Three DeFi projects face possible exclusion from future Arbitrum DAO programs

Arbitrum's Watchdog Committee, a grant oversight body, has given three DeFi projects until a tentative Sept. 10 deadline to answer high-severity misuse findings and return funds it considers unresolved, or face separate votes on permanent exclusion from future DAO programs.

The cases name Good Entry, Limitless and APX Finance, formerly ApolloX. Their cited figures add to 457,553 ARB, but that total combines different findings rather than representing one amount established as stolen, outstanding or recoverable.

As of Sept. 5, no response from any of the projects appeared in the proposal thread. The committee described the schedule as tentative and said a vote would follow only if a project's explanation is unsatisfactory and its respective funds are not returned within the one-week window. No ban has been approved.

For Good Entry, the committee said on-chain analysis found 142,839 ARB was distributed to 1,032 ineligible users during and after the Short-Term Incentives Program. It also alleged self-farming by wallets connected to team addresses and said the project refused to provide clarification. Good Entry's grant application requested 200,000 ARB, so the watchdog figure covers part of the grant and describes distributions rather than a remaining balance.

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