The following reflects the views of the Lampros DAO governance team, composed of Chain_L (@Blueweb), @Euphoria, and Hirangi Pandya (@Nyx), based on our combined research, analysis, and ideation.
We are voting #3 Only Deploy Stable Strategy,#4 Deploy Nothing,#1 Deploy Both Strategies, Abstain, #2 Only Deploy ARB Strategy in line with the TMC’s recommendation.
We acknowledge the concerns raised by most delegates(@jojo, @paulofonseca , @gfxlabs & others) regarding structuring this vote, suggesting that a multiple-choice format or separate proposals would have been preferable to Ranked-Choice Voting. However, as highlighted by many in this discussion and on Telegram, the need for swift execution takes precedence. Given that the desired outcome is unlikely to change regardless of the voting method, we have decided to #3 as our first choice instead of opting for “DO NOTHING”.
We shared similar concerns regarding the conversion of ARB at historic low, as @curia, @pedrob & others have pointed out and as we mentioned in the STEP v2 Tally Voting Rationale. However, we recognize that there is no universally ‘right’ time for conversion. Given that the ARB-to-stable conversion will take place over three months, we believe that any time is appropriate, as our primary objective is to cover the DAO’s dollar-denominated expenses.
We believe that Gauntlet, Karpatkey, and Avantgarde are the right choices for stablecoin management. We appreciated the research conducted by Karpatkey and Avantgarde before the launch of STEP v1, and their track record outside the DAO reinforces our confidence in this decision.
Regarding their fee model, we would have preferred more partners adopting a performance-based fee structure over a management fee model, as stablecoins can generate superior yields through active management, which should be incentivized accordingly. The current fee structure adopted by Gauntlet and Karpatkey may not optimize stablecoin performance—not due to a lack of expertise but rather a misalignment of incentives within the existing framework. As a result, the deal appears less likely to be a win-win for both parties.
Regarding the ARB Allocation Strategy, covered calls appear to be the right approach. However, there is a lack of clarity on how ARB will be reacquired once it hits the strike price and is converted to stablecoins.
We do not believe that current market conditions are unfavorable, as heightened volatility could potentially lead to higher yields for ARB. Given this, we look forward to the next set of recommendations and expect to see ARB generating stable yields for the treasury in the near future.