Arbitrum, a leading Layer 2 solution on Ethereum, is steadily establishing itself as a hub in the emerging decentralized finance (DeFi) domain with $2.73 billion TVL. As faster and less expensive than Ethereum’s leading network, Arbitrum draws various DeFi projects, ranging from lending protocols to DEXs and yield platforms.
Top Lending and Yield Platforms on Arbitrum
The most valuable project in the ecosystem is AAVE, a lending platform with $821.91 million, which is 36.6% of the total. AAVE is a platform that allows users to lend and borrow cryptocurrencies. Compound (COMP), another lending application, has a total value of $162.1 million; the lending-digital money marketplace enables users to lend and borrow cryptocurrencies while earning interest.
In the yield space, there is Pendle, a yield-trading protocol with $115.91 million in TVL that enables users to trade future yield, adding new, exciting yield-generating possibilities to Arbitrum.
Leading Decentralized Exchanges (DEXs)
Of all the DEXs in Arbitrum, Uniswap (UNI) has the highest number of TVL at $306.50 million, representing 13.7% of Arbitrum’s total. People can easily trade their tokens on UNI, which explains the high trading activity on the Arbitrum network. Grail is also a DEX with a total value of $100.51 million, providing other trading options for users. Balancer (BAL), currently serving as a dynamic DEX with a Total Value Locked (TVL) of $62.67M, offers multi-asset pools supporting various trading and liquidity combinations.
Derivatives and Advanced Financial Tools
Currently, GMX is the most popular derivatives exchange on Arbitrum, with TVL of $490.88 million representing 21.8% of the total. A new feature on the GMX platform is leveraged trading, which allows DeFi users to have complex trading options. Another derivatives platform is VRTX, which has $63.43 million in TVL. This platform will provide more variety to the ecosystem’s financial services by offering other trading styles.
Restaking and Yield Aggregation
REZ is a restaking protocol that has a $63.2M TVL, enabling users to stake for even more rewards, optimizing staking returns. TVL of BIFI is $58.86 million, a yield aggregator platform offering optimized yield plans to achieve maximum rewards with proper utilization of assets.
These top ten projects sum to a TVL of $2.73 billion, proving healthy development and place as an important DeFi solution. From lending and yield platforms, DEXs/AMMs, to derivatives, Arbitrum’s big products, AAVE, GMX, and UNI, demonstrate its role as a high-performance, inexpensive Ethereum Layer 2 solution. In the future, Arbitrum will have many promising opportunities in the DeFi space.
