The Arbitrum DAO has unveiled ‘season one’ from its Defi Renaissance Incentive Program (Drip) on Wednesday, which introduces a reward system for specific assets and activities in the Arbitrum Ecosystem instead of concentrating on individual decentralized financial (Defi) protocols.
Season one judges up to 24 million ARB -Tokens, worth almost $ 12 million at current prices, to broaden the growth in the Arbitrum Ecosystem. ARB, the native token of the L2, currently acts almost $ 0.50, an increase of 28% in the past month. It has a market capitalization of $ 2.6 billion, per Coingecko data.
This first season will focus on livered looping strategies for revenue -bearing Ethereum (ETH) tokens and stablecoins. It will reward activity about selected loans and loan protocols, including Aave, Morpho, Fluid, Euler, Dolomite and Silo, viewed by the Defiant according to a press release.
Participants can earn ARB rewards for borrowing against a composite set of colleges, including Wineh, Wsteth, Rseth, Ezeth, GMMETH, SUSDC, SUSSDE, SUSDE, SYRUPUSDC, RLP, WSTUSR, SUSDAI and THBILL.
Arbitrum, an Ethereum Layer 2 (L2) network with $ 3.5 billion in Defi Total value locked (TVL), revealed its drop initiative in April; However, it was not approved by the arbitrum DAO until June.
Sustainable growth
The initiative underlines how Defi stimuli can be modeled in the future. Instead of distributing rewards broadly, Arbitrum sends them to strategies that can stimulate liquidity and promote sustainable growth.
“Not all TVL has been made equal, and maintaining growth during the program is the most important,” Matthew Fiebach, co-founder of Entropy Advisors, told The Defiant. “It is the combination of new implementations, co-inchers, lists, integrations and parameter changes that lead to structural improvements in the ecosystem.”
How it works
Season one is part of a larger four-season plan that will distribute approximately 80 million ARB tokens than $ 40 million at the time of publishing-to-find deficiency, liquidity and protocol growth.
To follow progress, entropy advisers measure efficiency statistics such as TVL per dollar and growth of market share, while also publishing public dashboards for the community.
“Efficiencystatistics will serve more as health indicators, which indicates whether the campaign should make adjustments,” said Fiebach. “However, we are strongly believers that the qualitative aspects mentioned above are just as important if no longer.”
Fiebach explained that entropy will launch public dashboards, so that the broader crypto community can follow performance data in real time.
Every season lasts about four months and emphasize another Defi -Etential. “Season two is still developing, but technologies that include top of mind for the team [decentralized exchanges]” [real-world assets]And perpetual futures, “Fiebach said.
Strong momentum
The development comes in the midst of a strong momentum for arbitrum, powered by new product launches and a partnership with rigantic shop brokers Robinhood.
According to data from Defillama, the L2 TVL has grown nearly 66% from $ 2.1 billion to more than $ 3.5 billion from today, September 3. In the meantime, decentralized scholarships (DEXs) have incorporated more than $ 100 billion in cumulative volume at Arbitrum since April.
