What if DeFi incentives actually worked? Rewarding targeted actions, not just attention. Incentives that grow an ecosystem, not vanity metrics on a dashboard. 

This is the vision behind the DeFi Renaissance Incentive Program, designed by Entropy and powered by Merkl. ArbitrumDAO tasked Entropy Advisors with managing roughly $40 million (80 million ARB) in user incentives. The program spans four seasons, each designed to target a specific DeFi vertical at a time. Season One targets the growth of leverage looping on lending markets.

Season One: Loop Smarter on Arbitrum

• Website: arbitrumdrip.com
• Start: September 3, 2025
• Planned End: January 20, 2026
• Season One Budget: Up to 24 million ARB
• Length: 20 weeks (10 2-week epochs)

Season One of the DRIP program is focused on growing leverage looping on Arbitrum One. Earn ARB by borrowing against an eligible list of yield-bearing ETH and stable assets on participating lending platforms. For example: Deposit syrupUSDC → borrow USDC → swap it for more syrupUSDC → repeat. The more you borrow (and loop) during each epoch, the more ARB rewards you can earn. 

DRIP is performance-based and protocol-agnostic. By rewarding borrow demand across multiple lending markets and assets, the program aims to funnel organic liquidity to Arbitrum and bolster its position as the leading DeFi blockchain. For each epoch, DRIP allocates ARB to participating lending markets. At the end of the epoch, rewards are calculated based on the total amount of ETH (WETH) or USDC borrowed against eligible assets. Your share depends on your time-weighted average borrow in that market during the epoch.

In some select markets, rewards will be given for supplying ETH (WETH) or USDC. All opportunities for users to earn will be visible on the DRIP home page.

Participating Lending Markets

Eligible Collateral Assets

• ETH-type collateral: weETH, wstETH, rsETH, ezETH, gmETH.
• Stablecoin collateral: sUSDC, sUSDS, USDe, sUSDe, syrupUSDC, RLP, wstUSR, sUSDai, thBILL.
• Pendle derivatives (PT/YT) of eligible assets will also be eligible for incentives.

Phase Rollout

Season One of DRIP is designed around a phased rollout. The first two epochs are structured as a discovery phase to establish the necessary baselines, during which only 15% of the program's base budget will be allocated. 

The program then ramps up into the performance-based model to maximize efficiency and competition. In the second phase, markets and projects that are more successful will receive a greater share of the total incentives. 

The bulk of the program's budget will be spent during the performance phase. 

Getting Started

Any wallet using eligible DeFi activities on Arbitrum can participate, no signup required. Here are some steps and tips to get started:

1. Bridge to Arbitrum One: Move eligible assets to Arbitrum One using your preferred bridge. 
2. Choose a Market: Visit arbitrumdrip.com to view live opportunities across participating lending protocols and assets.
3. Deposit Collateral: Supply one of the whitelisted yield-bearing ETH or stable assets.
4. Borrow and Loop: Depending on the market, borrow ETH or USDC. 
5. Know the Risks: Loops can be liquidated if prices move or rates change. Always be conscious of LTV and health factor limits. DRIP rewards don’t cover potential losses. Do your own research.
6. Claim Rewards: At the end of every 2-week epoch, ARB rewards are allocated based on time-weighted borrow balance and distributed via Merkl on the claim page. Claims of rewards will be available for 3 months following the conclusion of Season One, which is currently set as January 20th, 2026.
7. Stay Active: Check back regularly, as markets that outperform others in their category may earn higher rewards in the following epoch, while weaker performers may see lower returns. To maximize performance during Season One, monitor market performance with Entropy Advisors’ DRIP dashboards and track future epoch allocation on arbitrumdrip.com/users.

By the Community, for the Community

DRIP was founded by Entropy Advisors and voted in by the ArbitrumDAO. This is an amazing accomplishment showcasing a completely community-backed program being used to grow Arbitrum. In a world of growing concern over centralization and overpowering control, Arbitrum is setting an unprecedented example of decentralization and giving power back to the people. Help shape this decentralized future by participating in the DeFi Renaissance on Arbitrum.

Disclaimer: 

Participation in the DeFi Renaissance Incentive Program (“DRIP”) involves risks. Leveraged strategies such as looping can result in liquidation or total loss of funds. ARB rewards do not compensate for potential losses. You should carefully assess your own risk tolerance before participating.

Nothing in this post or the DRIP program constitutes financial, legal, or investment advice. All participants are solely responsible for their own decisions and for complying with all applicable laws and regulations in their jurisdiction.

Rewards are not guaranteed. The amount and distribution of ARB depends on program parameters and user activity. Program terms, eligible assets, and budget allocations are subject to change at the discretion of the ArbitrumDAO.

Merkl, the Arbitrum Foundation, and the DRIP Committee are not responsible for smart contract risks, protocol vulnerabilities, or losses incurred on third-party platforms. DRIP is a community-governed initiative: Entropy Advisors manages program operations but does not control ArbitrumDAO governance or treasury decisions.

Merkl, the Arbitrum Foundation, and the DRIP Committee shall have no liability to you should they fail to make a payment of rewards to you, for any reason, including without limitation whether this be in relation to the amount you do or do not receive or a payment that does not go to your nominated wallet address. If you receive a payment that is not intended for you or if you receive more than you should have received, you shall, upon request, immediately return this to an address nominated by the Arbitrum Foundation.