On Wednesday, Arbitrum DAO approved diversifying 35 million ARB worth roughly $25 million from its treasury into six products that aim to be stable, liquid, and yield-bearing.
The Arbitrum community overwhelmingly signaled support to invest 11 million ARB in BlackRock’s BUIDL Fund with Securitize, along with 6 million ARB each in Ondo Finance’s US Dollar Yield Token and Superstate’s USTB Fund, according to the governance snapshot vote that lasted between July 3 and July 10.
The 99.44% of ARB token holders voting in favor also decided to allocate 4 million ARB each into Mountain Protocol’s USDM, OpenEden’s TBill Fund, and Backed Finance’s bIB01 asset.
“We are pleased to see progress towards treasury diversification, an important step for achieving treasury sustainability for the DAO,” wrote Blockworks Research in Arbitrum’s forum discussions on Tuesday. “The proportional distribution of amounts based on [assets under management] is rational and justified.”
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“This was one of the easier yes’s I have had in the DAO,” wrote Ethereum community figure Griff Green in Arbitrum’s forum discussions on Tuesday. “I feel a little weird about working with BlackRock and a bunch of ex-Goldman Sachs people, but I think that’s just my own anti-TradFi prejudice shining through. In reality, bringing these orgs over to Arbitrum, while also diversifying our treasury is a huge win.”
What’s Next
The Arbitrum Foundation and program manager will now begin the process of executing these recommendations since the governance vote passed.
Additionally, Steakhouse Financial, a treasury management firm that supported the proposal, indicated that it would publish monthly reports and create a Dune dashboard for real-time reporting on the investments. Steakhouse’s monthly reports will include several elements: transaction activity during the month, market price, monthly profit/loss, performance comparison to US Treasury benchmark, and liquidity metrics, among other things.
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Addresses identified as belonging to prominent crypto influencer Olimpio.eth, analytics platform L2Beat, and trading firm Wintermute’s team dedicated to helping govern crypto protocols, had also each voted in favor of the governance vote that ended on Wednesday.
The price of Arbitrum’s governance token ARB has decreased 6.2% in the last seven days and 25.8% in the past 30 days to trade at 71 cents, making its market cap $2.3 billion and its fully diluted valuation $7.1 billion at the time of writing, per CoinGecko.
