Under this innovative program, Arbitrum stands to leverage idle ARB tokens stored in its vault, thereby building a more robust protocol-owned liquidity base and converting a portion of vault funds into yield-generating assets.
This bond program will make available up to 12.5 million ARB tokens for bond sales each quarter over a span of four quarters. Users who purchase bonds with ETH-ARB, USDC-ARB, USDT-ARB, and/or wBTC-ARB LP tokens will benefit from slightly discounted ARB token rates.
The plan outlines a meticulous process: an initial 12.5 million ARB tokens will reside in a secure multi-signature wallet, controlled by key stakeholders including ArbitrumDAO and Sushi. A part of the total 10,000 ARB token allocation will be added to the bond treasury smart contract and replenished as necessary. Multiple bonds will be established, each linked to the Treasury contract for facilitating bond sales involving different pairs.
Proceeds from sales will be promptly routed back to the Treasury’s wallet. Periodic status updates will track the program’s performance relative to key performance indicators (KPIs). If KPIs are met, additional ARB tokens will be issued to the multi-signature wallet, initiating a new cycle. Failure to meet KPIs will see unsold tokens returned to the Arbitrum DAO vault, terminating the program.
However, some notable figures voiced skepticism about the proposal. Critics point out SushiSwap‘s history as a Uniswap fork and its past aggressive tactics, raising concerns that this proposal could be a disguised attempt to capture liquidity, reminiscent of its earlier strategies.
The fate of this proposal now rests in the hands of the Arbitrum community, as they evaluate its potential impact on the ecosystem.
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