[Proposal] XARB — A Community-Driven Arbitrage Token Backed by Real Yield

DAO
1

TL;DR

I propose launching $XARB, a token that captures and redistributes arbitrage profits generated between Xian and other networks (e.g., Solana). The token will be powered by a live, profitable bot and aims to provide real yield to holders while improving market efficiency on the Xian network.

I request:

  • 100,000 XIAN grant (bounty, operational, and vested team allocation)
  • 40,000 XIAN for arbitrage bot capital
  • 30,000 XIAN for strategically managed liquidity

Background

I’ve been part of the Xian community since the early Landem days. Recently, with the bridge to Solana up and running, I deployed an automated arbitrage bot that takes advantage of price discrepancies involving the Xian token.

The bot has proven to be profitable, while also serving an important function: keeping Xian’s price consistent across ecosystems.

This led to an idea: why not turn this into something that benefits the entire community?

What Is XARB?

$XARB is a token that:

  • Represents community ownership in an arbitrage-powered yield strategy
  • Receives value from arbitrage buybacks and burns
  • Distributes rewards to holders and ecosystem contributors
  • Is partially funded and endorsed by the core team

Requested Funding Breakdown (Total: 170,000 XIAN)

Category Amount (XIAN) Purpose
Team Allocation 100,000 40.000 with no lock-up, 60.000 yearly vested
Bot Capital 40,000 Used directly as arbitrage capital for cross-chain trades. Will be property of the XIAN DAO
Liquidity Bootstrap 30,000 Initial liquidity for $XARB/XIAN pool (added strategically)

How XARB Works

  • Live Arbitrage Bot: Already deployed, generating yield by exploiting price differences.
  • Buybacks & Rewards: Profits go toward regular $XARB buybacks and holder incentives.
  • LP Management: Liquidity added progressively to maximize price discovery and volume.
  • Airdrops: Randomized airdrops to prevent farming, aimed at top users of the Xian ecosystem.

Why This Matters for Xian

  • Efficient Cross-Chain Pricing: Arbitrage helps stabilize and sync Xian prices across networks.
  • Community Growth: Meme-ready, fair token with organic yield is a strong narrative for user acquisition.
  • Real Yield: A token that delivers value based on actual economic activity (not inflation).
  • Transparent: The arbitrage wallet will be fully visible and labeled on explorer.

Timeline

  • Week 1–2: Receive DAO approval, initial branding push
  • Month 1: Token generation, LP setup, bot capital deployed, rewards system live
  • Q2–Q4: Gradual LP expansion, randomized airdrops, transparent updates

Call to Action

I am asking the DAO to:
Approve a 100,000 XIAN grant to kickstart XARB
Allocate 40,000 XIAN as bot capital
Allocate 30,000 XIAN to bootstrap $XARB liquidity

I believe this is a high-leverage opportunity to:

  • Empower a long-time community builder
  • Launch a sustainable, self-funding token with real utility
  • Generate value and volume for Xian

Let’s build something that puts Xian at the center of the next wave of DeFi.

—

Discussion & feedback welcome.
Final vote to follow pending community input.

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Posted by: @VarozXYZ

2

Thanks for putting together this detailed proposal.

I love the potential that this product has to deliver value back to $XARB holders as a function of market activity, growth and volatility.

3

I like it! Everything that involves the community is great and I think it makes total sense to have a token for this. I will happily support building this.

4

After consideration, me and some members of the team have realized that the bounty might be too low to maintain the bot functioning and pay the team for their efforts on their projects. Specially because it has been discussed that the team shouldn’t own any of the $XARB supply. For that reason, the funding is changed as follows:

Category Amount (XIAN) Purpose
Team Allocation 175,000 75.000 with no lock-up, 100.000 yearly vested
Bot Capital 40,000 Used directly as arbitrage capital for cross-chain trades. Will be property of the XIAN DAO
Liquidity Bootstrap 30,000 Initial liquidity for $XARB/XIAN pool (added strategically)
1 Like
5

Thanks for the update. Looks good.

6

I’d be for re-thinking the 40k XIAN that the bot gets. It’s mentioned that the bot gets it but that it ultimately belongs to the DAO. I don’t particularly like that. Because who is going to make sure it’s returned and when exactly? And if there is no plan to return it, why then borrowing it to the bot? And what do you do if the DAO decides to get it back? You will have to return it then.

I’d like it more to simply give funds to the project and the project might then use it for the bot or not or whatever.

I think it doesn’t make sense for the DAO to lend out XIAN without any kind of contract / security. That’s not lending, that’s wishful thinking and we should be more realistic about it.

7

Hi Endogen.

Your concerns make total sense and I agree that this lending without a explicit contract doesn’t add up too well. However, the project does need those funds to run. I think the best way to fix this is making that part of the bounty belong to the XARB team. In practice, the end result is the same. To update:

Category Amount (XIAN) Purpose
Team Allocation 175,000 75.000 with no lock-up, 100.000 yearly vested
Bot Capital 40,000 Used directly as arbitrage capital for cross-chain trades. Will be property of the XARB team but won’t be sold on market.
Liquidity Bootstrap 30,000 Initial liquidity for $XARB/XIAN pool (added strategically)

The total amount is 245.000 XIAN. Furthermore, I want to add now that the XARB treasury wallet has been created and the funds should be sent there:

73e2d1262ec5fcf7ba29b8f145cb546c46b1e159f3e877ac709d43a1b13b15a0

It also owns the XNS “xarbtreasury”

8

Makes more sense now I believe

9

Two proposals open in the DAO :

DAO proposal 18 - 145,000 for Varoz (30k liquidity, 40k Bot Capital, 75k Upfront)

https://explorer.xian.org/tx/8274EDCFE89813A47A478714DB09EE8F87CB60DD8103A04626C678D2BF86B296

DAO proposal 19 - 100k yearly vested

https://explorer.xian.org/tx/890B197863F2A8F8FEBB679FABB7E280C95D4E5163A4FB27C40798B8C5EBEFCB