ArbitrumDAO Kicks Off $40M DRIP Program to Stimulate DeFi on Its Network
ArbitrumDAO has officially launched season one of its $40 million DeFi Renaissance Incentive Program (DRIP), distributing up to 24 million ARB tokens to accelerate decentralized finance activity across the Arbitrum ecosystem.
The first season centers on leveraged looping strategies for yield-bearing ETH and stablecoins, with incentives allocated to leading lending and borrowing platforms including Aave, Morpho, Fluid, Euler, Dolomite, and Silo. Users can earn ARB rewards by borrowing against approved collateral types such as weETH, wstETH, sUSDC, and syrupUSDC.
Approved by ArbitrumDAO in June, the DRIP program spans four seasons totaling 80 million ARB tokens, each targeting a specific DeFi use case to boost liquidity, capital efficiency, and innovation within the ecosystem.
“This program establishes a framework where protocols driving meaningful DeFi innovation receive support, while users gain additional ways to optimize strategies on Arbitrum,” the DAO stated in a press release shared with CoinDesk.
Ahead of the DRIP launch, protocols including Morpho, Euler, and Maple Finance expanded onto Arbitrum, citing the program as a growth catalyst.
“DRIP will help Morpho attract DeFi-native liquidity and enhance rates for integrations like the Earn feature on Gemini Onchain,” said Kirk Hutchison, Chain Expansion Lead at Morpho. “The combination of incentives and Arbitrum’s distribution network makes it the ideal platform for our next stage of growth.”
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, with a DAO-approved committee reviewing performance. Successful strategies may receive continued support, while underperforming initiatives will be adjusted or discontinued.
