Stephen, founder of DeFi Dojo, recently reviewed the Long-Term Incentive Pilot Program (LTIPP) launched by the Arbitrum Foundation. The initiative aims to enhance network participation by directing protocol funds from ArbitrumDAO as liquidity incentives to collaborative projects on Arbitrum. Grants from LTIPP are redistributed to the Arbitrum community through protocol-based liquidity incentives, encouraging users to explore new use cases and increase network activity.
With a total allocation of approximately $30 million, most projects are expected to be funded through September. Stephen highlighted the performance of various projects:
**Factor**
Factor primarily employs LRT Silo Labs leveraged strategies or LRTPenpie LP strategies. Despite varying yields ranging from 22% to 93%, Factor’s Total Value Locked (TVL) is relatively low, necessitating caution due to dilution and security risks.
Yield: 22% – 93%
TVL in Vault: < $2 million
**Gearbox**
Initially focused on lending activities, Gearbox is set to introduce incentive trading and Renzo leveraged incentives. Their new STIMMIES initiative offers ARB and GEAR rewards. Current lending yields:
USDC: 15%
ETH: 14%
**ezETH Leveraging Subsidies**
Anticipate subsidies for ezETH leveraging, with full details expected in a week. Users can also benefit from LTIPP-subsidized low borrowing rates with LSTs like rETH, wstETH, and cbETH.
**PURE Trading on STIMMIES**
Trading on PURE also offers STIMMIES incentives.
**Contango**
DeFi protocol Contango sees significant ARB flow into leveraged ETH positions, capable of handling substantial ETH volumes. Yields range from 20% to 30%, with some strategies theoretically managing over $2 million. Using Contango also accrues points for a TGE airdrop in approximately a month.
**Silo Labs**
While Factor and Contango aggregate Silo opportunities, other prospects should also be noted. WOETH collateral currently offers a negative borrowing rate on ETH, effectively rewarding ETH borrowers. At maximum leverage, this equates to an annual rate of 63%, predominantly paid in ARB.
**Merkl**
Merkl features numerous LTIPP incentive measures, notably supporting major projects like Lido, PancakeSwap, and Camelot for LTIPP activities.
**Curve and Convex**
Curve and Convex use ARB rewards to subsidize various pools. The author favors ETH, BTC, or stablecoin pools.
**Timeswap**
Timeswap's Pendle market offers ARB rewards through lending, with PT-weETH lending yielding 30% and WETH borrowing yielding 9%. Note the liquidity availability for lending in this emerging market.
**Trader Joe**
Trader Joe hosts intriguing farms under LTIPP, boasting high APRs, albeit with APRs advertised based on a single tick of liquidity.
**RAMSES**
RAMSES, akin to Trader Joe, emphasizes APRs based on single-tick liquidity, though these figures may not reflect actual returns for regular miners.
For further insights, the author suggests exploring Epoch Rewards and understanding the practical APR for token pairs like Renzo's ezETH/ETH. Stablecoin miners might find USDC/USDT appealing, with APRs reaching up to 73% over an 8-tick interval.
Each section offers a detailed look into various DeFi opportunities, highlighting the diverse strategies and potential returns available through LTIPP incentives across the Arbitrum ecosystem.
