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⚡️ Arbitrum ($ARB) DAO committee proposal to invest 7,500 ETH in non-native projects sparks criticism
Arbitrum's plan to reinvest some of its Ethereum holdings in yield-bearing opportunities has run into a snag, with some delegates opposing the recommendations of its three-member Growth Management Committee (GMC).
The GMC recommended that 7,500 ETH from Arbitrum's treasury be deployed to three decentralized finance protocols, none of which are Arbitrum-native. The committee proposed investing 5,000 ETH in liquid staking protocol Lido, in exchange for 5,000 wstETH (staked ETH) tokens, then investing the 5,000 wstETH in Aave V3 on Arbitrum to encourage borrowing and benefit from a planned incentive program involving Lido, Aave, Renzo, and Kelp. The final 2,500 ETH would be deployed to lending protocol Fluid's Arbitrum platform.
The committee settled on the recommendations after reviewing proposals from 45 protocols, including Arbitrum-native protocols such as Dolomite, GMX, and Camelot. The GMC expects the wstETH deposits to generate 4.54% yield, with the Fluid allocation generating 1-2% native ETH yield and generating liquidity for the Arbitrum ecosystem. GMC members did not respond to requests for comment by publication time.
"While the GMC wanted to venture further down the risk curve in order to increase yield, help bootstrap up and coming protocols, bolster Arbitrum native/aligned protocols, among other desires, it determined that a strong/conservative foundation for the DAO’s treasury strategy made the most sense until the DAO becomes more capable of actively managing positions," Entropy Advisors wrote in the proposal.
🔸 'Simplest and laziest allocation'
The GMC's recommendations were met with criticism by some Arbitrum DAO members, who noted the exclusion of Arbitrum-native protocols.
"[It] is quite strange that out of 7,500 ETH, we couldn’t even allocate 10% spread in other protocols, even to just give outside a signal that 'the DAO is here to support you, builder that decides to come to Arbitrum instead of going to Base to enjoy the support of Coinbase or to Solana to be part of the biggest casino in the world,'" delegate 'JoJo' wrote in response to the proposal.
Another Arbitrum delegate known as 'ultra' expressed his disappointment in the proposal with a post on X, arguing the selections "signaled that none of the Arbitrum native projects are good enough."
"I don’t think the current allocation is necessarily wrong, it's just the simplest and laziest allocation," ultra told The Block when reached for comment. "If even just 10% of those funds were used in Arbitrum native projects it would already be enough for me to be happy," ultra added.
Though the GMC argued its selections formed a "strong/conservative foundation" for the DAO's treasury, ultra responded, "I would consider many projects on Arbitrum having a lower or similar risk to Fluid. GMX, Dolomite, Camelot were all great options with similar risk profiles and management needs."
"We want to remind all applicants that this is hopefully the first round of many future allocations," the GMC's proposal states. "The desire is to continually reinvest ETH and stablecoin revenue into the Arbitrum DeFi ecosystem to increase DAO sustainability as well as supporting Arbitrum’s ecosystem of builders."
In response, ultra said the GMC still missed an opportunity to signal alignment with Arbitrum. "It seems natural that as rounds go on more protocols can be explored, but this doesn't mean that the first round should be any less important," ultra said. "The first round is the one that has all eyes on [it] and there's great importance on the publicity aspect too."
The proposal will move to a Snapshot vote on Thursday, at which point it will need a simple majority of votes, with a 3% quorum of votable tokens, to go into effect. "I believe it’s highly likely it will be rejected, and I’ll also vote against," ultra predicted. "The revised plan will likely include a 5-40% allocation to Arbitrum native projects [in my opinion.]"
🔸 Origins of the GMC
The GMC and a separate three-member Treasury Management Committee (TMC) were established last year by Arbitrum's DAO to explore yield-bearing opportunities for the Ethereum Layer 2 network's ETH holdings.
"The DAO has neglected to do anything productive with its ETH holdings, which could provide the DAO leverage to fuel growth and partnerships alongside yield—consistent with the DAO’s growth-first mindset," wrote author Entropy Advisors in the original GMC/TMC proposal. Entropy Advisors added that the DAO had "foregone ~400 ETH by not staking its idle holdings."
Entropy Advisors sits on the GMC with two other members, Wintermute's Callen Van Den Elst and DeFi advisors LlamaRisk. Though Entropy has waived payment, the other two members each stand to receive three installments of $20,000 USDC after achieving key milestones: first, DAO approval of the treasury management recommendations, followed by two quarterly reports on the capital allocations, with "continuous risk monitoring."
The members were selected by Entropy Advisors following conversations with "dozens of candidates." "The primary qualifications for GMC members are the ability to negotiate deals and possess large networks within the wider crypto industry," the proposal states. Entropy increased the payout for the advisors after DAO members suggested that the compensation promised by an earlier version of the proposal was insufficient to attract the right talent. The council members serve six-month terms.
#ARB #Arbitrum
Ethereum (ETH) – The Backbone of DeFi & Smart Contracts ⚡🔗🚀
Ethereum is the second-largest cryptocurrency and the leading smart contract platform, making it a key player in the ongoing altcoin surge. With constant upgrades, increasing institutional adoption, and a growing DeFi/NFT ecosystem, ETH remains a must-watch token.
🔹 Why Ethereum is Surging:
1️⃣ Ethereum 2.0 & Scaling Upgrades 🔄⚡
The transition to Proof-of-Stake (PoS) has made Ethereum more energy-efficient and scalable.
Layer 2 solutions like Optimism, Arbitrum, and zkSync are driving lower gas fees & faster transactions.
The upcoming Dencun upgrade is expected to further enhance Ethereum’s efficiency.
2️⃣ Institutional Adoption & Spot ETF Potential 🏦📈
There’s growing speculation that the SEC may approve a spot Ethereum ETF, similar to Bitcoin ETFs.
If approved, institutional investors (hedge funds, banks) could flood into ETH, boosting its price.
3️⃣ DeFi & NFT Growth 📊🎨
Ethereum is the foundation of DeFi, with protocols like Uniswap, Aave, and MakerDAO running on it.
Despite market fluctuations, NFT marketplaces (e.g., OpenSea, Blur) still dominate on Ethereum.
4️⃣ Global Developer Support & Security 🔐💻
Ethereum has the largest developer community in crypto, constantly innovating with new dApps.
Its strong security & decentralization make it the most trusted blockchain for financial applications.
🔹 Current Market Data (Feb 2025)
💰 Price: $2,816.49
📈 24h Change: +$40.18 (+1.45%)
📊 High/Low: $2,825.60 / $2,748.11
🔹 Why Ethereum is a Strong Support & Resistance Asset:
✅ Support Levels 🛡️ – Large buying interest around $2,500-$2,700 due to institutional accumulation.
✅ Resistance Levels 🚀 – If ETH breaks $3,000, it could signal a bullish breakout toward new highs.
✅ Long-Term Growth 📈 – As ETH supply reduces (due to staking & burning), price appreciation is expected.
🔹 Real-World Example:
Think of Ethereum as the App Store of Crypto – just like Apple’s ecosystem allows developers to build apps, Ethereum enables thousands of decentralized applications (dApps) to thrive. The more projects use Ethereum, the more valuable ETH becomes.
Aave 社群媒體數據
過去 24 小時,Aave 社群媒體情緒分數是 4,社群媒體上對 Aave 價格走勢偏向 看漲。Aave 社群媒體得分是 104,在所有加密貨幣中排名第 465。
根據 LunarCrush 統計,過去 24 小時,社群媒體共提及加密貨幣 1,058,120 次,其中 Aave 被提及次數佔比 0.01%,在所有加密貨幣中排名第 276。
過去 24 小時,共有 442 個獨立用戶談論了 Aave,總共提及 Aave 142 次,然而,與前一天相比,獨立用戶數 增加 了 10%,總提及次數增加。
Twitter 上,過去 24 小時共有 4 篇推文提及 Aave,其中 100% 看漲 Aave,0% 篇推文看跌 Aave,而 0% 則對 Aave 保持中立。
在 Reddit 上,最近 24 小時共有 1 篇貼文提到了 Aave,相比之前 24 小時總提及次數 減少 了 0%。
社群媒體資訊概況
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