[RFP Process] Request for Proposals: Treasury Management Services for Arbitrum DAO

Archive Treasury Mgmt v1.2 - TM Track (ARB and Stables)
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Company: @karpatkey
Email: jy@karpatkey.com
Point of Contact: JY (karpatkey)

Company Description

karpatkey is a leading treasury management firm specialising in serving DAOs and crypto-native organisations. With over $1.2B in non-custodial AUM, karpatkey partners with L1s (Gnosis, dYdX), infrastructure projects (ENS, Safe), and DeFi protocols (Nexus Mutual, Cow, Aave, Balancer) to optimise treasury assets while prioritising security, risk-adjusted returns, and operational transparency.

Brief, Non-Confidential Summary of Proposed Strategy

karpatkey’s strategy for Arbitrum Treasury is built on three main pillars: Tooling, Portfolio Management, and Risk Management.

  • Tooling: Secure, non-custodial treasury management using Safe + Zodiac Roles Modifier Module, ensuring Arbitrum Foundation retains complete control while granting karpatkey predefined permissions. This battle-tested infrastructure, trusted by DAOs like Gnosis, ENS, and CoW, guarantees security and flexibility.
  • Portfolio Management: A balanced approach combining stablecoin diversification and management, ARB-only yield strategies, and hybrid strategies.
  • Risk Management: 24/7 risk monitoring, covering multiple levels of risks, including smart contract vulnerabilities, liquidation risks, depeg risks, etc. A structured risk framework ensures proactive threat detection and mitigation.

The following strategies have been designed and back-tested to optimise for risk-adjusted returns:

  • ARB-Only Strategy: the strategy involves transforming ARB into a yield-generating asset by using it as collateral.
  • Options Strategy: selling volatility and earning options premium. This allows the portfolio to utilise idle ARB to earn stablecoins and leverage on the high implied volatility of ARB tokens.
  • Stablecoin Yield Optimization: across whitelisted assets, protocols, pools, rebalancing strategy based on their yield, volatility of the yields, risk assessment, and cost of rebalancing.
  • Liquidity Provisioning (ARB-USDC Hybrid Strategies): provide liquidity on leveraged trading venues

Link to the full proposal.