Arbitrum’s Emerging DeFi Projects Worthy Of Attention

February 19, 2023 - Around 7 mins mins to read

Key Points:

In addition to GMX for derivatives, and Camelot for DEX, the Arbirtrum ecosystem also has many DeFi projects that deserve attention.
The above projects include Zyberswap, SolidLizard, GMD Protocol, Gammaswap, WINR Protocol, Nitro Cartel, Perpy Finance, and Factor DAO.

The DeFi project on Arbitrum has once again ushered in the spring. Among the native projects, GMX for derivatives, Camelot for DEX, and Radiant for lending have all attracted a lot of attention. What other DeFi projects on Arbitrum are worthy of attention? Coincu screened out some emerging projects that at least meet one of the conditions of short launch time, fast data growth, and no currency issuance yet.

Arbitrum's Emerging DeFi Projects Worthy Of Attention

Zyberswap

Link: https://www.zyberswap.io/

Zyberswap is one of the first decentralized exchanges on the Arbitrum blockchain. Zyberswap is committed to having the lowest fees. As an Automated Market Maker (AMM) it is able to swap crypto assets for the lowest possible fees.

Zyberswap went live in late January, and its tokens had a death spiral to near zero at the end of January. However, thanks to the recovery of DeFi on Layer 2, the recent APR of the ZYBER-ETH pool and ZYBER-USDC pool is close to 2000%, and the price of ZYBER remains stable and rising. With the TVL of Camelot, the leading DEX on Arbitrum, only $62.73 million, and the FDV as high as $300 million, there may be room for development in the DEX track.

In terms of products, Zyberswap also has Uniswap V2 + Curve type DEX and Launchpad, but the tokens do not have Camelot’s complicated lock-up mechanism. The transaction fee for the non-stable currency pool is 0.25%, LP gets 0.15%, and users who lock ZYBER can share a part.

The current TVL of Zyberswap is $90 million, surpassing Camelot.

SolidLizard

Link: https://solidlizard.finance/

A fork from Solidly’s DEX. With the support of Andre, a well-known DeFi developer, Solidly once had a liquidity of more than $2 billion, but it went down after Andre announced his withdrawal. Currently, the ve(3,3) model has achieved good results on Optimism’s Velodrome and BNB chain’s Thena.

SolidLizard has also begun to make efforts on Arbitrum. The current TVL is $34.69 million, an increase of 158% in the past 24 days. In projects like ve(3,3), liquidity providers usually do not have a strong willingness to pledge DEX’s native tokens. In SolidLizard, after staking SLIZ tokens, it will also increase the mining income of liquidity providers, which can be regarded as a small improvement in terms of tokens.

GMD Protocol

Link: https://gmdprotocol.com/

GMD Protocol is a revenue optimization and aggregation platform. It adopts a strategy close to delta neutrality to obtain revenue. Half of the revenue will be reinvested, and the other half will be distributed to stakeholders of the governance token GMD as protocol revenue.

GMD splits the assets in LP tokens into a single asset, allows different users to deposit, and then uses LP tokens to obtain income, so that the risks of different depositors are close to delta neutral.

For example, for the strategy of GLP, depositors can deposit any of the three assets of WBTC, ETH, and USDC. Since the Vault of each asset has set a limit according to the asset composition of GLP, the asset ratio of GLP can be simulated . For single-asset depositors, this strategy is close to delta-neutral.

GMD’s TVL hit a new high recently, up 78% in the past week.

Gammaswap

Link: https://gammaswap.com/

Gammaswap allows traders to leverage long volatility or hedge impermanent losses, and it builds a middle layer between users and AMMs. Liquidity providers can provide liquidity through supported AMMs and deposit LP tokens into Gammaswap.

People who need to hedge against impermanent losses can use one of the assets in LP as collateral, leverage to borrow LP positions and separate LP into a single token, and pay interest; the liquidity deposited in LP can obtain deposit income. If the volatility is high and the impermanence loss is large, the strategy of separating into a single token will be profitable.

Gammaswap is seeking cooperation with many DeFi projects, and has initiated a proposal in the OlympusDAO community, which mentions that the annual APR of the OHM/ETH trading pair providing liquidity is about 1.35%, but the impermanent loss is about 2.1%. result in a loss.

Therefore, Gammaswap proposes to deposit 1% ($500,000) of the liquidity owned by the Olympus protocol into Gammaswap to obtain higher returns. The project has received a Grant from Balancer, has financing, and has not yet issued coins.

WINR Protocol

Link: https://winr.games/

WINR Protocol is a project designed for on-chain liquidity and incentives. It has built a liquidity pool WLP according to GLP, which includes 50% DAI, 35% ETH and 15% WBTC.

Developers of other projects can also connect their games to WINR’s liquidity pool through the WINR DAO proposal, providing direct payment for game players. The users who provide liquidity are also the opponents of these game players.

For example, a leveraged long/short game can provide collateral and trade through WLP. WINR generates untampered random numbers through a decentralized oracle machine, which is also suitable for other gambling games. The team also developed Justbet in the WINR ecosystem.

WINR Protocol will host an IDO on Camelot on March 6.

Nitro Cartel

Link: https://nitrocartel.finance/

The Nitro Cartel team plans to build an index product Arbitrove in the Arbitrum ecosystem, providing exposure to a basket of Arbitrum native assets.

Arbitrove’s first product is the ALP index, including GMX, MAGIC, GRAIL, DPX, JONES, RDNT, and GNS, the governance tokens of the top projects in the Arbitrum ecosystem.

Users can mint ALP with ETH as the principal, and pledge ALP on Arbitrove to earn esTROVE. Arbitrove uses the underlying assets to earn income through liquidity mining and distributes it to users.

Arbitrove will be on IDO at Camelot from February 17 to 20.

Perpy Finance

Link: https://www.perpy.finance/

Perpy is a copy system of GMX. Any trader can create a Trading Vault in Perpy, bind the wallet address to the Twitter account, share it on Twitter, and attract people to follow orders. Those who choose to follow orders can deposit funds in these Trading Vaults, and the creators use these funds to trade on GMX and earn a certain performance fee from them. Each Trading Vault is equivalent to a fund, and the Trader who created the Vault is also the fund manager.

At present, Perpy Finance’s products have been launched, and the total transaction volume is only $1.85 million. Perpy’s native token PRY will be IDO on Camelot on March 16.

Factor DAO

Link: https://www.factor.fi/

Factor is an on-chain treasury management platform that hopes to become a liquidity aggregation layer that unifies the fragmented DeFi market.

Any project or individual can act as an asset manager and create a Vault on Factor. Investors can deposit funds into these Vaults with one click to obtain income. Asset managers earn income through set strategies, such as creating indexes with a package of assets, income strategies or derivatives.

At present, Factor’s products have not yet been launched, and the project token FCTR will be IDO on Camelot from February 20 to 24.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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