- The Arbitrum Mega-Thread🪐 -
@arbitrum season is here & a BUNCH of innovation is taking place. But keeping up with this is difficult🧐.
An alpha 🧵 on the current and upcoming Arbitrum defi projects that are producing ACTUAL value👇 1/
@arbitrum season is here & a BUNCH of innovation is taking place. But keeping up with this is difficult🧐.
An alpha 🧵 on the current and upcoming Arbitrum defi projects that are producing ACTUAL value👇 1/
2/ Arbitrum (built by @OffchainLabs) is a layer 2 blockchain on top of Ethereum. It's EVM, and allows for cheap and fast transactions partially due to its optimistic rollup technology.
It's currently the largest L2 ecosystem in terms of TVL ($1bn).
It's currently the largest L2 ecosystem in terms of TVL ($1bn).
3/ Recently Arbitrum enabled the Nitro upgrade which improved scalability significantly⚡️
Recent data suggest Arbitrum is one of the top L2 performer performer in terms of transaction fees.
Recent data suggest Arbitrum is one of the top L2 performer performer in terms of transaction fees.
4/ So let's dive into the thriving defi ecosystem🫡. I'll cover
- @GMX_IO
- @y2kfinance
- @rage_trade
- @SperaxUSD
- @rage_trade
- @vestafinance
& much more👇
- @GMX_IO
- @y2kfinance
- @rage_trade
- @SperaxUSD
- @rage_trade
- @vestafinance
& much more👇
5/ - GMX -
By now your grandma is longing ETH with leverage on @GMX_IO so I won't break down the basics here. I have a notion article that does this however:
pine-ixora-306.notion.site
By now your grandma is longing ETH with leverage on @GMX_IO so I won't break down the basics here. I have a notion article that does this however:
pine-ixora-306.notion.site
6/ GMX is outmatched in it's growth. Since launch 11 months ago:
- 116.000 users
- $54b total volume
- $71m in fee generated revenue all of which is distributed to stakers of $GMX and lp providers through $GLP.
- 116.000 users
- $54b total volume
- $71m in fee generated revenue all of which is distributed to stakers of $GMX and lp providers through $GLP.
7/ This is the power of decentralized finance! A product with actual demand and a lucrative revenue share model. GLP has been printing $ETH to holders and is likely the #1 real yield strategy currently.
Future expansion with synthetics could result in GMX growing even larger👀
Future expansion with synthetics could result in GMX growing even larger👀
8/ - Rage Trade -
@rage_trade is a decentralized perpetual trading protocol. Their main features include:
- ETH perp with up to 10x leverage
- 80/20 vaults
- Omnichain recycled liquidity
@rage_trade is a decentralized perpetual trading protocol. Their main features include:
- ETH perp with up to 10x leverage
- 80/20 vaults
- Omnichain recycled liquidity
9/ 80/20 vaults:
The only current vault is the tricrypto vault from Curve finance (GLP delta neutral vault launching soon).
- 80% of liquidity is earning yield on the external platform (curve here)
- 20% is used to provide liquidity to ETH perp traders
The only current vault is the tricrypto vault from Curve finance (GLP delta neutral vault launching soon).
- 80% of liquidity is earning yield on the external platform (curve here)
- 20% is used to provide liquidity to ETH perp traders
10/ As a LP provider:
1) You're getting a higher yield due to trading fees
2) Maximum 20% of the liquidity provided is used on Rage
Omnichain liquidity: Tons of vaults are coming to @rage_trade which could attract a lot of liquidity.
A protocol to keep an eye on👀
1) You're getting a higher yield due to trading fees
2) Maximum 20% of the liquidity provided is used on Rage
Omnichain liquidity: Tons of vaults are coming to @rage_trade which could attract a lot of liquidity.
A protocol to keep an eye on👀
11/ - Sperax -
@SperaxUSD is a small cap project with a native stablecoin that has a built in auto-compounding yield.
$USDs is 100% collateralized with stablecoins and can be minted for free against USDC, DAI, FRAX & VST. Current TVL is ~$5m.
@SperaxUSD is a small cap project with a native stablecoin that has a built in auto-compounding yield.
$USDs is 100% collateralized with stablecoins and can be minted for free against USDC, DAI, FRAX & VST. Current TVL is ~$5m.
12/ The collateral deposited to mint USDs is used in various farming strategies (completely transparent) such as USDC on Stargate and FRAX/VST Curve LP.
By just holding USDs in your wallet you will receive the yield from these strategies (~4.5% currently).
By just holding USDs in your wallet you will receive the yield from these strategies (~4.5% currently).
13/ $SPA is the utility & governance token (MC ~$13m) and can be staked on @SperaxUSD.
USDs can also be farmed in different pools on the protocol and could in the future likely see adoption across the defi space.
USDs can also be farmed in different pools on the protocol and could in the future likely see adoption across the defi space.
14/ Finally, @SperaxUSD will also be launching a protocol called Demeter that will allow DAO's to easily create UNI V3 type pools paired with USDs without any code needed.
Exciting future in store for Sperax no doubt🔥
Exciting future in store for Sperax no doubt🔥
15/ - Vesta Finance -
@vestafinance allows users to deposit ETH, BTC, gOHM, GLP & more as collateral and borrow the $VST stablecoin against it with 0% interest.
$VST is an overcollateralized stablecoin with the aforementioned
tokens and can be used across across Arbitrum defi.
@vestafinance allows users to deposit ETH, BTC, gOHM, GLP & more as collateral and borrow the $VST stablecoin against it with 0% interest.
$VST is an overcollateralized stablecoin with the aforementioned
tokens and can be used across across Arbitrum defi.
16/ One strategy is FRAXBP/VST on @fraxfinance for ~10% APR.
What I particularly like about @vestafinance is their most recent vaults (GMX & GLP) that lets you still earn yield in ETH while also being able to borrow $VST. For degens👇
What I particularly like about @vestafinance is their most recent vaults (GMX & GLP) that lets you still earn yield in ETH while also being able to borrow $VST. For degens👇
17/ Some use cases for borrowing $VST:
- Additional yield by farming VST
- Increase leverage by looping a vault
- Obtain liquidity without selling assets
- Additional yield by farming VST
- Increase leverage by looping a vault
- Obtain liquidity without selling assets
18/ - Y2K Finance -
@y2kfinance is an upcoming project that let's you either
- Buy insurance on assets pegged to a certain price (like stable coins)
- Be on the other side and bet on this stable asset depegging
Read my in depth thread here:
@y2kfinance is an upcoming project that let's you either
- Buy insurance on assets pegged to a certain price (like stable coins)
- Be on the other side and bet on this stable asset depegging
Read my in depth thread here:
19/ Their testnet launched a few weeks back and displays how their flagship product "Earthquake🌋" works.
@y2kfinance uses vaults with:
- An asset like USDC, FRAX, MIM etc.
- A strike price that determines if the asset deppeged
- Epoch: duration of the vault
@y2kfinance uses vaults with:
- An asset like USDC, FRAX, MIM etc.
- A strike price that determines if the asset deppeged
- Epoch: duration of the vault
20/This opens up for some quite interesting strategies for users by either hedging exposure or earning yield.
They will also be launching "Wildfire🔥" & "Tsunami🌊" with features such as being able to trade vault exposure through semi fungible tokens & more.
Stay tuned!
They will also be launching "Wildfire🔥" & "Tsunami🌊" with features such as being able to trade vault exposure through semi fungible tokens & more.
Stay tuned!
21/ - Mycelium -
@mycelium_xyz (previously TracerDAO) offers two products.
1) Perpetual swaps (GMX fork)
2) Perpetual pools
Let's take a took at these👇
@mycelium_xyz (previously TracerDAO) offers two products.
1) Perpetual swaps (GMX fork)
2) Perpetual pools
Let's take a took at these👇
22/ Perpetual swaps
This works very similarly to @GMX_IO with $MLP as the token used to provide liquidity & $MYC as the governance token.
Both are yield generating from fees generated on swaps & trades.
Since launch mid August: Nealy $900m total trading volume & $800k in fees.
This works very similarly to @GMX_IO with $MLP as the token used to provide liquidity & $MYC as the governance token.
Both are yield generating from fees generated on swaps & trades.
Since launch mid August: Nealy $900m total trading volume & $800k in fees.
23/ Perpetual Pools
Utilising these is another way to either long or short BTC & ETH with 3 or 10x leverage.
As these positions are tokenized they can be provided as liquidity on Balancer for additional yield.
Utilising these is another way to either long or short BTC & ETH with 3 or 10x leverage.
As these positions are tokenized they can be provided as liquidity on Balancer for additional yield.
24/ - Vertex Protocol -
@vertex_protocol is an upcoming protocol with multiple defi products all on one platform including perpetuals (orderbook exchange), spot exchange & money markets.
@vertex_protocol is an upcoming protocol with multiple defi products all on one platform including perpetuals (orderbook exchange), spot exchange & money markets.
25/ The main feature is having a suite of defi products under the same umbrella. Being able to trade cross margin with zero slippage, trade tokens and borrow/lend assets all decentralized makes for a convenient user experience.
Excited for the launch scheduled in December👀
Excited for the launch scheduled in December👀
26/ - Gains Network -
while @GainsNetwork_io currently operates on Polygon, they've teased that a launch on Arbitrum is in the works. Gains is a decentralised perpetual trading platform and has seen a large inflow of users & volume recently.
while @GainsNetwork_io currently operates on Polygon, they've teased that a launch on Arbitrum is in the works. Gains is a decentralised perpetual trading platform and has seen a large inflow of users & volume recently.
27/ One of the things that gives @GainsNetwork_io an edge is their unique pricing model which is obtained through a custom oracle network from Chainlink. This allows for better prices when trading and more pairs including forex & stocks.
28/ On @GainsNetwork_io you can earn yield by providing $DAI to their DAI-vault which acts as a counterparty to traders on the protocol. The vault receives 40% of the closing fee on all trades which is ~13% APY.
29/ And there you go! While this is a long list it's far from complete!
Any current or upcoming protocols I'm missing? Shill me below👇
Any current or upcoming protocols I'm missing? Shill me below👇
30/ And if you've gotten this far I would very much appreciate a ❤️ & retweet of the first post!:)
Some big brains that have helped inspire this research:
@thedefiedge
@Dynamo_Patrick
@TheDeFinvestor
@shivsakhuja
@rektdiomedes
@BillyBobBaghold
@DeFiSurfer808
@thedefiedge
@Dynamo_Patrick
@TheDeFinvestor
@shivsakhuja
@rektdiomedes
@BillyBobBaghold
@DeFiSurfer808
Edit: credit to @nansen_ai for the cover🫡 (w/ sum personal edits)
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