The decentralized finance (DeFi) ecosystem on Arbitrum is experiencing a remarkable surge in popularity as several cutting-edge decentralized exchanges (DEXes) emerge as major players on the layer-2 scaling solution for Ethereum. Traders and investors are rejoicing as these platforms offer lightning-fast transaction speeds and significantly reduced fees compared to their on-chain counterparts.

Arbitrum’s dominance in the layer-2 space is attributed to its unique roll-up technology, which enables off-chain processing and aggregation of transactions before submitting them to the Ethereum mainnet. This approach drastically minimizes congestion and gas costs, leading to an overall seamless and efficient trading experience for users.

As we gear up for the year 2023, several top decentralized exchanges on Arbitrum have garnered significant attention for their potential to revolutionize the industry. These six projects, in particular, are worth keeping a close eye on:

• Slingshot: A popular Ethereum-based swapping protocol with 0% fees.
• Uniswap: The first Ethereum-based DEX enabling the swapping of ERC-20 tokens via liquidity pools.
• 1inch: DEX aggregator powering flexible swaps and trades through their native protocol.
• Sushi: Leading multichain decentralized exchange for swapping cryptocurrency tokens.
• Shell Protocol: A masterpiece wrapping protocol and DeFi development toolkit.
• Mycelium: Native decentralized trading protocol on Arbitrum.

Slingshot

Founded in 2020, Slingshot is a DeFi application that can be used to search for, send, receive and swap over 50k cryptocurrencies at the best prices, with 0% swap fees. Slingshot is available both on desktop (Slingshot Web App) and on mobile (Slingshot Wallet), with multi-chain and bridging support for the following networks: Arbitrum, Arbitrum Nova, Binance BNB Chain, Canto (bridging support coming soon), Optimism, and Polygon. Slingshot is continuously releasing enhanced product features and reward-driven participation opportunities for their growing community.

Slingshot Finance is a revolutionary Web-3 trading platform for cryptocurrency enthusiasts. The platform has been designed to provide users with an exceptional trading experience by offering lightning-fast trading speeds and the ability to find and trade cryptocurrency tokens at the best values, thereby increasing their profits.

The platform has an easy-to-use interface and advanced trading tools that cater to both novice and experienced traders. One of the standout features of Slingshot Finance is its ability to search for and compare the prices of various digital assets across multiple exchanges. This feature enables users to make informed trading decisions, thereby increasing their chances of making a profit.

Moreover, the platform offers a range of advanced trading features, such as limit and stop-loss orders, that allow traders to automate their trading strategies and minimize their risks. These features not only improve the trading experience but also lead to better trading outcomes.

Slingshot Finance uses a secure and decentralized architecture that ensures that users’ funds and personal information are protected at all times. The security-conscious trader can rest easy knowing that their assets are safe and secure on the platform.

Slingshot.finance is a reliable and trustworthy trading platform that offers a range of features and benefits for traders of all levels. Whether you are a beginner looking to get started with cryptocurrency trading or an experienced trader looking for a new platform to try, slingshot finance is definitely worth considering. With its combination of user-friendly design, advanced features, and low fees, it’s no wonder that so many traders are turning to slingshot finance as their platform of choice.

Uniswap

As one of the first and largest Ethereum-based decentralized exchanges, Uniswap pioneered the concept of an automated market maker, which other decentralized exchanges are based on. Instead of using order books, Uniswap aggregates liquidity through pre-funded and user-funded liquidity pools (LPs).  First launched in 2018 by CEO Hayden Adams, Uniswap’s ecosystem has now further expanded to include applications such as stablecoins, governance systems, and analytics platforms.

Uniswap is a decentralized exchange that is unique in the sense that it is not managed by a company like Coinbase or Gemini but rather by its users. The platform is governed by UNI token holders who are eligible to vote on proposed changes to Uniswap. This ensures that the platform is truly decentralized and democratic in nature.

The process of swapping through Uniswap liquidity pools is simple and straightforward. These pools are made up of groups of tokens that are made available by other traders. This provides a great deal of flexibility and choice to users.

The Uniswap app is designed and maintained by Uniswap Labs, a New York-based company. However, the protocol itself is governed by the community. The founder of the Uniswap protocol, Hayden Adams, is a well-known thought leader in the crypto world. He often tweets about industry happenings and shares his insights with the community.

Uniswap has now expanded to offer support for Ethereum-compatible networks such as Polygon and Optimism. These networks offer lower-cost transactions, which can sometimes bring transaction costs down to just a few pennies.

Swaps on Uniswap are limited to ERC-20 tokens, which are a token standard for Ethereum. When you make a swap, the funds are placed directly in your wallet, without any extra steps or withdrawal fees.

To date, Uniswap has been used by nearly 5 million unique wallet addresses and has surpassed $1 trillion in trading volume since its inception. This is a testament to the platform’s popularity and usefulness in the rapidly evolving world of cryptocurrency.

1inch

The initial protocol of the 1inch Network is a decentralized exchange (DEX) aggregator that sources liquidity from various exchanges and is capable of splitting a single trade transaction across multiple DEXes. Smart contract technology empowers this aggregator enabling users to optimize and customize their trades. The 1inch Network was launched at the ETHGlobal New York hackathon in May 2019 with the release of its Aggregation Protocol v1. Since then, the 1inch Network has developed additional DeFi tools such as the Liquidity Protocol, the Limit Order Protocol, P2P transactions, the Fusion mode, and the 1inch Wallet app.

1inch is a decentralized exchange (DEX) aggregator that is designed to provide users with the best prices for cryptocurrency trades across multiple DEXs. With 1inch, users can access a range of exchanges from a single platform and enjoy the benefits of increased liquidity and reduced slippage.

The platform sources liquidity from various exchanges, including Uniswap, SushiSwap, Curve, and Balancer, among others. By splitting a single trade across multiple exchanges, 1inch is able to offer users the best rates, ensuring that they get the most value for their trades.

1inch offers a native protocol that allows users to easily access the cheapest prices across a handful of decentralized exchanges. The protocol scrapes the various exchanges for the cheapest prices and reroutes customers’ trades between them to try and ensure that they get the best prices. This innovative approach allows users to make the most of their trades, while also enjoying the benefits of reduced fees and increased efficiency.

1inch takes all of these decentralized exchanges and aggregates them for you, providing you with the best rate for your swap. This means that you can access a range of exchanges without having to navigate multiple platforms or deal with complex trading interfaces. And with no additional fees, 1inch is a cost-effective way to trade cryptocurrencies.

1inch is available across multiple blockchain networks, including Ethereum, Binance Smart Chain, and Polygon, among others. This means that users can enjoy the benefits of the platform regardless of which blockchain they prefer to use. And with the ability to save on transaction costs with their CHI gas token, users can further optimize their trading experience and maximize their returns.

Sushi

Sushiswap is an automated market maker that enables swapping between different cryptocurrencies and tokens through automated liquidity pools across EVM-compatible blockchain networks and Layer-2 solutions. Sushi is one of the largest DeFi solutions and recently has expanded its DeFi offerings, even more, using its native token SUSHI.

SushiSwap is a multichain decentralized exchange (DEX) protocol where traders can swap their crypto assets in a permissionless way.

It runs on Automated Market Maker (AMM) smart contracts, with liquidity provided by assets deposited from users.

SushiSwap is an advanced fork of Uniswap, which is another popular DEX running the same type of smart contract system.

What differentiates SushiSwap is that it introduced a native token (SUSHI) right from its launch, allowing holders to have voting rights in the network, as well as rights to a portion of trading fees generated by the protocol.

Shell Protocol

Founded in 2019 by the Cowri Labs team, Shell Protocol is a pronounced DeFi protocol that is facilitating multi-chain interaction. Users can benefit from the wrapping of tokens from one chain or a protocol to be swapped for another. Besides its wrapping protocol, Shell  Protocol has an open-source SDK for developers to build complex DApps without writing bulky codes.

Shell Protocol is a platform that offers a smarter way to access DeFi. The highly anticipated Shell v2 upgrade enables developers to create capital-efficient automated market makers (AMMs) that can adapt over time, design transactions that are seamlessly composable, and offer up to 4x cheaper gas costs for users. This new ecosystem of financial primitives, which includes AMMs, lending pools, algorithmic stablecoins, and NFT markets, is poised to become the next wave of leading DeFi projects.

In addition to providing better smart contract architecture, building with Shell v2 also unlocks the power of the Shell network effect. This gives your project instant interoperability with every other Shell-native primitive, both past and future.

The objective of the Shell Protocol is to create a robust internet monetary system using stablecoins as building blocks. The first release is a liquidity pool optimized for stablecoin-to-stablecoin trades. It boasts deep liquidity, weights, and dynamic fees, with protections against a broken peg. It can also provide liquidity directly between stablecoin derivatives, such as cTokens and aTokens. The goal for this iteration is to develop a framework for flexible bonding curves that can adapt to new use cases and market conditions, thus creating a more versatile and adaptive platform.

Liquidity provider shares within the Shell Protocol are named “shells” because they act as containers for the value held by the pool, much like living shells that house organisms. Shells are natively liquid, diversify exposure, and earn yield. They have the potential to become the primary means of storing and transacting value within the Shell Protocol ecosystem.

Mycelium

Founded by Pat McNab, Morgan, and Ray Mogg, Mycelium is one of the foremost decentralized trading protocols to be powered by Arbitrum. Users can use its two major products, namely Mycelium Perpetual Swaps and Mycelium Perpetual Pools. The former is for the pair exchange of tokens across different chains. The latter is a unique on-chain conglomeration vault for treasury of funds. The native and utility token, the MYC token, can also be staked on the protocol.

Mycelium wallet is one of the pioneers in the world of cryptocurrency wallets and was launched way back in 2008. The mobile-based wallet offers a range of accounts, including Hierarchical Deterministic (HD), Single Address Accounts, Watch Only Accounts, Bit ID accounts, and Hardware. The wallet is an open-source platform, allowing for a lightning-fast connection to the BTC network, and can be integrated with other wallets for enhanced functionality.

In 2014, Mycelium wallet was awarded the Best Mobile App, and it continues to be one of the most reliable platforms for transferring, storing, and trading Bitcoin. Unlike other wallets, Mycelium is solely designed for storing Bitcoin, and no other digital assets can be stored in it.

The mobile app is available for both iOS and Android users and boasts a simple user interface developed by the Mycelium team’s hardware engineers. The interface makes it easy to switch between accounts, add multiple payment addresses, view transaction history, and enjoy several other functions with ease.

Mycelium wallet relies on the Simplified Payment Verification (SPV) technique, allowing users to download a complete blockchain, making it easier to manage transactions. One of the most remarkable features of this platform is its unparalleled cold storage function, which ensures that users’ funds remain secure until they are ready to spend or transfer their cryptocurrencies.

Mycelium wallet is a highly recommended platform for anyone looking to store their Bitcoin safely and securely. With its range of accounts, easy-to-use interface, and cold storage function, it is no wonder that it is often considered one of the best cryptocurrency wallets in the market. So, if you’re wondering what the best crypto wallet is, look no further than Mycelium wallet!

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.`

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As the crypto world continues to evolve, individuals are actively seeking ways to maximize their profits in this ever-changing landscape. While many are on the hunt for quick tips and tricks, seasoned investors know that staying informed about current and future trends is the key to making profitable decisions. Among the emerging narratives gaining traction in the industry, Real World Assets (RWA) stand out as a revolutionary concept with the potential to reshape the cryptocurrency market.

RWA represents a significant leap forward, effectively bridging the gap between the decentralized finance (DeFi) sector and traditional financial markets. By doing so, it not only grants easier access to cryptocurrencies for traditional businesses but also unlocks a plethora of new use cases for real-world assets within the blockchain space.

As the RWA narrative gains popularity, it has become a topic of discussion among crypto influencers, with multiple mentions and even witnessing certain RWA coins experiencing a surge in value due to hype-driven demand. To better understand the essence of the RWA narrative and identify promising projects operating under its framework, Coincu has compiled essential information for investors.

At its core, the Real World Asset narrative seeks to bring tangible assets into the digital realm, enabling greater liquidity, transparency, and efficiency in their trading. Traditional assets like real estate, commodities, and art, which were previously illiquid and limited to specific markets, can now be tokenized and traded on various blockchain platforms. This tokenization process represents ownership of the asset in the digital form, thereby making it accessible to a global audience, breaking down barriers of entry, and expanding investment opportunities.

One of the key advantages of RWA is its ability to connect DeFi with real-world assets. This means that users can leverage their digital assets to invest in tangible assets and vice versa, creating a dynamic interplay between these two previously distinct financial realms. This integration opens up exciting new possibilities, such as using cryptocurrency as collateral to secure loans for real estate purchases or investing in art pieces through decentralized platforms.

Several projects have already emerged as pioneers in the RWA space, leading the charge in tokenizing real-world assets and integrating them into the crypto ecosystem. Their efforts are providing substantial value to both traditional businesses and crypto enthusiasts seeking diverse investment opportunities.

Coincu will walk you through the fundamentals of the RWA narrative and which projects are succeeding under RWA in this post.

What is RWA?

RWA refers to real-life assets, ranging from real estate and vehicles to precious metals, that are now being securely encrypted on-chain in the form of tokens or non-fungible tokens (NFTs) to be utilized in DeFi protocols. This innovation has opened up a plethora of benefits, reshaping the landscape of sustainable power generation worldwide and propelling the crypto market to new heights.

One of the primary advantages of RWA tokenization is its positive impact on DeFi’s liquidity and Total Value Locked (TVL). By expanding the range of assets available for use as collateral in DeFi applications, RWA has bolstered the overall liquidity and stability of the decentralized financial ecosystem. With more asset classes to invest in, DeFi users now have greater diversification opportunities and can maximize their returns on investment.

Moreover, the integration of RWA into the crypto market has created an entirely new industry for digital assets. Traditional real-world assets, including real estate, funds, equity, and collectibles like art and cars, can now be seamlessly transformed into tokens using blockchain technology. This has opened up a wide array of opportunities for investors, making previously illiquid assets accessible for trading and investment in a decentralized and secure manner.

The standout feature of RWA tokenization is its facilitation of unrestricted cross-border asset transfers. Thanks to the underlying blockchain technology and DeFi protocols, transactions involving RWA are fast, efficient, and transparent. This has removed the barriers and complexities associated with traditional cross-border transfers, enabling investors and businesses to engage in global financial activities with ease.

The categories of physical assets that can be tokenized for RWA are diverse and comprehensive. These include yield-bearing instruments like dividend-paying assets and royalty streams, as well as real estate holdings, alternative assets like collectibles, and various financial products like ETFs and stablecoins. This wide range of tokenizable assets further enriches the DeFi ecosystem and empowers users to explore innovative investment opportunities.

Furthermore, RWA’s impact extends beyond the DeFi space, as it has given rise to the trend of opening capital markets using blockchain technology. Digital securities can now be tokenized and offered to retail investors, providing them with access to previously inaccessible investment options. RWA protocols have enabled these assets to serve as collateral for loans, primarily denominated in stablecoins. The transformation of debt into NFTs and the division of these tokens into shares among lenders have facilitated secure and transparent lending practices within the crypto space.

As the crypto market continues to evolve, Real World Asset tokenization stands at the forefront of the industry’s progress. With increased liquidity, new investment opportunities, and cross-border financial accessibility, RWA’s integration into the DeFi ecosystem has proven to be a catalyst for sustainable growth and innovation in the world of digital finance.

Top RWA projects

Centrifuge

Centrifuge (CFG) emerges as a groundbreaking initiative within the world of DeFi with its innovative Sector Tokenizing RWA project. The primary objective of Centrifuge is to bridge the gap between real-world assets and the DeFi ecosystem, aiming to reduce capital costs for small and medium-sized enterprises (SMEs) while offering DeFi investors a stable and profitable avenue amidst the volatility of the Crypto market.

At the heart of the project lies the first-ever decentralized application (dApp) called Tinlake. This remarkable platform enables traditional investors to RWAs into non-fungible tokens (NFTs) on the Centrifuge network. Through this seamless integration, traditional investors can now actively participate in DeFi protocols such as Maker and Aave, opening new possibilities and opportunities in the rapidly expanding DeFi landscape.

Centrifuge’s development potential received a significant boost recently, as Maker, a prominent player in the DeFi sector, approved a crucial proposal. The proposal greenlit the utilization of RWA tokenization by Tinlake as collateral on the MakerDAO platform. This approval marks a major milestone for Centrifuge and reinforces its commitment to revolutionizing the DeFi space by bringing real-world assets into the digital realm.

One of Centrifuge’s key strengths lies in its unique approach to lending. It empowers users and small to medium-sized businesses by leveraging real property collateral to create crypto loans. However, what sets Centrifuge apart is its pioneering use of NFTs, adding an extra layer of reliability and security to real-world assets during the lending process.

By tapping into real-world assets, Centrifuge not only enhances DeFi’s overall stability but also addresses the capital constraints faced by SMEs, unlocking new avenues for growth and development. Furthermore, DeFi investors can now find a reliable and steady source of profit through Centrifuge, even in the face of the unpredictable nature of the crypto market.

Goldfinch

In a bid to revolutionize crypto lending and promote financial inclusivity worldwide, Goldfinch, a pioneering credit protocol, has emerged as a game-changer for real-world businesses, especially those in emerging markets. Offering enticing yields of up to 30%, Goldfinch stands out as an innovative platform, reshaping the traditional lending landscape in the cryptocurrency industry.

One of the key differentiators of Goldfinch is its unique collateralization approach. Unlike conventional lending projects that require borrowers to register digital assets as collateral, Goldfinch employs a fully collateralized model using RWAs (Real-World Assets). This novel concept opens up exciting opportunities for businesses of all sizes to enter the cryptocurrency market without the usual barriers related to providing crypto assets as collateral.

The primary objective driving Goldfinch is to create a decentralized and global credit ecosystem on the blockchain, aiming to democratize access to capital for individuals and businesses worldwide. One significant hurdle the protocol addresses is the need for borrowers to provide crypto assets as collateral, which has historically excluded many from participating in the crypto industry.

The current implementation ensures that all loans granted through Goldfinch are backed by off-chain assets and income, eliminating the need for borrowers to overcollateralize with crypto assets.

Goldfinch offers businesses on-demand liquidity tailored to their specific needs, presenting a variety of alternatives to optimize yield and streamline processes. Users are empowered to select options that best suit their objectives. Notably, the yields provided by Goldfinch are designed to be sustainable and unaffected by the volatility commonly experienced in crypto markets, offering borrowers greater stability and predictability in the long run.

By driving the transition of credit-related activities to the blockchain, Goldfinch is setting the stage for a more inclusive financial landscape. Its visionary mission aims to break down barriers and create a level playing field for global access to capital. As businesses and individuals seek innovative solutions that bridge the gap between traditional finance and the crypto realm, Goldfinch emerges as a frontrunner, paving the way for a more equitable and accessible financial future.

With Goldfinch’s commitment to fostering financial inclusivity and empowering businesses worldwide, it stands at the forefront of transformative change within the crypto lending space. As the platform continues to grow and evolve, it holds the potential to unlock new opportunities, driving economic growth and prosperity for a diverse range of entrepreneurs and enterprises alike.

Credix

The core objective of Credix revolves around the creation of a decentralized credit marketplace. By harnessing the power of blockchain and smart contracts, the platform seamlessly connects investors with cutting-edge FinTech companies, thus unlocking new avenues for debt financing and private credit solutions.

The significance of Credix lies in its ability to offer a secure, transparent, and efficient space where institutional investors can explore opportunities in emerging markets. Traditionally, these markets have faced significant barriers in accessing credit, hindering their growth potential. With Credix’s decentralized platform, these obstacles are challenged head-on, fostering greater financial inclusion and economic growth.

By leveraging Solana’s robust and high-performance blockchain infrastructure, Credix ensures swift transaction speeds and minimal transaction costs, making it an attractive option for users seeking seamless credit solutions. This cutting-edge technology allows Credix to process an impressive number of transactions per second, enhancing user experience and bolstering investor confidence.

One of the key features of Credix is its emphasis on fostering strategic partnerships with FinTech companies in emerging markets. By collaborating with local enterprises, the platform gains invaluable insights into the unique challenges faced by each region, enabling it to tailor credit solutions accordingly. As a result, Credix stands as a bridge, connecting global investors with promising opportunities in previously untapped markets.

Moreover, Credix’s decentralized nature offers a secure and transparent ecosystem, inspiring trust among investors and borrowers alike. The implementation of smart contracts ensures that transactions are executed with precision, eliminating the need for intermediaries and minimizing the risk of fraud or mismanagement.

Clearpool

By leveraging blockchain technology, Clearpool facilitates a secure and transparent lending ecosystem where lenders can extend their liquidity to a pool and, in turn, receive cpTokens tailored to the specific pool. These cpTokens act as a tangible representation of their contribution and involvement in the lending process, offering a novel approach to incentivize and reward lenders.

At the core of the platform lies Clearpool’s governance token, aptly named CPOOL. Holders of CPOOL tokens gain decision-making power through voting rights, enabling them to actively participate in shaping the platform’s policies and future developments. Additionally, CPOOL holders have the unique opportunity to stake their tokens, further unlocking attractive rewards for their active engagement within the network.

The introduction of Clearpool’s blockchain-powered credit marketplace brings numerous benefits for both borrowers and lenders. For borrowers, access to a diverse range of lenders is streamlined, eliminating the traditional intermediaries and associated complexities. Through the decentralized platform, borrowers can secure loans with greater ease and at competitive interest rates, fostering financial inclusivity and empowering individuals who might have otherwise struggled to obtain credit.

On the other side of the spectrum, lenders are presented with a novel investment avenue in the burgeoning DeFi space. By providing liquidity to borrowing pools, lenders earn cpTokens, creating a mutually beneficial relationship that encourages more active lending. Furthermore, the ability to participate in governance decisions and earn rewards through staking CPOOL tokens cements Clearpool’s commitment to community engagement and shared prosperity.

Clearpool’s visionary approach has garnered attention from experts and enthusiasts alike, as the platform’s innovative concept sets it apart in the rapidly evolving DeFi landscape. The focus on transparency, efficiency, and inclusivity positions Clearpool as a potential game-changer within the financial sector.

TrueFi

One of the standout features of TrueFi is the competitive returns it provides, alluring DeFi investors with the promise of substantial profits. However, the allure of TrueFi doesn’t end there. The platform boasts unparalleled flexibility, allowing investors to exit their investments at any time without facing a lockup period, thanks to its deep liquidity model. Moreover, TrueFi’s SAFU (Secure Asset Fund for Users) fund and TRU (TrueFi’s native governance token) stakers offer comprehensive coverage, safeguarding millions of dollars worth of loaned assets.

The security of investments is paramount at TrueFi, and the platform’s underwriting process is a testament to its commitment to safety and reliability. Investors can rest assured that their funds are in capable hands, protected by a robust and meticulous vetting procedure.

Transparency is a cornerstone of TrueFi’s ethos, and the platform takes pride in providing users with unparalleled visibility into their lending activities. With a seamless interface, users can easily track every dollar loaned to vetted borrowers on the blockchain. Regular updates on the TRU token treasury keep investors informed, ensuring they are up-to-date with all platform developments.

The success of TrueFi speaks volumes, as the platform has gained considerable traction within the DeFi community. Its user-friendly interface, attractive returns, and unwavering focus on security have resulted in impressive growth, underscoring its potential as a transformative force in the lending landscape.

TrueFi’s mortgage-free lending protocol is set to democratize lending and borrowing in the crypto space, offering a win-win scenario for both investors and borrowers. By eliminating traditional intermediaries, TrueFi paves the way for a more inclusive and efficient financial ecosystem, empowering users to make the most of their investments while providing borrowers with accessible and predictable loan terms.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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