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 10 #TVL ON #ARBITRUM $AAVE $GMX $UNI $COMP $PENDLE $GRAIL $VRTX $REZ $BAL $BIFI pic.twitter.com/42ZaJIbV5j
— PHOENIX – Crypto News & Analytics (@pnxgrp) November 11, 2024
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.
