Five crypto projects on Ethereum scaling solution Arbitrum are flying under the radar, according to Bankless
A number of new altcoin projects built on Ethereum layer-2 Arbitrum are quietly growing under the radar, according to crypto-finance platform Bankless.
In a new note to subscribers, Bankless says the Arbitrum ecosystem is heating up after a recent network upgrade helped boost throughput and lower transaction fees.
Arbitrum uses technology known as optimistic rollups to essentially offload significant amounts of processing and data storage from the Ethereum mainnet, enabling transactions that are faster, cheaper and more private.
Ben Giove of Bankless says he has his eye on five Arbitrum projects, starting with lending protocol Vesta Finance (VSTA), which aims to let users borrow against their crypto assets without selling them.
Within the Vesta ecosystem is VST, a collateralized stabilized coin that allows users to borrow against backed assets without interest.
Second on Bankless’ radar is Umami Finance, an ecosystem of strategy vaults to earn returns. Umami aims to provide access to a variety of reliable revenue streams from Arbitrum protected from market volatility, while using “innovative on-chain hedging strategies.”
UMAMI is the ecosystem’s native token that users can stake to receive shares of the protocol’s revenue, denominated in ETH, from vault fees.
says Bankless,
“Umami helped popularize the trend of paying token holders a cut of revenue from product and treasury farming in ETH, with UMAMI lockers able to earn a 9% return.”
Third on the list is Premia, which aims to allow super capital-efficient options trading as well as earn returns on fees and premiums. Bankless says Premia is unique in that it uses American-style options, which can be exercised at any time before expiration, as opposed to European-style options that are exercised at expiration.
The fourth arbitrage-based project on Bankless’ radar is Y2K Finance, which aims to offer structured products that allow users to speculate, hedge, leverage or trade the various components of linked assets.
At the time of writing, there is no Y2K token, but Bankless says there should be a launch in the next few weeks.
Doomsday is approaching?? pic.twitter.com/n9TLh3oXRS
— Y2K Finance (@y2kfinance) 1 September 2022
Last on Bankless’ list of Arbitrum projects to watch is Rage Trade, which seeks to build a perpetual exchange with the most liquid ETH person.
Rage Trade aims to use 80-20 vaults, which is a liquidity-providing strategy where 80% of Total Value Locked (TVL) returns on an external protocol while the other 20% provides concentrated liquidity directly on Rage Trade.
According to Bankless, Rage Trade also plans to integrate directly with Ethereum to allow the 80/20 vaults to receive returns from any layer-1 or layer-2.
To read the full Bankless report or subscribe to the newsletter, click here.
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