Original Title: "A Comprehensive Update on the Arbitrum Ecosystem as Airdrop Applications Approach"
Original Author: Babywhale, Foresight News
On the evening of March 16th Beijing time, Arbitrum, one of the "OR Gemini" twins, announced the Token airdrop plan on Optimism, 11 months after the airdrop was announced. Today, ARB Token is officially available for claiming. Similar to Optimism, Arbitrum will not only airdrop to users but also to ecological projects, so there is still a possibility of receiving ARB Token rewards for participating in projects on Arbitrum in the future.
Last April, we conducted an inventory of Arbitrum's ecosystem projects. According to L2BEAT data, after nearly a year of development, the TVL on Arbitrum One has not changed much in terms of US dollars, but has increased by 79% in terms of Ethereum valuation. In addition, the number of independent addresses has grown from nearly 250,000 to nearly 600,000.
One difference from a year ago is that, compared to Ethereum's "copier" on the mainnet, Arbitrum has developed innovative projects such as GMX and Y2K Finance that are not available on Ethereum. Today, we have compiled a list of projects in the Arbitrum ecosystem, not only to find opportunities to obtain potential Token rewards, but also to explore the next possible Alpha.
The project information comes from the Arbitrum ecosystem project portal and DefiLlama. The author has selected projects with a certain TVL or user base. Please be aware of risk management when choosing to participate in these projects. If there are any omissions, please feel free to add them.
In centralized cryptocurrency trading platforms, in addition to the previously mentioned Bitget, Binance, Bybit, Crypto.com, KuCoin, MEXC, and OKEx, Coinbase and Juno have now integrated with the Arbitrum One mainnet, supporting the deposit and withdrawal of some tokens on Arbitrum.
Regarding wallets, the number of wallets that support Arbitrum One has increased from 24 to 47, including BitKeep, Coinbase Wallet, MetaMask, DeBank, imToken, MathWallet, TokenPocket, Trust Wallet, Zapper, Zerion, XDEFI Wallet, UniPass, and more.
Regarding payment gateways, the fiat gateways currently supported by Arbitrum include Alchemy Pay, Banxa, CryptoRefills, Fluid Finance, MoonPay, Mt Pelerin, Onmeta, PayTrie, Ramp, Simplex, Swipelux, Transak, TransFi, and Wirex.
According to website information, there are up to 35 cross-chain bridges or infrastructures that support Arbitrum, including Multichain, cBridge, Across Protocol, Axelar Network, BoringDAO, Connext, Hop, and more.
Some of the projects that the author believes are worth paying attention to include:
Stargate: As the largest asset cross-chain bridge based on LayerZero, Stargate currently supports Ethereum, BNB Chain, Avalanche, Fantom, Polygon, Optimism, Arbitrum, and Metis. The supported assets include Ethereum, USDT, USDC, BUSD, DAI, FRAX, MAI, LUSD, METIS, WOO, sUSD, and USDD. Its current TVL is approximately 320 million US dollars.
In May 2022, LayerZero was reported to be seeking financing at a valuation of $3 billion, which includes the related rights of LayerZero Token. Therefore, there may be expectations of airdrops when using Stargate.
Across: On November 24, 2022, Across announced that it had completed a $10 million financing at a valuation of $2 per share, and officially launched ACX Token on the 28th. Currently, providing liquidity and staking ACX Token on Across can earn Token rewards. According to DefiLlama, the current TVL on Across is approximately $48.31 million.
In addition, the portal website did not mention the Layer2 cross-Rollup bridge Orbiter Finance, which announced the completion of its first round of financing in November 2022. Investors include Tiger Global, Matrixport, A&T Capital, StarkWare, Cobo Ventures, imToken, Mask Network, Zonff Partners, and others.
DEX / Trading Aggregator
Currently, DEXs and trading aggregators that support Arbitrum include Uniswap, SushiSwap, Curve, Balancer, and more.
In addition to the relatively mainstream protocols mentioned above, there are also some DEX and aggregators that support Arbitrum, and some native DEX have emerged on it, including Camelot, ZyberSwap, Shell Protocol, etc.
Among them, Camelot has grown into a top DEX on Arbitrum. According to DefiLlama, at the time of writing, the TVL on Camelot has exceeded $100 million. Camelot combines the mechanisms of Uniswap V2 and Curve, and is almost the same as most DEXs in terms of liquidity incentives. From its Twitter, it can be seen that thanks to the concept of "Arbitrum native", Camelot has gained better opportunities to cooperate with Arbitrum's ecological projects. In addition, new projects can have more incentive space, which has enabled Camelot to gain a large amount of liquidity in the short term and form a clustering effect.
Borrowing and lending
Currently, the lending protocols that support Arbitrum include Radiant Capital, Aave, dForce, Yield Protocol, WePiggy, and more.
The most noteworthy aspect of the above loan agreement is Radiant Capital. I introduced this project for the first time in the LayerZero ecosystem inventory in October 2022. Since then, due to the increased popularity of GMX, the market has begun to focus on native DeFi protocols on Arbitrum, and Radiant, which supports cross-chain lending and borrowing based on LayerZero, has gradually become a hot topic on the "main battlefield" of Arbitrum.
Currently, Radiant has launched its V2 version, which will support full-chain lending and borrowing through LayerZero and will be launched on the BNB Chain.
Currently, the derivative protocols that support Arbitrum include Deri Protocol, Volmex, ApeX, GMX, Gains Network, Perennial, Rage Trade, and more.
In all derivative protocols on Arbitrum, GMX is currently the most popular one. GMX uses a unique "peer-to-pool" trading model, allowing liquidity providers to act as counterparties to traders while earning a portion of the protocol's fees. After the bankruptcy of FTX, a large number of on-chain trading platforms and on-chain derivative platforms have gained attention. GMX has become the DeFi protocol with the highest TVL on Arbitrum due to its trading cost advantage on Layer 2 networks and high returns for liquidity providers. According to DefiLlama data, GMX's current TVL is close to $500 million.
In addition, Gains Network has also launched a decentralized perpetual contract platform similar to GMX. Unlike GMX, as a liquidity provider for traders, it only provides liquidity for DAI instead of a basket of assets. At the same time, Gains Network offers a wider range of products for trading, including cryptocurrencies, forex, and stocks, making it more diverse than GMX.
Other than the two aforementioned products, Perennial, which completed a $12 million financing led by Polychain Capital and Variant in December 2022, is also noteworthy. For details on the protocol's mechanism, please refer to "Understanding Rage Trade: Composable Full-Chain Ethereum Perpetual Contract Protocol in Three Minutes" and "What are the Highlights of the $12 Million Derivative Protocol Perennial?"
Liquidity Management / Yield Aggregator / Asset Management
Currently, the liquidity management protocols and yield aggregators that support Arbitrum include iZUMi Finance, Convex Finance, PlutusDAO, GMD Protocol, and more.
With the gradual improvement of the basic DeFi protocol on Arbitrum, the "DeFi Lego" is also slowly being built, focusing on GMX's GMD Protocol. PlutusDAO, which has a large amount of JONES/WETH LP, DPX, and SPA Tokens, is an important "superstructure".
Currently, mainstream stablecoins such as USDT, USDC, DAI, TUSD, and FRAX can all be transferred to Arbitrum through various cross-chain bridges. In addition, Arbitrum also includes the Angle protocol for over-collateralized Euro stablecoin issuance, the Fluidity protocol for stablecoin usage incentives, the Sperax issuer of USDs, and the Vesta protocol for over-collateralized stablecoins.
其中，Fluidity announced the completion of a $1.3 million seed round led by Multicoin Capital at the end of October 2022. Vesta is a stablecoin protocol similar to Liquity, where users can collateralize ETH, WBTC, and gOHM to mint the stablecoin VST. Vesta has designed a "hard peg" mechanism for VST, allowing any user to redeem collateral worth $1 when VST is unpegged.
Other DeFi projects besides the aforementioned protocols include OlympusDAO, Brinc Finance, financial NFT minting and trading platform Solv Protocol, liquidity staking protocol 0xAcid, risk pricing protocol Y2K Finance, and more.
Among them, Y2K Finance, which is similar to stablecoins and packaged asset CDS (credit default swaps), brought huge profits to users who "insured" against risks during the Circle crisis when stablecoins were generally unanchored. For details of the protocol mechanism, please refer to "FTX's DeFi Big Winner Behind the Defeat: Understanding the Pricing Protocol Y2K Finance for Stablecoin Decoupling Risk".
Currently, the payment protocols that support Arbitrum include privacy payment protocol Umbra, fund flow protocol Superfluid, 0xSplits, Cask Protocol, Holyheld, Raiden Network, Request Finance, Rise, Sablier, etc.
Currently, the DAO organizations listed on Arbitrum include Layer2DAO and PrimapesDAO. Layer2DAO is an investment DAO that focuses on investing in L2 ecosystem projects, while PrimapesDAO is also a DAO aimed at attracting Arbitrum users and investing in projects on Arbitrum. In addition, DAO toolkits that support Arbitrum include CharmVerse, Collab.Land, Commonwealth, DAOhaus, Dework, Safe, Guild, Multis, Snapshot, and Utopia.
The NFT projects listed on the Arbitrum official portal website include Arbibots, ArbiDudes, Hoodlife Club, Kanpai Pandas, Mithical, Random Walk NFT, yiume, EGGFAM, and more.
NFT markets that support Arbitrum include OpenSea, tofuNFT, Trove (an NFT market launched by TreasureDAO), and others.
Tools that support Arbitrum NFT include NFTScan, Pinata, Zero Code NFT, etc.
Arbitrum's NFTFi project includes DeFragDAO, which provides lending services for NFTs in the TreasureDAO ecosystem, and the nftperp perpetual contract protocol for NFTs.
Due to the low cost and high speed advantages of transactions on Arbitrum, game projects have been able to develop better. Currently, game ecosystem projects on Arbitrum include Game7, The Beacon, Trident, and more.
Speaking of the game projects in the Arbitrum ecosystem, we cannot ignore TreasureDAO. As the center of the game ecosystem in Arbitrum, TreasureDAO has come into the public eye due to the popularity of the game The Beacon. The empowerment of the MAGIC Token on the ecosystem games, as well as the launch of the game NFT trading platform Trove and the ecosystem game trading platform MagicSwap, will continue to enhance TreasureDAO's support for games. If Web3 games become a hot market in the future, TreasureDAO may have good development prospects.
Currently, the social protocols that support Arbitrum include not only the well-known Mask Network, but also the Wall and TalenTale.
Currently, the growth platforms supported for projects on Arbitrum include Galxe and Layer3.
Currently, node service providers that support Arbitrum include Alchemy, Ankr, Infura, Pocket Network, and others.
Currently, tax tools that support trading on Arbitrum include Binocs, Crypto Tax Calculator, and Koinly.
Arbitrum's Token will be distributed not only through airdrops to users, but also to selected projects. These projects include not only DApps built on Arbitrum, but also various tools such as storage, developer tools, community services, and more. There are many types of tools that support Arbitrum, and interested users can learn more based on the information in the image.
Offchain Labs officially launched Arbitrum Nova, based on AnyTrust, in early August 2022. While Arbitrum One has always kept all transaction data on Ethereum, Nova utilizes a data availability committee to achieve cost savings and only puts data back on-chain when the committee fails to do its job. Additionally, Nova is fully compatible with EVM.
According to L2BEAT data, at the time of writing, the TVL on Arbitrum Nova has approached $10.5 million. Currently, there are few ecological projects on Arbitrum Nova, and most of them are games. We will not go into too much detail here, and you can learn more through the Arbitrum Nova ecological portal website.
Original article link