The "Poems" in the Arbitrum Odyssey
Hello friends, after more than a month of preparation and voting, Arbitrum team officially announced last week that Arbitrum Odyssey will start in mid-June. You are certainly no stranger to Arbitrum, it's the famous Layer-2 scaling solution of Ethereum, using Optimistic Rollup technology, developed by the Offchain Labs team, with the mainnet officially launched in August last year. After nearly a year of operation, Arbitrum now holds about half of the market share of the Ethereum Layer-2 with a TVL of about $2.5 billion. And as for the Odyssey, the word you must have heard, maybe "Honda Odyssey", "Assassin's Creed: Odyssey", "Super Mario: Odyssey". The word Odyssey actually comes from the Greek, the long collection of Greek poetry "Homer's Odyssey". It tells the story of Odysseus, the main character, who led the Greek allied army to break the city of Troy, and returned home after a hardship because he had offended Poseidon, the god of the sea. Later people use the word Odyssey to refer to the experience of a magnificent, thrilling, incredible adventure.
In Arbitrum Odyssey, participants need to interact with different protocols in the Arbitrum ecosystem and complete different tasks within a specified period of time in order to obtain the final reward NFT, which can be considered another kind of "odyssey"...
Arbitrum Odyssey is an 8-week program where each week you can earn NFTs by completing specific tasks. There are 15 Task Reward NFTs in total, holding 12 of them will be eligible for the Final Reward NFT. All NFTs will need to be manually minted by participants via Project Galaxy, the Web3 digital credentials provider on Arbitrum. （Related Reading: Project Galaxy - Building Credential Data Market in Web3 Era)
Week 1: Bridge Week
Bridge Week is tasked with transferring $ETH or other tokens to Arbitrum using the official Arbitrum bridge, centralized exchanges that support Arbitrum, and third-party cross-chain bridges. The supported exchanges and cross-chain bridges are as follows.
It is also reported that the users of the third-party cross-chain bridge with the highest number of users during the Bridge Week will receive an additional bonus NFT. As far as I can speculate, the one with the most user will probably be Stargate. (Related Reading: Stargate - the Prosperous Future of Blockchain Interoperability)
Week 2: Yield Protocol and Hashflow
Yield Protocol is a collateralized lending protocol that offers fixed-rate and fixed-term loans, introducing zero-coupon bond mechanism in lending for the first time. It was originally built on the Ethereum and migrated to Arbitrum in March 2022. Specifically, Yield Protocol currently supports pledging $ETH to lend $USDC and $DAI, let's use $DAI as an example. Borrowers can deposit $ETH as collateral and mint $fyDAI at a minimum of 140% over-collateralization after setting the maturity. $fyDAI represents the right to redeem the equivalent amount of $DAI at maturity. In order to obtain cash flow, the borrower needs to sell the $fyDAI at a discount. By selling $fyDAI with a maturity of 1 year from now at $0.95, for example, the borrower obtains a loan with an interest rate of approximately 5.26%. For repayment of the loan, the borrower has the option to repay the $DAI at maturity or to redeem the collateral by purchasing $fyDAI with the same maturity.
- Yield Protocol has not issued its native token yet. It received $10 million in funding led by Paradigm in June 2021 with participation from Framework Ventures, CMS Holdings, DeFi Alliance, etc.
- It is worth mentioning that the minimum amount of a single loan on Yield Protocol is $100 USDC/DAI, and a minimum of $150 $ETH is required as collateral for the interaction.
Hashflow is a DEX built on multi-chains including Ethereum, Avalanche, Arbitrum, etc. Dedicated to solving the problems of impermanent loss, slippage, and risk of sandwich attacks in AMM, Hashflow proposes the request-for-quote model. In short, it helps crypto market makers write market-making strategies into smart contracts, manage the liquidity pool provided by LPs more efficiently than AMM, and bring market-making from centralized exchanges to decentralized exchanges.
- Hashflow's investors include Dragonfly Capital, Electric Capital, Galaxy Digital, WinterMute, Alameda Research, and others
- Hashflow has confirmed that it will issue native token $HFT, of which 6.75% of the total supply will be airdropped to early participants in the form of retroactive rewards. The snapshot has been taken and participation is currently unavailable.
Week 3: Aboard Exchange and TofuNFT
Aboard Exchange is a perpetual order book DEX on Arbitrum, supporting up to 25x leverage. 12 pairs including ETH-USDC are currently live on Aboard Exchange. It is worth noting that the protocol only supports trading of USDC-based perpetual so it requires a certain amount of $USDC as margin before trading.
- Aboard Exchange has not issued its native token and has not announced any plans about issuing tokens.
TofuNFT is a multi-chain NFT marketplace, deployed on 28 smart contract platforms including Ethereum, Arbitrum, and Polygon. However, the NFT transaction volume in Arbitrum ecosystem is relatively low. So I will recommend interacting early in the task week, and if you need to buy NFT try to choose NFT projects with more holders and larger volume. (For example, my colleague qz's avatar GMX Blueberry Club)
- TofuNFT has not issued its native token and has not announced any plans about issuing tokens.
Week 4: UniSwap and Apex
UniSwap, the largest spot AMM DEX, migrated from Ethereum. ETH/USDC is the most traded pair and is recommended if the Arbitrum Odyssey mission includes providing liquidity for UniSwap.
Apex Protocol is another perpetual order book DEX in Arbitrum ecosystem, it supports up to 10x leverage. Unlike the Aboard Exchange, Apex Protocol provides token-based propetual. The currently live pairs ETH/WBTC and ETH/USD support the use of $ETH as margin to open positions.
- Apex Protocol announced the completion of a seed round of funding in March 2022 from Dragonfly Capital, Jump Trading, Mirana Ventures, CyberX, Kronos, and others.
- Apex Protocol has issued its governance token $ApeX and held an airdrop promotion in April. It is said that there will be similar events in the future, please pay attention to the official announcements.
Week 5: 1inch and iZUMi/Yin Finance
Born in the hackathon of 2019, 1inch is arguably the oldest DEX aggregator. 1inch provides users with the lowest slippage trading routing by integrating depth of liquidity on different DEXs. Currently, 1inch on Arbitrum supports a total of 6 DEXs including UniSwap, Curve, and Balancer.
Both iZUMi Finance and YIN Finance are liquidity management protocols based on UniSwap v3, offering different liquidity yield strategies for LPs. YIN Finance has not yet deployed all of its products to the Arbitrum network. As for iZUMi Finance, users can already experience the full range of products on Arbitrum. (Related Reading: Five Minutes to Understand the Liquidity Optimization Protocol iZUMi Finance)
Week 6: Dodo and Swapr
Similar to 1inch, DODO was originally an Ethereum-based DEX aggregator that was gradually deployed to 11 smart contract platforms such as BNB Chain, Polygon, Arbitrum.
Swapr is also a DEX originally built on Ethereum and later deployed on Gnosis Chain as well as Arbitrum. Swapr proposes a DIY liquidity mining reward feature that supports any user to incentivize any liquidity pool with any pass as a reward, instead of a liquidity mining incentive scheme led by the project owner or DEX.
Week 7: TreasureDAO and BattleFly
TreasureDAO was initially a derivatived NFT project from Loot in August 2021, and as its DAO grew, it released its native token $MAGIC in September and announced a gradual migration to Arbitrum in October of the same year. Dedicated to building a DeFi/NFT/gaming ecosystem around Treasure, TreasureDAO has now developed an NFT marketplace on Arbitrum.
- It is worth noting that the Treasure NFT marketplace only supports trading with TreasureDAO's native token $MAGIC
BattleFly is a flying shooter game of Treasure ecosystem that is powered by $MAGIC. The game has not yet been released, but its first NFT minting event will be announced in the near future, so follow Battlefly official Twitter if you're interested.
Week 8: Ideamarket and SushiSwap
Ideamarket is an alternative Web3 social platform that allows users to post topics such as "God exists", Ideamarket will mint the post as NFTs. Other users can post replies to the topic and rating, or stake others' ratings with Ideamarket's native token, $IMO. Ideamarket will calculate the attitude of participating users towards the topic by weighting the $IMO staking under each rating.
SushiSwap, the old AMM DEX on Ethereum, I will not introduce too much.
These are all the projects in Arbitrum Odyssey. Unfortunately, we were unable to see the same high-quality projects such as Tracer, GMX, and Dopex this time. But since this is a voting contest, there will be winners and losers, so I hope you will have a chance to experience these protocols.
Finally, have fun in Arbitrum Odyssey and enjoy the high-speed transaction confirmation and low gas fees that Layer-2 brings.