The Wormhole Foundation’s STIP Grant, funded by a 1.8M ARB grant from Arbitrum DAO, incentivizes USDC migration to Arbitrum to enhance liquidity and network growth.
The Wormhole Foundation has introduced its Short-Term Incentive Program (STIP) Grant, supported by a substantial 1.8 million ARB grant from the Arbitrum DAO. This strategic initiative aims to accelerate the transfer of 100 million native issued USDC to the Arbitrum network, signaling a significant advancement in promoting ecosystem growth and liquidity.
This innovative program offers ARB rewards to participants who utilize Circle’s Cross-Chain Transfer Protocol (CCTP) through Wormhole Connect. Users who bridge their USDC to Arbitrum and deposit it into popular DeFi protocols like Aave, Compound, and Beefy—or simply hold the bridged USDC—will have the opportunity to earn rewards. This aligns with the program’s goal to integrate the Arbitrum ecosystem more closely with Circle’s canonical bridge and enhance the liquidity of USDC.
Wormhole, known for its cross-chain messaging protocol, seamlessly supports Circle’s CCTP, enabling the minting and burning of native USDC for cross-chain transfers. With a proven track record of transmitting over a billion cross-chain messages, Wormhole’s infrastructure plays a crucial role in the implementation of this grant.
The STIP by Arbitrum DAO aims to stimulate ecosystem expansion, test innovative grant distribution models, and develop strategies to boost network activity. The Wormhole Foundation’s STIP Grant specifically targets USDC users, incentivizing the transfer of assets to Arbitrum and encouraging users holding wrapped USDC to transition back to Ethereum and re-enter with native USDC.
To participate in the program, users must bridge USDC to Arbitrum using the CCTP router at the Portal Bridge. They can then choose to supply USDC on Compound, Aave, or Beefy to continue earning ARB rewards. Rewards will accrue every seven days for up to three months and can be claimed for a year, with unclaimed rewards eventually reverting to the Arbitrum DAO.
The Wormhole Foundation is dedicated to advancing blockchain interoperability research and development. Through grants and ecosystem programs, it supports teams in creating secure, open-source, and decentralized products within the Wormhole ecosystem. The STIP Grant reflects the Foundation’s commitment to enhancing multichain applications and bridges.
To stay updated and participate in the STIP Grant, users can visit Wormhole’s dedicated rewards dashboard or follow the Foundation on Twitter. This grant provides USDC users with a unique opportunity to contribute to the growth of the Arbitrum network while benefiting from their involvement.
This strategic grant allocation by the Arbitrum DAO, facilitated through Wormhole’s robust platform, has the potential to significantly increase USDC’s presence on Arbitrum. It highlights the collaborative efforts in the crypto space to drive innovation, interoperability, and user engagement across blockchain networks.
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