Hey! It’s Alexander from Limitless Insights, here today with 3 passive income opportunities on Arbitrum, one of the better layer 2 scaling solutions for Ethereum.

For the sake of the many, who are unfamiliar with Arbitrum, do let me give a brief rundown of what they are and how you can benefit from them.

Otherwise, you can skip the first part.

Arbitrum

The Arbitrum network is a Layer-2 functionality, developed by the New York-based company Offchain Labs, which seeks to solve the congestion that the Ethereum network has been experiencing by improving how smart contracts are validated. The platform leverages the security provided by the Ethereum mainnet but allows smart contracts to run on a separate layer to reduce congestion within the network.

This technique is called “transaction rollups” and consists of batches of transactions and records that are validated on the lower layer to then be moved to layer-1’s mainnet — in this case, the Ethereum mainnet.

Arbitrum compensates nodes that actively validate the smart contracts powered by the Arbitrum chain (known as aggregators) with ETH and they are responsible for adding the blocks to the first layer — the Ethereum mainnet.

If you’re using Metamask, you can simply treat Arbitrum as another network, just like Polygon or Optimism.

Add Arbitrum to Metamask

1. Open MetaMask and click the network dropdown menu near the MetaMask fox logo.
2. A pop-up will appear, then click “Add Network.”
3. On the next page, you’ll need to add the following Arbitrum network data:

• Network name: Arbitrum One
• Chain ID: 42161
• Currency symbol: ETH

Synapse Protocol Bridge to Arbitrum

You can use any other protocol but I personally use Synapse Protocol to bridge my tokens in between networks.

1. ZyberSwap

Zyberswap is one of the first decentralized exchanges (DEX) with an automated market-maker (AMM) on the Arbitrum blockchain. They chose to employ a fair launch strategy for token distribution. This aligns with the platform’s objective of promoting genuine decentralization and impartiality.

By opting for a fair launch, Zyberswap ensures that all users have an equal opportunity to acquire its tokens, fostering a sense of community and fairness in the ecosystem.

Zap Liquidity Functionality

Zyberswap has one-click zap functionality, allowing users to easily swap to create the Liquidity Pool (LP) tokens required to join their LP Farms.

ZYBER-ETH LP Pool

• Current TVL : $3.1 Mil
• APY : 1071%

ZYBER-USDC LP Pool

• Current TVL : $965k
• APY: 1007%

ETH-USDC LP Pool

• Current TVL: $73.4 Mil
• APY: 29.13%

WBTC-USDC LP Pool

• Current TVL: $21.7 Mil
• APY: 26.8%

Staking $ZYBER for $ETH

• Current TVL: $227k
• APY: 115%

Staking $ZYBER for $ZYBER

• Current TVL: $2.8 Mil
• APY: 203.38%

2. Vela Exchange

Vela Exchange is a decentralized exchange with advanced perpetuals trading capabilities, community focused incentives, and scalable infrastructure. The Vela Exchange trading platform provides significant upside over centralized exchanges with fair, equitable access to platform rewards, self-custody of assets, and zero requirement for a centralized clearing house.

While legacy decentralized applications and exchanges continue to deal with high execution costs, low performance, and other trade inefficiencies, Vela Exchange was built as a ‘next gen’ platform to overcome familiar DEX issues including front-running, slippage, asset limitations, and lack of risk management features.

Earn 83.08% APR Staking VLP at Vela Exchange

If you feel that you’ve missed on GMX while it was a small cap, then VELA Exchange is your chance.

Additional rewards of eVELA obtained from staking of VLP can be staked for additional APR as well.

GMX current market cap is $650 Mil, while VELA’s current market cap is $35 Mil

Connect your wallet with VELA Exchange here & Start Staking Today:

3. GMX.io

GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero price impact trades.

Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees and leverage trading.

Dynamic pricing is supported by Chainlink Oracles and an aggregate of prices from leading volume exchanges.

Stake GLP for 20.88% APR

GLP consists of an index of assets used for swaps and leverage trading. It can be minted using any index asset and burnt to redeem any index asset. The price for minting and redemption is calculated based on (total worth of assets in index including profits and losses of open positions) / (GLP supply).

For Arbitrum, holders of the GLP token earn Escrowed GMX rewards and 70% of platform fees distributed in ETH.