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"Arbitrum DAO's Bold Move: $7.5M ETH Investment in Lido, Aave, and Fluid Sparks Debate"

Coin WorldSunday, Feb 23, 2025 7:55 pm ET

1min read

Arbitrum DAO's recent proposal to invest 7500 ETH in Lido, Aave, and Fluid has sparked controversy within the community. The proposal, submitted by the Arbitrum DAO Growth Management Committee (GMC), suggests allocating funds to these non-native platforms to generate yield.

The investment strategy involves purchasing 5000 ETH worth of wstETH from Lido and depositing it into Aave V3, targeting an annual yield of 4.54%. Additionally, the plan includes dedicating 2500 ETH towards Fluid, with a forecasted return of approximately 1-2%.

This proposal has sparked significant discussions among community stakeholders, with critics urging a reconsideration of fund distribution. Some argue that at least 10% of the funds should be earmarked for local initiatives within the Arbitrum ecosystem, rather than investing in non-native platforms.

The outcome of this proposal will be determined during an upcoming vote scheduled for Thursday, which will shed light on the community's priorities and preferences for fund allocation.

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KookyPossibleTheme

02/24

Arbitrum's play outside the zone might hit or miss; only time and votes will tell.

joe4942

@KookyPossibleTheme What do you think about the risk?

Snorkx

4.54% yield ain't earth-shattering, but in this market, take what you can get. Risk management, folks.

1kczulrahyebb

Yield hunting with $7.5M ETH. Risky but rewarding.

Anonym0us_amongus

Community should reconsider: what if 10% goes to Arbitrum-native projects? Might boost local growth more.

bottlethecat

@Anonym0us_amongus Yeah, boosting locals could be smart.

rareinvoices

Lido and Aave? Solid play. Gotta diversify, folks.

Head_Product412

Personally, I'm hedging with $AAPL and a mix of high-yield DeFi. Gotta balance those risks, ya know?

jstanfill93

7500 ETH could change hands, but is 10% for locals really that unreasonable? Food for thought.

ImplementEither7716

@jstanfill93 Yeh, worth debating.

Qwazarius

@jstanfill93 10% for locals ain't bad.

GlobalEvent6172

Arbitrum's playin' it safe with 4.54% yield? Lmao, I'd rather HODL $TSLA and bet on the moon.

Charming_Raccoon4361

I'm all for community votes. It's like choosing the next meme stock. 🤔

enosia1

Investing in non-native platforms feels like throwing spaghetti at the wall. What's the real strategy here?

MonstarGaming

Arbitrum's vote will be lit. Watch those returns roll in. 😂

sniperadjust

10% for locals? Fair game. Community first, always.

NEYO8uw11qgD0J

Lido, Aave, Fluid... Sounds like a DeFi dance party. Who's got two tickets to Arbitrum?

fluffnstuff1

@NEYO8uw11qgD0J HODLing for that Arbitrum ticket feels like a long bet. 🚀 Wonder if we'll YOLO or ZOLO?

freekittykitty

Fluid's 1-2% return ain't bad for a quick flip. Gotta diversify those bags, y'all.

smooth_and_rough

@freekittykitty How long u thinkin' of holdin' Fluid? Just a quick flip or stackin' for longer?

Artistic_Studio2784

Aave and Lido getting that bag? Solid play if they hit that 4.54% target. 🚀

Euro347

@Artistic_Studio2784 Think they'll hit 4.54%?

CorneredSponge

@Artistic_Studio2784 Agreed, solid move.