Arbiturm is expected to continue to experience significant growth, and users can participate in this emerging ecosystem through the use of native projects, cross-chain infrastructure, and ambush airdrops.
Following Arbitrum’s migration to Nitro, the much-anticipated network upgrade is officially complete. Arbitrum’s increased throughput and lower transaction fees promise further growth in all aspects of liquidity, users, and ecological activity.
There are several important catalysts on the horizon for this growth trend. The first is the Arbitrum Odyssey designed to encourage the use of applications on L2, Odyssey brings users and attention back to the network; the second catalyst is the launch of the Arbitrum token.
TVL for L2 – Source: L2 Beat
Arbitrum is by far the largest L2 of TVL with a total value of over $2.58 billion. After the token is issued, it may be used to incentivize liquidity and encourage active L1 applications to migrate to Arbitrum, and TVL is expected to increase further.
While these catalysts have become a hot topic in the market, only 0.45% of Ethereum addresses use Arbitrum. Its network adoption is still in the early stages.
So how do we participate in this ecosystem?
Direct participation in Arbitrum native projects
The most direct way to participate in the Arbitrum ecosystem is to invest in rollup’s native projects. Early adopters are likely to drive growth in TVL, revenue, users and other core KPIs and are therefore expected to be the main beneficiaries of Arbitrum inflows.
Investors can choose suitable Arbitrum ecological projects according to their investment portfolio and risk profile.
Decentralized Perpetual Contract Exchange GM
GMX is a decentralized perpetual contract exchange that uses a liquidity pool model. Traders can open positions by borrowing a basket of assets, GLP. GLP acts as the counterparty to traders on the platform, taking profit and loss risk; at the same time, it earns income distributed in the form of ETH in opening, closing, swapping, and liquidating.
GMX TVL – Source: DeFi Llama
GMX has a TVL of approximately $283 million, or 29.6% of the total value locked in the network, making it the largest protocol on Arbitrum. GMX has generated $10.36 million in protocol revenue over the past six months, and this revenue is fully paid to GMX stakers in the form of ETH, with a current staking yield of approximately 6.58%. GMX is becoming a core project in the Arbitrum ecosystem including Umami Finance, Dopex, Vesta and other projects. The current market value of tokens in circulation is US$376 million, and the fully diluted FDV is US$623 million.
Options Protocol Dopex (DPX)
Dopex is an options protocol that offers a wide variety of options products. Users can easily run Covered Call Strategies, Cash Covered Put Strategies, Interest Rate Vaults, etc. using the One-Way Option Vault, allowing users to speculate on the yields of different curve pools. Dopex has launched its latest product, Straddles. Option buyers can buy straddles. No matter whether the currency price rises or falls, the buyer can make a profit, and can borrow the collateral pledged in the option contract by paying.
Dopex TVL – Source: DeFi Llama
Dopex currently has $29.15 million in TVL. DPX tokens can be staked to earn fees and protocol fees paid in ETH. Jones DAO leverages Dopex infrastructure to build options library and L2 governance protocol Plutus. DPX has a circulating market capitalization of $85 million and a fully diluted valuation FDV of $209 million
Derivatives Mycelium (MYC)
Mycelium is building a set of spin-offs on Arbitrum, formerly the Tracer DAO. This is a new type of derivative similar to leveraged ETFs in which users can hedge or expand their exposure to a given asset. Mycelium recently launched Perpetual Swaps, a fork of GMX that allows users to provide liquidity to traders through MLP pools.
MYC TVL – Source: DeFi Llama
Mycelium’s current TVL is $16.7 million, and the recent announcement that former Bitmex CEO Arthur Hayes is serving as an advisor also caused a stir. MYC’s current market capitalization is $36 million, with a fully diluted FDV of $60 million.
Other noteworthy projects
Investors can also keep an eye on Umami Finance (UMAMI), a project that builds treasuries based on non-tradable yields; Vesta Finance (VSTA), a lending protocol and issuer of the VST stablecoin; options protocol Premia (PREMIA) and DAO structuring Chemical product Galleon (DBL).
Although these tokens have smaller circulating market caps and less liquidity than those above, they will still benefit from the expected growth of the ecosystem.
There are also projects that have yet to go live, including the full-chain perpetual protocol Rage Trade, the social trading platform STFX, and the protocol Y2K for hedging or speculating on pegged assets, which may have airdrops to early adopters or community members.
Participate in cross-chain infrastructure construction
Another way for investors to participate in the Arbitrum ecosystem is to invest in infrastructure such as “pick and shovel”, that is, to promote the adoption of the entire L2 ecosystem, but not be limited to any single infrastructure project.
The simplest infrastructures are cross-chain bridges and cross-chain flow protocols. While cross-chain bridges have been plagued with security concerns over the past year, these systems remain a critical piece of infrastructure due to their ability to allow users to quickly and easily transfer assets across networks.
Cross-chain infrastructures may not benefit directly from Arbitrum’s growth like the ecological projects built on them, but they can be rewarded from expected liquidity inflows into L2, and their revenue is based on fees as a percentage of total transfers.
Below are some token interoperability solutions and potential targets for traceable airdrops.
The Synapse Bridge enables users to use the AMM to exchange between canonical assets (assets issued locally on L1 or L2), and the cross-chain value of assets passing through the Synapse Bridge to date is approximately $11.3 billion. Synapse plans to launch Synapse Chain, an optimistic rollup scheme that leverages Snyapse’s cross-chain messaging capabilities. Synapse has an outstanding market capitalization of $233 million and a fully diluted FDV of $311 million.
Hop is similar to Synapse in that it uses AMM to facilitate the exchange of regulated assets and has already contributed to $2.7 billion in cross-chain transaction volume. The circulating market capitalization of HOP is $5 million and the FDV is $135 million.
Stargate (STG) can connect to Arbitrum and have a native token. Built on LayerZore, Stargate enables users to transfer assets without going through any cross-chain bridges, and the protocol currently has a TVL of $631.2 million. The circulating market capitalization of STG is $84 million, and the FDV is $635 million.
empty investment grid
Another way in which investors can gain exposure to L2 infrastructure is through the empty investment grid.
While Synapse, Hop, and Stargate all have tokens, there are many other projects that have yet to launch. When these projects issue coins in the future, early users and community members may be rewarded by distributing tokens.
Some notable candidates include cross-chain liquidity protocols Connext and Across, and cross-chain aggregator Li.Fi.
Arbitrum Token Airdrop
The last way investors can participate in the Arbitrum ecosystem is by getting airdrops. Since there is no need to buy any tokens, getting an empty slot is one of the best options for potentially profitable investors who are risk-averse.
While Arbitrum has yet to be officially confirmed, it is certain that it will launch a token. Tokens can not only bring benefits to investors and team members, but if distributed properly, it will be an extremely efficient incentive tool to guide ecological development.
Since L2s like Optimism, Polygon, zkSync, and Starkware have all launched or plan to launch tokens, Arbiturm will be at a competitive disadvantage if they don’t launch their own.
In order to maximize the possibility of obtaining airdrops, users can choose to perform cross-chain transfers and on-chain transactions.
For more specific guidance, you can refer to the criteria set by Optimism (OP) airdrops in order to cover the shortest ratio possible.
optimism airdrop standard
More active people can take part in the Arbitrum Odyssey. Odyssey is an eight-week event designed to encourage users to interact with protocols deployed on Arbitrum through custom NFT rewards.
While the Odyssey event started in June, it was delayed only in its second week due to network congestion due to increased user engagement. The Offchain Labs team stated that the event will resume after Nitro is completed. For details, please pay attention to the Arbitrum social account and Discord information.
While it’s unclear how Odyssey will consider airdrop criteria, participation in the campaign may increase the percentage of users allocated. And because of the low cost of transactions, spending time participating in events is a very cost-effective thing to do.
Arbiturm is expected to see significant growth in the coming weeks and months. Users can choose to participate in the Arbiturm ecological construction through native DeFi projects, cross-chain basic agreements, and empty investment qualifications.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/arbitrum-nitro-upgrade-how-to-participate-in-this-emerging-ecosystem/
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