The Wormhole Foundation’s STIP Grant: Incentivizing USDC Migration to Arbitrum
The Wormhole Foundation has unveiled its Short-Term Incentive Program (STIP) Grant, bolstered by a significant 1.8 million ARB grant from the Arbitrum DAO. The strategic initiative is set to expedite the onboarding of 100 million native issued USDC onto the Arbitrum network, marking a considerable leap forward in fostering ecosystem growth and liquidity.
This pioneering program rolls out ARB rewards to participants who employ Circle’s Cross-Chain Transfer Protocol (CCTP) via Wormhole Connect. Users who bridge their USDC to Arbitrum and deposit into prominent DeFi protocols like Aave, Compound, and Beefy—or simply hold the bridged USDC—will be eligible to accumulate rewards, aligning with the program’s objective to integrate the Arbitrum ecosystem more tightly with Circle’s canonical bridge and promote USDC’s liquidity.
Wormhole, recognized for its cross-chain messaging protocol, seamlessly supports Circle’s CCTP, facilitating the minting and burning of native USDC for cross-chain transfers. With a track record of transmitting over a billion cross-chain messages, Wormhole’s infrastructure is pivotal in this grant’s execution.
The STIP by Arbitrum DAO was conceived to catalyze ecosystem expansion, pilot innovative grant distribution models, and devise strategies to enhance network activity. Wormhole Foundation’s STIP Grant specifically targets USDC users, incentivizing the migration 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 are required to bridge USDC to Arbitrum utilizing the CCTP router at the Portal Bridge. Following this, they may opt to supply USDC on 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 a year, with unclaimed rewards ultimately reverting to the Arbitrum DAO.
The Wormhole Foundation’s mission is to empower 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 is a testament to the Foundation’s commitment to enhancing multichain applications and bridges.
To stay abreast of the latest updates and participate in the STIP Grant, users can visit Wormhole’s dedicated rewards dashboard or follow the Foundation on Twitter. The grant opens up a unique opportunity for USDC users to contribute to the Arbitrum network’s growth while reaping benefits 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 native presence on Arbitrum. It underscores the collaborative efforts within the crypto space to drive innovation, interoperability, and user engagement across blockchain networks.
