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

[maxlomu]

Hi @Nikola_Paribus , thanks fo submitting your request.

I’ve been pretty vocal about this - I firmly believe the DAO should support protocols through direct liquidity injections, and not just incentives.

@maxlomu

The treasury has four objectives IMO:

1. Generate yield so the DAO is self-sustaining. This is the core of the Entropy plan and matches the focus of previous committees.
2. Grow the DAO’s real-world-asset exposure and diversify risk.
3. Support established Arbitrum protocols.
4. Bootstrap liquidity for new Arbitrum projects. Early liquidity means other users feel confident to deposit funds, and all the DeFi flywheels that protocols enable can actually work.
   One million dollars spread across nascent protocols is probably far more valuable than the same sum parked in T-bills.

This is distinct from the DRIP incentives proposal; here I am speaking about direct liquidity provision, for example:
• The DAO provides backstop liquidity to tokenised houses from Estate Protocol at a predefined floor to anchor prices.
• $200k of liquidity is supplied to a new perpetual exchange to compress funding costs.
• $500k is lent to solver pools so intents can settle promptly (RIP Chain Abstraction Proposal ).

The reality is that the DAO isn’t fully equipped today to support this kind of liquidity strategy, but with the new Treasury Management Council coming online, we should be moving in the right direction.

Just to clarify: DRIP will focus on incentives (liquidity mining), not direct liquidity provision.

Really hope we’ll be able to support you soon, especially for projects that choose Arbitrum as their primary liquidity hub.