- The Arbitrum Defi & Airdrop Handbook📒 -
@arbitrum is the largest L2 on Ethereum with over $1.6bn TVL and its defi ecosystem is growing rapidly. In today's thread I break down everything you need to know about the defi ecosystem and a potential airdrop later this year👀🧵1/19
@arbitrum is the largest L2 on Ethereum with over $1.6bn TVL and its defi ecosystem is growing rapidly. In today's thread I break down everything you need to know about the defi ecosystem and a potential airdrop later this year👀🧵1/19
What I'll cover:
- What is @arbitrum?
- The top defi protocols and how to utilize them
- How to achieve eligibility for an Arbitrum token airdrop
- Arbitrum in a post merge world
Lets dive in!
- What is @arbitrum?
- The top defi protocols and how to utilize them
- How to achieve eligibility for an Arbitrum token airdrop
- Arbitrum in a post merge world
Lets dive in!
Arbitrum is:
- An Ethereum L2 scaling solution (optimistic rollup)
- An EVM chain - compatible with Ethereum dapps
- Founded by @OffchainLabs
At the moment Arbitrum does not have a native token (we will return to this & the airdrop further down)
- An Ethereum L2 scaling solution (optimistic rollup)
- An EVM chain - compatible with Ethereum dapps
- Founded by @OffchainLabs
At the moment Arbitrum does not have a native token (we will return to this & the airdrop further down)
As an L2, Arbitrum takes the best aspects of Ethereum (large dapp ecosystem, strong decentralization & security) and makes it affordable for the average user with transaction fees of $1 or less. With easy migration from Ethereum a bunch of Defi & NFT dapps have already launched.
To access Arbitrum you can add the network to your metamask through chainlist.org. If you hold ETH on the Ethereum blockchain it can be easily bridged to Arbitrum on the Arbitrum One Bridge: bridge.arbitrum.io
Keep in mind you need ETH for gas on Arbitrum.
Keep in mind you need ETH for gas on Arbitrum.
- The Defi ecosystem on Arbitrum -
The largest defi protocol on Arbitrum is @GMX_IO with a tvl of over $350m. GMX is one of my favourite protocols at the moment and is a decentralized perpetual exchange with two native tokens:
$GMX
$GLP
The largest defi protocol on Arbitrum is @GMX_IO with a tvl of over $350m. GMX is one of my favourite protocols at the moment and is a decentralized perpetual exchange with two native tokens:
$GMX
$GLP
I think $GLP is specifically interesting as it is an index of different assets:
- 50% Stablecoins (USDC, DAI, USDT & FRAX)
- 30% $ETH
- 15% $BTC
- 5% UNI & LINK
By holding $GLP you are providing liquidity to the traders & swappers and will recieve 70% of swap fees.
- 50% Stablecoins (USDC, DAI, USDT & FRAX)
- 30% $ETH
- 15% $BTC
- 5% UNI & LINK
By holding $GLP you are providing liquidity to the traders & swappers and will recieve 70% of swap fees.
This adds up to around 40% APY at the moment! The GLP price is determined by circulating supply, value of assets in index and perfomance of traders. Read more about $GLP and @GMX_IO in the thread here:
Another defi protocol on Arbitrum is @SushiSwap. This is the main dex and the best way to exchange tokens on the chain alongside with @Uniswap
@CurveFinance also have some quite appealing yields on Arbitrum with Tricrypto giving around 10% APY at the moment.
@CurveFinance also have some quite appealing yields on Arbitrum with Tricrypto giving around 10% APY at the moment.
Keep in mind that the yields on Curve also depends on the emissions of $CRV and what pools get the most votes.
@StargateFinance also has some quite decent yields on $USDC and $USDT single sided.
@StargateFinance also has some quite decent yields on $USDC and $USDT single sided.
Note however that the emissions of $STG will end in June and this could reduce the yield significantly.
@beefyfinance is also interesting as a yield aggregator on Arbitrum. They use different strategies (currently on Curve) and autocompound the yields to
@beefyfinance is also interesting as a yield aggregator on Arbitrum. They use different strategies (currently on Curve) and autocompound the yields to
make it even more convenient for the user. You can also look at the historic APY's the strategies have paid out to get an idea of the sustainability.
So as you can see the defi ecosystem is already quite large on Arbitrum and will likely continue to expand in the future.
So as you can see the defi ecosystem is already quite large on Arbitrum and will likely continue to expand in the future.
This brings me to the next topic: - wen Airdrop?? -
After the recent airdrop of the $OP token by @optimismPBC there are many rumours saying that an airdrop later this year of a native Arbitrum governance token is likely. But how can we make sure we are eligible?
After the recent airdrop of the $OP token by @optimismPBC there are many rumours saying that an airdrop later this year of a native Arbitrum governance token is likely. But how can we make sure we are eligible?
1) Use the chain
If you are into defi, checking out Arbitrum is a great idea no matter what - at the same time, this will likely also make you eligible for the airdrop. But there is probably multiple ways to get this token and ways to get a larger quantity of it:
If you are into defi, checking out Arbitrum is a great idea no matter what - at the same time, this will likely also make you eligible for the airdrop. But there is probably multiple ways to get this token and ways to get a larger quantity of it:
The optimism airdrop based their eligibility on the following:
Key takeaways
- Using the Optimism bridge
- Use Optimism in 4 different weeks
- Vote in governance
- Being an active user of Ethereum L1 and bridges
Key takeaways
- Using the Optimism bridge
- Use Optimism in 4 different weeks
- Vote in governance
- Being an active user of Ethereum L1 and bridges
From this we can get the idea that the best and easiest way to make sure we get a slice of the cake is to use the bridge, use defi and vote in governance.
How well will this token perform and what will be the purpose of it outside of governance if any? Too early to tell
How well will this token perform and what will be the purpose of it outside of governance if any? Too early to tell
I've seen people expressing concerns that L2's are gonna go extinct after the Ethereum merge to proof of stake. this couldn't be more wrong. The merge will not reduce gas fees. The tokenomics will change drastically with a 90% reduction in inflation (ETH = Deflationary)
But there will still be a need for rollups that can carry a large portion of the transactions and activity off the base chain being Ethereum itself. L2's are here to stay and @arbitrum is definitely one to watch!
If you've enjoyed this thread I would be really grateful if you could like/retweet the first post to help with its exposure:)
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