What is DRIP?

Designed by Entropy Advisors and powered by Merkl, the Arbitrum DeFi Renaissance Incentive Program (DRIP) is ArbitrumDAO’s new large-scale initiative to grow DeFi usage on Arbitrum One by rewarding users with 80 million ARB tokens ($40M USD) for participating in incentivized strategies. Using a muli-season approach that will span 4 seasons, Season One “Loop Smarter on Arbitrum” targets a number of assets and lending markets, rewarding users for levering up positions on yield-baring assets.

Targeted lending markets include:

• Aave
• Morpho
• Fluid
• Euler
• Dolomite
• Silo

Why Use RWAFI?

RWAFI is a smart contract fund on Arbitrum that generates USDC yield by diversifying into DeFi and real-world asset (RWA) strategies. Built entirely onchain on Arbitrum, the fund offers automated, transparent investing, with full user control and daily rebalancing to optimize returns.

For the remainder of Season One of DRIP, RWAFI will focus on simplifying access and maximising returns for users seeking to farm ARB tokens. The fund has been rebalanced to allocate into incentivized lending markets. All ARB rewards will be claimed on the behalf of users and compounded into USDC.

The fund will not perform any complex looping strategies, and add no additional risk. Funds will be diversified across multiple markets and rebalanced in line with each two week epoch to maximize returns for users. All transactions to claim rewards and compound into USDC are fully automated, and viewable onchain. Rewards are compounded every 24 hours.

How Does RWAFI Work?

RWAFI is a smart contract fund built on the Nashpoint protocol. As a modular infrastructure, Nashpoint is designed to be upgraded and improved over time. To maximize DRIP returns, Nashpoint has been upgraded with new Merkl and 1inch routers to enable claiming of rewards and swapping to USDC. Now that this functionality has been added RWAFI, all future users of Nashpoint will be able to utlilize these upgrades to design and operate their own decentralized fund.

Changes To RWAFI Composition

To maximise returns from DRIP, RWAFI has been rebalanced to target new and previously existing strategies on Arbitrum One - including Fluid, Euler, Revert and Silo. Currently no ARB is being allocated to Morpho, Aave or Dolomite lending markets so those are not included in the current composition. We will continue to monitor those markets, and adjust our allocation when it is beneficial to users.

Currently, no allocation is made to Centrifuge’s JTRSY, but we are working to add multiple RWA positions with Centrifuge soon, including their new JAAA CLO fund in partnership with Janus Henderson.

All depositors to RWAFI are earning points towards a future airdrop. Learn more about our points program here.