Title: Onboard ARB as a Collateral Asset on Notional V3
Author(s): Anthias.xyz Team
Submission Date: 17 October 2023
The following is a proposal to onboard ARB as a collateral currency option on Notional V3. The Anthias team thinks this asset, like cbETH and GMX as outlined in previous proposals, could prove valuable for the Notional community and thus would like the community to consider & discuss onboarding ARB as a collateral type.
- Token contract address (Arbiscan)
- Project Website
- Project Github
- Social media/community channels
- Protocol Analytics Dashboard (Dune)
- The asset is an ERC-20 token:
- The asset has been traded for at least 3 months:
- A sufficiently robust Chainlink oracle (verified tier) for the asset exists:
- Yes (verified tier): ARB / USD | Chainlink
- At least two high-quality audits have been conducted:
- Yes: Audited by Trail of Bits and ConsenSys Diligence: Security Audit Reports | Arbitrum Docs
- The token is held by more than 1,000 unique wallets:
- Yes: Currently held by over 702,000 addresses: $0.79 | Arbitrum (ARB) Token Tracker | Arbiscan
- The current float (circulating supply/max supply) is above 25%:
- No: Float is currently at 12.75%, but this number will soon increase once ARB from the grants / incentivization program reaches the market.
- The token has more than $2m of on-chain DEX TVL (Mainnet) or more than $500K of on-chain DEX liquidity on a Layer 2 chain where a Notional deployment exists:
- Yes: ARB currently has over $26.8M in TVL on Uniswap V3 on Aribitrum: Uniswap Info
1. Provide a brief overview of the proposed asset and its underlying project.
- The ARB token is the native governance token of the Arbitrum Layer 2 scaling solution. It is used to participate in the Arbitrum DAO, which is responsible for managing the Arbitrum protocol and its future development.
2. How is the asset currently used (staking, collateral on other lending protocols, etc.)? Provide relevant activity KPIs.
- ARB is currently used for staking on a variety of protocols. It is also a collateral asset on Aave V3 with over $1,490,000 in ARB borrowed and over $5,090,000 in ARB supplied. ARB is also used as a collateral asset on Compound V3.
- Detail why you believe the project should be added to Notional either as a collateral asset or as a tradable asset and the potential benefits of doing so. Explain why you think the demand for this asset is sufficient to list it on Notional.*
- Since its launch, Arbitrum has seen impressive TVL growth and user adoption; currently it boasts the fourth largest TVL of any chain at just over $2B. Because Notional V3 is launching initially, it makes sense to offer ARB, the native governance token on Arbitrum, as a collateral asset, which will inevitably incentivize further protocol adoption. ARB meets the criteria outlined by the Collateral Asset Onboarding framework created by the Notional core team, so we think it would be a great benefit to the Notional community to onboard ARB as a collateral asset.
4. Provide information regarding the organization behind the project.
- Offchain Labs are the primary builders behind Arbitrum and the ARB token. The team is known for its reputability and is backed by some of the most respected firms in the blockchain space including Pantera, Lightspeed, Polychain Capital, Coinbase Ventures, and more.
5. Provide information regarding past hacks or major bugs and how the team addressed them.
- In September 2022, Arbitrum compensated a whitehat who found a vulnerability in the bridge between Ethereum and Arbitrum Nitro.
- No other hacks/exploits of Arbitrum directly were found. If the community knows of others since the L2’s launch, please feel free to provide information.
6. Provide an overview of the token’s market data.
Market Cap: $1,041,757,875
24H Volume: $143,541,252
ARB Volatility (ARB price compared to ETH over past 12 months):
- ARB has a volatility of 4.90% over the past 90 days, according to CoinCodex.
- Chart via CoinCodex
- Chart via CoinCodex
ARB DEX Liquidity (DEX Guru):
GMX has over $13.7M of DEX liquidity at the time of posting this proposal according to DEX Guru: DexGuru
GMX DEX Slippage: ARB slippage for a 1M USDC swap is currently about 3.25%. Liquidity is sufficient to support the asset with a relatively high supply cap over time based on demand.
Provide an overview of the token emission schedule and major holders.
- This chart by Token Terminal outlines the vesting schedule of ARB tokens over the next four years. The emissions schedule involves tokens being released to the team, advisors, and investors. By March of 2027, the emissions of the token will be complete, and the full 10,000,000,000 ARB will be in circulation. ARB is heavily distributed among a range of holders.
The Anthias team would like to gauge sentiment and hear thoughts from the Notional community with regards to onboarding ARB as a collateral type to Notional V3. Please share thoughts/questions in the comments of this forum post, and feel free to reach out to 0xBroze (@0xBroze on Discord or @OxBroze on Telegram) with any questions.
Anthias is a risk management organization that also builds tools for easily monitoring liquidation risk for DeFi borrowing/lending markets. The Anthias team has shipped multiple grants for Euler, Aave, Compound, and more. We also recently posted the collateral asset onboarding proposals for cbETH and GMX on Notional V3.