ArbitrumDAO has officially rolled out the first season of its $40 million DeFi Renaissance Incentive Program (DRIP). This initiative seeks to allocate up to 24 million ARB tokens to foster the growth of decentralized finance within the Arbitrum network.
Key Points:
- The first phase of DRIP is focused on leveraged looping strategies for yield-bearing ETH and stablecoins. Incentives will be directed toward prominent lending and borrowing platforms.
- Users participating in the program can earn ARB rewards by borrowing against a curated selection of collateral types such as weETH, wstETH, sUSDC, and syrupUSDC.
- The total budget for the DRIP program amounts to 80 million ARB tokens, spread across four seasons, each targeting different DeFi use cases to enhance liquidity and protocol innovation.
“This targeted rollout introduces an aligned framework: protocols that are contributing meaningful innovation to DeFi receive incentive support, while users benefit from new opportunities to optimize strategies on Arbitrum,” stated the team in a press release.
Morpho, Euler, and Maple Finance have begun integration into Arbitrum prior to the launch, with DRIP seen as a key growth catalyst.
Kirk Hutchison, Chain Expansion Lead at Morpho, noted, “DRIP will help Morpho attract DeFi native liquidity and provide deeper liquidity and better rates for DeFi Mullet integrations like the Earn feature on Gemini Onchain.”
Arbitrum, recognized as the largest layer-2 solution on Ethereum, is implementing each DRIP season for a duration of four to five months, with outcomes reviewed by a DAO-approved committee. Strategies showing success might receive renewed backing, whereas underperformers will face adjustments or be phased out.
