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Arbitrum ecosystem welcomes spring, sharing 8 emerging DeFi projects worth attention.

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With the explosion of Layer2 ecosystem, what are the emerging projects worth paying attention to on Arbitrum?

Original title: "Arbitrum ecosystem welcomes spring, sharing 8 emerging DeFi projects worth paying attention to"

Original author: Jiang Haibo, PANews

DeFi projects on Arbitrum are once again thriving. Among the native projects, derivatives project GMX, DEX project Camelot, and lending project Radiant have all attracted a lot of attention. What other DeFi projects on Arbitrum are worth paying attention to? PANews has selected some emerging projects that meet at least one of the following criteria: short online time, fast data growth, and unreleased tokens. The following data is all taken from February 16th.

Zyberswap

Link: https://www.zyberswap.io/

Zyberswap is a DEX that launched in late January. Its Token experienced a death spiral and almost reached zero at the end of January. However, thanks to the recovery of DeFi on Layer2, the APR of the ZYBER-ETH pool and the ZYBER-USDC pool has approached 2000% recently, and the price of ZYBER has maintained a stable and upward trend. Despite the fact that the TVL of the leading DEX Camelot on Arbitrum is only $62.73 million, and the FDV is as high as $300 million, there may still be room for development in the DEX race.

On the product side, Zyberswap also has a Uniswap V2 + Curve type DEX and Launchpad, but Token does not have Camelot's complex lock-up mechanism. The transaction fee for non-stablecoin pools is 0.25%, with LPs receiving 0.15%. Users who lock up ZYBER can share a portion of the rewards.

Currently, Zyberswap's TVL is 90 million US dollars, surpassing Camelot.

SolidLizard

Link: https://solidlizard.finance/

A DEX forked from Solidly. With the support of well-known DeFi developer Andre, Solidly once had over 2 billion dollars in liquidity, but it has been declining since Andre announced his departure. Currently, the ve(3,3) model has achieved good results on Velodrome in Optimism and Thena on BNB chain.

SolidLizard is also making efforts on Arbitrum, with a current TVL of $34.69 million, up 158% in the past 24 hours. In projects like ve(3,3), liquidity providers usually do not have a strong willingness to stake the native tokens of DEX. However, in SolidLizard, staking SLIZ tokens can also increase the mining income of liquidity providers, which is a small improvement in terms of tokens.

GMD Protocol

Link: https://gmdprotocol.com/

GMD Protocol is a profit optimization and aggregation platform that uses a strategy close to delta neutrality to generate profits. Half of the profits are reinvested, while the other half serves as protocol income, which is distributed to the stakeholders of the governance token GMD.

GMD splits the assets in LP Token into individual assets, allowing different users to deposit them and earn profits through LP Token, thereby making the risks of different depositors close to delta neutrality.

For example, for the strategy targeting GLP, depositors can deposit any of the three assets: WBTC, ETH, and USDC. Since the Vault for each asset has set limits based on the composition of GLP's assets, the proportion of GLP's assets can be simulated. For depositors with a single asset, this strategy is close to delta neutral.

Recently, GMD's TVL hit a new high, with a 78% increase in the past week.

Gammaswap

Link: https://gammaswap.com/

Gammaswap allows traders to leverage long volatility or hedge impermanent loss by building an intermediary layer between users and AMMs. Liquidity providers can provide liquidity through supported AMMs and deposit LP Tokens into Gammaswap. Those who need to hedge impermanent loss can use one asset in the LP as collateral, borrow LP positions with leverage, and separate LP into single Tokens, paying interest. Liquidity deposited into LP can earn deposit income. If there is significant volatility and impermanent loss, the strategy of separating into single Tokens will be profitable.

Gammaswap is seeking partnerships with numerous DeFi projects and has proposed a proposal in the OlympusDAO community. The proposal mentions that the annual APR for the OHM/ETH trading pair providing liquidity is approximately 1.35%, but the impermanent loss is about 2.1%, and providing liquidity will also lead to losses. Therefore, Gammaswap proposes to deposit 1% (USD 500,000) of the liquidity owned by the Olympus protocol into Gammaswap to obtain higher returns. The project has received a grant from Balancer, has financing, and has not yet issued coins.

WINR Protocol

Link: https://winr.games/

WINR Protocol is a project designed for on-chain liquidity and incentives. It builds a liquidity pool called WLP based on GLP, which includes 50% DAI, 35% ETH, and 15% WBTC.

Other project developers can also integrate their own games into WINR's liquidity pool through WINR DAO proposals, providing direct payment for game players. The users providing liquidity are the opponents of these game players.

For example, a leveraged long/short game can provide collateral and trade through WLP. WINR generates unmodified random numbers through a decentralized oracle, which is also suitable for other gambling games. The team is also developing Justbet in the WINR ecosystem.

WINR Protocol will have its ID0 on Camelot on March 6th.

Nitro Cartel

Link: https://nitrocartel.finance/

Nitro Cartel team plans to build an index product called Arbitrove in the Arbitrum ecosystem, providing a basket of risk exposures to native assets on Arbitrum.

Arbitrove's first product is the ALP Index, which includes the governance tokens of the top projects in the Arbitrum ecosystem, such as GMX, MAGIC, GRAIL, DPX, JONES, RDNT, and GNS.

Users can use ETH as collateral to mint ALP, and stake ALP on Arbitrove to earn esTROVE. Arbitrove earns profits through liquidity mining using underlying assets, and distributes them to users.

Arbitrove held ID0 on Camelot from February 17th to 20th.

Perpy Finance

Link: https://www.perpy.finance/

Perpy is a GMX copy-trading system. Any Trader can create a Trading Vault in Perpy, link their wallet address and Twitter account, share it on Twitter to attract followers. People who choose to follow can deposit funds into these Trading Vaults, and the creator can use these funds to trade on GMX and earn a certain performance fee. Each Trading Vault is equivalent to a fund, and the Trader who creates the Vault is the fund manager.

Currently, Perpy Finance's products have been launched, with a total trading volume of only $1.85 million. Perpy's native token, PRY, will have its IDO on Camelot on March 16th.