As the largest Layer-2 network on Ethereum, Arbitrum is doubling down on seizing liquidity in the DeFi market. On September 3, the team announced the launch of the DeFi Renaissance Incentive Program (DRIP), which will release up to 80 million ARB tokens (approximately 40 million USD) over four quarters to attract real on-chain operational users, rather than just participants seeking short-term hype.
Plan Details: Four Quarters, Focusing on Different Decentralized Finance Tracks
The DRIP program is built by Entropy, supported by technology from Merkl, and operated by Entropy Advisors under the guidance of ArbitrumDAO.
Total rewards: 80 million ARB
Distribution method: Four "seasons", each season focuses on different areas of Decentralized Finance.
First quarter time: September 3, 2025 to January 20, 2026
Season 1 Theme: Leveraged Circulation in the Lending Market
Reward scale: Up to 24 million ARB
In the first quarter, users can earn rewards by borrowing yield-generating ETH and stablecoin assets on approved platforms (Aave, Morpho, Fluid, Euler, Dolomite, Silo). Available collateral includes wstETH, eUSDC, USDe.
Arbitrum emphasizes that the incentive structure is performance-based and independent of the protocol, aimed at encouraging genuine borrowing demand across multiple markets rather than concentrating liquidity on a single platform.
L2 competition intensifies, Arbitrum maintains its lead
According to L2beat data, Arbitrum's current Total Value Locked (TVL) exceeds $19.1 billion, leading Coinbase's Base ($14.7 billion) and OP Mainnet ($3.6 billion).
Data from the analysis platform Growthepie shows that nearly 13% of Ethereum's application revenue comes from L2 networks, indicating that this sector is rapidly maturing.
As developers, users, and liquidity become the core resources of L2 competition, Arbitrum's move is clearly aimed at solidifying its position as the liquidity king.
Ethereum Foundation Promotes L2 Interoperability
As the battle on L2 heats up, the Ethereum Foundation is also advancing ecological integration. On August 29, the Foundation announced the launch of the Ethereum Interoperability Layer (EIL), a trustless framework that enables cross-chain transactions between different L2s.
The goal of EIL is to allow users to experience "one Ethereum" while preserving core principles such as decentralization, anti-censorship, privacy, and open source, reducing fragmentation between L2s.
Conclusion
As L2 competition reaches a fever pitch, Arbitrum's $40 million DeFi incentive program is not only a strategic move to attract liquidity but also a direct response to competitors such as Base and OP Mainnet.
In the coming quarters, the effectiveness of the DRIP plan will directly impact Arbitrum's leading advantage in the L2 market, while the L2 interoperability promoted by the Ethereum Foundation may further change the competitive landscape of the entire Layer-2 ecosystem.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
L2 wars intensify! Arbitrum launches a $40 million Decentralized Finance incentive program, aiming for the dominance in Liquidity.
As the largest Layer-2 network on Ethereum, Arbitrum is doubling down on seizing liquidity in the DeFi market. On September 3, the team announced the launch of the DeFi Renaissance Incentive Program (DRIP), which will release up to 80 million ARB tokens (approximately 40 million USD) over four quarters to attract real on-chain operational users, rather than just participants seeking short-term hype.
Plan Details: Four Quarters, Focusing on Different Decentralized Finance Tracks
The DRIP program is built by Entropy, supported by technology from Merkl, and operated by Entropy Advisors under the guidance of ArbitrumDAO.
Total rewards: 80 million ARB
Distribution method: Four "seasons", each season focuses on different areas of Decentralized Finance.
First quarter time: September 3, 2025 to January 20, 2026
Season 1 Theme: Leveraged Circulation in the Lending Market
Reward scale: Up to 24 million ARB
In the first quarter, users can earn rewards by borrowing yield-generating ETH and stablecoin assets on approved platforms (Aave, Morpho, Fluid, Euler, Dolomite, Silo). Available collateral includes wstETH, eUSDC, USDe.
Arbitrum emphasizes that the incentive structure is performance-based and independent of the protocol, aimed at encouraging genuine borrowing demand across multiple markets rather than concentrating liquidity on a single platform.
L2 competition intensifies, Arbitrum maintains its lead
According to L2beat data, Arbitrum's current Total Value Locked (TVL) exceeds $19.1 billion, leading Coinbase's Base ($14.7 billion) and OP Mainnet ($3.6 billion).
Data from the analysis platform Growthepie shows that nearly 13% of Ethereum's application revenue comes from L2 networks, indicating that this sector is rapidly maturing.
As developers, users, and liquidity become the core resources of L2 competition, Arbitrum's move is clearly aimed at solidifying its position as the liquidity king.
Ethereum Foundation Promotes L2 Interoperability
As the battle on L2 heats up, the Ethereum Foundation is also advancing ecological integration. On August 29, the Foundation announced the launch of the Ethereum Interoperability Layer (EIL), a trustless framework that enables cross-chain transactions between different L2s.
The goal of EIL is to allow users to experience "one Ethereum" while preserving core principles such as decentralization, anti-censorship, privacy, and open source, reducing fragmentation between L2s.
Conclusion
As L2 competition reaches a fever pitch, Arbitrum's $40 million DeFi incentive program is not only a strategic move to attract liquidity but also a direct response to competitors such as Base and OP Mainnet.
In the coming quarters, the effectiveness of the DRIP plan will directly impact Arbitrum's leading advantage in the L2 market, while the L2 interoperability promoted by the Ethereum Foundation may further change the competitive landscape of the entire Layer-2 ecosystem.