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Arbitrum Launches $40 Million DRIP With 24M ARB for Season-One DeFi Lending

The DAO-run initiative steers ARB rewards to borrowing activity on vetted lending markets to draw liquidity to Arbitrum.

Overview

  • Season one runs from Sept. 3, 2025 to Jan. 20, 2026, with rewards paid out in two-week epochs.
  • Incentives target leverage-looping across Aave, Morpho, Fluid, Euler, Dolomite and Silo through a performance-based allocation model.
  • The first two epochs operate as a discovery phase using about 15% of the budget before shifting more rewards to top-performing markets.
  • Eligible collateral includes yield-bearing ETH derivatives and stablecoins such as weETH, wstETH, rsETH, eUSDC, sUSDC and syrupUSDC.
  • DRIP is managed by Entropy Advisors and powered by Merkl under ArbitrumDAO oversight, spanning four seasons funded with 80 million ARB.