Arbitrum, Ethereum’s largest layer 2 blockchain, has been prominent in the DeFi space with $2.32 billion in total locked-in value. The platform offers various products and services that can help investors make money. In a recent article, Bankless listed five of Arbitrum’s best opportunities to explore.
1- Exposure to blue-chip NFTs via NFTI
The NFT Index, or NFTI, is designed to track the performance of tokens in the NFT industry. That is, it offers potential returns on the minimum price performances of the top NFT collections on the market. In practice, the index serves as an automated and weighted basket of xTokens from the NFT liquidity protocol called NFTX. Additionally, the NFTX staking program provides NFTI holders with additional income unrelated to the price performance of non-fungible tokens. Initially, the NFTI tracks the CryptoPunks, CrypToadz, Chromie Squiggles, Cool Cats, Doodles, Meebits, and World of Women collections. That is, it is possible to use a single standard ERC-20 token to gain exposure to these top-tier NFT projects. Previously, the vast majority of blue-chip NFT liquidity was isolated to Ethereum. So, the arrival of NFTI at Arbitrum makes it possible to enjoy fast and cheap L2 transactions around large projects. To access the NFTI you need to have some ETH in your wallet for gas fees. Then just go to the ETH-NFTI pool in Uniswap V3’s Arbitrum deployment. Then just use the “Swap” UI to enter the amount of NFTI to be traded and complete the transaction.
2. Invest with Tricrypto
In February 2022, the DeFi Yearn Finance protocol team announced the deployment of the protocol at Arbitrum, marking the first L2 supported by Yearn. The inaugural offering of this is a Curve “Tricrypto” vault, which contains WBTC, WETH and USDT. Depositors from this pool can take their Liquidity Provider (LP) tokens to Yearn’s vault to increase their earnings through an automated DeFi strategy. To access the vault, you must first make a deposit in the Tricrypto pool at Arbitrum. Then, just access “Deposit” to enter the amount of tokens to be provided. Finally, just complete an approval and a deposit transaction. At the moment, the vault is giving 7.4% in annual yield (APY).
3. Provide liquidity on Stargate Finance
Stargate is an “omnichain” bridge protocol that can facilitate direct communication between different blockchains. It currently supports multiple stablecoin pools on various Ethereum Virtual Machine (EVM) compatible blockchains, including Arbitrum. By adding liquidity to Stargate pools, users can earn a small share of every transfer. Additionally, you can stake on Stargate LP to earn more STG token rewards. To access staking operations, you need to add USDC or USDT to the wallet. Then just go to the Stargate Pool page and connect it. Then, just select the USDC or USDT pool and deposit the desired amount. Finally, just go to the Farming page, click on staking, enter the amount of tokens and complete the transaction. USDC and USDT pools are offering around 10% APY and 9% APY respectively.
4. Stake GMX to earn up to 47% APR
GMX is a decentralized spot currently available on Arbitrum. The protocol has a multi-asset pool through which LPs can earn revenue. GMX is also the name of the protocol’s native utility and governance token. Holders can stake GMX to earn GMX rewards and ETH earnings. The other core token of the protocol is the liquidity provider GLP. In practice, GLP is an asset index that encompasses the tokens that exist in the GMX multi-asset pool. In addition, it is possible to stake LPG to earn rewards. To access GMX or GLP staking, just go to the GMX Earn page and follow the instructions to purchase the desired amount of GMX or GLP. LPG staking is generating 47% APR, or annual percentage rate (27% on ETH + 20% on esGMX). Meanwhile, GMX staking is currently yielding 28% APR (11% on ETH + 17% on esGMX).
5. Earn up to 60% APR with Vesta
Vesta is a “zero interest” lending protocol built on Arbitrum that supports various collateral like ETH, renBTC, gOHM and GMX. The protocol’s native dollar-pegged stablecoin is the VST. Meanwhile, the project’s native governance token is the VSTA. The Vesta team is currently running a liquidity mining program centered on the ETH-VSTA pool. Thus, users can stake their LP tokens from this pool to earn rewards of 42% APR in VSTA + 17% APR in BAL. To access Vesta Liquidity Mining, simply provide liquidity to the VSTA-ETH pool on the Balancer. Next, the user must go to Vesta’s Liquidity Mining page and click on the VSTA-ETH option, which will bring up the UI. Then, just enter the amount of VSTA-ETH LP tokens you want to bet and then press “Stake”, completing the transaction. Also read: Amazon may enter the NFTs universe, but discards cryptocurrencies Read also: Investor points out the reason why Ethereum will reach $ 10,000