Today in Markets

Arbitrum Making Moves

An aggressive incentive play is showing early promise, but will the good times last?
Nov 10, 20231 min read

Arbitrum’s short-term incentive program (STIP) distributed 50M ARB, worth approximately $58M, across 29 protocols. Early results have been promising: the ARB token is up 22% on the week, its TVL reclaimed $2B, and daily active users are up 37%!

To top it off, the Arbitrum DAO is now considering injecting an additional 21.4M ARB ($25M) into an additional 26 protocols that received approval in initial STIP voting but were unable to be funded, due to that round’s hard 50M ARB cap.

While the ARB token has experienced price appreciation and network activity has increased, the true winners of STIP program are the protocols that received ARB allocations – not the ARB bag HODLers funding the incentives program.

The arrival of STIP incentives on popular Arbitrum trading platform GMX, for example, has propelled the platform’s V2 volumes and fees to new highs.

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