# Onchain Alpha: Arbitrum

> Explore Ethereum’s leading L2 in our Arbitrum Adventure Campaign

**Published by:** [Layer3](https://paragraph.com/@layer3/)
**Published on:** 2024-01-11
**Categories:** arbitrum, multichain, layer 2, ethereum scaling
**URL:** https://paragraph.com/@layer3/onchain-alpha-arbitrum

## Content

Arbitrum has recently hit all-time highs in total value locked on its Layer 2 network. Join our Arbitrum Adventure and explore its market-leading ecosystem.Arbitrum Leads by TVLScaling solutions such as Arbitrum make it cheaper and faster to go onchain. By offloading Ethereum traffic with easy compatibility, L2s have gained significant value.Recently, Arbitrum hit all-time highs for a total value of $10.2B bridged to its network. OP Mainnet and Base use a similar technical approach for nearly $7B TVL combined — while zkSync notches $565M. Learn about zero knowledge vs. optimistic rollups here.Arbitrum Leads by DecentralizationArbitrum is leading another key evolution. According to L2Beat, Arbitrum has reached Stage 1 decentralization. L2s should pass three stages for scalability with security:Stage 0: Operator control of open-source smart contracts for state verification.Stage 1: Smart contract governance with a Security Council for bug fixes.Stage 2: Autonomous smart contracts and permissionless, fraud-proof systems.Arbitrum DAO + Layer3We’re building a multichain gateway while supporting decentralized leaders. Layer3 recently received funding from the Arbitrum DAO via Plurality Labs and Questbook. On Arbitrum, our immersive Quests have driven:10M+ transactions360K+ active wallets$1.2M+ transaction feesArbitrum DAO has been fast-evolving with programs like the Short Term Incentive Program and live vote testing for a delegate incentive system. We’re excited for a faster, cheaper, and more decentralized future — supported by Arbitrum and Layer3. Start Quest Our Arbitrum Adventure features fast-emerging dapps across its ecosystem:Decentralized ExchangesTrader Joe: Make instant swaps with low fees and blazing transactions. Trader Joe’s Liquidity Book is a novel, highly-capital efficient AMM.Vertex: Explore its hybrid Orderbook + AMM decentralized exchange. Vertex features spot, perpetual, and money markets with lightning-fast transactions.StablecoinsFrax Finance: Swap to FRAX’s crypto-collateralized and algorithmic stablecoin. Frax maintains 1:1 USD stability with a targeted 100% collateral ratio for crypto reserves.GamingTreasure: Play, collect, trade, and discover your new favorite games. Mint your Treasure Tag to claim your universal profile within its vibrant ecosystem.Yield AggregatorsShell: Explore Shell Protocol's highly efficient DeFi platform. Fuse LP, lending, or multi-token and NFT swaps into single transactions with lower gas fees.Umami Finance: Tap into Umami’s innovative DeFi vaults and ARB incentives. The USDC Vault generates yield by providing liquidity to GMX’s perpetual DEX.Money MarketsTimeswap: Lend or borrow with Timeswap's oracleless money market. Trade with fixed rates and flexible withdrawals.Savvy: Explore Savvy DeFi’s credit protocol with interest-free borrowing. Deposit in a strategy and generate onchain yield.OptionsRysk Finance: Trade simplified and decentralized options onchain. Capitalize on volatility and directionality with leverage and one-click strategies.

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