Get to Know the Arbitrum Ecosystem (ARB), Bridge and the Latest ARB Airdrop

Arbitrum emerged as one of the solutions designed to address Ethereum's scalability challenges. This time we will discuss the latest Arbitrum airdrop and get to know the Arbitrum ecosystem.

Airdrop decision

Imagine you get free coins because you actively use Arbitrum. That's the airdrop concept, where users who meet certain criteria are immediately sent tokens to their wallets. The more activities you do, the more points you collect, and the more tokens you receive!

For example, you transfer assets to Arbitrum One, trade in two different months, use more than four smart contracts, and enter more than $10,000 of liquidity into Arbitrum. That means you get four points, and the prize is around 1,750 tokens! The total airdrop varies, starting from a minimum of 625 tokens to a maximum of 10,250 tokens.

Following an overview of the points you will get

Source: https://docs.arbitrum.foundation/airdrop-eligibility-distribution

Arbitrum Token

Before going directly to the Arbitrum ecosystem, let's learn about Arbitrum's main token, namely ARB.

ARB functions as a governance token that gives its owner control over the future of the ecosystem. Through Arbitrum DAO, ARB owners can submit and vote for protocol upgrades directly.

ARB tokens are distributed widely so that many people get involved. As many as 11.6% of the tokens were even distributed free of charge via airdrop. In Arbitrum DAO , each ARB holder's vote depends on the number of tokens they hold. 

There are two types of votes in the DAO:

• Temperature check: This is an initial vote to gauge community interest. Those who can participate in this type of voting hold a minimum of 0.01% of the tokens that can be voted.
• On-chain votes: These are official votes that make real changes. Those who can apply for this vote have a minimum of 5 million tokens that can be voted on. For a proposal to be approved requires:
  • The majority of votes are for the usual proposal.
  • 5% of all tokens can be voted for proposals that change the basic rules (constitution).

So, having ARB is not just a matter of investment, but also a voice and power to build the future of the Arbitrum ecosystem

Get to know Arbitrum more closely

Created by Offchain Labs, Arbitrum is a scalable solution that leverages optimistic roll-up technology to deliver fast transactions and lower fees for users.

Arbitrum is a favorite choice due to its superior speed and lower costs. The arbitrage ecosystem has seen significant adoption, with a peak Total Value Locked (TVL) of $3.2 billion in November 2021, and is currently stable at around $900 million, making it the highest TVL among all Layer 2 ecosystems.

Arbitrum consists of two networks, One and Nova, each serving different purposes, with ongoing development.

Also Read: What is Arbitrum (ARB)? The Largest Layer2 on Ethereum

How Arbitrum Works

Arbitrum uses advanced roll-up technology. Smart contract transactions are combined into one message, then sent to Ethereum for processing. It's like zipping a file, making transactions lighter and more efficient. 

As a result, transaction fees on Arbitrum can be 50x cheaper than Ethereum. The speed is extraordinary, up to 65,000 transactions per second, far above Ethereum's capacity of only 30 TPS.

Arbitrum leverages Ethereum's security in two ways:

• Transactions are recorded directly on Ethereum: While smart contract computing and storage occurs on Arbitrum, everything is recorded neatly on the main blockchain.
• Validator and penalty system: There is a validator team that ensures everything runs smoothly. They have to pledge their Ether, and if they violate it, their Ether could be lost!

Apart from that, there is also a challenge mechanism for 7 days. Anyone can double-check transactions recorded on Ethereum, ensuring they are all valid. This layered security makes Arbitrum resilient in the crypto world.

Also Read: Arbitrum Price Prediction (ARB) 2024

Arbitrum Ecosystem

The arbitrum ecosystem is in high demand with over 100 protocols, it is a leading L2 ecosystem that offers faster transactions and lower fees than Ethereum. Let's explore some of the key players:

Uniswap

The king of DEX, Uniswap allows swapping assets and provides liquidity. The unique “liquidity concentration” feature attracts traders, making it a top 8 ranked DEX by volume on Arbitrum.

GMX

This no-slippage exchange allows trading with up to 30x leverage. Its GLP token, a mix of popular assets such as ETH and stablecoins, is attractive to traders and liquidity providers, making GMX the top protocol on Arbitrum based on TVL.

Dopex

This options platform offers a yield-generating vault for those looking for passive income. Its unique features, such as Single Staking Option Vaults, cater to a variety of market conditions.

Vesta Finance

Borrow VST, a collateralized stablecoin, against various assets without interest. This increases capital efficiency, making Vesta a popular lending protocol.

Treasure DAO

This decentralized NFT ecosystem focuses on metaverse projects. The Trove marketplace allows you to buy and sell NFTs with MAGIC tokens, the heart of the Treasure ecosystem.

How to Bridge Assets to Arbitrum

These are some ways to move assets to the Arbitrum network that are faster and cheaper? 

• Official Bridge: Use Arbitrum Bridge with MetaMask wallet. Send ETH and ERC20 tokens like USDC (not Arbitrum Nova). There is a gas fee and a 10-60 minute wait.
  
• Centralized Exchange: Directly send ETH/USDC from Binance (and others) to Arbitrum without a wallet.
  
• Connection to Arbitrum: Switch the MetaMask network to Arbitrum One or use Chainlist.org to connect to an RPC address.
  
• Withdraw to Ethereum: Choose speed or security:
  • Fast (30 minutes): Use a third-party bridge like Rango for the best price/cost.
  • Safe (7-8 days): Use the official Arbitrum Bridge, but it takes longer.

Conclusion

Ethereum's slow and expensive transactions are a barrier to mass adoption. But Layer 2 (L2) like the Arbitrum ecosystem as a “companion” Network offers super-fast speeds and super-low fees, potentially paving the way for widespread DeFi use without sacrificing security or control over money.

Also Read:

What is DAO (Decentralized Autonomous Organizations) in Crypto?

What is Yield Guild Games? The World's First and Largest Web3 Game DAO

What Is ConstitutionDAO (PEOPLE): A Unique Experiment In The World Of Web3

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.