Let's take a look at the Arbitrum ecosystem with us. For those of you who do not understand Arbitrum, please refer to the following article immediately before starting to dive into each piece of the puzzle inside it: What is Arbitrum?
It can be seen that the Arbitrum ecosystem has a relatively large number of projects, with a full range of basic arrays as well as other specialized areas. As you can see, most of them are projects located on Ethereum transferred to Arbitrum such as Uniswap, Sushiswap, Dodo, Balancer, Perpetual, Aave, ...
Next, let's take a look at each piece of the Arbitrum ecosystem to get an overview, and then search for important keywords to identify investment opportunities.
Stablecoins Stablecoins are an indispensable piece in every ecosystem. In addition to tracking the amount of stablecoins in the system that will capture the cash flow in the system, DeFi stablecoin protocols like MakerDAO also offer good capital optimization for the assets in the system. So to start looking at the Arbitrum system, I will walk you through the first stablecoin array.
Currently, there are 3 main stablecoins on Arbtrium: USDT, USDC, DAI, TUSD and FRAX. Besides, Arbitrum also has a few other Stablecoin projects
USDs (Sperax USD) is a stablecoin issued by Sperax, it is a combination of two ideas “yield bearing stablecoin” & “fractional stablecoin”.
The user's collateral collateral to mint USDs will be deposited into Curve to earn yield. This profit is shared between USD holders and SPA staker. The split is 50% for USDs holders and 50% for SPA stakers. This rate can be changed through Sperax administration.
handle.fi is the multi currency stablecoin protocol. The protocol allows users to collateralize ETH, open debt positions, and borrow different stablecoins pegged to national fiat currency prices. For example, fxUSD, stablecoin is pegged to USD, fxAUD is pegged to Australian AUD, fxCNY is pegged to China's CNY.
AMM There are many AMMs operating on Arbitrum (details here). These AMMs do not differ too much in terms of technical and economic designs. Despite the large number, the majority of TVL and trading volume are concentrated in the top tier AMM on Arbitrum such as Uniswap, Balancer, Curve, Sushiswap. These protocols are part of the original protocol's multi-chain strategy.
In which, Vesta Finance is the native CDP protocol on Arbitrum. Radiant is a cross-chain lending protocol that leverages the infrastructure provided by Layer Zero to create a single marketplace for multiple blockchains.