ARB（Arbitrum ) Project Analysis
1. Institute Review
L2 is already a heaven for Defi players, with many spot and perpetual contracts, option agreements and lending markets. But in the post-ARB era, they will reap even more lucrative rewards. This is because ARB will likely be used by many programs for incentive schemes. This will increase the earnings of miners who are now able to access these ARB rewards on top of their existing lending interest, transaction fees and/or existing liquidity mining rewards.
If history is our guide, these incentive programs should catalyze a massive flow of liquidity into the Arbitrum ecosystem and therefore a massive increase in TVL in the coming months. optimism saw its TVL increase from $269 million to $894 million in the three months following the OP release, a 232% increase.
Given its already existing liquidity, dapp ecosystem, and increased security relative to Optimism (in its current state), Arbitrum seems likely to attract billions in inflows and grow at an even faster rate.
2. Recent Breakout Points
Arbitrum currently has $1.6 billion in DeFi TVL, a 62.8% share of L2, and 3.5% of TVL across all networks.
3. Project Description
Arbitrum's suite of scale-out solutions offers faster speeds at a significantly, reduced cost and has the same level of security as Ether, providing 7x more throughput and lower fees than Ether without sacrificing any security.
4. Token Role
4-1. ARB will be used to participate in the Arbitrum DAO, which will manage the Arbitrum ecosystem, including Arbitrum One (the "main" L2, which most people call Arbitrum), and Arbitrum Nova.
4-2, Token holders will also control the rights to the Arbitrum IP, as the DAO governance has the ability to approve the creation of other settlement-to-Ethernet L2s that are built using Arbitrum's technology. These L2s can be managed by the ARB holder (a managed chain) or have their own independent management system (an unmanaged chain).
5. Token economic model
11.62% of the total supply of 10 billion tokens will be airdropped to individual users' wallets.
The majority of the share will go to the DAO treasury (43%), the
27% is reserved for the team, and
17.5% is reserved for investors of the project.
The remaining 1% will be used for DAOs in the Arbitrum ecosystem.
6. Project Highlights
6-1. Daily activity: Since the launch of the main website, the number of unique addresses of Arbitrum has grown significantly. After entering October, there was an explosive growth, and the number of daily active users reached a yearly high of over 64,000 in recent days.
6-2, TVL: Arbitrum's TVL has been fluctuating around $930 million since September and reached a stage high of over $1 billion on November 8.
6-3, GAS: Arbitrum ranks third in transfer costs among L2 protocols, 93% lower than the cost of transferring in Ether L1. swap ranks second in L2 protocols, 96% lower than the cost of swap in Ether L1.
6-4, Cross-chain: The number of users using Arbitrum for cross-chain is about 454,000, and the total amount of cross-chain is 198,000 ETH. Compared with other L2 protocols Optimism, zkSync, and StarkNet, the data of all three dimensions are in the leading position except Optimism which has 100,000 deposits in 7 days.
6-5. On-chain applications: The top 10 applications in the Arbitrum ecosystem in terms of TVL are: GMX, Stargate, Uniswap V3, Curve, Sushi, Synapse, AAVE V3, Radiant, Vesta Finance, Beefy. It is worth noting that GMX's TVL represents 48.73% of the total TVL of the top 10 applications, amounting to $394 million.
6-6. Protocol revenue: Since the completion of the Nitro upgrade in August, Arbitrum's protocol revenue doubled to $40,000 before the upgrade, and peaked at $75,000 in late October.
7. Investment Institutions
3.7 million in Series A funding in 2019, led by Pantera Capital, compound VC, and
Series B funding of $120 million in 2021. Investment institutions are Lightspeed Venture Partners, Ribbit Capital, Polychain Capital, Pantera Capital, Redpoint, Alameda Research
Twitter: 540,000, Discord: 250,000
9. special economic model
10. Future Outlook
The ARB airdrop should serve as a stimulus to the Arbitrum economic model, generating a wealth effect among early adopters by providing them with capital they can emulate. Arbitrum-based governance tokens will be one of the main beneficiaries of this airdrop. First, they will be the recipients of the airdrop stimulus, but also benefit from the capital that will pour into the ecosystem from the incentive program. Broadly speaking, Arbitrum coin has had two periods of outstanding performance in the past year. the summer of 2022 and the first six weeks of 2023, coinciding with broader market rallies during those times. Beyond structural flows, there are some fundamental reasons to be bullish on Arbitrum-based tokens in the coming weeks and months. Driven by ARB incentives, projects on L2 should see increases in revenue, users and other core KPIs as users flock to L2 and capital flows into L2. in addition, these tokens should also benefit from broader "L2 trading" as individual growth stories around Arbitrum and further confirmation of L2 as a superior scale-up solution for cryptocurrencies excitement among traders built up among them. In the long run, Arbitrum is likely to flip the Tron and BNB chains and become the second largest L1 or L2 in TVL.
Arbitrum is a Layer 2 solution project designed to enhance Ethernet smart contracts in terms of speed scalability, while adding additional privacy features. The platform is designed to allow developers to easily execute unmodified Ether Virtual Machine (EVM) contracts and Ether transactions at Layer 2, while still benefiting from Ether's excellent Layer 1 security. arbitrum itself was created to address some of the shortcomings of current Ether-based smart contracts. As for the drawbacks, such as long transaction times and high execution costs.
Full token name: Arbitrum
Token name: ARB
Project website: https://arbitrum.io/
Project document: https://offchain.medium.com/
The token will go live on March 23rd
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