Stablecoins are like gym memberships. They make money and get edge versus competitors from the people who forget they bought them.

Hot take: This constant push by investors (retail and institutional alike) for early stage protocols to conduct buybacks is one of the biggest mistakes our industry is making. We need protocols to be prioritizing growth. No startup whether centralized or decentralized can afford to not prioritize growth. It is better to do it with revenues than token inflation.

Introducing Boros, Pendle’s new platform for trading funding rates 🔗

Running STEP has taught us that not all tokenized T bills are created equal. Monthly vs block by block compounding? Not the same. Loosely partnered crypto-native wrapper vs TradFi self issuance? Even if tradfi self issued: digital twin or fully onchain fund? Swiss GmbH debt vs US ETF vs bankruptcy remote SPV? different risks and asset flexibility Transparent fees vs redemptions fees vs hidden fees vs time-based waived fees? Important There is no standard for how RWAs are tokenized and no clear right or wrong way (though some are clearly wrong lol) Every detail has second order consequences when building onchain primitives around yield. With STEP, Arbitrum DAO isn't just rewarding assets for launching. We're pressure testing what it actually means for traditional assets to have better implementations onchain.

Running STEP has taught us that not all tokenized T bills are created equal. Monthly vs block by block compounding? Not the same. Loosely partnered crypto-native wrapper vs TradFi self issuance? Even if tradfi self issued: digital twin or fully onchain fund? Swiss GmbH debt vs US ETF vs bankruptcy remote SPV? different risks and asset flexibility Transparent fees vs redemptions fees vs hidden fees vs time-based waived fees? Important There is no standard for how RWAs are tokenized and no clear right or wrong way (though some are clearly wrong lol) Every detail has second order consequences when building onchain primitives around yield. With STEP, Arbitrum DAO isn't just rewarding assets for launching. We're pressure testing what it actually means for traditional assets to have better implementations onchain.

$100M or bust. one of the largest single buyers of tokenized t bills is... Arbitrum DAO

STEP 2 is officially live. Funds have now been deployed into BENJI ( @FTDA_US), WTGXX ( @WisdomTreePrime), and USTBL ( @Spiko_finance) The Arbitrum DAO currently holds $44M in tokenized U.S. Treasuries, with an additional ~$3M of USTBL to be added in the near term. Since STEP began, RWA AUM on Arbitrum has grown ~509%.

DAOs have earned their bad reputation: slow, inefficient, and often hijacked by amateur politicos creating onchain welfare states. But despite that, I still believe DAOs can be something beautiful. A decentralized business not reliant on any one entity. A revenue generating organization sustainably and perpetually stewarding unstoppable software.

My favorite new collateral is private credit funds with quarterly redemptions and a 5% of NAV liquidity gates. Best part is fire sale buyers come in at 60c on dollar. Think we see 10 fig market size before it blows up though.

A stablecoin, a chain, and a DEX should team up to buy Western Union for the distribution. Pretty good bang for buck tbh. Or let Coinbase step in.