ArbitrumDAO Launches $40M DRIP Initiative to Accelerate DeFi Adoption
ArbitrumDAO has rolled out season one of its $40 million DeFi Renaissance Incentive Program (DRIP), distributing up to 24 million ARB tokens to stimulate decentralized finance activity on the Arbitrum network.
The inaugural DRIP season focuses on leveraged looping strategies for yield-bearing ETH and stablecoins. Incentives are directed at leading lending and borrowing protocols, including Aave, Morpho, Fluid, Euler, Dolomite, and Silo. Users can earn ARB rewards for borrowing against approved collateral types such as weETH, wstETH, sUSDC, and syrupUSDC.
Approved in June, the four-season DRIP program has a total budget of 80 million ARB tokens, with each season targeting specific DeFi use cases to enhance liquidity, optimize capital efficiency, and foster innovation across the ecosystem.
“This initiative establishes a framework where protocols contributing meaningful DeFi innovation receive incentives, while users gain opportunities to maximize strategies on Arbitrum,” the DAO said in a press release shared with CoinDesk.
Protocols including Morpho, Euler, and Maple Finance expanded onto Arbitrum ahead of the DRIP launch, citing the program as a growth catalyst.
“DRIP will help Morpho attract DeFi-native liquidity and provide deeper liquidity and better rates for integrations like the Earn feature on Gemini Onchain,” said Kirk Hutchison, Chain Expansion Lead at Morpho. “Combined with Arbitrum’s wide distribution network, the program positions us for the next stage of growth.”
Arbitrum, the largest Ethereum layer-2 network with over 35% of the L2 market share according to L2Beat, plans to run each DRIP season for four to five months, with performance reviewed by a DAO-approved committee. Strategies that succeed may be renewed, while underperforming initiatives will be adapted or discontinued.
