Top Arbitrum Projects With Potential to Outperform the Market

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Investing in great builders in 2019 (e.g. $AAVE, $SNX) were "simple" 100-1000x. I analysed top Arbitrum projects searching for builders willing to ship through the bear market and found 6 promising ones. Check why I believe they have potential to outperform the market. 🧵👇

When you buy a token, you invest in a team. A good team builds products people want to use. A good team knows they must provide value to the token or they will lose their community. A good team can change bad tokenomics if necessary. A good team is often all you need.

I had the above in mind while searching for promising Arbitrum projects. I chose: $DPX, $JONES, $PLS, $SPA, $UMAMI, $VSTA. It doesn't mean other teams / projects are not good. But I liked these ones the most. Let's check them out one by one!

➡️ $DPX @dopex_io is a decentralized options protocol. They enable option trading via a notion of option vaults. The purpose is to win the option market by offering fair prices, deep liquidity and minimizing losses for option sellers. More: twitter.com/milesdeutscher/status/1559900479962116098

Why $DPX? Options market is gigantic in TradFi and some believe it will be the next big narrative in crypto. I'm not sold on that idea yet but I know that Dopex Team are chads and they ship innovative products. For example GMX-type model for options: twitter.com/0xsaitama_/status/1597685080860028929

➡️ $JONES @DAOJonesOptions is a protocol built on top of Dopex to make investing in options simpler and more liquid. It takes a form of Jones Vaults and jAssets - liquid representation of illiquid vaults in Dopex. More: twitter.com/SmallCapScience/status/1508834322542956549

Why $JONES? Many new products are coming from Jones DAO which will transform the project into a yield conglomerate. The Team is made of chads like @FroyoFren who keep building during a bear market. Smart backers will want it to be a success story. twitter.com/FroyoFren/status/1590020994647101441

➡️ $PLS @PlutusDAO_io is a governance aggregator for Arbitrum veTokens. Think Convex of Arbitrum but for many tokens: $DPX, $JONES, $SPA. They have recently shipped $GLP vault that offers higher yield, auto-compounding and capital efficiency. More: twitter.com/DeFiSurfer808/status/1506446850387329036

Why $PLS? Plutus controls 55% of Dopex's $DPX and 43% of Sperax's $SPA governance powers. Governance power is a valuable asset and I think the market may underestimate its potential. New products are shipped (GLP vault), new tokenomics is coming. twitter.com/systems_value/status/1582409107390070787

➡️ $UMAMI @UmamiFinance is a protocol that aims to bridge the gap between DeFi and TradFi by offering DeFi Yield products tailored to institutional investors. Vaults will earn sustainable risk-hedged yield on core crypto assets: USDC, BTC and ETH. twitter.com/UmamiFinance/status/1585630392568418304

Why $UMAMI? A new suite of DeFi Yield Vaults is supposed to be shipped still in Q4 2022. The Team is extremely capable and new chads have joined it recently (@SalomonCrypto as Growth Manager). @crypto_condom is bullish and for good reasons: twitter.com/crypto_condom/status/1593735605460033536

➡️ $SPA @SperaxUSD is a protocol that mints $USDs, a 100% collateralized stablecoin with built-in yield for its holders. They also released DEX liquidity manager (Demeter) that can be used by DAOs to launch incentivised farms on Uniswap v3. More: twitter.com/BillyBobBaghold/status/1559560230027026434

Why $SPA? DAOs using Demeter will want to pair with USDs to receive $SPA emissions. Potential flywheel: 1. Higher demand for USDs 2. More yield going to SPA stakers 3. Higher demand for SPA 4. SPA price up 5. Value of SPA emissions up 6. See 1. More: twitter.com/BillyBobBaghold/status/1560036614499336194

➡️ $VSTA @vestafinance is a lending protocol with its own stablecoin $VST, a mix of @LiquityProtocol and @MakerDAO. Users can borrow VST against $ETH, $gOHM, $GMX, $GLP or $DPX. More (n.b. interest-free borrowing is obsolete now): twitter.com/korpi87/status/1564571629010575360

Why $VSTA? Vesta Team has been constantly building regardless of the market conditions. Their goal is to be a key stablecoin player in the Ethereum L2 ecosystem. This niche hasn't been taken by anyone yet and the potential of stablecoin market is huge. twitter.com/korpi87/status/1564571694055899136

These are the picks for my Arbitrum portfolio. "But ser, why no $GMX?" GMX is a great project but I feel it is an overcrowded trade now. Many projects I have in my portfolio are building on top of GMX so I have an indirect exposure. I may add GMX in the future.

You can track or copy my portfolio here: app.nested.fi/explorer/arbi:6062/h32w Please note 50% of the portfolio is still USDC. This is because I don't want to deploy fully at one go. I will increase my exposure on some dips. If you copy my portfolio, you will be notified on any changes.

I used @NestedFi to build my portfolio so you can easily track all the modifications I make in the future. Nested is super user-friendly so even your grandma can create a portfolio while still maintaining self-custody over her funds. twitter.com/korpi87/status/1594801449459888128

*** Side note *** Sometimes predatory tokenomics / VCs make it impossible even for a good team to save the token. Tokens from Solana ecosystem are the best examples. $SRM, $FIDA, $OXY etc. started with very low circulating supply and are destined to go down only.

Disclaimers: Nested charges fees: 0.3% on each operation and 0.8% on withdrawals: docs.nested.fi/general-information/fees-managment I have an ongoing partnership with Nested because I like this product and I believe it can boost crypto adoption. The content and opinions are mine.