Thread by @crypto_condom

On #Ethereum, @CurveFinance acts as a DeFi lynchpin w/20+ protocols that are built ontop of or around $CRV.
On #Arbitrum, I see @GMX_IO as an evolving defi primitive that will act as a base layer as well. 10+ protocols are building ontop of it w/more every day. 👀
👇🧵

IMO, we're going to s👀n start seeing a @cosmos -like effect begin to develop on the #ETH L2s: Modularity at its finest.
Microcosms of dApp communities will evolve on specific rollups: #Arbitrium for DeFi, @polygonhermeztr for GameFi, @starkware for centralized services, etc
👇

Among the present rollups, #Arbitrum is uniquely positioned to take avg of alt L1 volume moving back to the safety of #Ethereum.
Degens who have gotten used to cheap fees & fast txns will benefit greatly from @OffchainLabs's Nitro w/fees now $0.25-$0.50...ideal for DeFI
👇

Perhaps the great feature of #Arbitrum's DeFi ecosystem is its composability.
Protocols like $UMAMI, $DPX, $JONES, $TCR are all working synergistically to create new defi primitives built upon @GMX_IO w/yield earned in native $ETH rather than a 💩coin.
👇

A native token for #Arbitrum is likely to incentivize TVL to the rollup via both airdrop hunters & yield farmers alike.
@DefiLlama demos TVL to be $1.7B. At first glance, this is not impressive. However, bc of the recent 🐻market, TVL is N🚫T useful to measure adoption.
👇

Using @nansen_ai, we can monitor #Arbitrum adoption in the 🐻 market by looking at the # of unique addresses holding $WETH (L) & $USDC (R) as well as the # of txns on #Arbitrum vs #Ethereum. All 3 metrics support evidence of rapidly growing adoption even during recent 📉.
👇

As MORE users migrate from L1 to L2 #Arbitrum, the interest in for ⬆️ yield & delta neutral strategies will exponentially grow.
IMO, the success of $GMX can partly be attributed to moving away from yield based, native token inflation to yield based on ACTUAL income.
👇

The growth & revenue of $GMX is undeniable. Even in a 🐻 market, more unique users are interacting w/the platform even if they are placing smaller perp bets.
Degens will degen & composability w/@dopex_io Atlantics & $UMAMI's ERC4626 vaults will likely ⬆️⬆️ TVL on $GMX & $GLP.
👇

Greater TVL in the @GMX_IO index will transiently result in yield dilution for $GLP holders. HOWEVER, the rise of $DPX Atlantics will permit insurance for perps that is ALSO likely to increase $GMX trading fees.
A larger $GLP index fund means:
⬆️ leverage = ⬆️ perp bets =💰💰
👇

@GMX is not as lg as @dYdX & they do not offer as many trading pairs or as much leverage...but only bc they lack collateralization at this early stage of the platform.
Tokenomics are 🔥, UI is clean & composability w/other ecosystem partners is 🔑 to eating $DYDX's lunch.
👇

TLDR: As growing #Arbitrum TVL + token brings new degen DeFI users, expect $GMX to become increasingly important for yield farming, perp trades, 0 slippage swaps, MEV revenue & the creation of new/evolving DeFi primitives. 🍌

Full Disclosure:
I hold the Arbitrum ecosystem tokens $GMX, $UMAMI.
I have never been & never will be, compensated for my tweets; opinions are my own. This 🧵 is meant to be educational. As always, DYOR to be safe. NFA.