Arbitrum — A potential goldmine.
Arbitrum is a layer 2 scaling solution that solves several challenges that beset the ethereum chain. In addition, Arbitrum offers a combination of benefits to users, including:
Security based on Ethereum that is trustless, with any one party able to guarantee accurate Layer 2 results.
Ethereum compatibility, including the ability to execute EVM contracts and unaltered Ethereum transactions.
Scalability: By removing computation and storage for contracts from the main Ethereum chain, significantly higher throughput is made possible.
Lowest possible cost: the system is created and constructed to utilize the smallest possible L1 gas footprint, which lowers per-transaction costs.
On the 31st of August 2022, Arbitrum One (the first chain on Arbitrum) was upgraded to Nitro, and Nitro offers the following advantages over the Arbitrum One:
Advanced Call data Reduction, which lowers the data amount routed to L1 and minimizes transaction costs on Arbitrum.
Separate Contexts For Common Implementation and Fault Proving, which improve L1 node performance while reducing fees.
Ethereum L1 Gas Compatibility, which precisely aligns the pricing and accounting for EVM operations with Ethereum.
Increased L1 interoperability, including total support for all Ethereum L1 precompiles and improved synchronization with L1 Block numbers.
Safe Retryables eliminates the failure mode where a retryable ticket fails to be created.
GETH Tracing for more comprehensive debugging assistance.
In addition to the Arbitrum Nitro upgrade, the Arbitrum Odyssey program was launched but was later paused due to congestion on the network. It is expected that the program will launch any day now since Nitro has been finalised. The Odyssey program is an 8th-week-long program aimed at incentivising users to bridge liquidity into the Arbitrum network and receive an NFT airdrop.
A combination of these factors has caused an influx of capital into the Arbitrum ecosystem.
Examining the data on Arbitrum, we can see a sharp spike in the new Arbitrum users, active addresses, and transactions carried out on the chain at the start of the arbitrum odyssey event in July.
Source: Dune Analytics
Considering the capital flows and increased activities into the Arbitrum ecosystem, it becomes essential to pinpoint some potential investments to take advantage of. Below are some possible great investments across various sectors:
DeFi:
Some prominent DeFi protocols for investors to take advantage of include:
GMX is a decentralized perpetual exchange. The GMX and the GLP tokens are available to take advantage of. GMX is the utility and governance token of the GMX protocol and accrues 30% of platform fees. On the other hand, GLP is the liquidity provider token, which accrues 70% of platform fees.
Plutus DAO
Plutus DAO is a governance aggregator that seeks to control veDPX and veJONES in order to gain control over the Dopex/Jones ecosystem. The PLS token is the governance token of the Plutus DAO and allows control over the veAsset voting power.
DAO Jones
Jones DAO is a yield, strategy, and liquidity protocol for options, featuring vaults that allow 1-click access to institutional-grade options strategies. Holders of the JONES token govern the Jones DAO.
Radiant
With Radiant, users can deposit any major asset on any major chain and borrow a range of supported assets across many chains. As a result, radiant intends to be the first omnichain money market.
Umami
Umami is championing the distribution of real yield to Umami token holders. Thus, to take advantage of sustainable yields void of dilutions and token emissions, Umami can benefit investors.
Dopex
Dopex is a decentralized options exchange. The protocols aim to maximize liquidity, minimize losses for option writers and maximize gains for option buyers. The DPX token is a means investors can use to capture some of the upsides that can be generated from Dopex.
Sperax
Sperax is a stablecoin issuing protocol based on Arbitrum. Investors can take advantage of the protocol by investing in the SPA token.
Cap Finance
Cap Finance is a decentralized perpetual exchange. You can trade on Cap Finance with Zero Fees, and an interested investor can capture potential returns by buying the CAP token.
Vesta Finance
With the help of the layer 2-first Vesta lending protocol, users can get the most liquidity possible against their collateral without paying interest. VST is the stablecoin issued by the Vesta Protocol while, VSTA is the governance token of the protocol and investors can capture any possible upside through the VSTA token.
Premia Finance
Premia is a platform for trading options. By enabling pricing based on real-time supply and demand, Premia's automated options market gives DeFi options fully featured peer-to-pool trading and capital efficiency.
Investment Guilds
Galleon DAO
Galleon DAO is an investment guild protocol trying to fix the shortage of capital allocators in the digital asset space. You can read our article on Galleon here. In addition, investors can take advantage of the growth of Galleon DAO by investing in Doubloon ($DBL).
Metaverse
A major project for investors to take advantage of is the Treasure project:
Treasure
Treasure is a decentralized marketplace for trading NFTs and other digital collectibles. Every project that is listed on the treasure marketplace utilizes the Treasure $MAGIC token in their respective marketplaces.
The TreasureDAO manages the Treasure project, and MAGIC token holders conduct the DAO governance. The ultimate goal of the treasure project is to help bootstrap new and decentralized metaverses.
Final Words
It is impossible to exhaust the great investments that you can make on the Arbitrum chain. Thus we implore you to utilize the DEX Screener tool to find hot tokens and undervalued plays.