The valuable contribution of the arbitrum ecosystem to developers and users since it launched in 2021 can be seen in its growing popularity and adoption in the crypto community. In March 2023, it rewarded its existing users with 1.16 billion ARB tokens. And over 625,143 wallets received the Arbitrum airdrop.
If you were among the lucky winners of the airdrop and you’re wondering what could be the best ways to maximize your earnings for more gains, this post will give you a clear process to do that.
What is Arbitrum?
Arbitrum is a layer 2 blockchain scaling solution designed to address the challenges of the Ethereum blockchain. It was created by Offchain Labs in August 2021 to accelerate transaction processing times and reduce on-chain transaction costs, while promoting scalability. Its key focus is to expand Ethereum’s smart contract capabilities by improving speed and scalability, while still providing auxiliary privacy features.
Arbitrum reduces the high transactional gas fees through the use of optimistic rollups. Rollups are a way to make Ethereum transactions faster and cheaper. They work by bundling multiple off-chain transactions together into a single transaction that is submitted to the Ethereum blockchain. This helps to reduce the cost of transactions, while still maintaining their security and reducing network delays.
With the help of rollups, Arbitrum can process up to 40,000 transactions per second, compared to Ethereum’s limit of around 14 transactions per second. This means that transactions on Arbitrum cost only a few cents, compared to several dollars on Ethereum.
Furthermore, Arbitrum is compatible with the Ethereum Virtual Machine (EVM). This makes it possible for developers working on decentralized finance (DeFi) projects on Ethereum to seamlessly integrate their decentralized applications (DApps) with Arbitrum without the need to modify their apps.
It successfully launched its long-awaited native token, ARB, on March 23, 2023. The ARB token will be a governance token that will allow its holders to vote on decisions associated with the protocol through Arbitrum’s DAO.
How to check if you got the Arbitrum Airdrop
If you participated in Arbitrum’s ecosystem before February 2023, you can check if you got some ARB tokens airdropped to your wallet with the following steps:
Step 1: The first thing to do to check if you got theArbitrum Airdrop is to go to the Arbitrum airdrop page.
Step 2: Next, connect an Ethereum wallet like Metamask that is compatible with the Arbitrrum token. Other recommended wallets for Arbitrum are Rainbow, Coinbase Wallet, WalletConnect, Trust Wallet, and LedgerLive.
Step 3: After you have connected your Metamask wallet for example, and you don’t already have the Arbitrum One network on your MetaMask wallet, a window will pop up to prompt the addition of it.
Step 4: After checking that the network details are correct, click on Approve and Switch Network.
Step 5: Once you’ve successfully connected your wallet, click on the Check Eligibility button. After that, Arbitrum will check your eligibility. To be eligible, you must meet some of the criteria based on your activities within the Arbitrum network. The level of activities you participated in will determine your eligibility score.
If you have fewer than three points, you won’t be eligible to receive the airdrop. Depending on the number of points you have, eligible wallets can earn between 621 ARB and 10,250 ARB tokens.
Step 6: If you’re eligible, you should see the number of ARB tokens you’ll receive on the left and see the important actions you have taken that made you eligible on the right. You can also expand the list with the + sign to see more details.
How to make the most of your Arbitrum Airdrop for more gains
Your efforts of grinding for the Arbitrium airdrop finally paid off, but where do you go from there? Do you just cash out all your earnings as many would do or are there possible ways you can still leverage the free tokens for more gains? The truth is that the price of the ARB token has declined by over 80% since its launch date. However, you could position yourself to profit more if you apply the following strategies.
Yield Farming
If you want to hold your Arbitrum airdrops, providing liquidity on decentralized exchanges could be a great step to take since the ARB token is a good long-term hold. Not only will you likely get incentives from the DEXes on Arbitrum in a bid to draw liquidity, but the hype around $ARB could also translate to a large number of swaps for the next few days, earning you huge fees.
Furthermore, Kyberswap DEX has announced that they will reward users for providing liquidity on their platform through a program called liquidity mining. Users who participate in this program can earn up to 5% of the total trades that occur on the platform.
In addition, Uniswap V3 offers a way for users to stake their cryptocurrency in a liquidity pool using just one type of currency, either ETH or USDC. However, if you are not familiar with decentralized finance (DeFi), it may be best to avoid trying to cheat the system. This is because there are fake Arbitrum-ETH pools on Uniswap which may trick you into giving away all your crypto.
However, some protocols could give their $ARB allocation back to their community in the form of yield-farming incentives. So you might want to keep an eye out for projects with the top $ARB token distribution across the network.
Cross-Exchange Arbitrage
The launch of $ARB tokens was followed by a huge dump in token price as users hurriedly exchanged their ARB for other cryptocurrencies like $ETH and $USDT. Instead of joining the crowd to sell off your tokens hurriedly, you can leverage the price difference of the ARB token in different exchanges for gains.
The approach involves purchasing $ARB at a lower price on one exchange and then reselling it on another exchange where $ARB is traded at a higher price. This technique could be a lucrative trading strategy for you.
Stake and Farm ARB tokens
Staking involves holding tokens in a wallet for a set time to support the network and earn rewards. By staking your Arbitrum tokens, you can earn additional tokens as rewards.
One option is to stake them on #Bitget and earn additional tokens. #Bitget is offering an APR yield of up to 500% for staking $ARB tokens, providing users with an opportunity to earn more $ARB while holding onto them. Users can join the ARB staking pool between (Mar 23, 2023, 2 PM UTC – Mar 31, 2023, 2 PM UTC)
At the end of the duration, users will share 150,000 ARB tokens. The minimum staking amount is 100 ARB and the maximum staking amount is 10,000 ARB tokens. Staked assets can be unstaked anytime. No yield will be generated on the day you withdraw your staked tokens.
Participate in governance
Arbitrum’s DAO governs Arbitrum One and Arbitrum Nova. It consists of ARB token holders and their delegates. Proposals for upgrades and amendments are submitted and voted on by members of the DAO
With your ARB tokens, you can participate in Arbitrum’s governance and control protocol upgrades, funds allocation, and election of a Security Council that performs emergency upgrades in Arbitrum’s DAO. Your voting power depends directly on the number of tokens delegated to you.
Arbitrum’s M DAO has special members known as delegates. These are users who are committed to maintaining the overall regulation of the Arbitrum DAO. Token holders have the power to select a preferred delegate, including themselves, and can re-delegate at any time.
With all these benefits accrued to ARB token holders in Arbitrum’s DAO, it’s safe to state that Holding $ARB gives you the ability to govern Arbitrum. Your ability to vote on Arbitrum DAO governance proposals, allows you and other ARB token holders to collectively shape the future of Arbitrum protocols and chains.
The voting typically lasts for a set period, during which ARB token holders can cast their votes. The proposal is accepted or rejected based on the number of votes in favor of or against the proposal.
How to get future Airdrops
If you missed out on the ARB or Sui airdrop, you don’t have to worry. There are several valuable potential crypto airdrops you can prepare for. However, there are a few things you must have and do to qualify to receive a crypto raindrop.
To start earning crypto through airdrops, the first step is to have a crypto wallet, which is essential as the crypto you earn will be sent to the wallet address. You can use popular and trustworthy wallets such as MetaMask, Oasis, or TrustWallet. Once you have a wallet, you need to store a certain amount of crypto tokens, as holding some cryptos in your wallet will enable you to participate in airdrops. Usdt and ETH are some of the tokens you could set aside for participating in airdrop tasks.
After that, you can start looking for crypto airdrop programs that could involve partaking in testers for new projects. You can find information and discussions about crypto airdrops on social media platforms like Twitter and Discord. Additionally, there are specialized websites that have crypto airdrop calendars, such as CoinMarketCap, airdrops.io, airdropalert, and DappRadar, where you can find a schedule of ongoing and upcoming crypto airdrops.
Once you’ve found a crypto airdrop campaign that has huge potential, do some in-depth research about it. Learn about the project, the utility offered, and the team behind it. This is because many airdrop programs end up being scams.
After your research, ensure to follow the crypto airdrop rules to be eligible. Some requirements could include registering for the project, having specific crypto in your wallet, and completing tasks related to the crypto airdrop program.
While carrying out tasks that involve transactions, try to trade with a large size of capital if you can, but be mindful of slippages in the transactions. This is because trading volume is often an important criterion, especially for DEX airdrops. DYDX, Arbitrum, Paraswap, and many more used it as a criteria
If you want to position for a L1 or /L2 airdrop try to use their official bridges at least once to increase your chances of being eligible. Both Arbitrum and Optimism used it as a criterion for airdrop eligibility
Here are some specific airdrops to position for in 2023:
Sei Network
Sei Network is a blockchain that operates on layer-1 and was created with the Cosmos SDK. Its primary purpose is to serve as a destination chain for DEX, NFT, and GameFi transactions. The Sei Network team recently launched the final version of the testnet before the Sei Network mainnet, and they have allocated 1% of the total supply as rewards for early adopters and testnet participants.
To earn rewards, you need to complete Act 4 Daily Missions on the Seinami testnet. Once the testnet period is over, all participants’ points will be tallied, and token rewards will be distributed based on the points earned. Learn about the specific tasks for this raindrop on this thread.
ZkSync
ZkSync offers a great solution to Ethereum’s scalability issues by utilizing Zero Knowledge Proofs technology to facilitate transactions on the Ethereum blockchain. With a total funding of US$ 458 million, zkSync is still deciding when to distribute its airdrops but has announced plans to release a native token in the future.
As zkSync and zero-knowledge technology continue to grow and gain popularity in the crypto industry, it’s becoming more and more likely that native tokens will be necessary to support these ecosystems. As a result, many individuals are anticipating the launch of zkSync’s token through interacting on various protocols in its ecosystem. Check out this thread on how to carry out the tasks for this raindrop.
LayerZero
LayerZero is a protocol that enables different blockchains to engage with each other. It is known for its omnichain interoperability and has gained significant attention recently due to its successful funding round, which raised over US$170 million.
The LayerZero ecosystem is expanding, and its Mainnet is now fully operational. As a result, many people are anticipating the launch of LayerZero’s token, although there has been no official confirmation from LayerZero Labs. In the meantime, users have started interacting on Stargate Finance and other protocols in the Layer Zero ecosystem, including the LiquidSwap Bridge to increase their chances of receiving an airdrop from LayerZero when the token is eventually launched. This thread contains all the tasks for this airdrop.
Conclusion
Arbitrum airdrop presents an opportunity for cryptocurrency investors to receive free tokens and potentially earn rewards. To make the most of the airdrop, it’s important to have a strategy in place, such as holding or staking tokens, participating in liquidity pools, and engaging in governance. However, it’s important to remember the risks involved with crypto projects such as price volatility and the potential for loss of funds. Bear in mind that there is no guarantee that the projects we highlighted will give an airdrop this year as most airdrops are based on speculations.