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Our Top 3 Altcoins in Arbitrum’s ARB Ecosystem

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No doubt Arbitrum-based projects are getting so much investor attention as Arbitrum improves all the weak points of Ethereum. It is fast, scalable, and offers cheap transaction costs. But in this article, I will not focus on Arbitrum. Instead, I will focus on the top 3 altcoins building on Arbitrum – the value these projects bring in and the price potential of these project tokens.

1) GMX (GMX)

is currently the absolute star on Arbitrum. It’s a perpetual DEX. These are futures, and you can use up to 50x leverage. With such a perpetual, you can speculate on an asset’s price without an expiration date. Unlike futures, which expire at some date in the future. Bitcoin and Ethereum are popular picks for perpetuals or perps.

In contrast to a spot market, you can use leverage on perps. However, handle leverage with care. It’s best to only trade with them if you’re familiar with them. Leverage can give you multiplied profits. But, when the trade backfires, and goes the wrong direction, your losses also multiply.

In crypto, I observe an increased popularity for perp DEXes. The biggest DEX in this playing field, dYdX, recently moved from Ethereum to Cosmos. GMX is available on two chains, Besides Arbitrum, that’s Avalanche. GMX uses three tokens in its ecosystem:

  1. this is the utility and governance token.
  2. the liquidity provider token for GMX V2 markets. 12 million ARB tokens incentivize these pools.
  3. GLP — the liquidity provider token for GMX V1 markets. You can migrate your GLP to GM V2 pools. However, the incentives for this ended on the 30th of January.

launched in late 2021. It is concise and effective whilst offering ‘real returns’. However, it also has limitations. For example:

  • An imbalance of OI (open Interest). There’s no arbitrage option to rebalance this. 
  • You can only trade 5 assets. 
  • For small and medium traders, the costs are high.

launched in early August 2023. It’s a more secure and balanced version.

2) Radiant Capital (RDNT)

Radiant Capital is a cross-chain lending protocol. You can find it on Arbitrum, BNB, and for 2 months on Ethereum. You can earn, borrow, and stake on the platform. In the Arbitrum ecosystem, it sits at #8 position for . Radiant also offers leverage. Radiant is now on V2. It runs on LayerZero. So, being active on Radiant might get you some LayerZero airdrop allocation.

Radiant V2 offers some interesting features. For example:

  • Dynamic Liquidity (dLP) — any deposit, lock 5% in dLP tokens. This gives you three rewards opportunities. Max APR is 32.99%.
  • RDNT token emissions.
  • A share in platform fees. This share comes as a blue chip, like BTC or ETH. 
  • Receive voting power for the Radiant DAO. 

Radiant also offers a ‘1-lock & loop’ option for dLP. This means that you can increase your collateral value. You automate the cycle of depositing and borrowing so it repeats itself. Max looped USDC APR is 69.5%.

The lock and loop function also qualifies you for the dLP. This tool will ETH so you make the 5% threshold, as described before. If you qualify for dLP tokens, the protocol does not borrow any extra ETH. 

Furthermore, Radiant also has a zap function. For instance, you want a position in the Balancer RDNT-ETH pool. This would take four transactions. The zap function reduces this to one click. Before using the zap function, you need a minimum of $5 worth of dLP. 

Radiant also has a LayerZero OFT bridge. OFT is the token standard for LayerZero’s omnichain fungible token. For example, bridging allows you to get higher platform fees on other chains.

3) Treasure (MAGIC)

Treasure brings us to blockchain gaming on Arbitrum. You can find NFTs, DeFi, and GameFi integrated in Treasure. It’s building a decentralized gaming ecosystem. Treasure sees itself as the decentralized version of Nintendo. The gaming industry is already massive. However, projections are that it may reach a $682 billion value by 2030. It’s no surprise that plenty of blockchain gaming platforms want a slice of this pie.

Treasure has its MAGIC token, which powers the whole Treasure ecosystem. NFTs are the glue that binds it all together. You can earn MAGIC by playing their games. For example, their flagship game, Bridgeworld. Furthermore, you can stake MAGIC in the Atlas Mine and receive governance options. The platform also offers ‘Treasures’ (what’s in a name!). These are MAGIC-infused assets. Their use cases vary across Bridgeworld and other games. 

The MAGIC token is available on all major exchanges. For example, Binance, Coinbase, Gate, or KuCoin. You can also find it on smaller local exchanges, like Bitvavo in the Netherlands or BtcTurk in Turkey. The big multichain DEXes are also MAGIC. Like Uniswap, Trader Joe, or SushiSwap. 

Before I end today’s video, I like to highlight one more promising project. That’s . It’s a distributed AI data platform that integrates c13ollection and labeling. The AI angle makes this project interesting. Among others, it has a gamified AI data training platform. It’s not only AI either. It also has an important privacy function too so your data doesn’t end up everywhere.

And that’s a wrap-up for this video dedicated to three top projects on Arbitrum. Did you know any of them, or did you use one already? Let me know in the comments.

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 04.02.2024

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