Thank you to the delegates who took time to join the Treasury Management call earlier today. The recording of the call can be accessed here . The proposal has been updated with the following langauge:
Entropy:
Given that the 8500 ETH requested represents a material portion of the non-ARB, unallocated treasury funds, capital preservation and long-term impact remain primary priorities. The following benchmarks guide Entropy’s allocation strategy:
ETH: stETH staking APY (currently ~2.56% based on 30D average)RWAs: Avg APY of Largest Onchain U.S. Money Market Funds (currently ~4.11% based on 30d average)Stables: USDC Supply APY (most liquid lending market on Arbitrum and currently ~4.54% 30D average)
Entropy recognizes and agrees with delegates that at certain times a deployment to support ecosystem growth should be prioritized over a pure yield strategy. Our team weighs growth opportunities against foregone yield based on a few factors:
Estimated Value of Growth: Does the estimated dollar-denominated value of the ecosystem opportunity directly outweigh the forgone yield. Elements that influence the estimated dollar-value of the opportunity include growth potential, broader ecosystem synergies, competitive landscape, and potential onchain fee impact.Pricing the Opportunity Cost: Evaluating the opportunity cost for specific growth allocations based on the established benchmark rates. This involves looking at the expected yield and rewards, required deployment size, and time to deploy/remain allocated.Comparative Effect on DAO Income: The opportunity cost is scaled based on its influence on the DAO’s total income. As Arbitrum’s total revenue increases, it allows for more opportunity to pursue growth. The percentage of Arbitrum DAO’s top-line revenue foregone for an opportunity is a factor in when a strategic deployment makes sense. An opportunity with more substantive impact as a percentage of total revenue has a higher required perceived value versus cost multiple to be deemed worthwhile.
The timeline has also been updated to reflect the delayed pushed to Tally.