With the help of DAO governance, SushiSwap has suggested a bond programme in Arbitrum to enhance liquidity control. The programme offers quarterly bond sales and incentives for owners of LP tokens in an effort to make use of idle ARB tokens. Due to SushiSwap’s background as a Uniswap fork and prior aggressive strategies to gain liquidity, many have questioned the company’s objectives.
The proposed bond programme would enable Arbitrum to utilise unused ARB tokens that are now held in its vault, enhancing the protocol’s own liquidity base and transforming a portion of the cash in the vault into yield-producing assets. Each quarter over the course of four quarters, up to 12.5 million ARB tokens would be made available for bond sales, with users that buy bonds using ETH-ARB, USDC-ARB, USDT-ARB, and/or wBTC-ARB LP tokens benefiting from significantly discounted ARB token prices.
The strategy includes a thorough procedure involving a safe multi-signature wallet that is managed by significant participants like ArbitrumDAO and Sushi. The bond treasury smart contract would get additions from a fraction of the 10,000 ARB token allocation as needed. For the purpose of facilitating bond sales involving various pairs, a number of bonds would be established, each tied to the Treasury contract. Sales revenue would be returned to the Treasury, and the program’s effectiveness in relation to key performance indicators (KPIs) would be tracked through recurring status updates. The multi-signature wallet would get more ARB tokens if KPIs were reached, starting a new cycle. Unsold tokens would be returned to the Arbitrum DAO vault and the programme would be terminated if KPIs weren’t met.
Despite the plan, several opponents have voiced doubt, citing SushiSwap‘s origins as a Uniswap fork and its aggressive strategies. They contend that, like its prior efforts, this plan might be a veiled attempt to seize cash. This suggestion will now be decided upon by the Arbitrum community, which will consider its potential effects on the environment.