We are pleased to announce the process for submitting applications under the Arbitrum Stable Treasury Endowment Program, under which we select service providers for diversifying 35 million ARB into their stable, liquid and yield earning asset. Full details of the proposal here
Applications will be accepted until 1st May, after which our committee shall break to review applications. Applications received after this date may be considered subject to the decision of the committee. We are not delaying our timeline as the RFP with all questions for providers has been up for some time on Tally and is unchanged.
EDIT: some have pointed out that our Tally mentions May 5th as the final submission date. Accordingly, the deadline is extended until May 5th AoE time.
We invite interested applicants to attend our Twitter space tomorrow (Tuesday 16th April) at 3 pm UTC, where the committee members lay out what they look for in proposals and can be asked any questions you may have. Even if unable to attend, we strongly advise listening to the recording prior to final submission - https://twitter.com/i/spaces/1gqxvQYRQdRJB/
For submission, please follow these steps
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Answer all the questions listed in the RFP and create a separate topic in this category, with the title [(Provider Name) STEP Application] . In case you run into issues uploading links or photos to the forum, please get in touch with me @TheDevanshMehta on Telegram or post in our public group.
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If there are certain details you do not want to or cannot upload publicly on the forum, you may share them privately with a dedicated email address we have setup for this purpose rwa@dao.arbitrum.foundation . We will ensure these details get considered by the committee. Even if you submit certain details on email, you must answer all questions in the forum and indicate which questions have been sent via email.
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After you have created a separate topic with your application, reply under this post and link to your application.
Happy hunting! Make sure you answer all questions as thoroughly as possible and don’t hesitate to get in touch.
RFP questionnaire
This RFP will be open to all applicants with a stable, liquid and yield earning product. The screening committee will review all submissions and announce allocation between finalists for ARB tokenholders to vote upon.
After receiving applications, the committee will prepare an allocation policy for distribution to applicants and recommend a split between them. The DAO will then vote on whether to approve the split or not.
Questionnaire
Applicant information
Name
Address (Headquarters)
City, State, Postal Code
Country
Website
Primary contact Name
Title
Country
Email, Telegram, Forum, & other methods of contact
Key Information
Expected Yield
Expected Maturity
Underlying asset
Minimum/Maximum transaction size
Current AUM for product
Current AUM for issuer
Volume of transactions LTM
Source of first-loss capital
Basics and background
- How will this investment improve Arbitrum’s RWA ecosystem?
- Identify key management personnel and individual experience. Also include third parties utilized for managing assets and their qualifications.
- Describe any previous work by the entity or its officers/key contributors similar to that requested. References are encouraged.
- Has your entity or its officers/key contributors been subject to an enforcement action, criminal action, or defaulted on legal or financial obligations? Please describe the circumstances if so.
- Describe any conflicts of interest for your entity and key personnel.
- Insurance coverages, guarantees, and backstops Name of insurer or guarantor Per incident coverage Aggregate coverage
- Historical tracking error in your proposed product, or similar to that being proposed Product 2024 YTD 2023 2022 2021
- Brief reason for above tracking error
- Please describe any experience your firm has in working with decentralized organizational structures
- What is your entity’s current assets under management, assets held in trust, total value locked, or equivalent metric for your legal structuring?
- How many of these assets held are present on Arbitrum One, if any?
Plan design
- Please describe your proposed product, including a description of the underlying assets and, if more than one asset, the proposed allocation among assets and general investment guidelines. Where appropriate, include targeted maturity mix and credit quality. Attach supplementary documents as appropriate.
Do investors have any shareholder, investor, creditor or similar rights?
- Describe the legal and contractual structuring for your product including regulatory bodies overseeing your business and the product and identifying all legal jurisdictions interacting with your product. Attach supplementary documents as appropriate.
- Would Arbitrum’s assets be bankruptcy remote from your own entity and its officers/key contributors? If so, please explain the legal and contractual basis. On a confidential, non-reliance basis, provide any third party legal opinions to support the conclusions.
How are Arbitrum’s assets protected vis-a-vis the bankruptcy of the brokerage or applicable financial institution (e.g., bank deposit insurance, securities insurance, etc.)?
Does the Issuer issue more than one asset? If so, what is the priority relationship between different asset classes?
- Provide a detailed cash flow diagram that shows the flow of funds from ARB/Fiat conversion, investment in underlying asset, payment of expenses, sale of underlying asset, and repayment (Fiat/ARB conversion), including the counterparties and legal jurisdictions involved.
- Describe anticipated tax consequences (if any) in transacting on the underlying and/or receipt of yield.
- Describe the process and expected timeline for liquidation of assets, if given instructions to do so by Arbitrum governance.
- What amount of first-loss equity will Sponsor provide to ensure over-collateralization, how is the first-loss equity denominated, and what is the source of capital?
- Describe the liquidity and stability of the proposed underlying assets, including anticipated settlement times from the sale of the underlying to the repayment of ARB.
- If relying on the blockchain for any of the transactional flows, please describe any blockchain derived risks and mitigations.
- Does the product rely on any derivative product (swaps,OTC agreements?
- List all the third party counterparties linked to your assets including and not restricted to prime broker if any, custodian, reporting agent, banks for derivatives or loans and provide primary contact details for the third party counterparties
- Can you explain how is risk management (inv and operational) being done? Can you provide a copy of your risk management policy?
Performance reporting
- What are your proposed performance benchmarks? If this is substantially different from the underlying assets, please explain why.
- Describe the content, format, preparation process, and cadence of performance reports. This should include proof of reserves, if appropriate. Please include a sample report.
- Who provides the performance reports in respect of the underlying assets?
- Describe any formal audit process and timing of such audits.
Pricing
- Provide a copy of your standard contract, or one similar to what is being proposed here.
- Fee summary: Inclusive of the full scope of services requested. Product Fee schedule If asset based Fee calculation for our plan if asset based Annual fee if flat fee Any other fees (including redemption or minting fees)
- Describe frequency of fee payment and its position vis-a-vis payment priority compared with other expenses (i.e., cash waterfall)
Smart Contract/Architecture
- How many audits have you had and name of auditors? Please provide a copy of reports.
- Is the project permissioned? If so how are you managing user identities? Any blacklisting/whitelisting features?
- Is the product present on several chains? Are there any cross chain interactions?
- Are the RWA tokens being used in any other protocols? Please describe the various components of the ecosystem
- How are trusted roles/admins managed in the system? Which aspects of the solution require trust from users?
- Is there any custom logic required for your RWA token? If so please give any details.
Supplementary
- Please attach any further information or documents you feel would help the screening committee or ARB tokenholders make an informed decision.
