Simple Summary

• Swap all 2,575,405 $ARB tokens in the 1inch DAO Arbitrum treasury for USDC
• Bridge the USDC to the 1inch DAO treasury on Ethereum mainnet

Abstract

The 1inch DAO treasury on Arbitrum received an airdrop of 2,575,405 $ARB tokens in April of 2023. This proposal calls for swapping all $ARB tokens for USDC on Arbitrum One, then bridging those USDC funds to the 1inch DAO treasury on Ethereum mainnet.

Motivation

The primary motivation behind this 1IP is to maximize the value from the received $ARB tokens. By swapping them for USDC, a dollar-pegged stablecoin, we can put those funds to work to grow the 1inch Network. This action strengthens the long-term financial positioning of 1inch by reducing our exposure to volatile assets.

Specification

This is a signaling proposal as the 1inch DAO Treasury on Arbitrum is managed by a 7-of-12 multisig – all transactions specified herein shall be manually executed.

Transactions

• 2,575,405 ARB tokens held in the 1inch DAO Treasury on Arbitrum shall be sent to an EOA controlled by 1inch Labs
• The 1inch Labs EOA shall swap all $ARB tokens for bridged USDC (USDC.e) using one or more of 1inch’s swap protocols or other ways of swapping that would incur smaller slippage depending on the market situation.
• The 1inch Labs EOA shall bridge all USDC.e funds from Arbitrum to the same EOA on Ethereum mainnet using one of the trustworthy bridges available.
• Once the bridge process is finalized, the 1inch Labs EOA shall send all USDC to the 1inch DAO Treasury on Ethereum mainnet

Addresses

• 1inch DAO Treasury Ethereum Mainnet – eth:0x7951c7ef839e26F63DA87a42C9a87986507f1c07
• 1inch DAO Treasury Arbitrum One – arb1:0x71890aC6209Fae61E9D66691c47B168B8300a7c5
• 1inch Labs EOA (Ethereum & Arbitrum One) – 0x00449963C9E6589eb88a5566fa0877871F3E568A
• USDC.e – arb1:0xff970a61a04b1ca14834a43f5de4533ebddb5cc8

Rationale

Choosing USDC over simply holding $ARB tokens reduces the financial risks associated with holding volatile assets. Best efforts should be given to get the best swap rates for such a large amount so that the trade can be executed with minimal slippage

Subsequently, bridging these assets to Ethereum mainnet allows the funds to be controlled directly via 1inch DAO governance using Snapshot’s reality.eth module.

Considerations

All DeFi transactions contain potential costs and risks that should be taken into account. These include transaction fees, bridge fees, or any slippage costs during the swap process. Potential bridge service security risks should also be assessed.