The Ethereum L2 network Linea has launched a 1 billion Token Ignition incentive program, aiming to push the TVL beyond 1 billion dollars.

The consortium-managed Ethereum Layer 2 network Linea has officially opened its Ignition liquidity incentive program to the public. This program aims to accelerate the growth of the Total Value Locked (TVL) in DeFi protocols within the ecosystem, targeting to attract over $1 billion in liquidity and distributing 1 billion LINEA tokens as rewards to participants. The reward calculations are verified by Brevis's ZK processor and Pico ZKVM, ensuring Decentralization and transparency. Liquidity Providers can now earn yields by participating in protocols such as Aave, Euler, and Etherex, with 40% of the rewards unlocking on October 27, 2025, and the remaining 60% being released linearly over 45 days.

Ignition plan officially launched, open to global Liquidity Providers

Linea announced the opening of the Ignition Incentive Program on September 2, following several weeks of internal testing with whitelisted users. The program has been approved by the Linea Consortium and aims to enhance the activity of on-chain DeFi protocols, reward Liquidity Providers (LPs), and support the upcoming "Native Yield" mechanism.

How to Participate and Supported Protocols

Liquidity Providers can now connect their wallets to the official event page to receive LINEA rewards by injecting liquidity into the specified protocol, which mainly includes:

  • All WETH, USDC, USDT lending pools on Aave
  • The WETH, USDC, and USDT markets on Euler are managed by EulerDAO/Gauntlet, Re7 Labs, and Zerolend (supporting direct deposits or participation through Euler Earn)
  • Trading pairs USDC/ETH, WTBC/ETH, USDC/USDT, and REX/ETH on Etherex (rewards stacked with the original $REX incentives)

In addition, all lending pools will soon support access through the Turtle platform. The plan will continue until October 26, 2025.

Innovative Reward Mechanism: Market Impact and Time-Weighted Distribution

Rewards distribution adopts different models based on the protocol type:

  • Etherex Trading Pool: Adopts a "reverse U-shaped incentive function" to allocate rewards based on the trading volume and slippage generated by liquidity, providing higher returns during periods of high market volatility and widening spreads, incentivizing Liquidity Providers to absorb trading pressure during the price discovery phase.
  • Aave and Euler lending pools: The total rewards are allocated based on the actual TVL (time-weighted average) of the fund pool and the target TVL set weight distribution, and then the earnings are calculated according to the time-weighted proportion of individual positions. Special adaptive incentives are set to increase rewards to attract deposits when the utilization rate of the fund pool is low.

All reward data is updated weekly (usually on Monday or Tuesday) and decentralized verification is achieved through Brevis zero-knowledge proof technology to ensure transparency and tamper-resistance.

[Rewards Locking and Unlocking Arrangement]

  • Before October 27, 2025: rewards are locked and can only view the accumulated amount, and cannot be claimed.
  • October 27, 2025: 40% rewards are immediately unlocked and available for claiming.
  • After October 27, 2025: The remaining 60% rewards will be released linearly on a daily basis over 45 days.

[Background and Ecological Progress]

The Ignition program is an important part of Linea's token series initiatives this summer. By the end of July, Linea had completed the ecological airdrop snapshot, with over 780,000 wallets sharing 7.2 billion Token rewards. Off-exchange trading will begin in August, and the mainnet Token Generation Event (TGE) is expected to take place in September.

[Conclusion]

LINEA directly hands over the value growth mechanism to the community through the Ignition program, combining ZK technology to ensure fairness, demonstrating the strategic trend of ecosystem development driven by incentives in the Layer 2 track. Whether it can achieve a breakthrough in TVL and user growth through the incentive of one billion Tokens will become a key indicator of its ecological potential.

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