Arbitrum has launched the Drip program to stimulate productive Defi activity by rewarding users with ARB tokens for the use of credit and walking strategies in the ecosystem.
Summary
- Arbitrum drop season one stimulates lending strategies in lending markets, rewarding users with ARB tokens for borrowing and recovering assets.
- Eligible assets for collateral include important stablecoins (eg USDC, SyrupusDC) and ETH derivatives such as Wineh and RSETH.
- Participating protocols include Aave, Morpho, Fluid, Euler, Dolomite and Silo, with rewards spread over two weeks of eras.
How Arbitrum drop program works
Arbitrum (ARB) has launched The Defi Renaissance Incentive Program (Drip), an initiative of $ 40 million that is designed to encourage productive Defi activity on its network. Managed by Entropie advisors and powered by Merkl, Arbitrum Drip program has been structured over four seasons.
Season one, runs from September 3 to January 20, focuses on liver strategies in Defi -credit markets, where users can earn ARB -Tokens by borrowing against eligible ETH and Stablecoin assets, re -depositing and repeating the process to increase their exposure.
For example, a user can borrow SyrupusDC into a participating credit protocol, borrow USDC against it and then borrowed the USDC back in more syrupusDC and promote it again. By repeating this loop over the two-week periods, users increase their total borrowed position and their ARB rewards are calculated on the basis of the time weight average loan balance. Some markets also simply reward the supply of assets such as ETH derivatives (says, Wsteth, RSeth) or Stablecoins, not just borrowing.
To participate, users must bridge eligible assets Choose a participating market for Arbitrum one-such as an Aave, Morpho, liquid, Euler, Dolomite or Silo-Dan Collateral, Borrow and Lus, and eventually claim ARB-Rosewon at the end of two weeks each.
Arbitrum -Drip program is designed in phases. The first two periods serve as a discovery phase, so that only 15% of the budget is allocated to determine which markets perform best. After this, the performance phase rewards the best performing markets with a larger proportion of incentives, encouraging healthy competition and maximizing liquidity growth in the Defi-eco system of Arbitrum.
By stimulating productive loans and loop activity, the ARBitrum drip program is ready to increase the TVL in the Defi -Ecosystem of Arbitrum, which is currently around $ 3.21 billion Defillama. This places Arbitrum 7th in Global Defi TVL share at 2.1%, just behind the base.
