- According to crypto finance platform Bankless, a number of new altcoin projects built on the Ethereum Layer-2 Arbitrum continue to grow and evolve in seclusion.
In a new note to subscribers, Bankless says the Arbitrum ecosystem is taking action after a recent network upgrade to the platform helped increase throughput and lower transaction fees.
Arbitrum optimistic roll-ups* It essentially frees up a significant portion of the processing and data storage on Ethereum’s mainnet, making transactions faster, cheaper, and more private.
Bankless’ Altcoin Picks
Ben Giove of Bankless stated that he has been closely examining five Arbitrum projects that have grown out of sight.
Vesta Finance (VSTA)
Lending protocol aimed at allowing users to borrow without selling their crypto assets Vesta Finance (VSTA) starts the list with. The Vesta ecosystem also includes VST, a collateralized stablecoin that allows users to borrow money on backed assets at no interest rate.
Umami Finance (UMAI)
Second on Bankless’s radar is a network of strategic vaults that generate returns. Umami Finance exists. By using “new on-chain hedging mechanisms,” Umami aims to provide users with access to a range of Arbitrum revenue streams that are consistently stable and protected from market volatility.
UMAMI, on the other hand, is the native cryptocurrency of the ecosystem where users can stake to get a share of the protocol’s revenue in ETH from the vault fees:
Umami, along with UMAMI lockers, which are currently able to generate 9 percent returns, helped popularize the concept of rewarding token holders with a portion of their crop and treasure farming earnings in ETH.”
Third on the list is Premia, which aims to generate fee and premium returns while allowing extremely capital-efficient options trading. Bankless, Premia; He says it is unique in that it uses American-style options that can be exercised at any time before expiration, unlike European-style options that are exercised at expiration.
Y2K Finance (Y2K)
The fourth Arbitrum-based project on Bankless’s radar is aimed at providing structured products that allow users to predict, protect, use or trade different components of pegged assets. Y2K Finance (Y2K).
At the time of writing, the Y2K token has yet to be released, but Bankless says a launch of the altcoin could happen in the next few weeks.
Doomsday Approaches🙂💥 pic.twitter.com/n9TLh3oXRS
— Y2K Finance (@y2kfinance) September 1, 2022
Rage Trade (RAGE)
Third on Bankless’s list of Arbitrum projects to watch, trying to build a perpetual exchange with the most liquid ETH perpetual futures Rage Trade is located.
Rage Trade aims to use 80-20 safes, a liquidity delivery strategy where 80 percent of the total value locked (TVL) yields returns on an external protocol and the other 20 percent provides concentrated liquidity directly in Rage Trade.
According to Bankless, Rage Trade plans to integrate directly with Ethereum so that 80/20 vaults can leverage any layer-1 or layer-2.
To read the full Bankless report here you can click.
*Optimistic Roll-up: Roll-ups are solutions that run transactions outside of Ethereum’s blockchain but save transaction data. Optimistic rollups automatically assume that transactions are valid.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.