# \[RFC\] Protocol Participation Request: DAO Liquidity Injection via Smart Contracts into Paribus on Arbitrum

**URL:** <https://forum.arbitrum.foundation/t/rfc-protocol-participation-request-dao-liquidity-injection-via-smart-contracts-into-paribus-on-arbitrum/29331>\
**Category:** Governance Discussion\
**Tags:** proposal, governance\
**Created:** [May 29, 2025, 2:35pm UTC](https://forum.arbitrum.foundation/t/rfc-protocol-participation-request-dao-liquidity-injection-via-smart-contracts-into-paribus-on-arbitrum/29331 "2025-05-29T14:35:51Z")\
**Posts on this page:** 1\
**Showing post:** 1

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**Author:** ![Nikola\_Paribus](https://avatars.discourse-cdn.com/v4/letter/n/bbe5ce/32.png) [@Nikola\_Paribus](https://forum.arbitrum.foundation/u/Nikola_Paribus)\
**Post date:** [May 29, 2025, 2:35pm UTC](https://forum.arbitrum.foundation/t/rfc-protocol-participation-request-dao-liquidity-injection-via-smart-contracts-into-paribus-on-arbitrum/29331/1 "2025-05-29T14:35:52Z")

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### **Summary**

We respectfully request that the Arbitrum DAO consider using its own liquidity — such as $ARB, $USDT, $ETH, or $BTC — directly within the Paribus lending protocol on Arbitrum **through smart contracts**. This does **not require any grants or fund transfers to wallets**. The goal is to help bootstrap interest rates and utilization in a secure, transparent, and fully on-chain manner.

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### **About Paribus**

Paribus is a non-custodial, **non-P2P lending and borrowing protocol** deployed on Arbitrum, Ethereum, and Lumia. It supports a wide range of collateral types, including:

- Native assets: $ARB, $ETH, $BTC, $USDT
- LP tokens from Camelot (e.g., $ARB/$WETH, $USDT/$USDC)
- NFTs (Ethereum chain)
- RWAs, and metaverse assets (coming soon)

Paribus uses a **pooled liquidity model** , offering instant loan fulfillment without peer-matching delays. It has been **audited 6 times** (5x Hacken, 1x Zokyo), and its smart contracts are fully open-source and on-chain.

**Live App:** [https://app.paribus.io](https://app.paribus.io)  
**Website:** [https://paribus.io/](https://paribus.io/)  
**Docs:** [https://docs.paribus.io](https://docs.paribus.io)  
**Audits:** Hacken: [Paribus audits by Hacken](https://hacken.io/audits/paribus/)  
Zokyo: [https://zokyo.io/reports/paribus](https://zokyo.io/reports/paribus)  
**Paribus Whitepaper:** [https://paribus.io/wp-content/uploads/2024/10/PARIBUS-Whitepaper-v2.0-.pdf](https://paribus.io/wp-content/uploads/2024/10/PARIBUS-Whitepaper-v2.0-.pdf)

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### **Why We’re Reaching Out**

We are **not requesting a grant or direct token allocation**.

Instead, we propose that the DAO:

- Use **idle treasury assets** (e.g., $ARB, $ETH, $USDT, $BTC)
- Deposit them directly into **Paribus’s live lending pools** via smart contracts
- Maintain **full on-chain custody and control** at all times

This would:

- Inject valuable liquidity into core markets on Arbitrum
- Increase borrowing activity and market interest rates
- Showcase DAO-level support for ecosystem-native protocols
- Involve **zero risk of fund loss** via manual transfer or third-party custody

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### **Current Status on Arbitrum**

Paribus is already deployed on Arbitrum with the following active markets:

- Supply and borrow: $ARB, $ETH, $BTC, $USDT
- LP Collateral: $ARB/$WETH and $USDT/$USDC from Camelot
- Custom LP oracles integrated

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### **Benefits to Arbitrum DAO and Ecosystem**

- Demonstrates leadership in **composable DeFi**
- Helps increase TVL and user activity within Arbitrum
- Sets precedent for safe, transparent DAO engagement with on-chain protocols
- Enables $ARB and other DAO-held assets to generate passive yield

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### **Next Steps**

We invite community feedback on this RFC.  
If supported, we will provide:

- Detailed smart contract instructions for DAO deployment
- Real-time dashboard visibility for tracking DAO deposits
- Ongoing collaboration and reporting from the Paribus team

We’re also happy to host an AMA or join a governance call to answer questions.

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### **Thank You**

Thank you for considering this request. We believe this on-chain engagement strategy aligns perfectly with Arbitrum’s commitment to secure, scalable, and decentralized finance.

Let’s build a stronger DeFi foundation together.

—  
**Nikola**  
On **behalf** of Paribus Protocol  
Twitter: [https://twitter.com/paribus\_io](https://twitter.com/paribus_io)

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