Boost Activity on Arbitrum: Lido’s ARB Airdrop Considered as Potential Solution

Proposal: Lido to Reward Liquidity Providers in Wrapped Staked Ether Pools with ARB Tokens

Lido DAO is considering a new proposal to accept its $1.2 million worth of ARB tokens and distribute them as rewards to liquidity providers in wrapped staked ether pools. This proposal is aimed at incentivizing the use of wrapped staked ether (wstETH) throughout the Arbitrum ecosystem by providing emission rewards.

The proposal was submitted on April 12 by Reyes, Lido’s head of decentralized finance (DeFi) business development and partnership. The Lido DAO community will vote on the proposal, which is focused on operational and strategic topics related to claiming and using the potential ARB tokens.

The Arbitrum Airdrop

In mid-March, Arbitrum airdropped its governance token ARB to reward early adopters of the layer 2 scaling system. This included several decentralized autonomous organizations (DAO), such as Lido, that played a role in the growth and health of Arbitrum.

Lido is eligible to claim 772,621 ARB tokens, according to a Google doc found in Arbitrum Foundation’s governance documents. This amount is worth more than $1.2 million at current prices.

Rewarding ARB Tokens to Liquidity Providers

Under the proposal, Lido would reward its ARB tokens to users who provide liquidity for wrapped staked ether pools on Arbitrum. The program would work similarly to the way liquidity pools currently earn additional LDO rewards on top of staking rewards, according to Kasper Rasmussen, Lido’s marketing lead.

The proposal is focused on using ARB tokens to incentivize the use of wstETH in the Arbitrum ecosystem. Currently, 33,400 wstETH has been bridged to Arbitrum and the total number of wstETH transactions on Arbitrum stands at more than one million.

The proposal could go to a vote later this week, according to Rasmussen.

Conclusion

The proposed use of ARB tokens to reward liquidity providers in wrapped staked ether pools on Arbitrum is aimed at incentivizing the use of wstETH in the ecosystem. This proposal, if accepted, could help increase the adoption of Arbitrum’s layer 2 scaling system and benefit both the Lido and Arbitrum communities.

Summary:

• Lido DAO is considering a new proposal to reward liquidity providers in wrapped staked ether pools with its $1.2 million worth of ARB tokens
• The proposal aims to incentivize the use of wstETH in the Arbitrum ecosystem by providing emission rewards
• Lido is eligible to claim 772,621 ARB tokens, worth over $1.2 million at current prices
• The proposal could go to a vote later this week
• The program would work similarly to the way liquidity pools currently earn additional LDO rewards on top of staking rewards
• The proposal is focused on using ARB tokens to incentivize the use of wstETH in the Arbitrum ecosystem
• The proposal, if accepted, could help increase the adoption of Arbitrum’s layer 2 scaling system and benefit both the Lido and Arbitrum communities