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3w ago

ArbitrumDAO Launches $40 Million DRIP to Incentivize DeFi Lending Loops

Rewards are allocated through two-week epochs that shift funding to the most effective borrowing markets.

Arbitrumdao incentivizes defi growth with 24m arb token rollout
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Overview

  • Season One runs Sept. 3, 2025 through Jan. 20, 2026, distributing up to 24 million ARB within a four-season program totaling roughly 80 million ARB.
  • Users earn ARB by borrowing against yield-bearing ETH and stablecoins on Aave, Morpho, Fluid, Euler, Dolomite, and Silo using collateral such as wstETH, weETH, and syrupUSDC.
  • The opening two epochs operate as a discovery phase using about 15% of the budget before a performance phase concentrates incentives on markets with the strongest demand.
  • Entropy Advisors manages the program, which is structured by Entropy and powered by Merkl under ArbitrumDAO’s direction.
  • Coverage notes rising L2 competition and an ARB price well below its 2024 peak, with concerns about inflationary overhang even as Arbitrum points to Timeboost revenue and DefiLlama shows Base leading in DeFi TVL.