The L2 king returns? The Arbitrum Renaissance Three Arrows and Breakpoints
Although Optimism is the first L2 of the TGE, Arbitrum is the real opening monster of the L2 wave. At the time of H1, 23 years ago, the Korean giant whale had a live contract on GMX, DeFi Degen used the GLP Lego combination of Yield Farming, the Grassroots Community Group to make the Memecocococoin, and Arbitrum was one of the brightest plates of spring 23。
But this rich ecological boom came to an end after the great TGE and air drops of the Arbitrum original narco-ARB epicism。
When standing at this point in November of 25, there are three main reasons for this:
- The great positive externality generated by the epic airdrop of Arbitrum was seized by friends ZkSync, Starknet and Linea
- AT THE TIME, THE CORE BUSINESS MODEL OF THE KING L2 WAS NOT ORGANIC OR BENIGN, BUT HIGHLY DEPENDENT ON THE FALSE PROSPERITY CREATED BY THE INDUSTRIALIZATION OF AIRDROP FARMERS
- AIRDROPS ARE ALLOCATED TOO MUCH TO ECOLOGICAL DEVELOPERS, MOST OF WHOM ARE HIGHLY DISGUISED HIGH-LEVEL AIRDROP FARMERS. WHEN THE AIRDROPS WERE TAKEN, MOST OF THE DEVELOPERS LAY FLAT AND, IN PART, USED THEIR LARGE NUMBERS OF ARBS IN THEIR HANDS TO VOTE FOR MORE ARBS IN THE DPO GOVERNANCE。
The best solution to these problems is only time。
After almost 30 months of sinking, the Arbitrum Foundation considered that the time was ripe for the launch of the DeFi Renaissance Initiative (DRIP) to reactivate the Arbitrum ecological activity。
The first arrow of the Arbitrum Foundation is the Yield gain from using the first quarter of the DRIP ' s ARB to stimulate subsidies for eco-DeFi lending agreements (Aave, Morpho, Fluid, Euler, Dolomitte, Silo, etc.) to attract users to the real-gold chain。
According to the Dune board data (https://dune.com/entropy_advisors/drip-season-1-lending-protocols), the DRIP increased DeFi's loanable fund balance from $1.38B to $1.67B and the loan balance from $967.52M to $1.17b in the first quarter。
However, the market share of Arbitrum rose from 3.09 per cent to 3.75 per cent of the L2 share of the above-mentioned DeFi lending agreement. By contrast, Base ' s market share increased from 5.04 per cent to 6.64 per cent over the same period。
This shows that, in terms of the attractiveness of the DeFi-lending Degens on the chain, real-gold subsidies are still weak in the face of the prospect of a crash。
The second arrow of the Arbitrum Foundation is the incubation of new PerpDEX Variational Protocol and Othereal Perps。
Arbitrum has a very good relationship with Hyperliquid in PerpDEX today, where he entered the Arbitrum Bridge at $4.59B USDC, or 69.08 per cent of the total supply of Arbitrum USDC。
However, the contribution of $4.59B USDC to Arbitrum's income takes the form of transfers of only Gas fees, resulting in other high-value income and positive externalities, captured by Hyperliquid。
In this new version of PerpDEX, Arbitrum has its own PerpDEX. The OLP mechanism of Variational Protocol has the potential to replicate the GMP glory of the GMX。
The third arrow of the Arbitrum Foundation is a deep-seated monetization with Robinwood。
The current assets of Arbitrum RWA, amounting to $1,026.53M, consist mainly of dollar debt monetization, European debt monetization and dollarization of EXOD. The RWA assets contained 615 assets, mainly the monetized shares issued by Robinwood。
OWING TO THE CURRENT REGULATORY CONSTRAINTS, THE MONETIZATION UNIT IS STRUCTURED AROUND A CHAINED SPV HOSTING+CEX/DEX MOBILITY POOL. THIS HAS LED TO A MONETIZATION UNIT AT THIS STAGE, WITH PROBLEMS OF INSUFFICIENT LIQUIDITY, UNCLEAR LEGAL STATUS AND CENTRALIZATION OF SETTLEMENTS。
But whether Arbitrum x Robinhod’s US share-carrying emergency forces or Solana’s new ICM narrative, they point to a vision for the future set by SEC Project Cripto: full block chaining of global financial infrastructure。
In summary, the Arbitrum Foundation's three arrow-DRIPs, hatching Varial, and bet on dollarization of shares, both for the present and for the future。
Arbitrum Foundation, this time it's real。
