Non-Constitutional: Stable Treasury Endowment Program 2.0

[thedevanshmehta]

i’ve just updated the proposal with the latest thinking!

@Immutablelawyer

Could you provide specific data on the financial performance of the $30 million endowment in terms of yield generated so far?

So far, its $167k, estimated to be $875k annually.

You can track yield earned in real time at this dune dashboard: https://dune.com/steakhouse/step-dashboard/1b508c7c-63ec-42e9-86d9-c3a86d23766e

@Immutablelawyer

What specific metrics or KPIs should the community look for in the monthly report from Steakhouse to evaluate STEP 1’s success before proceeding with STEP 2?

I think an important overall metric is the ratio of RWAs owned by ARB DAO vs total RWAs on arbitrum

Currently its around 18% of RWAs are from the DAO, we’ve seen insane growth since the STEP program where RWAs as a portion of our TVL grew from $100k at beginning 2024 to now nearing $85 million.

@Immutablelawyer

You mention avoiding liquidation when ARB is at all-time lows

@Immutablelawyer

• Are there contingency plans if the price of ARB does not reach the target level in a reasonable timeframe?

We have changed this language to give full rein to the foundation. Let them cook without any instructions from us

@Immutablelawyer

• You note that Steakhouse’s term is for one year. How will the community ensure accountability and performance evaluation for the current program manager before considering an extension or additional funding?
• Will the proposal include any budget for increased responsibilities, or is that planned for a separate proposal?

This will be a separate proposal, not included here. Mainly because we don’t know how long the new investments in step 2 will take to deploy and whether that would fall under their current term or be delayed until their next one.

In any case, Steakhouse will have to make a tally proposal for the remaining 6 months of their contract to be paid to them from the yield earned so a lot of these questions will be asked and answered then.

@Immutablelawyer

• Beyond ecosystem growth, what financial targets (e.g., yield percentage, asset allocation goals) does STEP 2 aim to achieve?
• How will the DAO measure the success of diversification in terms of risk management and yield generation?

We are starting off with the lowest risk product, T-bills or money market instruments, even for STEP 2. They make the most sense to double down on given that 99% of Arbitrum RWAs are of this form so we need to be supporting this particular subsector.

Our main quantitative metric is growth of RWA as a percentage of total TVL on arbitrum. And a sub metric is the proportion of that RWA TVL which is owned by ARB DAO vs by others on the chain.

The qualitative metric is number of RWA providers who launch their products on arbitrum. Getting them here is key.

@Immutablelawyer

• You propose taking STEP 2 to a snapshot vote after Steakhouse’s first report. Has the report been published?

We have 2 reports out so far!

October: https://forum.arbitrum.foundation/t/step-report-october-2024/27642

November: https://forum.arbitrum.foundation/t/step-report-november-2024/27914

@Immutablelawyer

• You suggest that transferring funds and committee work should proceed in parallel to optimize timing. How will the DAO ensure that the committee’s decisions align with the community’s expectations if funds are transferred beforehand?

Funds are transferred to the Arbitrum Foundation who give the payouts for opex.

committee members get paid 10k ARB upon completion of work ie ratification of recommendations by the DAO. The remaining 15k ARB will be streamed over 3 years to get long term alignment.

Hope that answers all the questions! We’ve updated the main proposal in the first post with some of these details too