Most Innovative Projects on the Arbitrum Network In February 2023

Arbitrum offers a unique combination of privacy, speed, and scalability, making it an attractive option for developers and businesses looking to build decentralized applications and protocols. 

In this article, we will introduce some of the most interesting new projects on the Arbitrum network. Each project offers a unique solution to a different challenge in the DeFi space and is poised to bring innovation and disruption to the world of decentralized finance.

Vela Exchange

Vela Exchange is one of the newest DEX platforms that offer self-custodial perpetual trading, blending the benefits of centralized and decentralized exchanges. 

The goal of the platform is to provide a faster and more secure trading experience for users, taking advantage of the weaknesses of existing DEXs.

Initially, Vela Exchange will offer three services: 

• Perpetual trading
• Spot trading
• An OTC P2P application

It has plans to expand into other derivatives in the future. The platform is supported by several prominent entities in the industry, and a public beta was launched on January 18, 2023. 

The fee and reward system of Vela Exchange is intended to prioritize the interests of its users and promote the sustainability of the platform, with stakers of VELA and VLP eligible for up to 75% of the platform's revenue.

GammaSwap

GammaSwap is a decentralized platform for volatility trading that aims to mitigate impermanent loss (IL) for liquidity providers which announced $1.7M Seed Round just a few days ago.

It introduces a new variable called "long gamma" into the profit equation to increase profitability for LPs. A long gamma position is an option position that profits from price changes in the underlying asset and has positive gamma exposure. It means that its delta will increase as the stock price rises and decrease as it falls.

The platform allows users to trade on the volatility of any token pair and create hedging strategies against rug pull. GammaSwap has a roadmap that includes wrapped pools, native pools, a fee-less DEX, and vaults. 

STFX

STFX is a DeFi and SocialFi protocol that offers a new way to invest in short-term, actively managed asset management vaults known as STFs (Single Trade Funds). 

The idea behind STFs is to dedicate each fund to a single trade, allowing users to invest in and copy the trades of experienced traders. The STFX platform provides a permissionless and decentralized marketplace for investment opportunities, allowing any user to create an STF and raise funds for their trading idea.

The protocol aims to be high-risk, high-reward and stand out from the current low-risk, low-reward offerings in the DeFi space. Currently, STFX is in alpha testing and invites users to join the community and learn more about the project.

Factor

Factor is a platform that provides the building blocks to launch new markets in the asset management space. The public sale of the $FCTR token is happening 20th February!

It offers tokenized baskets, yield pools, derivatives, and token sales as tools for market participants to create investment strategies and launch investment products. Target markets for Factor include asset managers, investors, and treasury managers. 

FactorDAO, the governing body of Factor, offers benefits for asset managers to earn fees, for investors to deposit and receive yield, and for the community to participate and innovate in the platform.

Arbitrove

Arbitrove is an upcoming yield-bearing index asset on the Arbitrum platform. 

It will offer exposure to the best assets within the Arbitrum ecosystem and is governed by the holders of Passports, which are NFT collections. Passport holders will benefit from project incubation, the yield from protocols, and early investment opportunities. 

The total supply of Passports is 1,000 units, with 80% allocated to the community through sales and 20% allocated to the team. The team will focus on developing Arbitrove after burning unsold Passports. 

The index asset will provide multiple indices, such as a blue-chip index, gaming index, and DeFi index, and will offer yield, lending and borrowing options, trade leverage, and auto-compound features.

JustBet

JustBet is a decentralized and on-chain casino that brings transparency and immutability to online gambling.

The platform is built on the Arbitrum blockchain using the WINRProtocol and offers fast-paced, realistic gaming experiences through transparent and immutable smart contracts. The randomness of the games is generated by SupraOracles, ensuring tamper-proof payouts. 

Every bet on JustBet comes with a cashback reward in $vWINR tokens, which can be exchanged for $WINR tokens through token locking. Users can also provide liquidity to the bankroll, similar to DeFi AMMs, for a yield generated by gamblers' losses. 

Vertex Protocol

Vertex Protocol is a vertically integrated decentralized exchange (DEX) that aims to offer the best of both worlds by combining the benefits of DeFi's self-custody and transparency with the utility and familiarity of centralized exchanges. 

Its core product features include:

• A fiat on-ramp
• spot exchange
• Perpetual exchange
• Money market for borrowing & lending

Vertex aims to solve the problem of fragmented liquidity and lack of features in DeFi by offering an all-in-one solution with a vertically integrated exchange, an order book, and an advanced risk engine to facilitate cross-margined trading of spot and derivatives. 

The platform streamlines the user experience by offering integrated solutions such as on and off-ramps, efficient bridging, and multiple user interfaces to accommodate different traders with different needs.

Final Words

Arbitrum has exploded with innovative and exciting projects that are poised to bring a new level of disruption to the DeFi space. 

From decentralized exchanges to yield-bearing index assets and online casinos, the network offers a unique combination of privacy, speed, and scalability that has attracted developers and businesses alike. 

In the upcoming months and years, it remains to be seen if the Arbitrum blockchain will sustain its appeal for new ventures, but it certainly has a strong probability of becoming a leading player in the DeFi sphere.