Arbitrum LTIPP: What You Need to Know
Reserve, Mountain Protocol, Grativa, Poolside, & More
There’s not a whole lot to look forward to in the markets at the moment. While there are some catalysts in the mid-term future including ETH ETF news, elections, and more, these may be some ways out, leaving a long summer ahead of us. One thing to look forward to is Arbitrum LTIPP, the long-term extension of the STIP. Arbitrum’s ARB airdrop was one of the most highly appreciated airdrops, and the STIP helped to cultivate a very expansive ecosystem of unique dApps.
We provide coverage in all areas of crypto. In addition to our pre-existing expansive coverage Arbitrum, we’ve scheduled 10 LTIPP Revelo Roundtables over the course of the next couple of weeks in light of the large-scale incentives program on Arbitrum. You can find the details for our upcoming spaces here.
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Background on Reserve
Reserve is a platform that allows for the permissionless creation of asset-backed, yield-bearing & overcollateralized stablecoins on Ethereum. Users can deploy asset-backed currencies called RTokens. The protocol’s features include automatic defect detection and on-chain auctions. These features ensure stability during volatile market events like the Silicon Valley Bank instability. One new currency gaining traction is KNOX, a yield-bearing stablecoin backed by lending positions on Aave and Compound which might be integrated on Poolside.
Reserve recently deployed on Arbitrum and received the LTIPP grant, which will enable them to enhance their operations. Reserve Protocol received 500K $ARB from the Arbitrum DAO and pledged an additional 20 million RSR to incentivize both liquidity and DeFi integrations. They have allocated 60% of the incentives to liquidity and 40% to integrations. Deployment has already started, with high-yielding liquidity pools on Curve.
Background on Mountain Protocol
Mountain Protocol is the issuer of USDM, a permissionless yield-bearing stablecoin. The importance of USDM has grown in Argentina due to regulatory and capital difficulties and highlights Mountain Protocol’s efforts in providing a stable and regulated asset. Mountain Protocol focuses on accessibility and transferability, operating under the reputable Bermuda Monetary Authority. Their primary customers are KYC’d, bringing in USDC (and soon other assets), which are then converted into USDM through T-bills held by top US institutions. USDM is pegged 1:1 to USDC, ensuring easy arbitrage and stability. For DeFi applications, Mountain offers wrapped USDM for protocols that cannot integrate rebasing tokens directly, providing a value-appreciating alternative.
When it comes to leveraging Arbiturm DAO incentives, Mountain Protocol’s focus is on sustainable liquidity through efficient trading and high native yields. Although Mountain Protocol did not originally launch on Arbitrum, they now consider it one of their main focuses due to its vibrant ecosystem. The team emphasizes that Arbitrum is recognized as a home for Defi, highlighting the collaborative and reachable nature of the Arbitrum DAO and team. The team also appreciates the competitive environment on Arbitrum, which drives protocols to develop the best possible products. The team mentions enhancing token accessibility through integrations like CCIP with Chainlink. They also mention their effort to facilitate payments with $USDM, linking the crypto world with the traditional banking system.
Background on Gravita
Gravita is a decentralized borrowing protocol built on Ethereum that provides users with interest-free loans secured by both Liquid Staking Tokens (LST) and a Stability Pool (SP). The protocol also features a liquidation mechanism through the stability pool and mentions their pre-token phase, with plans to launch their governance token later in the summer.
Gravita is a friendly fork of Liquity, focusing on $ETH and liquid staking. Gravita’s stablecoin, GRAI, is minted using $ETH and restaking tokens as collateral. The multi-collateral feature, allows users to manage separate positions with different assets. Gravita is deploying the incentives provided by Arbitrum DAO, focusing on incentivizing liquidity and lending for $GRAI. Key pools can be found on Ramses, PancakeSwap, Silo, and Dolomite. Gravita shares his long history with Arbitrum, having migrated assets from Ethereum early on, and believing in the potential of L2 solutions. Gravita expresses excitement for their upcoming governance token launch, which the team believes will be a significant growth engine. They also have hinted at an upcoming collaboration with StakeWise and Node Set, focusing on high-quality decentralized Ethereum staking.
Background on Poolside
Poolside is a liquidity hub for receipt tokens and yield-bearing assets. Poolside specializes in creating liquidity pools for yield-bearing tokens. Poolside has an interesting value proposition, particularly for rebasing assets, considering the historical context that led to the development of their protocol. The protocol includes specialized liquidity pools for yield-bearing tokens, detailing the differences in handling rebasing and non-rebasing assets.
The team acknowledges the importance of long-term liquidity and expresses interest in exploring Gravita’s approach. The team also considers the challenges of tokenomics and hints at the development of a new utility for LP tokens to create longer-term stability and stickiness in their ecosystem. The upcoming launch of Poolside V2 includes a stable swap curve. This new product will better target their market, featuring partners like Reserve and Mountain.
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