Hey folks, last month I wrote about the Arbitrum’s airdrop of their native $ARB token, which hopefully all of you were able to take part of. Its been pretty exciting to see some of the price action that the $ARB token has since it’s airdrop, and if you decided to hodl your $ARB like me, you may have already dabbled in some of the huge APY’s generated from different LPs:
However as you’ll notice in many of Revert Finance’s stats, many of these pools are out-of-range due to the recent run-up in prices:
If you’re extremely bullish on $ARB, you may be adverse to entering into any LPs as you’ll inevitably have exposure to dreaded impermanent loss. Therefore, I thought that it’d be helpful to breakdown some of the best places that I’ve found to single-side-stake your $ARB so that you can still retain your $ARB regardless of how high it decides to moon.
In the following list, I’ll breakdown what I see are the pros and cons of each strategy to help find out where the best place might be for you to stack your $ARB.
DForce — 0.01% APY
Starting with the smallest APY first, you might be wondering why I would be including a platform that has a measly 0.01%. The answer is simple — the reason isn’t because of its supply APY, but instead because of its borrow APY of 0.38%. Depending on what ever different asset you might choose to supply (it could even be supply $ARB to borrow more $ARB), this is a relatively low amount to pay to be able to borrow $ARB while still retaining its potential great upside.
Pros: If you’re looking for $ARB exposure at a cheap rate by putting up some collateral, this might be the best route to go.
Cons: The obvious con here is the low APY. If you’re looking for some higher yields, read on.
Multichain — 13.57% APR
Multichain is a protocol which will allow you to bridge assets across dozens of different chains. As far as I know, the only other chain where you can bridge your $ARB is currently either to Ethereum mainnet or Arbitrum Nova, yet that might be subject to change.
Multichain currently allows staking and harvesting of your $ARB at a cool 13.57% APR, a rate that has gone down significantly from a few weeks ago when it was greater than 60%, but still pretty nice now nonetheless.
Pros: Multichain’s $ARB pool has pretty decent liquidity with more than $2 million in TVL, and as far as I can tell, there’s no fees to stake/unstake.
Cons: The fact that this is a bridge may deter a lot of folks, as bridges are notorious for being hacked and known as some of the weakest points in crypto.
Buffer Finance — 61.20% APR
Buffer Finance’s ARB Vault has the highest APR on the list coming in at 61.20% APR. Similar to its USDC Vault, the ARB Vault’s high APR doesn’t come with its costs, as there’s a 1-day lockup period to unstake, and there’s a cap of 1 million $ARB for the vault.
Pros: Obviously the high APR without permanent lock-ups makes this strategy extremely lucrative.
Cons: This strategy is currently capped, and I would imagine that there’s probably not a lot of people wanting to exit unless this rate drops, or if there are similar other high APR-staking options available.
PlutusDAO — 15.55% APR
PlutusDAO allows users to stake their $ARB via their liquid staking derivative $plsARB in return at a 15.55% APR, earning rewards via their $PLS token. This might be a boon for some people who are bullish on $PLS and the Plutus protocol, especially since its seen some nice price action recently:
As you can see in the first graphic, when staking $ARB it says “Liquid Pool Soon.” This is because that currently staking your $ARB is irreversible, meaning that it will lock your $ARB and you currently will be unable to unstake it.
Pros: In my opinion, PlutusDAO is a pretty solid protocol, and I’m pretty excited that they added the option to stake $ARB.
Cons: The proof is in the pudding and right now, I’m personally unwilling to lock-up my tokens on any protocol unless I know I can unstake them at will.
Conclusion:
If you’re bullish on Arbitrum, I imagine that it’s hard not to be bullish on the $ARB token itself. I would imagine this bullish sentiment is the main reason for why we haven’t seen the typical airdrop-dump and instead, why many people (including myself), have chosen to hodl/accumulate instead.
Are you stacking/hodling your $ARB too? Or if not, why not? I’d love to hear about it in the comments below. Also, if you’ve found any places to stack your $ARB not mentioned in my list, I’d love to hear about that too.
Thanks for taking the time to read this and once again, be sure to follow me on twitter (https://twitter.com/CryptosWith) to get all my latest updates. Also, looking for a gift for your Crypto-loving/hating friend? Give them a REKT journal to cheer them up!
Disclaimer: None of this information is financial advice, and is just speculation from me, a random guy on the internet. Please consider this for purely educational and entertainment purposes. As always, please do your own research or contact a financial advisor to find what investments might be best for you.
