With the Arbitrum airdrop, new liquidity may bring strong volume to projects in the ecosystem. Here is a list of Arbitrum small-cap projects that I am taking a close look at.
TridentDAO (#PSI ) -Often called the next Treasure, Trident is building a gaming ecosystem and 2D roguelike MMO with a risk to earn model. The team recently launched oasis swap, Tridentâs new ecosystem DEX and are looking to airdrop its new $INK token next which would be a secondary token alongside its native token $PSI.
Premia Finance - In my honest opinion, Premia has been one of the most underrated options protocols out there. It has American style options and is hard at work with launching Premia v3, which allows for permissionless pools. Premia is a multi-chain decentralized options market based on a pool-to-peer architecture. Think Uniswap V2 but for options. Similar to most DEXs, LPs facilitate the transaction, but in this case, they are underwriters. This means they earn options premiums.
Premia V3 is the main reason I'm excited. While we don't know all of the details yet, the main selling point of this upgrade will be the introduction of Uniswap V3-style concentrated liquidity on Premia. This will shift Premia to a hybrid AMM/Orderbook.
Y2K Finance (#Y2K ) - Y2K is a DeFi project on Arbitrum providing users with derivative products based around the peg of 'stable' assets. This is an expanding list which not only includes a variety of stable coins but also more exotic assets with WBTC, stETH and USDD. They have their main product Earthquake which allows users to essentially buy/sell insurance for the de-pegging of these assets via CAT Bonds. Y2K have in house maths on the strike prices for these assets.
The recent USDC situation has proven the use case of speculating and hedging stablecoins/derivatives and Y2K has the first mover advantage in this market.
$Y2K has a max supply for 20 million, currently around 1.5m in circulation. Y2K can be paired with ETH in the 80:20 Balancer pool and locked for either 16 or 32 weeks created vlY2K tokens - the revenue generating assets for the protocol.
Y2K is one of my favourite protocols to use every week, they've been building and adding more features to their dApp and I think have the potential to only grow further. With its upcoming secondary market and market expansion, more eyes will be on Y2k.
Smolverse - Smols are the icons of Arbitrum and Treasure Dao (#magic ) With new liquidity coming in for Treasure and a new upcoming game for smolverse, the ecosystem is definitely worth looking at if more people join the Magic ecosystem. Alongside this, when I was doing research on seed raises I found out that Alongside this, when I was doing research on seed raises I found out that Strider DAO, the studio building the smolverse game, raised $5.5M in funding. I'm not sure if this will have a direct impact on the development of the game but it's something to look at.
Camelot Dex (#Grail ) - $Grail has been on a tear recently and has cemented Camelot as the premiere community driven DEX on Arbitrum. As more volume flows into Arbitrum, new projects will want to incentivize volume on the DEX which could drive revenue for xGrail holders.
The project is nearing ATH so you might want to be careful, but this project is definitely something to keep in mind in the Arbitrum ecosystem.
Dopex (#dpx ) - As one of the fastest moving options protocol, I have been impressed with what $DPX has pulled off in the past few months. The community is strong, and more liquidity in Arbitrum could lead to more traders who want to speculate on $ARB prices with Dopex.
SperaxUSD (#SPA )- Sperax is a stablecoin issuer that offers farming as a service with its Demeter release. As more volume flows into Arbitrum, new projects may seek to launch v3 incentivized farms with Demeter.
Note that the project did suffer a $300k exploit recently, but the team made affected users whole. Also, there have been some rumors of a new update with Sperax, but nothing has been confirmed yet.
GammaSwap Labs - The first protocol enabling users to turn their impermanent loss (IL) into impermanent gain.
Gamma swap hasn't launched yet, but this project is definitely something you want to keep a close eye on for potential airdrop opportunities. The team announced a $1.7m seed raise on Feb. 6th and have not announced anything regarding a public sale yet.
The project is currently in test net with a public launch upcoming.
That's all. If you enjoyed this article, a like, follow, and share would help out a lot!
This thread is for entertainment purposes only. Not Financial Advice #dyor
CC: Minty-@DefiMinty on Twitter.
