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DRIP Week 1 Recap w Fluid & Maple
Recorded: Sept. 11, 2025 Duration: 0:46:28Space Recording
Short Summary
The recent discussion on the DRIP initiative revealed a robust launch of the incentive program backed by 80 million ARB, significant liquidity influx into Arbitrum's lending markets, and the emergence of Fluid as a leading player with a 300 million market size. Experts from various projects shared insights on leveraging yield-bearing assets and the importance of strategic partnerships in driving growth.
Full Transcription
Thank you. Thank you. Thank you. Hey, Tom, can you hear me okay?
Hey, Tom, can you hear me okay?
Yes, sir. Can you hear me?
Loud and clear.
Perfect.
GMGM, everyone.
How's your day been, Matt?
Pretty good.
A lot of time in the Entropy Dune data dashboards related to DRIP.
What's going on?
That is great to hear.
And for other listeners who came in earlier,
we have pinned all the resources that you need
to understand what DRIP is before we start this space.
So first of all, we have our previous Twitter space
to talk about what Drip is.
Obviously, you can't listen to it right now,
but feel free to check it out
and listen to that later on.
And let's have DMX to be on the speaker panel as well.
DMX, can you hear us?
It looks like he's still just a listener. So we add him as a speaker oh there we go perfect
hey dmh can you hear us yeah hi everyone uh good to meet you perfect here. Perfect. So go back to our earlier topic, we have everything you need pinned in our space here,
our first Twitter space. And then we also have the Drip dashboard that is required for you to
understand what is happening within the Drip incentive campaign. So we have three dashboards in total.
First of all is the DRIP participating lending markets. So we have a standalone dashboard tracking all the performances
of the six participating lending markets,
which includes Aave, Fluid, Morpho, Silo, Dolomite, and Euler.
We have Martin here as well. Let me put him on the speaker spot fast
martin can you hear us
yep yes sir awesome and to continue the earlier topic aside from the learning protocols dashboard
we also have two separate dashboards which is tracking the ETH and USD assets that are eligible in the DRIP campaign, which obviously includes CREP, USDC
as well. So now that we have all the resources that we need, let's kickstart the space. We are
very honored to have three speakers, which are really expert in Drip and their respective aspects as
well. So first of all, we have Matt from Entropy Advisors, DMX from Fluid, Martin from Maple Finance.
Do you guys want to introduce yourself real quick? Matt, do you want to start first?
Hey, guys. I'm one of the co-founders of Entropy Advisors. We are a service provider to the Arbitrum DAO,
and we help out with incentives.
So we're running the DRIP program and helping design it,
as well as data analytics and treasury management,
among a few other things.
But yeah, thanks everyone for joining in.
DMH and Martin, we really appreciate your time today.
DMH, do you want to go next?
Yeah, hi everyone.
First of all, really thank you for having me here.
And yeah, I am DMH, I am CEO at Fluid.
Fluid is a lending market index, and there will be more protocols in the future.
And we're happy to participate in the drip campaign and so far like our
market growth went up by 50 percent uh which we're very happy about yeah and
looking forward for you know productive conversation here
it's great to be here thank you for having me it. It has been a joy working with Matt, DMH,
and everybody from the Arbitrum and Entropy team. So I think we actually launched a week
ago. It's been going very well, more than 25 million hours supply on Arbitrum and rapidly
scaling. And I'm the head of growth at Maple. So I look after our DeFi products, partnerships,
marketing, and everything growth related.
So really excited to be here with awesome guests today.
Thank you very much.
Love the energy, Martin.
Matt, do you want to kick us off with,
and remind us what is DRIP?
So that we can, everyone in the audiences,
in case you're not familiar with DRIP so that we can, everyone in the audiences, in case you're not
familiar with DRIP, we have a baseline understanding of what the incentive program is about.
For sure. So DRIP is an incentives program that's run and created by the Arbitrum DAO.
It's funded with 80 million ARB, which at current prices is a little over $40 million.
And it's split into multiple seasons.
So we are now live with the first season.
We've been live for just over a week, and it's fully focused on leveraged looping of yield-bearing stable and ETH assets.
So what that really means is that our lending markets should have higher rates on just simple
supply-side incentives, like if you're putting ETH or USDC into them.
And additionally, if you're a looper or someone who takes like a yield bearing collateral like
Syrup and, you know, leverages that position, so borrow stables and gets more Syrup, et cetera,
you know, you should actually have increased rates on Arbitrum as well.
So our goal here is to create like a really robust ecosystem around this specific trade
in season one.
That means helping make sure that we have
a great menu of yield bearing tokens like syrup, that our lending markets have plenty of stables
and ETH inside of them so that there's lots of liquidity to borrow, as well as that we have
the Pendle markets ripping, LTVs, et cetera, and everything like that. Drip season one's broken
down into 10 two-week epochs. So like I said, it's an 80 million ARB budget.
The first season is funded with 24 million ARB.
And within that 24 million ARB or that first season, it's 10 two-week epochs and it'll run for 20 weeks.
Awesome.
So in short, the Season 1 design is aimed at incentivizing looping activities.
And therefore, we're kind of incentivizing looping activities for yield-bearing assets.
And therefore, Fluid and Syrup USDC are the perfect example of what potential users and
active addresses can do with their assets and interact with different protocols.
And Syrup USDC has recently launched an Arbitrum, thanks to the Drip campaign, hopefully,
as its second breached deployment.
So obviously, its home-based deployment is on Ethereum.
Curious to hear your thought, Martin.
Has the incentive campaign played a role for this expansion,
and how has the builder experience been so far?
Good question.
Yeah, obviously, you got the famous quote,
show me the incentive and I'll show you the outcome.
And incentives are definitely critical
for adopting behavior in crypto.
And the way that we think about it at Maple,
and I think that the way this program has been designed
as well, which I think is very, very strong,
is that you want to use incentives
to solve the cold start problem.
So ultimately, you want to be incentivizing behavior that at scale actually makes economic
sense, right? So that's why I think you guys have really focused on very strong partners on the
lending side, very strong partners on the asset side, to make sure that, first of all, the lending
protocols are trusted, you know, users are willing to commit funds into them.
There's good UX.
They have a strong name
and, you know, existing liquidity
to tap into and then the assets can take size, right?
I think that's really important.
And when the size comes, it can continue to deliver
high APY from, you know, sound underlying strategies.
And I think that's where you know serve us to see
really comes into play it's consistent high yield that's very scalable and you know we expect that
the incentives are going to really drive the adoption of serb usdc as we've shown over the
last week and we expect to really you know continue to accelerate over the next couple weeks as
as you know more incentives are going to roll out and And that is going to set up markets that at scale are going to be economically sound and
actually work.
So I think that's really the exciting part is this is sort of a renaissance of Arbitrum
DeFi where we're incentivizing all of these use cases that at scale work and we're building
up the capital for that.
And the more capital there is, the more
capital that will be attracted. Perfect. It sounds like we have a good partnership here.
Obviously, Incentive can bootstrap a lot of the liquidity usage of new tokens, new assets to be
on board of Arbitrum. And therefore, Syrup USDC is definitely one of the targets and asset we want
to onboard for quite some time, given it is one of the targets and asset we want to onboard
for quite some time, given it is one of the blue chip yield bearing assets. Currently, I believe
it's offering decently above the TBO rate, but obviously not financial advice, not sharing the
exact rate here, but I believe it's around slightly above the TBO rate. And for DMH, I wonder,
for example, now that we have the season one incentivizing looping,
what can Arbitrum users participate?
How can Arbitrum users participate DRIP on Fluid?
Can you share a little bit more examples how users can interact with Fluid to, let's say,
earn rewards using DRIP or how can Fluid users benefit from DRIP as well?
Sure. drip or like how can fluid uses benefit from drip as well sure so the way we approached the drip campaign we decided to pull to put all the incentives on the
lending side so we bring our lenders the highest APRs on the chain which
increases the available liquidity used inT and USDC liquidity on fluid.
And this available USDC and USDT liquidity now can be borrowed by normal volatile collaterals
like ETH, ARP, or BTC, or it can be leveraged looped with yield bearing tokens such as
Syrup USDC.
By the way, Syrup USDC is also incentivizing,
subsidizing borrowing rates.
So you get 2% borrowing discount
when you're borrowing against Serop USDC.
The bad news is that the caps have been hit
and you cannot borrow more.
The good news is that we're increasing the caps
just after the call.
So in about one hour,
you can start borrowing more
against your syrup USDC collateral on Fluid.
And you can also borrow stable coins
against other yield bearing tokens on Fluid,
such as stake USDE from Athena
or wrap stake USR from Resolve and so on.
So yeah, we increased our USDC and USDC lending liquidity
by I think like 100% in one week since campaign started.
In total, we have around 150 million.
So probably we 3x our USDC and USDC DAX liquidity within one week. so now users can borrow much more on fluid and
yeah this is this is what's happening actually that is very very impressive dmh uh and for
audiences that want to understand a little bit why we want to also incentivize the supply side liquidities because for example, a user wants to loop their asset, right?
Not only do we need to loop the borrowed activities,
but also supply side is very important because without enough borrowed
USDC or USDT available for them to borrow,
the interest rate is going to be too high for them to loop different assets.
And therefore, having enough liquidity on the supply side are also very important for healthy looping markets in general. And for more details or data points about fluids,
achievements and milestones throughout the DRIP campaign and on Arbitrumram feel free to look into the thread that i pinned in the first
one which is our first protocol highlight on drip the first features on fluid feel free to check it
out and let's get to the second part of this space any week one highlights of our drip launch last
wednesday matt can you tell us some of the high-level highlights that we are seeing in week one? Yeah, I think one of the amazing... So first of all, we're seeing an
insane amount of liquidity come into all of Arbitrum's lending markets, including Fluid.
So this is really, really cool to see. And we're actually doubling down the amount of incentives
that are being spent in Epoch 2, next wednesday so i think if uh if all
trends continue we're going to be in a an even better spot as far as the liquidity available
to borrow but what i look at when i when i'm like kind of evaluating the success of this program is
actually significantly less about you know like this tvl number like raw metrics like that rather
it's when i go on something like fluid and i look at at an asset like Syrup USDC, it's what's the actual yield that users can get? Like, is this a better place to do the trade?
And when you look at Fluid, Syrup USDC, and obviously not financial advice, all the normal
disclaimers, but you get 30% APR on this trade. And that's like pretty ridiculous, pretty crazy
compared to any other ecosystem or any lending market anywhere, really. So that's how I'm judging
the success.
It's like, do users that put on these looping trades actually have better accessibility and better returns if they're doing them on Arbitrum?
And the answer is yes.
Like, looking at the, like DMA just mentioned, you know, the cap just got hit.
But these are pretty crazy rates.
And hopefully over the next couple of weeks, we continue to see LPs come in as they notice
and as these rates hopefully get even more juicy.
Awesome. Really exciting stuff for Drip Week 1 and very excited to see what is going to happen for Week 2.
But for Fluid specifically, obviously, according to our dashboard, Fluid has already reached 300 million market size on Arbitrum.
our dashboard fluid has already reached 300 million market size on arbitram and arbitram has
become one of the key uh chain deployment for fluid as well and nowadays uh just looking at
the evm deployments it is roughly around 10 of the market share of total market size for fluid
and dmh i'm curious to hear your thought What is the key that drives the growth of Fluid on Arbitrum?
And what is the expectation that you would like to see for Season 1
in terms of market size, number of users, for example,
outstanding ball roads, so on and so forth?
Yeah, before I answer your question, I just also wanted to mention that
when Fluid lending market is growing, we are also growing fluid decks,
which is very important for us and for Arbitrum ecosystem and for Arbitrum users, traders who now get deeper liquidity, less slippage and so on.
If you're asking me what drives the growth, it's basically the better rates that you can get on Arbitrum right now, on fluids specifically.
And for us, Arbitrum actually was our first deployment besides Ethereum mainnet. We
always believed in Arbitrum, we think Arbitrum is a major ecosystem, is like the second biggest,
the major ecosystem is like the second biggest or I mean probably the biggest L2 by volumes in DeFi
and we're very interested in growing fluid on Arbitrum. The reason for that, I mean besides
like it's the biggest layer too, the highest volumes and so on and so on, why it matters for us to grow liquidity layer of fluid, we start with lending market.
But once we grow lending market enough, we can launch very efficient DAX on Arbitrum.
And we're launching the DAX probably in DAX v2 next month. And with DAX v2, we expect it to become the major DAX across all chains and Arbitrum as well.
And for having this efficient DAX on Arbitrum, we need to grow lending markets.
So the timing of Drip campaign is very favorable for us.
We're able now to grow our lending market and we'll be able to tap our Dextray 2 into this existing into into this growth
and you know and accelerate it. I always love Fluid's design because when it comes to
protocol expansion right you can't just pick a different vertical to lean into and Fluid is a
perfect example of finding synergistic products
that you can expand into.
For example, the lending is powering the liquidity layer
to attract more liquidity into powering different vaults.
And the vault is actually powering the DAX liquidity
to support all the swaps on Ethereum, Mainnet, and Arbitrum, for example.
And nowadays, Fluid DAX is definitely one of the leading DAX
in terms of stablecoin to stablecoin swaps on Mainnet nowadays.
As far as we are seeing last August, like previously last month,
we are seeing FluidDAX is actually leading
in terms of the stablecoin swaps on mainnet with the largest market share.
So that is very impressive.
And looking forward to see FluidDAX dominance on Arbitrum as well in the future.
And after talking about Fluid, we'd love to hear more about CREP USDC.
So CREP USDC recently hit 1 billion market cap when Drip goes live.
And 24 million of them comes from Arbitrum. USDC recently hit 1 billion market cap when Drip goes live,
and 24 million of them comes from Arbitrum. I also want to hear your thought, Martin.
How much growth do you expect to see on Arbitrum
in the future, and how do you see Drip's incentive strategy?
Is it aligned with your growth strategy as well?
Definitely.
So I think fundamentally, when we started talking with Matt and the team at
Entropy and at Arbitrum, you know, I think we both have very much the same vision for the ecosystem,
which is scalable DeFi use cases that are alpha generating. So I think Matt highlighted it earlier,
you know, people ultimately want attractive yield, right?
And they want it from trusted partners with scale.
And they want low slippage and attractive APIs with sufficient depth to get into positions,
to get out of positions.
And that is the same version that we both share.
We started with that.
And then the question is, how do you design your incentive strategy around that to get
to that state?
And that's where we are right now.
So we are perfecting that every epoch.
Or every epoch, we're making tweaks and changes to further improve the user experience.
So I expect that over the next couple of epochs, we'll scale to 200 million SERP USTC.
And from there, we want to scale into the hundreds of millions.
So good comparison is we launched on Solana
like two months ago, three months ago.
We're now 200 million.
I think Arbitrum is exactly the same potential or higher.
So I think we can get to those numbers really quick.
The Arbitrum community, the Arbitrum user base
is extremely DeFi focused and they love yield.
So yeah, I'm really excited to continue scaling.
And I think those numbers are definitely feasible
in the next couple of weeks.
200 million is bearish.
Exactly. But yeah, leaning into something that both that both martin and dmh
mentioned it's just liquidity and dex liquidity specifically like one of the unique things about
fluid that's been super super nice to see is uh the drip program in season one is only focused on
incentivizing lending markets and not dex liquidity so So for an asset like Syrup, today you can only
mint and redeem it from mainnet. And hopefully we can get that fixed in the future, but it's just
truth of the matter. And because of development timelines, it had to be the case. And what we've
seen on Fluid is massive amounts of DEX liquidity come into Syrup USDC and USDC. So there's a
frictionless process to get Syrup on Arbitrum 1 already.
And the ability for Fluid to provide both that valuable aspect of the necessity, a necessary
mechanism to ensure looping trades can be done frictionlessly, as well as to actually provide
the loops themselves in a very simple way where you kind of just go to the front end and click the multiply button and just get it done in like two swaps on in two clicks on the
same UI. It's pretty amazing to see. So yeah, I just want to highlight that as like a unique
feature of Fluid and a unique feature of Syrup with the deep liquidity that I've been very
impressed by even just over the first week. 100%. I believe FluidDAX is always like the secret sauce for Fluid. A lot of people
know Fluid from its lending and vaults design, but DAX is always, I feel like, the most powerful
weapon of Fluid's arsenal. It is gaining a lot of market share in the DAX landscape without launching for a very long time.
And I would love to dive deeper into Martin's point because Syrup USDC also launched not
long ago, right?
And I'm curious to hear from you what is the secret sauce of the growth behind the scene?
Obviously, you guys hit 1 billion market cap very fast.
Do you think it is about the yield
that you guys are offering is relatively higher than other yield bearing asset or do you think
it's the institutional loan backing of syrup usdc that people are more comfortable with
excellent question yeah so ultimately you know users thinking of risk and reward right what is
the risk i'm taking and what is the reward I'm receiving?
And users of Serp USDC just got a very strong risk reward.
So if you think about it, to your point, it's fully backed by over collateralized loans to institutional buyers.
And all the collateral is under the control of Maple.
And it's mainly Bitcoin collateral.
So really the core of it is Bitcoin-backed loans.
That's all native Bitcoin, which is super liquid.
Actually the most liquid crypto collateral.
And that is just a very safe strategy.
It's not going to get much safer than that.
The collateral is tradable 24-7.
Like us in crypto, we all know the power of that.
So that's on the risk side.
And then on the reward side, the yield is consistently high.
So what you see a lot in crypto is that the yield might be very high today,
but it can drop suddenly a lot tomorrow, right?
And the yields are very fluctuating.
So what we have is a very consistent high-yielding product
because you can imagine the loans underlying, like they don't change in interest rates on a daily basis, right?
Like they're fixed rate, open term, short duration loans, right?
So we still have short, you know, attractive liquidity profile.
But, you know, because those rates are so stable, that's extremely attractive for loopers, right? You can imagine if they have a stable borrow rate
and a stable supply rate on the underlying server UCC,
that's the perfect situation for a looper.
So they're very comfortable scaling it up.
What you don't want is that you put on a loop for one day
and you have to take it off because it becomes unprofitable.
Then you actually lose a lot of capital
because you have slippage getting in and out of it.
So what you want is to put on a loop that you can leave on for weeks, months, I mean, ideally years.
Right. I mean, obviously crypto is young, but in the future, like that is really the vision that
we're working towards. So we have a consistent yield outperformance over money markets because
we have those loans, right, where borrowers pay fixed rates. We have high utilization,
there's a better term to it.
That always brings a right premium.
So we expect that fundamentally,
this is gonna persist in the future.
And then working together with deeply liquid money markets
like Fluid, Fluid is an amazing partner,
that will create a very attractive trade
that we call it sometimes
the forever loop, right?
So it's going to be interesting forever.
And you obviously need to get it off the ground with incentives because you need to match
both sides of the market, right?
You need to scale the liquidity and the demand up at the same time.
And in the beginning, you know, the power rates can spike if there's high utilization
and then, you know, there's more supply
and that's sort of how you scale it up with incentives.
But then at scale, this is just a very profitable trade
for both sides of the market, right?
And that's what we're working towards.
So yeah, as Matt says, 200 million is bearish.
Awesome.
We'll record this specific clip
and then we can replay that by the season and see how far Seraph USDC have grown.
Hopefully it is like half a billion or even a billion. That would be awesome.
And DMH, we have previously looked at the data as well. Fluid has become or evolved as the home for a lot of different stablecoins. And we'd love to hear your thoughts and understand how has the growth strategy for Fluid to become
like a dominant leader in terms of like being the primary liquidity venue for these stablecoins.
For example, my thesis would be because liquidity providers or market makers can provide liquidity
and then they can still access additional liquidity by using the liquidity,
provided liquidity as collateral and borrow, for example, like USDC, USDT.
Is that aligned with your thesis?
And what do you think is the key secret sauce for Fluid to gain the stablecoin liquidity market share?
Yeah, you're correct.
I would say, in short,
we just have the best tech
on the market.
And, you know, to support
my words,
we never had
incentives on our decks.
Once we launched the decks,
it became the second biggest on
ethereum by volumes within three months with zero incentives people move to our decks because they
they were willing to use it because they were getting the best product the best experience
and uh yeah of course like it's um you know the lending like lending markets is the biggest category in DeFi.
Everyone wants to borrow against their crypto assets.
And with Fluidex, we allowed users to borrow against the LP tokens to use it as a collateral.
So the cost of opportunity on Fluidex is very low.
When you can put $10 million
LP as a collateral and borrow $9 million
now cost opportunities for you is only $1 million.
And sometimes
if you are using yield bearing tokens
on the collateral side
and say USDC or USDC will be always yield bearing on Fluidex
and if the other token
is also yield bearing, then it often happens that your LP collateral is earning more fees,
more revenue than your borrowing costs. So your opportunity cost is very low and you are still
earning on your collateral. That's the main reason,
one of the main reasons
why we were able to scale the DEX so much.
The second thing is smart debt.
If you ask me, smart debt is just
an amazing thing.
If you look at
Ethereum and Arbitrum,
as to give an example
of Arbitrum, more than 50%
of all USDC, USDT trades are happening on Fluid.
If you ask how much DEX TVL in USDC-USDT pool we have, the answer is zero.
There is zero TVL.
All the liquidity is created out of DEX.
So our lending market is powering our DEX.
We use a DEX from the lending market as liquidity.
And yeah, that's the beauty of the architecture.
We don't need liquidity providers on the DEX to have the volumes.
People might even not realize that they're providing liquidity, but they facilitate all
the trades, more than 50% of all the trades in Arbitrum.
And like a short note,
that with DexV2, it will become even better.
DexV2 will be mainly focusing on volatile pairs,
but it will become even better for stable pairs.
So volume should only increase from here.
Awesome.
And DMH definitely get us really interested
in what is the next chapter for Fluid.
And I think it is a really good occasion to dive even deeper into the topic of Dex V2,
because not only do we want to cover the Drip Week 1 recap and highlights,
we want to also offer some of the protocol alphas that you might not have aware of in the past,
so that we can support your protocol,
support different assets as you wish. And DMH, can we dive deeper into the recently launched
DAX V2? How is it different from DAX V1? You mentioned that it's more focusing on volatile
pair. And you also quickly covered that in the previous questions it will be available on
arbitrum soon but how soon can you give us a little tip on that yeah so Dex V2
haven't been launched yet we expect to launch it in October so we can expect it
to be live on arbitrum around October as. There are a few major unlocks that Dexme2 brings.
The two major ones, I would say,
are that users will be able to create their own ranges
on both collateral and debt side.
So a lot of users are missing,
let's say, Uniswap E3 experience
where they can put liquidity
exactly in the ticks and the ranges where they want to
they will be now able to do this with their collateral and the depth so you know actively
marking making with your debt will become a reality which is which excites me a lot to be
honest and the second the second thing is that um next V2 will become cross-collateralized.
Now, if you know how Fluid works, you always have one collateral and one debt asset.
With Dex V2, you will be able to bundle your collateral many positions into one collateral.
So you can have multiple smart collaterals, range orders, and normal collaterals on the collateral side.
For example, you have ARPUSDT, you have ETHUSDC, staked USD, and CERPUSDC,
everything bundled as one collateral.
And then you have multiple range orders, let's say ETHUSDT, ETHBTC,
normal ETH and normal ETHUSDT debt bundled everything as one debt.
And you create your own ranges on your debt.
You have all kinds of flexibility.
And you can bundle up these types of positions.
So it will offer very sophisticated, very complex and advanced strategies for users.
But of course, they can still stick to their Dex V1 experience
where they have one collateral, one debt,
or they can do some not so sophisticated strategies
where they just borrow gains LP,
or they leverage LP and so on and so on.
But yeah, overall Dex V2 will unlock new capabilities,
new opportunities for lps that
have never been possible in defy before actually the same as next we won unlocked new options for
lps dex v2 will will open even more opportunities for them that is super exciting and look forward
to dex features launch both on Ethereum and Arbitrum very soon.
And for Maple, I'm sure you guys also have a lot of exciting developments up on your sleeves.
What is next for Maple? Syrup USDC has been one of the most successful product lines.
Would the focus in the future continue to be Syrup USDC, are there any upcoming launches or upgrades as well?
Yes, so definitely syrup USDC, you know,
core focus for growth and scaling, you know,
getting on the hundreds of billions on Arbitram
is really a core focus over the next month or two
and more from there.
So I'm really excited about this program.
Our general focus is not to launch too many products.
We like to be very concentrated in a small number
of products that can get into the multi-billions,
ultimately tens of billions of scale.
And Seraph UACC is one of those products.
Then we are launching a new product in Q4.
I cannot say much more than that,
but it's definitely going to be
very interesting for Arbitrum as well. So I'm sure once we launch it, that it's going to be
live in Arbitrum as well at some point. Awesome. And I'm curious to hear your thoughts on
the collateral backing of SerapUSDC, because you mentioned that earlier main majority of them is mainly backed by btc do you see more
institutional focus firms uh are more leveraging btc like a native one as their collateral or do
you see the list of collateral expanding to more diversified assets in the future?
Yes, so definitely we're always open for new collateral assets.
I would say in general, we are very risk averse, right?
So we really like native Bitcoin
and we just plan to continue scaling that up
into the future.
We think it's the safest, right?
Over-collateralized loans directly backed by native Bitcoin.
But, you know, we also have some other collateral assets.
So we're definitely open to that.
And I would expect that, you know, over time we'll accept, you know, more and more collateral
assets.
But again, we have a very conservative approach.
So we, you know, we don't like rush into any decisions.
We don't rush into any decisions.
We have an internal credit underwriting process,
investment committee, and a collateral review process.
That's very sound and solid.
So we plan to continue with that diligence.
Ultimately, for us, the most important is obviously protecting capital
and making sure that collateral is extremely high quality.
So that's really the focus.
But definitely expect more collateral into the future.
Awesome. Sounds perfect.
And I believe Maple is one of the key institutional products
that offers loan for institutions on over-collateralized lending.
That is very impressive.
Previously, we have seen lots of centralized lenders such as Celsius, Voyager, BlockFi, and all of them
basically collapse, right? I'm curious, Maple being a decentralized lender here,
do you have an estimate of how much market share you have taken from all
these previous lenders or legacy lenders? Because previously they were quite big before
the FTX collapse and the contagion happens, right?
Yeah, so I would say the key difference between those lenders and Maple today is that a lot of those lenders were either uncollateralized or they were overcollateralized, but they didn't take possession of the collateral.
So it was like paper collateral.
So on a piece of paper, they put a signature of like, yeah, we pledge you 100 Bitcoin, but then it wasn't actually transferred.
So that is the key difference at Maple is that all of our loans are over-collateralized.
And then we also take them under our control.
So we don't issue the loan before we actually
have the collateral under our control.
Then the other thing is that we're fully transparent.
So you can verify all the collateral on chain
in the application.
So if you go to app.maple.finance, then you can go to the details
page, which we actually did a refresh on this week. So we're really excited about that, where we
really took transparency to the next level. So you can see exactly where the collateral is sitting,
every single address, you see the quantities, and you can verify for yourself that we have
everything that we say we have. So I would say those are the key differences.
In terms of market size,
so we are now a top five lender in the world,
an institutional lender in the world.
So other large ones are Tether, Galaxy,
and there's other large players.
But yeah, we're now in the top five.
And I would expect that we can definitely get to the top three
and potentially more over the next year or so
as we continue to
scale and sort of, you know, we really bring DeFi and ThreatFi's less institutional crypto together,
which, you know, I think is really interesting and exciting.
That is awesome. And I always love the transparency page that you guys offer. It's
really clean and even users can dive into the respective wallets that
is holding the collateral as well. So that is a perfect example of how like a proof of reserve
that different centralized landers and decentralized landers can offer in terms of
transparency and look forward Maple to become even stronger as a decentralized protocol,
maybe winning across decentralized landers as well.
So that is super impressive.
And now that we have concluded all of our agenda today,
we've talked through DRIP, the season one,
the first week highlights
and some of the protocols out there.
We're going to open up the stage to potential questions.
So feel free to raise your hand and request as a speaker.
And then we can bring you on and you can ask your questions.
We can kick off with Blitz.
Can you hear us?
You can try speaking and raise your questions
once you're connected.
Hello, hello. Hey, Blitz. you're connected hello hello hey blitz
maybe he's offline
any other questions from the audience that you want to ask the DRIP and DeFi experts here?
If not, while we're waiting, Matt, I've got a question for you.
Now that we mentioned the fluid market size right now is 300 mil and the syrup USDC is around 24 mil market cap on arbitrage right what is your bullish
uh expectation of these protocols market size and market cap to grow by the end of season one
oh you're putting me on the spot there i hate giving uh giving direct numbers like that i mean
look like we're planning on running drip season one
through January. So we've quite a bit of time. We haven't started the actual significant portion
of the campaign yet. We started the rewards off at 25% of what we expect to be giving outcome
three weeks from now. So I think there's a lot of room to grow. And if I had to put some numbers
on it, like, I think it would be a shame if we don't see billion dollar fluid and billion dollar syrup
in the next five, six, seven months. Maybe that's like a longer time horizon than just
trip season one. But, um, you know, at the end of the day, like a lot of people talk about this,
this narrative of like Arbitrum is home. And I really want builders and like really high quality
builders like syrup, like fluid to feel like they have a home on Arbitrum. And I think we need to be able
to support them and bring them users and help them get to a place where we can justify asking
them to call Arbitrum home. And I think, yeah, those would be numbers that I would imagine would
get both Martin and DMH here pretty excited about, you know, the future of their growth on Arbitrum.
Both Martin and DMH are pretty excited about, you know, the future of their growth on Arbitrum.
So we set high goals and we'll try to hit them.
Right.
I love the numbers and the data team at Entropy is definitely going to track it.
And let's get the growth going.
And if we don't have any other questions from the audiences, any closing thoughts from DMH, Martin, Matt, anything you want to share with the audiences here before we wrap it up?
Nope, I guess I would just point people to arbitrumdrip.com in order to see all the campaigns that are live.
Both the Fluid user interface also shows them, so you can go directly order to see all the campaigns that are live um both the fluid user
user interface also shows them so you can go directly there to see them as well um but yeah
i really appreciate you taking the time to have us today tom perfect awesome and go ahead damage
yeah i also just wanted to thank you and everyone who was listening to us.
And two things which are coming on Fluid and Arbitrum.
First one, we're increasing the caps for Serp USDC, USDC, so you can borrow more.
And we are launching today USDAI as collateral, so you will be able to borrow against your usdi uh as a stable coins
that is huge super excited for the usda i holders and farmers as well
for context usda is a stable coincoin project that is having a points program,
and therefore I believe a lot of people would be excited about it.
Perfect. Thank you very much for joining.
Matt, DMH, Martin, it's a pleasure to have you here to talk more about Fluid and Maple
and understand a little bit more on some of the alphas and mechanisms of your protocols.
Look forward to have you guys on again in the
future and look forward to see more numbers pumping up for your protocols as well. Thank
you very much and have a nice day. Bye, bye everyone. Thank you. Great to be here.
