’s success can not also be included. The absence of any Arbitrum-aligned protocols signals—intentionally or not—that the DAO sees no safe yield opportunities on its own chain. This perception, reflected in public feedback, raises obvious questions.
We also recognize, after discussions with Entropy and other stakeholders, that there has been an acknowledgment of limited foresight regarding currently available Arbitrum-native protocols. Additionally, passive engagement with proposers has likely contributed to the current outcome.
To be clear, we are not advocating for any specific protocol to be forcibly included, as we understand that liquidity provisioning is not a priority in this iteration and that a more passive management approach is being maintained. However, given that the committee is compensated for its role, there is no reason why the program cannot achieve both objectives: conservative, safe yield generation while also supporting and aligning with the protocols actively building on Arbitrum—protocols that drive revenue to the DAO’s treasury in the first place.
Balancing sustainable DAO growth with ecosystem alignment is a challenge, but we believe that future iterations of this program should be refined to better serve Arbitrum and the ecosystem that has enabled the chain to succeed.