Arbitrum the beta version of Arbitrum One main network open only two weeks to all users, the Ethernet Square floor (Layer2) network expansion has attracted over $ 1.5 billion worth of assets encryption on the chain, while the total value of the entire Layer2 Lock plate (TVL) Only 2.2 billion U.S. dollars.
Arbitrum officially made it clear that no governance tokens are currently issued. DeFi veterans believe that after Arbitrum, which is officially named by Ethereum, will be launched, there will be veteran applications that will jointly “make troubles” to increase the popularity of users of the Layer 2 network and increase the interaction rate between users and the chain.
But the script did not write that. There are currently only 6 applications deployed on the Arbitrum chain, and a large number of applications that attract users to lock their positions are an anonymous protocol ArbiNYAN. Among the more than $1.5 billion TVL on the mainnet, $1.35 billion of encrypted assets are locked. In this “interest-bearing application” with an undisclosed team, no security audit, and a rough official website.
There are already KOLs in the DeFi market reminding users that ArbiNYAN is “a local dog” and is careful to dig “earth mines” to cause principal losses. The mindset of the earth miners includes not only making quick money, but also hoping to interact with Arbitrum quickly in a cost-effective manner, leaving a trace of the address available for airdrop before the new chain is issued.
The “ArbiNYAN Phenomenon” is risky, but it also reflects the lack of native Arbitrum applications. Offchain Labs, the core development team behind the chain, has posted a recruitment notice on the official website, and software engineers are included.
TVL reaches 1.5 billion US dollars in two weeks after Arbitrum goes live
September 13th happened to be the 14th day when the public beta version of Arbitrum’s mainnet, Arbitrum One, was officially launched. In two weeks, Arbitrum has attracted more than $1.5 billion worth of encrypted assets to lock up on the chain.
What concept? According to the third-party data platform L2beat, the overall TVL of Layer 2 is $2.2 billion. In other words, Arbitrum’s TVL accounts for 68% of the Layer 2 sector. You must know that the current total lock-up value (TVL) on the chain is second only to the BSC chain of Ethereum, and it took almost 5 months for the “suction amount” to reach 1.5 billion US dollars.
TVL reaches 1.5 billion US dollars in two weeks after Arbitrum goes live
As the second-tier expansion network of Ethereum, Arbitrum is fully compatible with the Ethereum virtual machine EVM. It is developed by Offchain Labs and adopts Optimistic Rollup technology to improve the scalability, speed, and privacy of on-chain contracts.
The use of this network requires the use of the Arbitrum asset bridge on a supported wallet to transfer assets under the Ethereum standard to the Arbitrum chain. It should be noted that once a user’s assets enter Arbitrum through the asset bridge, they need to wait at least 7 days to return to Ethereum, which is determined by the underlying technology of the chain.
Some users have measured that the handling fee for Arbitrum’s single-chain operation has been significantly reduced, and the handling fee for each transaction on the chain is about $1. However, the cross-chain fee is higher. Take USDC under the ERC-20 standard as an example. Transferring it from the Ethereum wallet to the Arbitrum network, plus the cross-chain and conversion processes, will cost at least $30.
According to the arbiscan.io browser, as of September 11, the number of daily transactions on the Arbitrum chain was 106,839; the number of unique addresses was 41,437, an increase of 17,107 from the previous day; there have been more than 660 token contracts. Deploy on the chain.
After the Arbitrum mainnet is fully opened, the decentralized applications Uniswap and Balanler on the Ethereum chain, the cross-chain payment protocol cBridge on the Celer network, and the DeFi lending protocol WePiggy have all stated that they will land in Arbitrum.
The third-party data from Defi Llama shows that there are only 6 applications that actually attract encrypted assets to lock up on the Arbitrum chain. Balanler and WePiggy are listed, but the TVL is $18.4 million and $3.882 million, respectively. The application with the strongest ability to “attract gold” is not a familiar project in the market, but an application called “ArbiNYAN”. The TVL reached 1.35 billion U.S. dollars, accounting for 90% of the TVL on the Arbitrum chain.
What is the holy spirit of this money-sucking app?
The “earth mine” attracts 1.35 billion US dollars of gold, and there are multiple risks
Open the ArbiNYAN (NYAN) official website, a pixel rainbow cat flashes on the homepage. The page only displays the NYAN token distribution plan, farm page, contract address, community channel and “How to Transition to Arbitrum”. The simple and rude page does not provide information about the application development team, and multiple third-party data platforms are also prompting that the application does not have a security audit report.
In the words of the DeFi veteran, this is a “earth dog”, the farming provided is “earth mine”, and it is a game of “running fast”.
ArbiNYAN official website shows that the total supply of NYAN is 100 million pieces, the development team holds 5 million NYAN, and the linear release cycle of 4.5 million NYAN is 3 months. For users , staking ETH , staking NYAN and NYAN rewards that can provide liquidity for NYAN-ETH. Among them, the ETH staking pool releases 7 million NYANs within one week; the total reward for the liquidity release of the NYAN-ETH staking pool within three months is 49 million NYANs; the single currency staking NYAN for release within three months is 39 million NYANs .
To put it simply, this is an “interest-bearing application” that pledges ETH to mine new mines. The user deposits real money in Ethereum, and what they get is NYAN, a project that does not know the team, has no security audit, and has a rudimentary official website.
“There is a risk, the program selection is not safe enough, and there is no audit.” On September 11, the day after ArbiNYAN went online, a player prompted a risk on Weibo saying that although the application contract has no obvious backdoor, there is no time lock and multi-signature. , The APY (annualized rate of return) of the ETH single currency pledge pool reaches 740%, and the daily output is 1 million NYAN; the single currency pledge pool APY of NYAN is as high as 4298%, and the daily output is 430,000 NYAN; ETH-NYAN’s LP second pool The highest APY is 10,000%, and the daily output is 540,000 NYAN. “The second pool has the risk of impermanent loss and currency price risk.”
Selling pressure has become NYAN’s biggest hidden crisis. The risky blogger said that NYAN has been smashed from $4.9 to $3.2 in less than an hour.
In the face of risk warnings, some users are inquiring about the project, asking where they can buy; some users just want to “interact, get a familiar face, and wait for the ARB airdrop.”
Arbitrum has not yet announced its currency issuance plan
On September 12, Arbitrum reminded on the official Twitter that there are currently no tokens on the mainnet, and any claim to be an official token is a scam.
Nevertheless, waiting for the airdrop of Arbitrum governance tokens is indeed one of the reasons why many users rush to ArbiNYAN’s “earth mine”. With high APY, this earth mine has become a cost-effective way to interact with Arbitrum.
Although it took 2 weeks for the Arbitrum chain to reach the TVL indicator that the BSC chain took 5 months to obtain, the ecology of the two is not the same. There are already hundreds of applications on the BSC chain, covering the popular track of various blockchain applications such as DeFi, NFT, and GameFi. However, there are only 6 applications deployed on Arbitrum, most of which are migration versions of native applications on the Ethereum chain.
The user has no application to interact with the chain is the most embarrassing situation Arbitrum is currently in. Although the transaction speed is fast and the network is not congested, Arbitrum is like a desert highway. Some people want to come, but there is no good car running on it. Users only Being able to sit on the “earth dog”, squeeze the dog’s hair, and leave a trace of “come here” on the road, expecting Arbitrum to be able to airdrop governance tokens to users like other blockchain networks or projects.
Offchain Labs, the developer of Arbitrum, may have also noticed the problem of ecological scarcity. The team has begun to recruit development engineers, including senior software engineers and software engineers.
Well-known KOL Wan Hui reminded that 48 hours have passed since the gold mine on Arbitrum. The time limit is purely an empirical judgment of her. “Generally, I observe the first 8 hours, then 48 hours are relatively safe (combined with observing the behavior of large households), and then 48 hours. After that, it’s high risk.” She thinks that the user is not appropriate to flush the LP pool.
For users of “flushing earth”, risk awareness is still a compulsory course. Some users have a fluke mentality, believing that Arbitrum has a 7-day “pending rollover” anyway. In this regard, DeFi players reminded that the 7-day time of the project is always ahead of the user. Once the payment runs off or the mine collapses, the principal authorized by the user to deposit the application will be at risk of loss.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-desert-highway-arbitrum-on-the-chain-of-earth-mines-occupy-the-road/
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