IMO, the core idea makes complete sense: put idle assets to work. I’d like to share a few options and suggestions for consideration, some of which I already mentioned in my comment on the DRIP recap post.
- Consider solutions like Balancer boosted pools (LPs deposited into Aave), which enhance the impact of assets within the ecosystem.
- Expanding beyond lending/DEXes could set the stage for future DRIP seasons. If liquidity in these verticals is already reinforced, it becomes easier to accommodate new demand. Additionally, if funds from lending/looping are redirected to other verticals, liquidity becomes stickier.
- Reserve a small percentage (up to 20%) of the current requested amount to support new protocols and/or other verticals. This would demonstrate stronger alignment with item 2 of the mandate (“Supporting growth in the Arbitrum ecosystem, particularly within DeFi”). It seems that there is no strong reason to postpone it (this item is related to my previous comment in the DRIP post).