Instead of chasing flashy metrics, Arbitrum wants to reward actions that truly grow its ecosystem.
Backed by Entropy Advisors and powered by Merkl, the program has a $40 million budget, or 80 million ARB tokens, set aside for incentives over four seasons.
Looping Smarter: Season One Begins
Season One of the program, called DRIP, kicked off on September 3, 2025, and will run until January 20, 2026. With up to 24 million ARB on the table, this season focuses on a strategy known as leverage looping. In simple terms, looping is when you deposit an asset, borrow against it, buy more of the same asset, and repeat. The more you loop during each two-week cycle, called an epoch, the more ARB rewards you can earn.
For example, imagine depositing a yield-bearing stablecoin like syrupUSDC into a lending market. You borrow USDC against it, swap it back for more syrupUSDC, and loop the process. This way, your position grows, and your borrowing activity is rewarded with ARB tokens. It is a performance-based model, meaning your rewards are tied to how much you borrow and how long you stay active.
Introducing DRIP – The DeFi Renaissance Incentive Program!
A huge DeFi program that rewards real DeFi actions on Arbitrum, starting with Season 1: Leverage Looping Strategy
💧 Deposit ETH/stables
💧 Borrow & loop
💧 RepeatJoin the Renaissance now 👇https://t.co/dIQYRL2B3g pic.twitter.com/IvjoD9IXOE
— Arbitrum (@arbitrum) September 3, 2025
Eligible assets include popular forms of staked ETH such as wstETH and weETH. As well as stablecoins like sUSDC and USDe. In some markets, simply supplying ETH or USDC will also earn rewards.
A real-world comparison would be a local government offering tax credits not just for moving to a city but for starting businesses that create jobs. By targeting the right actions, the community grows stronger over time.
More About Arbitrum’s DRIP
The DeFi Renaissance Incentive Program (DRIP) is a year-long initiative with 80 million ARB tokens set aside to boost DeFi growth on Arbitrum. The program is split into four seasons, each focusing on a different area of decentralized finance. It starts with lending markets in Season One.
The DRIP incentive program is live on @arbitrum — with 80M ARB rewards to boost DeFi activity across the ecosystem.
And Merkl is powering the whole program ✨
Add liquidity on @aave, @MorphoLabs, @eulerfinance, @Dolomite_io, @0xfluid, and @SiloFinance to start earning.
🧵👇🏼 pic.twitter.com/Sdchs0rRUu
— Merkl (@merkl_xyz) September 3, 2025
Leading protocols like Aave, Morpho, Euler, Dolomite, Fluid, and Silo are already on board. Getting involved is simple: bridge your funds to Arbitrum One, head to the DRIP app powered by Merkl. Also, explore the live opportunities, interact with the supported protocols, and then claim your ARB rewards directly from your dashboard.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies presented are the thoughts and opinions of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments; therefore, please conduct your due diligence. Copyright Altcoin Buzz Pte Ltd.
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