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ArbitrumDAO Approves Program to Strengthen the DeFi Ecosystem

ArbitrumDAO has kicked off the first season of the DeFi Renaissance Incentive Program (DRIP), allocating up to 24 million ARB tokens (~$40M) to accelerate DeFi growth on the Arbitrum network. This inaugural season focuses on leveraged looping strategies for yield-bearing ETH and stablecoins.

Targeted Protocols

Incentives are directed toward leading lending and borrowing protocols, including:

  • Aave
  • Morpho
  • Fluid
  • Euler
  • Dolomite
  • Silo

Users can earn ARB rewards when they borrow against curated assets such as weETH, wstETH, sUSDC, and syrupUSDC.

Four-Season Program: 80M ARB Budget

Approved by the DAO in June, DRIP encompasses a total budget of 80M ARB tokens spread across four seasons.
Each season will focus on a different DeFi use case to:

  • Boost liquidity in the ecosystem,
  • Strengthen capital efficiency,
  • Drive protocol innovation.

Growth Catalyst for Protocols

Ahead of launch, protocols like Morpho, Euler, and Maple Finance expanded to Arbitrum, framing DRIP as a growth catalyst.

Kirk Hutchison, Chain Expansion Lead at Morpho:

“DRIP will help Morpho attract native DeFi liquidity and provide deeper liquidity for integrations such as Gemini Onchain Earn.”

DAO Oversight & Strategic Flexibility

  • Each DRIP season will last 4–5 months.
  • Results will be reviewed by a DAO-approved committee.
  • High-performing strategies will receive renewed support, while underperforming ones will be adjusted or phased out.

Arbitrum’s Ecosystem Leadership

According to L2Beat, Arbitrum maintains its lead as the largest Layer-2 solution on Ethereum with over 35% market share.
With DRIP, Arbitrum aims to expand its strong ecosystem and cement its role as the center of DeFi innovation.

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