Upstart Project Helps Drive Up Arbitrum’s TVL 17 Times to $2.2B

Arbitrum, a Layer 2 which pushes Ethereum transactions onto a sidechain to enhance performance, is on fire. 

In the last five days, Arbitrum’s total value locked has multiplied 17 times, shooting to $2.2B on Sept. 14 from $126M on Sept. 9, according to data provider L2BEAT. Arbitrum has more than 70% of the total L2 market share after fully launching only a couple weeks ago. 

Despite established exchanges like Balancer, Sushiswap, and Uniswap all deploying to Arbitrum, $1.46B of the value locked on the L2 is coming from an upstart project called ArbiNYAN. ArbiNYAN is a yield farm that offers users NYAN tokens as an incentive for depositing their ETH, NYAN, or liquidity provider (LP) tokens of an ETH-NYAN pair on the project’s platform. 

DeFi users receive LP tokens in exchange for depositing pairs of assets on exchanges which other people use to trade. So in this case, users would receive an ETH-NYAN LP token from Sushiswap to deposit in ArbiNYAN, resulting in the project sending the user more NYAN tokens.

It’s not hard to understand why — ArbiNYAN’s liquidity provider pool is delivering rates north of  3,700% to the risk-loving Defiers known as “degens.”

Off a Cliff

Still, users have also dealt with some serious volatility. On Sept. 11, NYAN’s price fell off a cliff, crashing to $1.02 on Sept. 12 after peaking at $7.84 the day before, according to data platform Defined. And on Sept. 14, Arbitrum experienced an outage of close to an hour.

For all the torque, Arbitrum is attracting major players. Automated market maker Curve Finance launched a pool on Arbitrum on Sept. 12.And MakerDAO, an OG lending project, plans to deploy a DAI bridge on Arbitrum this week, Kris Kaczor, an L2 researcher at Maker, told The Defiant. 

Upon deployment, DAI will become the first decentralized stablecoin on Arbitrum. The top two stablecoins in terms of market cap on Arbitrum are USDT, commonly known as Tether, at $69M, and USDC at $29M, according to the block explorer Arbiscan. 

For all the torque, Arbitrum is attracting major players. Automated market maker Curve Finance launched a pool on Arbitrum on Sept. 12.And MakerDAO, an OG lending project, plans to deploy a DAI bridge on Arbitrum this week, Kris Kaczor, an L2 researcher at Maker, told The Defiant. 

Upon deployment, DAI will become the first decentralized stablecoin on Arbitrum. The top two stablecoins in terms of market cap on Arbitrum are USDT, commonly known as Tether, at $69M, and USDC at $29M, according to the block explorer Arbiscan. 

Source: https://thedefiant.io/upstart-project-helps-drive-up-arbitrums-tvl-17-times-to-2-2b/