The Wormhole Foundation’s STIP grant, funded by a 1.8 million ARB grant from Arbitrum DAO, spurs the migration of USDC to Arbitrum to improve liquidity and network growth.
The Wormhole Foundation has unveiled its Short Term Incentive Program (STIP) grant, supported by a substantial 1.8 million ARB grant from Arbitrum DAO. The strategic initiative is set to accelerate the inclusion of 100 million domestically issued USDC into the Arbitrum network, marking a significant leap forward in fostering ecosystem growth and liquidity.
This pioneering program provides ARB rewards to participants who use Circle’s Cross-Chain Transfer Protocol (CCTP) via Wormhole Connect. Users who link their USDC to Arbitrum and deposit into known DeFi protocols like AaveCompound and Beefy—or simply hold bridged USDC—will be eligible to accumulate rewards, in line with the program’s goal of more closely integrating the Arbitrum ecosystem with Circle’s canonical bridge and promoting USDC liquidity.
Wormhole, known for its cross-chain messaging protocol, seamlessly supports Circle’s CCTP, making it easy to mine and burn native USDC for cross-chain transfers. With a track record of delivering over one billion cross-chain messages, Wormhole’s infrastructure is key to the execution of this grant.
The STIP by Arbitrum DAO is intended to catalyze ecosystem expansion, pilot innovative grant distribution models, and develop strategies to improve network activity. The Wormhole Foundation’s STIP grant specifically targets USDC users by incentivizing asset migration to Arbitrum and encouraging users holding packaged USDC.e to switch back to Ethereum and log in again with the original USDC.
To participate in the program, users must connect USDC to Arbitrum using the CCTP router in the Portal Bridge. They can then choose to grant USDC to Compound, Aave or Beefy to continue earning ARB rewards. Incentives are set to accrue every seven days for up to three months and can be claimed for one year, with unclaimed rewards eventually returning to Arbitrum DAO.
The Wormhole Foundation’s mission is to enable the research and development of blockchain interoperability. Through grants and ecosystem programs, it supports teams in creating secure, open source and decentralized products within the Wormhole ecosystem. The STIP grant is a testament to the Foundation’s commitment to improving multichain applications and bridges.
To stay up to date with the latest updates and participate in the STIP Grant, users can visit the dedicated Wormhole Awards Board or follow the Foundation on Twitter. The grant opens up a unique opportunity for USDC users to contribute to the growth of the Arbitrum network while reaping the benefits of their participation.
This strategic distribution of grants from Arbitrum DAO, facilitated through Wormhole’s robust platform, has the potential to significantly increase USDC’s local presence on Arbitrum. It highlights collaborative efforts within the crypto space to drive innovation, interoperability and user engagement in blockchain networks.
Image source: Shutterstock