PANews reported on September 5th that Arbitrum launched its "DeFi Renaissance Incentive Program" on Wednesday, offering 80 million Arbitrum tokens worth $40 million to attract DeFi traders to its on-chain money market. The first phase of the program focuses on revolving lending strategies, a DeFi strategy in which traders leverage their assets by repeatedly borrowing against the same collateral to increase returns. Eligible lending markets and collateral assets cover all popular options for revolving lending strategies, including Pendle derivatives.

The media stated that when the incentive plan was introduced, Arbitrum's token price had fallen 80% from its peak of $2.39 in 2024, and the token rewards could bring significant inflationary pressure to the already weak token.