Research Summary
The report provides an overview of five farms of the week in the Arbitrum Edition, namely Perennial, Stella, Silo Finance, GMX, and Trader Joe. Each farm offers unique features and opportunities for liquidity providers (LPs) to earn high annual percentage rates (APRs) through various yield farming strategies.
Key Takeaways
Perennial: A Perpetual Exchange with High APR
- Perennial’s Offering: Perennial is a perpetual exchange that uses isolated pools for each market. It recently launched V2, which has made the platform faster, cheaper, and more liquid. LPs can earn 200% APR for providing liquidity on BTC/ETH.
Stella: Leveraged Yield Farming with High Yields
- Stella’s Incentives: Stella is an Arbitrum-based leveraged yield farming protocol. Users can lend their tokens for double-digit APRs or farm blue-chip pairs with up to 5-10x leverage. LPs can earn up to 1158% APR on PENDLE/ETH, 711% APR on GMX/ETH, and 750% APR on ARB/UDSC.
Silo Finance: Risk-Isolated Lending/Borrowing Market
- Silo’s Unique Infrastructure: Silo is a risk-isolated lending/borrowing market on Ethereum and Arbitrum. It offers secure lending and borrowing of long tail assets, with the protocol avoiding bad debt due to its isolated “silo” infrastructure. Users can earn 20-30% APR on USDC, 40% APR on PENDLE, and 19% APR on rETH.
GMX: Leading Perps Exchange on Arbitrum
- GMX’s Lucrative Yields: GMX is the leading perps exchange on Arbitrum. It has received a substantial STIP ARB grant, which is being used to incentivize liquidity on the V2 pools. LPs can earn 57% APR on ARB/USDC, 26% APR on BTC/USDC, 52% APR on LINK/USD, and 56% APR on SOL/USD.
Trader Joe: Hyper-Efficient AMM
- Trader Joe’s High Yields: Trader Joe is a hyper-efficient automated market maker (AMM) on Avalanche, Arbitrum, and BNB. It offers high yields for LPs, with some of the favorite pairs including PENDLE/ETH at 183% APR, GMX/ETH at 179% APR, ETH/USDC at 76% APR, and swETH/ETH at 38% APR.
Actionable Insights
- Explore Perennial: Consider providing liquidity on BTC/ETH to potentially earn a 200% APR. Also, keep an eye out for the launch of Perennial’s token for potential airdrop opportunities.
- Investigate Stella: Look into lending tokens or farming blue-chip pairs with leverage on Stella to earn high APRs.
- Consider Silo Finance: Evaluate the potential of lending and borrowing long tail assets on Silo, a risk-isolated lending/borrowing market.
- Examine GMX: Assess the potential of providing liquidity on GMX’s V2 pools to earn high APRs.
- Review Trader Joe: Investigate the potential of providing liquidity on Trader Joe’s high-yield pairs to maximize the efficiency of your tokens.
