24 Million ARB Tokens Deployed by ArbitrumDAO to Boost DeFi Activity

ArbitrumDAO Rolls Out $40M DRIP Program to Drive DeFi Growth

ArbitrumDAO has launched season one of its $40 million DeFi Renaissance Incentive Program (DRIP), allocating up to 24 million ARB tokens to spur decentralized finance activity across the Arbitrum network.

The inaugural season focuses on leveraged looping strategies for yield-bearing ETH and stablecoins. Incentives target top lending and borrowing protocols including Aave, Morpho, Fluid, Euler, Dolomite, and Silo, rewarding users for borrowing against approved collateral types such as weETH, wstETH, sUSDC, and syrupUSDC.

Approved in June by the DAO, DRIP spans four seasons with a total budget of 80 million ARB tokens. Each season emphasizes a specific DeFi use case, aiming to increase liquidity, optimize capital efficiency, and foster innovation across the ecosystem.

“This program introduces an aligned framework where protocols contributing meaningful DeFi innovation receive incentives, while users gain new opportunities to maximize strategies on Arbitrum,” the DAO said in a press release shared with CoinDesk.

Several protocols, including Morpho, Euler, and Maple Finance, expanded onto Arbitrum ahead of the launch, citing DRIP as a key driver for growth.

“DRIP will enable Morpho to attract DeFi-native liquidity and provide deeper liquidity and improved rates for integrations like the Earn feature on Gemini Onchain,” said Kirk Hutchison, Chain Expansion Lead at Morpho. “With incentives and Arbitrum’s distribution network, it’s the ideal platform for our next growth phase.”

As the largest Ethereum layer-2 network, controlling over 35% of L2 market share according to L2Beat, Arbitrum plans to run each DRIP season for four to five months. Performance will be reviewed by a DAO-approved committee, with successful strategies potentially renewed and underperforming ones adapted or discontinued.

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