The Arbitrum Layer 2 network has risen as a leading solution to tackle Ethereum’s scalability challenges. The L2s recent announcement of its highly anticipated decentralized autonomous organization (DAO) governance for the Arbitrum One and Arbitrum Nova networks alongside the airdrop of its ARB token has spurred new users to flock to the network.
In this article, we will take a closer look at five crypto projects on the Arbitrum Layer 2 network that warrant a closer inspection, highlighting their key features and potential for future growth.
GMX – THE DeFi Protocol on Arbitrum
GMX is an Arbitrum-native decentralized perpetual exchange that allows users permissionless trade on BTC, ETH, AVAX, UNI and 10 other tokens on-chain. The platform has grown to become the largest and most used DeFi exchange on the network with over 100 billion in cumulative trading volume and over 224,000 users as well as several high-profile forks such as Mummy Finance and Metavault.Trade. GMX’s incredible growth has been partly due to their seamless UI/UX experience and unique tokenomics with GLP staking that returns revenue to holders and stakers. A must-visit for new Arbitrum users.
Radiant – Arbitrum’s Native Money Market
Radiant is a decentralized finance (DeFi) platform on the Arbitrum network that aims to become the first omnichain money market. Users can deposit any major asset on any major chain and seamlessly borrow a variety of supported assets across multiple chains. Radiant’s primary goal is to consolidate the fragmented liquidity currently dispersed across the top ten alternative layers.
Radiant leverages the RDNT token for its lending protocol, and lenders who provide liquidity to Radiant are rewarded through the platform and its professionally designed UI. At the time of writing, Radiant is offering between 8%-10% APY on stablecoin (DAI, USDC, USDT) deposits and has integrated a looping functionality for those that like to see their assets fully utilized.
Radiant is fully audited by PeckShield and Solidity Finance, and V2 will allow for full cross-chain borrowing/lending on BTC, ETH, and USDC, followed by additional assets voted on by the Radiant DAO.
Treasure – The MAGICal NFT and Gaming Platform
Treasure is a decentralized NFT ecosystem on the Arbitrum network that is built for metaverse projects. MAGIC, the native token of Treasure, is the sole currency for marketplace transactions and acts as the reserve currency for the entire web of metaverses connected under the Treasure umbrella. Treasure projects are linked narratively and economically through MAGIC, and the DAO uses MAGIC emissions to grow new projects and continue supporting more mature ones.
MAGIC is an increasingly scarce resource needed to power treasures and allow them to function as productive assets, and the relationship between treasures and MAGIC forms a base layer metaverse on which other metaverse economies can be built and connected. With its unique NFT ecosystem and use cases, Treasure.lol is a promising project/investment for those with a keen interest in GameFi.
Vesta Finance – Over-collateralized Debt Platform
Vesta Finance is a collateralized debt platform on the Arbitrum network that allows users to lock up collateral and issue Vesta’s stablecoin VST to their own Ethereum address. The system is designed to always be over-collateralized, and the algorithmically controlled generation of VST through a variable interest fee helps to maintain its value of 1 VST to $1 USD. The tokens are freely exchangeable and burned upon repayment of a vault’s debt. Vesta Finance is a promising project in the current economic climate offering stable and reliable collateralized debt positions with its stablecoin VST.
Camelot – The Holy GRAIL of Arbitrum
Camelot is one of the most promising projects on Arbitrum in 2023 due to its ecosystem-focused and community-driven approach to decentralized exchange and liquidity provision. Camelot is highly efficient and customizable, offering a tailored approach that prioritizes composability. It is a feature-rich AMM, offering pool configurations that are much more customized and tailored to specific trading pairs. The introduction of a brand new liquidity approach based on non-fungible staked positions offers an additional layer on top of usual LP tokens, providing new features that benefit both users and protocols.
Camelot’s permissionless approach allows projects to directly interact with the protocol without any consent or intervention from the team, providing full control to incentivize and manage liquidity. Its dual token system consisting of the native liquid GRAIL and xGRAIL, a non-transferable governance token, offers a high level of control on the supply flow on the market, ensuring long-term sustainability.
Closing Thoughts
The Arbitrum ecosystem has cemented its position as a leading L2 solution to Ethereum’s scalability challenges. The network is full of promising and innovative projects ready to be explored with enormous potential for growth, scalability, and mainstream adoption. These five projects are just some of the unique offerings that Arbitrum has available for its ever-growing user base.
