The Alpha in Arbitrum's DRIP is upstream đââïžDRIP helps Arb to play catchup, then lead What Arbitrum is doing is called market development (see Ansoff), which is basically bringing existing products into new markets. These products, Morpho, Aave, Euler, already have PMF. Maybe they are waiting for the incentive push to arrive to drive marketing, I don't know, but just know that these things are tried and tested, and a nudge is needed to drive people towards these protocols on ARB. đ«š The Pull, or perks, may not be strong enough. However, if you have been following trends in Base and ETH, youâll realize that a lot of the TVL driving these protocols (apart from LSTs) are things like Pendle and Ethena. But Pendle and Ethenaâs TVL on Arb is sadge. - Pendleâs TVL on Arb is only 98m compared to ETHâs 9.4b. - I canât find Ethena on Arb (Defillama), but on ETH it is 12.72b. đ§ The core issue Given this, TVL growth is pretty quickly bottlenecked by the lack of competitive yields. As...
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