Across DeFi ecosystems, treasury management has been characterized by fragmented governance, namely the result of human bandwidth limitations and inconsistent strategy execution. These inefficiencies have led to missed yield, slow decision-making and vulnerability to misalignment. 

The Talos team aims to resolve this issue by building the first fully autonomous treasury protocol on Arbitrum, designed to grow and defend its treasury through AI-driven strategies, governance and secure execution.

According to Talos, in order for DeFi teams to thrive sustainably, it's important that its treasury system is efficient, secure and aligned with the team's values. By creating an autonomous treasury agent, Talos removes execution bottlenecks and ensures capital is always compounding and strengthens Arbitrum as the home of scalable, AI-powered DeFi.

How is Talos Building with Arbitrum?

There are a handful of reasons why Talos chose to build with Arbitrum. According to the team, Arbitrum provides a low-cost, high-throughput environment that enables frequent rebalances, vault deployments and strategy migrations without draining treasury resources. 

“The ecosystem’s openness to new primitives like DefAI also positions Talos to thrive and integrate with leading protocols,” the Talos team said. 

Additionally, the ecosystem has a rich DeFi ecosystem, and integrations across popular decentralized protocols such as Camelot, GMX and Peapods, making it a promising environment to unlock sophisticated multi-protocol strategies. 

Arbitrum’s community is also extremely supportive, making it the ideal place for Talos to introduce new primitives like DefAI. 

“Building on Arbitrum means you’re never building alone,” The Talos team said. “That combination of robust infrastructure and hands-on ecosystem stewardship allowed us to move faster, de-risk execution, and focus on innovating around autonomous treasury design. For other builders, the takeaway is simple: if you’re building something ambitious, Arbitrum is the place where you’ll find both the technical foundation and the community support to scale it.”

Results so Far

Building with Arbitrum has enabled Talos to see both quantitative and qualitative results. According to the team, execution costs have been reduced by over 90% when compared to Ethereum mainnet. The low gas fees have also enabled more frequent vault rebalances and adaptive strategy management. 

“Arbitrum’s low fees and high throughput have allowed Talos to execute complex treasury strategies that would be prohibitively expensive on mainnet,” the Talos team said. “Each vault deployment, liquidity migration, and strategy rebalance is executed at a fraction of the gas cost, enabling frequent, adaptive strategy management without draining treasury resources.”

On the developer side, because Arbitrum is EVM compatible, it has significantly reduced engineering overhead, allowing Talos to ship vaults and governance infrastructure at a much faster rate with minimal code changes from mainnet implementations. This combination of speed and efficiency has directly translated into higher yield capture, lower costs, and faster iteration cycles.

For users, Arbitrum’s low transaction costs have made Talos’s strategies much more accessible and its fast confirmation times make vault deposits and withdrawals feel seamless. Product-wise, thanks to the deep liquidity in the Arbitrum ecosystem, many strategies that previously were not possible have been unlocked. 

“Without Arbitrum’s speed and scalability, many of these multi-protocol strategies would either be too slow or too costly to run effectively,” the Talos team said. “The combination of cheaper, faster execution and broader ecosystem support has made Arbitrum the clear home for Talos.”

Entering the Next Phase of Growth

Talos is entering its next phase of growth. In the near term, the team plans to deepen its yield integrations with top Arbitrum protocols, unlocking new, non-dilutive yield streams for the treasury. Vault deployments will scale across delta-neutral strategies, funding rate arbitrage, structured yield markets, and liquidity provision, each executed autonomously through its TEE.

Beyond internal treasury growth, Talos is building towards opening secure capital management to the broader ecosystem, which will allow anyone (from DAOs and protocols to individual users) to access Talos vaults, earn from proven strategies, and benefit from the same AI-driven execution and security guarantees that govern the core treasury. 

In the longer term, Talos wants to become the foundation for agent-driven capital allocation on Arbitrum: a trusted layer of autonomous liquidity and yield that compounds value for both the protocol and the ecosystem it lives in. 

Disclaimer: Talos is an Onchain Labs project and operates natively on Arbitrum. Onchain Labs is a collaboration between The Arbitrum Foundation and Offchain Labs, aimed at accelerating innovative onchain experiences on Arbitrum. Check out this blog post to learn more.