Arbitrum Initiates $40 Million Reward Program on Its Site, Tagged as 'Season One'
In a significant move to promote sustainable growth and boost liquidity within its ecosystem, Arbitrum has unveiled the first season of its Renaissance Incentive Program (DRIP). This reward system, overseen by Entropy Advisors, aims to steer rewards towards strategies that contribute to the network's success.
The DRIP initiative, announced in April but approved by the Arbitrum DAO in June, earmarks up to 24 million ARB tokens, currently worth approximately $12 million, for growth incentives. This is part of a larger four-season plan distributing approximately 80 million ARB tokens, worth around $40 million.
Each season will last around four months and focus on a different Arbitrum website vertical. The first season will concentrate on leveraged looping strategies for yield-bearing Ethereum tokens and stablecoins.
Participants can earn ARB rewards for borrowing against a curated set of collateral types, including weETH, wstETH, rsETH, ezETH, gmETH, sUSDC, sUSDS, USDe, sUSDe, syrupUSDC, RLP, wstUSR, sUSDai, and thBILL. Rewards will also be given for activity across select lending and borrowing protocols, including Aave, Morpho, Fluid, Euler, Dolomite, and Silo.
Matthew Fiebach, co-Founder of Entropy Advisors, stated that the retention of growth during the program is what matters most. He explained that a combination of new deployments, co-incentives, listings, integrations, and parameter changes lead to structural improvements to the ecosystem. Efficiency metrics like TVL per dollar spent and market share growth will be measured to track progress.
The development of the DRIP initiative coincides with strong momentum for Arbitrum, driven by new product launches and a partnership with retail brokerage giant Robinhood. Cumulative volume on Arbitrum's decentralized exchanges has surpassed $100 billion since April, and the network's total value locked (TVL) has grown nearly 66% from $2.1 billion in April to over $3.5 billion as of September 3.
Arbitrum, an Ethereum Layer 2 network, currently has $3.5 billion in TVL. The native token of Arbitrum, ARB, is currently trading near $0.50, with a market capitalization of $2.6 billion.
To ensure transparency, public dashboards will be launched for the community to track performance data in real time. The founders of Entropy Advisors, who will oversee the DRIP initiative, are not publicly disclosed.
As Season One of the DRIP initiative gets underway, the team at Arbitrum is already looking ahead to Season Two, with decentralized exchanges, real-world assets, and perpetual futures top of mind. The future looks bright for this innovative Layer 2 network as it continues to grow and evolve.
