So @arbitrum' DRIP program is showing results🔥
DRIP (DeFi Renaissance Incentive Program) launched to boost lending activity on Arbitrum is working.
> Total borrowed value increased by $340M+ since the program started
> ~$1.42M USD equivalent in ARB rewards distributed through Epoch 2
> Currently in Epoch 3 adding with another ~$1.42M USD (1.2M ARB)
How is arbitrum doing atm?
1. Arbitrum TVL is sitting at $4.06B (+16% month-over-month, +~$600M)
2. Has a lending market of $1.9B, RWA market of $1B+
3. TVS crossed $20.31B
4. Stablecoin mcap of $10B+
Which are the top 5 protocols that are actually winning on Arbitrum in the lending space?
1. @aave
> Was temporarily paused in Epoch 2 due to high ETH borrowing costs
2. @MorphoLabs
> +$272M (+696%) to reach $311M market size
> Driven by USDC & thBILL deposits
> Now a leader in RWA-backed lending
3. @0xfluid
> +$128M (+63%) to $332M
> Driven by syrupUSDC deposits & USDC/USDT loans
4. @eulerfinance
> +$167M (+186.8%) to hit $177M ATH
> Growth from PT tokens (PT-USDai, PT-sUSDai, PT-thBILL)
> Most loans in USDC
5. @SiloFinance
> +$105M (+187.3%) to reach $100-105M range
> USDC (+130% to $30.1M), PT-sUSDai, rsETH (+78%), WETH (+660% to $25.9M)
> Borrowed value up 223% to $42M
DRIP, started with discovery phase (Epochs 1-2) where it was basically testing of which protocols & assets respond best to incentives.
Now in performance phase (Epoch 3+) where rewards scale with efficiency & market performance (Better performing markets get larger reward shares)
> Discovery phase used ~1.62M ARB of the initial projection
> Significant budget remaining for performance phase through January 2026
Most DeFi incentive programs attract temporary liquidity that leaves when rewards stop. DRIP focused on productive borrowing activity,.
$344.56M borrowed value increase from ~$1.42M in distributed incentives shows ~242x capital efficiency ratio.
The shift to performance phase creates competition among protocols to maximize efficiency & not just chase rewards which is healthy imo.
h/t to @EntropyAdvisors, who maintains public Dune dashboards tracking all metrics as it makes easy to verify everything onchain.
What are your thoughts on DRIP guys?
@hmalviya9 @snow949494 @belizardd @Hercules_Defi @DefiIgnas @Slappjakke @kenodnb @DeFiMinty @thelearningpill @TrycVerrse @Defi_Warhol @Louround_ @TheDeFiPlug @eli5_defi @0xAndrewMoh @DeRonin_ @0xTindorr @arndxt_xo @poopmandefi @0xCheeezzyyyy @Mars_DeFi @splinter0n @zerokn0wledge_ @satyaki44 @0xTanishaa @bullish_bunt @cryptorinweb3
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