The main protocol that is driving DeFi on Arbitrum is the dex GMX inherent in perpetual and derivatives. In addition to a classic swap, it is possible to trade in leverage and earn income in a pool called GLP which includes a basket of assets in which the user essentially earns when traders lose money and vice versa. The returns are paid in the GMX governance token and mostly in wETH (or Avax if using Avalanche), this allows to attract liquidity without using inflationary tokens. All of this in DeFi 2.0 is defined as Real Yield. I had also made a complete guide on GMX and explained how to take the hypothetical Arbitrum airdrop: How GMX Works On Arbitrum: Here's Why You Should Use It!

The peculiarity is that it is a "modular" DeFi that uses automated strategies through multiple platforms. This shared liquidity model is unique to GMX in the world of derivatives protocols. In combination with the use of price feed oracles (Chainlink), the advantage is that it allows you to execute trades without slippage and price impact. The GMX platform does not have an order book, so trades take place at the current price provided by Chainlink oracle price feeds. In theory, this also means infinite market depth on the protocol for traders. This is in contrast to the centralized trading model, which requires you to provide liquidity directly on the order book. This ultimately leads to more efficient price execution for trades.

HUMAMI FINANCE
The protocol used by Umami Finance has been defined DAO POL (Protocol Own Liquidity), as the native Umami token is staked, so as to guarantee a Treasury useful for carrying out arbitrage or farming strategies in order to provide a return.
Umami token is non-inflationary and generates value for its holders by staking in the "Marinate" pool, where rewards are paid in wETH. Its maximum supply is 1 million tokens (of which 125,000 locked in a burn contract), with a current circulation of 650,000. For its optimal functioning, most of these tokens should remain locked in stake (it is only possible to withdraw on the first of each month).

Through the "Marinate" pool defined as "Real Yield", Umami is deposited and will reward us with the mUMAMI token and wETH, generated by the swap fees of Umami and Arbis on Uniswap. Through the "Compound" pool it is possible to stake the mUMAMI and in exchange we will be given the cmUMAMI token, so as to generate greater interest on our token. This time, however, the interest in wETH is sold directly in mUMAMI bought spot, and the latter is staked again so as to automatically carry out the compounding. USDC, BTC and ETH vault will be added later.
The USDC Vault will be a new product that will combine the use of two different platforms: GMX and TracerDAO, to set up a Delta Neutral strategy that will allow us to rent the USDC tokens that we deposit within its pool for a 20% APY. After USDC is deposited in the vault, the protocol will go to GMX to buy the GLP token (the asset basket mentioned earlier). The token generates rewards from fees and lost liquidity paid by traders who trade within GMX. The fees paid in part in wETH will be swapped for USDC to create an initial compounding effect and then in esGMX allowing to compound the GMX token so as to maximize returns. Later they will go to TracerDAO, to hedge in 3x leverage on both BTC and ETH using tokens created by Tracer, so as to be able to hedge our spot position generated with the purchase of the GLP token on GMX. In addition, it allows us to farm the TCR token which is swapped for USDC. In this way the compound is increased and therefore the final yield up to 20%.
The sum of the two USDC rewards are then returned to Umami's USDC Vault. In general all these strategies bring profits to the platform and 50% is turned over to the Umami stakers. All this makes me very bullish not only on the Umami token (connected to the growth of this platform) but also on the Arbitrum ecosystem which is not affected by the Bear Market!

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