Thanks for the updated proposal @LuukDAO
We can see the value in Treasury Swaps but only when there is a clear & tangible strategic benefit for both parties. A clear example of this was Aave <> Balancer as mentioned in your Ecosystem Enablers report. Unfortunately, outside of similar examples to the above, there is little evidence to suggest such programs are truly beneficial to either DAO. This is also highlighted quite clearly in your research report when analysing the status of each prior token swap
We are also concerned about providing ARB tokens to protocols that do not have a sufficiently decentralised governance structure. A lot of protocols lack any onchain governance infrastructure where treasuries and token activities are handled by the team, foundation, or multi-sigs, meaning there is very little input from tokenholders of these protocols. On the hand, how does the ArbitrumDAO expect to handle all tokens from the treasury swaps and who will be in charge of this? This once again, will likely require additional funding
Furthermore, ARB is significantly more liquid than most other tokens in the Arbitrum ecosystem. Therefore, it’s very likely that protocols will utilise ARB to fund expenses as it means they suffer from less slippage and they can forego putting selling pressure on their own token. Now if the Arbitrum DAO ever decides to sell tokens of other protocols, it would be rather controversial and sends a strong signal
Lastly, we would love to hear some justification over the costs for staff. 5k ARB / week is a significant amount of money
Thanks