The post Arbitrum DAO proposes to allocate funds to Lido, Aave, and Fluid appeared on BitcoinEthereumNews.com.

A couple of days ago, the Growth Management Committee (GMC) of Arbitrum DAO proposed to distribute 7,500 ETH to Lido, Aave, and Fluid. These are three decentralized finance protocols not native to Arbitrum, and for this reason, the proposal has sparked some discontent within the community. The proposal of Arbitrum DAO: 7,500 ETH allocated to Lido, Aave, and Fluid The proposal in fact shares the preferred choices of GMC for the distribution of 7,500 ETH. On December 21, 2024, the Arbitrum DAO voted in favor of establishing two committees, the Treasury Management Committee (TMC) and the Growth Management Committee (GMC). These two new committees have been tasked with developing suggestions for the DAO’s treasury, where 25 million ARB and 7,500 ETH are deposited. “`html The GMC committee has proposed to allocate 5,000 ETH on Lido to obtain 5,000 wstETH to deposit on Aave V3, based on Arbitrum, with the goal of serving as liquidity for the LST/LRT looping. “` He also proposed to lend 2,500 ETH to Fluid to support an ETH-based DEX and liquidity lending. The purpose of this initiative would be to provide a path for the Arbitrum Foundation to distribute 7,500 ETH from the DAO treasury to achieve two distinct objectives, namely generating low-risk returns on Ethereum otherwise inactive, and stimulating the growth of the ecosystem. Since this is the first tranche of funds from the DAO, GMC wanted to ensure that the DAO started from a solid and stable base, while also securing key partnerships from the beginning.  They write.  “Therefore, we focused on selecting partners of the highest quality with low-risk strategies that allowed the DAO’s funds to maximize their reach and impact within the Arbitrum ecosystem”. The proposal will be put to a vote on Thursday on Snapshot.  “`html The reaction of the community…

---

Filed under: News - @ February 24, 2025 5:19 pm