12 Arbitrum DeFi Protocols to Watch in 2023
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12 Arbitrum DeFi Protocols to Watch in 2023
Arbitrum, known as the home of GameFi in the cryptocurrency space, has rapidly become a hub for DeFi over the past few months.
Navigating Web3 tides with focused insightsWritten by: Q
Compiled by: TechFlow
Arbitrum, known as the home of GameFi in crypto, has rapidly become a hub for DeFi over the past few months.
Below are the 12 Arbi DeFi protocols I'm closely watching in 2023:
1. Buffer Finance
An options trading app offering four timeframes: 5m/15m/1hr/4hr. Users can stake $BFR and/or $BLP to earn real yield from generated fees. Buffer aims to simplify options and make them accessible.
2. CamelotDEX
The leading native DEX on Arbitrum—launched in early December. Since launch, it has achieved $15M in volume and $16M in TVL, fully community-funded.
A DEX war is brewing on Arbitrum, and I’m watching Camelot as the first mover.
3. TraderJoe (New to Arb)
A DeFi legend from AVAX, now bringing liquidity to Arbitrum. At its peak, its TVL was only a few percentage points below the all-time high TVL of the entire Arbitrum chain. Let's see what it brings to Arbitrum.
4. Rage Trade
Perpetual ETH contracts with real yield, currently without a token. Recently launched GLP/Delta-neutral vaults, increasing TVL fourfold.
Meme-driven and strong community—something we know bodes well for longevity. Rage Trade has a lot going for it.
5. Umami Finance
An OG native protocol on Arbitrum. As many say, when inevitable regulations arrive, UMAMI could be among the biggest winners.
6. GMX
GMX dominates the Arbitrum DeFi landscape, accounting for nearly 40% of total TVL.
I’m curious about:
1. How will it maintain this dominance?
2. How will it address fee issues?
3. If anything happens to GMX, what becomes of the $GLP network effect?
Let’s see how GMX evolves in 2023.
7. PlutusDAO
Plutus is super interesting. They hold massive ve-token supplies: ~13% of DPX, ~41% of SPA, ~49% of JONES.
This means they can often influence governance votes in their favor, thereby creating value for holders and users within their ecosystem.
8. Dopex
Dopex is not experimental—it’s battle-tested and continuously innovating. The TradFi options market is huge, and DOPEX is aiming to capture a slice of it.
9. Orbitaldex
A DEX built by Dopex and PlutusDAO. I mentioned a DEX war brewing on Arbitrum—Orbital is ready to challenge Camelot head-on.
10. STFX
Monetize your trading by creating vaults others can invest in. If trades are profitable, you earn performance fees, while investors receive a share of the profits.
If STFX gains more attention, it could grow significantly!
11. Perpy Finance
STFX’s competitor in the SocialFi space, currently in testing phase. In 2023, expect both a DEX war and a SocialFi war on Arbitrum—competition drives builders to build better.
12. Vela Exchange
A new perpetual exchange coming to Arbitrum, with public testnet launching January 18. The project explicitly plans airdrops for test participants. Look forward to upcoming marketing campaigns.
Arbitrum’s TVL grew by $600M in H2 2022, reaching $1.2B. I believe Arbitrum’s strong momentum will continue into 2023, pushing toward $2B. There's still ample capital and appetite in the market—and Arbitrum looks set to be the dish that attracts them.
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