Arbitrum's Watchdog Committee, a grant oversight body, has issued a tentative September 10 deadline for three decentralized finance projects to address high-severity misuse findings and return unresolved funds, or face separate off-chain votes on permanent exclusion from future decentralized autonomous organization (DAO) programs.
The affected projects are Good Entry, Limitless, and APX Finance, formerly known as ApolloX. Their cited findings aggregate to 457,553 ARB, though the committee noted this total combines different findings rather than representing a single repayable balance. As of September 5, no responses from any of the projects had appeared in the proposal thread.
If a project's explanation is deemed unsatisfactory and the funds are not returned within the designated window, the committee plans to pursue separate Snapshot votes to seek social consensus without on-chain action. If approved, the governance-access sanctions would render covered founders, team members, and affiliated contributors ineligible for future Arbitrum DAO programs, though the measures would not execute wallet freezes or disable protocols.
Project-Specific Findings
According to the watchdog committee, the allegations and figures for each project involve distinct grant allocation and distribution concerns:
- Good Entry: On-chain analysis allegedly found that 142,839 ARB was distributed to 1,032 ineligible users during and after the Short-Term Incentives Program. The committee also cited alleged self-farming by wallets connected to team addresses and stated the project refused to provide clarification.
- Limitless: The project is accused of swapping 75,000 ARB into USDC and transferring the funds to the Base network. The watchdog reported that team members could not be reached for clarification or recovery.
- APX Finance: The committee linked 239,714 ARB to overlapping issues, including an unspecified substantial portion left unutilized in treasury addresses, late transfers to distributor contracts, and alleged team-linked Sybil activity.
The committee noted that the broader grant oversight program had received 90 reports, recovered approximately 532,000 ARB, and distributed about 268,000 ARB in reporter bounties as of September 2. Further actions depend on whether the targeted projects respond before the tentative deadline.
