Lido Proposes to use $ARB token as Liquidity Mining Rewards for wstETH Pool on Arbitrum

Lido is considering using its $1.2 million $ARB airdrop to incentivize activity on the Arbitrum ecosystem. The community proposal suggests rewarding liquidity providers in wrapped staked ether (wstETH) pools with $ARB tokens.

The Lido DAO community will vote on whether to accept Arbitrum's airdrop and use the tokens as rewards to encourage the use of wstETH throughout the Arbitrum ecosystem. The proposal is similar to the current rewards where liquidity pools earn additional $LDO rewards on top of staking rewards. The proposal is expected to go to a vote later this week.

Lido is eligible to claim 772,621 $ARB tokens, worth more than $1.2 million at current prices. Moreover, the proposal states that 33,400 wstETH has been bridged to Arbitrum and that the total number of wstETH transactions on Arbitrum stands at more than one million.