Pilot Stage – Treasury Backed Vaults research and development
AI summary
This proposal seeks to fund research and development for a new system called Treasury Backed Vaults (TBV). The goal is to allow the Arbitrum DAO to borrow stablecoins (digital currencies pegged to a stable asset like the US dollar) using its ARB tokens as collateral, but with significantly reduced risk of liquidation. This system would prevent automatic collateral sales by automatically adding more ARB from the treasury if the loan's collateral value drops. The developed system would be released as a public good for any stablecoin protocol.
If passed, this proposal would fund a pilot phase to design, build, and audit this TBV system, providing the DAO with more options for grants, investments, and accessing capital without selling its ARB tokens. This could benefit the DAO by diversifying its treasury and enabling more flexible financial operations, but the specific financial cost of this R&D is not mentioned.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
[Non-Constitutional]
TL;DR
What this proposal does:
- Give Arbitrum DAO more options for doing grants in stablecoins, making long term investments using stablecoins, and having safer access to capital without needing to sell treasury assets like ARB tokens.
- Design and build a system for borrowing stablecoins that prevents liquidations via more assets being pulled from the treasury to increase collateralization.
- Release that Treasury Backed Vault system publicly as a public good which can be used on any stablecoin protocol.
- Complete a security audit on the smart contact code for t…