Original compilation: aididiaojp.eth, Foresight News
Original compilation: aididiaojp.eth, Foresight News
Since the middle of last year, Arbitrum has been the ecosystem where I have invested the most energy and money. Here are 6 Arbitrum eco-tokens that I think will be able to capture excess return portfolios in 2023.
It should be noted that this article is for reference only, and the construction of a personal investment portfolio should be based on one's own risk tolerance, financial situation and goals. The tokens below are my largest holdings on the Arbitrum ecosystem, but my overall portfolio also includes stablecoins and tokens on other chains not shown in this portfolio.
ETH accounts for 40%
There are 3 reasons why ETH is my largest spot position and will likely continue to be so for years to come.
The first reason is EIP-1559. ETH net issuance has been reduced by 90%, and only a small amount of on-chain activity can achieve a net deflation of ETH.
The second reason is actual staking yield. Most Layer 1 staking returns come from native token inflation. Ethereum generates revenue from fees and is the only blockchain with a positive yield since the merger. So there may be a great institutional need in the future.
The third reason is user adoption. While deflationary token economics are great for creating stories, users are the number one driver of long-term growth and price increases. Recent Rollup developments lead me to believe that a significant portion of future on-chain activity will take place on Ethereum.
FXS accounts for 20%
I have always been a loyal fan of Frax Finance. Their recent developments include frxETH, FRAX V2, Curve Basepool, etc. These actions make me more and more optimistic about FXS. If all of this sounds unfamiliar, read the article I wrote about it in detail.twitter stream。
While FXS has seen a big rally recently, especially because of the liquidity staking narrative, the growth potential for stablecoins is still huge. While I have FXS allocated in my Arbitrum portfolio (which makes up a large portion of my overall portfolio), I primarily hold FXS on Ethereum due to Arbitrum's low liquidity.
GMX accounted for 13%
The total fees generated by traders on the GMX protocol is close to $150 million, with 30% of the revenue distributed to token holders and 70% to liquidity providers. Clearly, perpetual contracts are one of the biggest use cases in DeFi.
More and more users are starting to use DeFi, but the average daily total DEX transaction volume (about $2 billion from futures and spot) is still less than 2% of the total CEX transaction volume (over $100 billion). So, despite the constant emergence of competitors, GMX still has a lot of room to grow.
GNS accounted for 11%
Gains Network's migration on Arbitrum has been very successful, and currently 60-70% of transactions happen on Arbitrum instead of Polygon.
A recent upgrade to the DAI-vault has further improved gTrade's liquidity efficiency. Given that overall crypto adoption continues to trend upward, there is significant scope for decentralized perpetual contracts to grow over longer time frames.
rDPX
Decentralized options is another DeFi category that I think has a lot of room for growth. Although options themselves are complex, Dopex has a variety of products that can seamlessly integrate options into DeFi, such as SSOV (Single Collateral Option Vault) and more.
The recently released rDPX V2 will allow the minting of synthetic assets partially collateralized by $rDPX, the first synthetic asset will be $dpxETH. In short, this will put deflationary pressure on the supply of rDPX.
LINK
LINK is a clearly narrative-driven token that has underperformed recently. In any case, the improved token economics and the increased value of LINK stakeholders through new products that generate income for LINK stakeholders make LINK’s performance this year very exciting.
I have high hopes for two products:
Chainlink BUILD: The project receives oracle service and technical support, and pays part of the native token supply (3-5%);
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