ArbitrumDAO Launches $40M DRIP Program to Boost DeFi on Its Network

ArbitrumDAO has kicked off season one of its $40 million DeFi Renaissance Incentive Program (DRIP), deploying up to 24 million ARB tokens to accelerate decentralized finance growth across the Arbitrum ecosystem.

The first DRIP season targets leveraged looping strategies for yield-bearing ETH and stablecoins, directing incentives to leading lending and borrowing protocols such as Aave, Morpho, Fluid, Euler, Dolomite, and Silo. Users can earn ARB rewards by borrowing against approved ETH and stablecoin collateral, including weETH, wstETH, sUSDC, and syrupUSDC.

Approved by ArbitrumDAO in June, the four-season DRIP program has a total budget of 80 million ARB tokens, with each season focusing on a specific DeFi use case to enhance liquidity, capital efficiency, and protocol innovation throughout the ecosystem.

“This targeted rollout creates an aligned framework: protocols driving meaningful DeFi innovation receive support, while users gain new opportunities to optimize strategies on Arbitrum,” the DAO stated in a press release shared with CoinDesk.

Several protocols, including Morpho, Euler, and Maple Finance, have already expanded onto Arbitrum ahead of the DRIP launch, citing the program as a growth catalyst.

“DRIP will help Morpho attract DeFi-native liquidity and provide deeper liquidity and better 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 wide distribution network makes it the natural home for our next stage of growth.”

As the largest Ethereum layer-2 according to L2Beat, controlling over 35% of the L2 market share, Arbitrum plans to run each DRIP season for four to five months, with performance reviewed by a DAO-approved committee. Successful strategies may receive renewed support, while underperforming initiatives will be adapted or discontinued.