Avalon Labs (AVL) revolutionizes Bitcoin finance with BTC-backed stablecoin lending, CeDeFi & DeFi solutions. Borrow, stake & earn with BTC-based assets.

 (BTC)’s financial ecosystem, known as 

, has experienced significant growth over the past few years, with a number of sidechains, rollup platforms and cross-chain applications helping users leverage their BTC funds for 

 (DeFi) operations. One of the newer BTCFi solutions on the market is Avalon Labs, a multi-chain platform focused on Bitcoin-backed 

Avalon lets users borrow stablecoins by providing collateral in BTC or BTC-related assets, such as Bitcoin-pegged tokens and 

 of Bitcoin. Users can access funds at fixed repayment rates, ensuring stability in the otherwise volatile crypto finance world. This stability, in turn, drives the more active use of Bitcoin-backed assets in the 

Importantly, Avalon Labs has secured access to billions of dollars in accessible stablecoin funds from centralized finance (CeFi) institutions, helping it act as a key bridge between the worlds of traditional and crypto finance.

 (AVL) is a decentralized BTCFi lending platform that lets users borrow stablecoins by supplying collateral in the Bitcoin cryptocurrency or in BTC-related crypto assets.

 The platform also provides opportunities to earn yield by supplying crypto funds to several liquidity pools. The platform's flagship asset is the USDa stablecoin, backed by Bitcoin.

Avalon also offers other lending opportunities via two primary modes: CeDeFi and DeFi. The CeDeFi offering allows users to access funds in the 

 (USDT) stablecoin, while the DeFi component is made up of three lending and borrowing pools — based on BTC and BTC's liquid staking derivatives, 

Avalon Labs has implemented a series of risk mitigation measures in order to protect its users and ecosystem. Measures focusing on the lending mechanism include the requirement for overcollateralization of all loans, and a rigorous liquidation procedure activated when the 

 (LTV) ratio drops below sustainable levels. Platform-wide risk mitigation measures include regular internal and external security audits, and AI-driven 

Avalon Labs operates on multiple blockchain platforms, including 

, with plans to expand to more decentralized networks in the future.

The project conducted its seed round fundraising in March 2024, and actively entered the BTCFi niche in November 2024 with the launch of its USDa stablecoin. As of the time of writing in early February 2025, the platform is preparing for the launch of its native token, AVL.

USDa is Avalon’s Bitcoin-backed stablecoin, designed to help BTC holders put their funds to active use in the DeFi ecosystem. By providing Bitcoin-based collateral, borrowers can mint USDa, which is freely exchangeable with the USDT stablecoin at a 1:1 ratio. As such, USDa is indirectly pegged to the U.S. dollar via a fixed-rate USDT conversion mechanism.

By locking their collateral and requesting USDa, users create so-called collateralized debt positions (CDPs) — an overcollateralized crypto debt instrument first popularized in the DeFi industry by 

Besides the stable, USD-pegged rate, USDa boasts several other benefits. First, borrowers can access fixed-rate interest repayments for their debts, enjoying certainty in planning their payments to the platform. Secondly, early finalization of debt doesn’t carry a financial penalty. Importantly, USDa can be put to use across different chains, thanks to its utilization of the 

CeDeFi Lending is a major component of Avalon Labs' focus on Bitcoin-backed loans. The project claims to have secured access to billions of dollars in USDT and 

 (USDC) funds at traditional finance institutions. This allows Avalon users to borrow funds in these popular stablecoins at fixed rates of 8 –10%. As of late January 2025, Avalon's CeDeFi lending component allows you to borrow USDT by providing collateral in Ignition FBTC (FBTC), a Bitcoin-pegged omnichain cryptocurrency. Other collateral and borrowing assets (e.g., USDC loans) might also be introduced in the future.

Avalon Labs’ DeFi lending component is represented by three main types of liquidity pools, against which users can lend and borrow assets. The BTC LSD Pools are made up of BTC and BTC-based liquid tokens, with each liquid token isolated to its own independently operating pool. There are also RWA Lending Pools, which consist of RWA tokens and stablecoins. The third type is the General Pool, containing mainstream assets like BTC, ETH, popular stablecoins and more.

The platform separates each asset, such as each liquid token or RWA, into its own isolated pool. Pool isolation helps structure risk mitigation measures carefully tailored to each asset.

For the first few months on the market, Avalon has operated without a native token. The project is currently gearing up for the introduction of its 

, AVL, to be launched sometime in Q1 2025. AVL will support not only governance but also a range of other functions. One of these is staking. By staking AVL, users will be issued sAVL, an asset that will be used directly for governance processes. sAVL holders will participate in votes to decide the rules and future direction of the platform. Staking will also let them accrue crypto rewards in AVL tokens.

Additionally, AVL will provide access to exclusive features, perks and fee rebates on its platform.

The AVL token will be issued with a total supply of 1 billion. Planned supply allocation shares are as follows:

 platform. Bybit Pre-Market Spot is an over-the-counter (OTC) trading platform that allows you to acquire promising new cryptocurrencies before listings on Bybit's main Spot trading market, letting you access these assets at potentially discounted rates.

The AVL listing on Pre-Market Spot lets you speculate on the new token's potential. Naturally, before investing in any asset (whether it's offered via Pre-Market Spot or other trading environments), you’re encouraged to 

 on the project's background, operational details and future potential.

The sphere of financial solutions for the Bitcoin blockchain is quickly gathering pace, with several projects in the cryptocurrency market aiming to help Bitcoin holders put their funds to active use. Avalon Labs is a key initiative within this niche of the cryptocurrency industry, offering a much-needed service — stablecoin issuance backed by the security of Bitcoin. 

Early indicators suggest that this project has significant potential within the Bitcoin ecosystem, as well as within the wider crypto ecosystem. Of particular importance is the project team's claimed access to billions of dollars in USDT and USDC funds at traditional institutional finance providers. A thorough risk management framework — supported by regular audits, AI-driven monitoring, and sound debt collateralization and liquidation mechanisms — also provides further assurances to the user community.

The benefits offered by Avalon Labs are clear-cut, but more details on access to the billions of dollars at traditional finance providers would certainly contribute to user trust in the platform, something that's always helpful for any young web3 startup. Currently, however, the main focus is on the platform's imminent native token launch. AVL's token generation event (TGE) will be a significant evolutionary step in the life of this promising BTCFi project.

Intermediate

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Avalon Labs (AVL): Driving Bitcoin’s Financial Evolution

Helium Mobile is revolutionizing telecom with three new plans, including the Zero Plan.

Daily Top Performer — Ampleforth (FORTH)

The S&P 500 rose 0.72% on Tuesday, but futures fell on Wednesday after Alphabet’s weak earnings while investors await more earnings reports. Gold hit a record $2,845.14 as U.S.-China tariffs fueled safe-haven demand. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 4.35%, with Bitcoin and Ether dropping by 2.52% and 6.25%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is FORTH, which surged nearly 49.1% following the announcement of Ampleforth’s Evergreen Cycle, a decentralized solution for resilient DeFi treasuries.

Ampleforth (FORTH), founded in 2018, is a stablecoin that adjusts its supply daily through “rebasing” to maintain price stability, ensuring holders keep their proportional ownership. Ampleforth 

 AMPL and SPOT as decentralized alternatives for DeFi treasuries, reducing reliance on centralized stablecoins. AMPL’s elastic supply and SPOT’s low volatility offer DAOs a resilient treasury strategy through the "Evergreen Cycle"—buying AMPL in bullish markets and rotating into SPOT during downturns. This system enhances liquidity, mitigates market cycle risks, and enables DAOs to act as decentralized “micro central banks,” reinforcing long-term stability in DeFi.

Check Out the Latest Prices, Charts, and Data of 

Helium Mobile is revolutionizing telecom with 

, including the Zero Plan, which offers free mobile service (3GB data, 300 texts, 100 minutes) while rewarding users with Cloud Points for sharing anonymized data. These points can be redeemed for gift cards and experiences. Other plans include the Air Plan ($15/month) for 10GB and the Infinity Plan ($30/month) for unlimited data. Helium Mobile combines community-powered networking with the nation’s largest 5G coverage, making mobile service more affordable, flexible, and rewarding. The plans are currently invite-only, with a waitlist available.

Yesterday, BTC Spot ETFs recorded $91.7M in total inflows, with $72.2M from non-GBTC and $19.5M from GBTC.

, a decentralized social network platform, is hinting at a potential airdrop for users. To increase chances of receiving the airdrop, users should sign up on the platform, create a Town, deposit ETH, and join other Towns to earn points. Towns raised $25.5M in funding and operates on the Caldera network. Tipping others and daily engagement may boost rewards.

Beginner

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Helium Mobile Introduces Free Plan and Rewards for Staying Connected

Haedal unlocks liquidity for staked SUI by converting it into haSUI tokens, enabling users to earn rewards while freely participating in DeFi activities.

vWhat if you could earn staking rewards and keep your crypto liquid? Haedal, a pioneering 

 blockchain, turns this possibility into reality. Haedal eliminates the trade-off between 

 and accessing liquidity by transforming staked SUI tokens into haSUI — a yield-bearing asset usable across 

 (DeFi). This article explores how Haedal simplifies staking, enhances capital efficiency and unlocks superior returns while fueling the growth of the Sui ecosystem.

Haedal is a liquid staking protocol on the Sui blockchain that allows users to stake SUI tokens, mint haSUI (a yield-bearing 

) and earn additional rewards through DeFi integrations. It simplifies participation in staking while maintaining liquidity for decentralized finance activities.

Haedal was created by a group of anonymous blockchain enthusiasts and experts who recognized the need for a more efficient and secure way to stake SUI tokens on the Sui blockchain. Their vision for Haedal was born from the desire to improve the DeFi ecosystem by offering a simple, one-click liquid staking solution. This approach allows users to earn rewards while still keeping their assets flexible and liquid.

Haedal bridges the gap between staking and decentralized finance, making it easier for users to participate in various DeFi activities without sacrificing security or efficiency. By doing so, Haedal boosts user engagement within the Sui ecosystem and also helps strengthen and expand the broader DeFi ecosystem, paving the way for greater blockchain adoption.

Haedal seeks to address the major issue of lack of liquidity in traditional staking models, whereby users must lock their assets for fixed periods. This restricts their ability to use those funds for other investments or DeFi activities, such as 

 or governance participation, reducing flexibility and deterring engagement. 

Another barrier is the complexity of staking management. Selecting validators, monitoring performance and handling technical processes can overwhelm newcomers — and even experienced users. This steep learning curve limits broader adoption and discourages participation in ecosystem growth. 

Also, many staking systems suffer from inefficiency and security risks. Outdated practices or centralized control can expose users to asset loss and/or downtime, while fragmented platforms make participation cumbersome. These vulnerabilities erode trust and hinder the scalability of decentralized networks. 

 technology to tackle liquidity constraints, simplify user experience and enhance security, aiming to create a more accessible and efficient ecosystem for staking and DeFi integration.

Haedal deploys the following advanced mechanisms to make staking SUI tokens more flexible and user-friendly. 

haSUI is a versatile token that unlocks liquidity for users who stake their SUI tokens through Haedal. When users stake SUI, they receive haSUI at a 1:1 ratio, acting as a dynamic “receipt” for their staked assets. Unlike 

, in which funds are locked and unusable, haSUI retains liquidity, allowing users to trade, lend or use it as collateral in DeFi apps while their original SUI continues earning staking rewards. 

Over time, haSUI’s value grows as it accumulates rewards from validators securing the Sui blockchain. This dual functionality bridges the gap between passive income and active participation in DeFi, letting users maximize their crypto holdings without compromise. 

Haedal streamlines staking by automating the entire process. Users deposit SUI tokens into the protocol, which then delegates them to trusted, high-performing validators on the Sui network. This eliminates the need for users to research validators or manage technical details manually. The system continuously monitors validator performance, reallocating stakes to optimize returns and minimize risks. 

Unlike more rigid staking models, Haedal’s protocol imposes no lockup periods, so users can unstake at any time by swapping their haSUI back to SUI. This flexibility, combined with automated efficiency, makes staking accessible to everyone, from newcomers to institutions, while ensuring their contributions actively support Sui’s network security. 

The Random Vault adds an element of chance to traditional staking, creating a fun and community-driven experience. Users deposit SUI into the vault for one week, during which their funds are delegated to validators. At the end of the week, all staking rewards generated by the vault are pooled and distributed to five randomly selected participants. This gamified approach injects some excitement while also diversifying risk by spreading stakes across multiple validators automatically. 

Participants enjoy a hands-off experience, requiring no active management, while gaining exposure to potential bonus rewards. The Random Vault democratizes staking, offering both seasoned users and casual participants a fresh way to engage with the Haedal ecosystem. 

The Haedal Market Maker (HMM) ensures seamless trading and liquidity for haSUI tokens, addressing common challenges in DeFi: price volatility and accessibility. HMM operates by providing deep liquidity pools for haSUI trading pairs, which stabilizes prices and minimizes slippage during trades. This means users can buy or sell haSUI quickly and at fair market rates, even during periods of high demand. 

HMM maintains a tight peg between haSUI and SUI and enforces trust and usability, making the token practical for everyday DeFi activities, such as swapping, lending and/or collateralizing loans. This infrastructure not only benefits individual users, but also strengthens the broader Sui ecosystem, encouraging adoption and enabling institutions to participate confidently in the decentralized finance realm. 

Haedal has achieved significant milestones, including launching its liquid staking protocol, growing its 

Looking ahead, the project aims to expand its product offerings, improve scalability and strengthen its role in the Sui ecosystem. 

Haedal redefines staking on Sui by merging liquidity, simplicity and innovation. By transforming staked SUI into yield-bearing haSUI tokens, it unlocks DeFi opportunities without sacrificing rewards or security. Features such as automated staking, gamified vaults and robust liquidity solutions empower users to maximize earnings while supporting network growth. 

With a clear road map and a community-driven ethos, Haedal is positioning itself as a catalyst for accessible, efficient decentralized finance, bridging traditional asset holding with the dynamic potential of blockchain.

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Haedal: Unlock Superior Returns With Sui Liquid Staking

Loopy is a Sui-based meme coin inspired by a beaver with a distinctive pink hue that’s featured in the Pororo the Little Penguin cartoon. Learn more here.

If you want a comprehensive crypto portfolio, it pays to check out 

. Though these coins might not be worth as much as major cryptos, their potentially drastic price swings can result in big profits for investors. One intriguing 

 meme coin to check out is Loopy, a cartoon-themed coin (inspired by a popular television show) that’s had an interesting growth pattern of late. To see if Loopy is the right investment for you, we’ll take a look at its tokenomics and pricing trends. 

 is a meme coin based on the Sui blockchain. It's inspired by a beaver with a distinctive pink hue that’s featured in the 

 cartoon. Much like the character herself, the Loopy coin hopes to showcase the values of friendship, hope and harmony.

On a technological level, Loopy works similarly to other meme coins. Loopy uses the Sui blockchain as the foundation for its system. This delegated 

 network is known for its scalability and speed. Loopy takes advantage of Sui's features by using its standardized 

 and token creation protocols. Since Loopy doesn't have to run its own blockchain, it can focus more on the marketing side of operating a cryptocurrency.

In order to increase its token's market capitalization, Loopy has heavily integrated itself into social media. Loopy runs both a Telegram channel and a 

 where it interacts with its audience. These sites post memes about gentlehearted Loopy, encouraging users to share their own. 

In addition to marketing the Loopy coin, these social media sites also help to operate the entire Loopy community by tracking member participation and using these metrics to determine eligibility for 

Loopy's token, with the symbol LOOPY on most exchanges, is a traditional meme coin that has no utility outside of entertainment. Its sole purpose is to appeal to fans of gentlehearted Loopy in 

 The Loopy coin does have a somewhat higher supply than many other tokens, with a 

. Half of the tokens were distributed to community members in an 

, while the other half were used for token liquidity. The majority of these tokens are circulating now, so the coin's current circulating supply is close to its total supply of 1 trillion tokens.

Loopy was released back in October 2024, so it's already been the subject of a few newsworthy events. The coin was initially selling for around $0.000012, but a decline in trading volume led to a sudden price drop, to around $0.0000035 in early November 2024. Fortunately, fans of the beaver with the distinctive pink hue rallied behind it, and it surged to an impressive all-time high (ATH) of $0.000013 by mid-November. 

When the Loopy token’s price increased by over 763% in just 24 hours, it began receiving a lot of attention. The coin's market cap reached $17 million, and it was briefly one of the top Sui meme coins. Since its heyday, the Loopy token has had some struggles. Starting in January 2025, coin prices dropped to as low as $0.00000004 as its market cap plummeted. 

However, these unusually low prices have been just as noteworthy as the coin's ATH. Loopy fans who were getting priced out of owning the token have been expressing interest in it once again, due to its more affordable prices. The trading volume of Loopy might look a little low now, but it's no longer in free fall, as it was in early January 2025. Some market analysts even suggest that LOOPY’s price may reach 

LOOPY tokens have a high current circulating supply, but not all exchanges support this token yet. It's primarily available through smaller, decentralized exchanges. However, if you prefer a more convenient experience, check out the 

. This service provides access to DEX offerings, while maintaining the same great service that all Bybit users can count on. Purchasing LOOPY through Bybit is as simple as checking the current price, entering the number of LOOPY you want to buy and confirming your purchase. 

LOOPY's market cap and 24-hour trading volume have certainly declined from the coin’s heyday, but it still holds some promise for investors. The low current price means that it's possible to buy a lot of LOOPY without spending much money. This can result in big profits if the coin experiences even minor price increases. Furthermore, most pricing analyses suggest that LOOPY's market cap could recover in the future.

However, don't forget that this sort of investment can be risky. Some meme coins generally fail to return to their ATHs after brief enthusiasm during their launches. Loopy's team hasn't been promoting their coin as much lately, so whether or not LOOPY can recover will rely mostly on the coin's fanbase. While investing a bit of extra money you have in LOOPY could be fun, it’s not recommended that you invest money you can’t afford to lose. Meme coins are always volatile, and it’s essential to use some caution and 

 any time you invest in tokens such as LOOPY.

While LOOPY tokens might not have the highest 24-hour trading volume anymore, this meme coin is still backed by a dedicated community. Its ability to appeal to 

fans with positivity and humor has helped it stand out from other Sui meme coins. Loopy is a great example of how a simple yet fun concept can end up appealing to thousands of investors.

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Loopy (LOOPY): The Most Adorable Meme Coin on Sui

Tech Deep Dive

Wondering what is Arbitrum? From lower costs to faster transaction speeds, here's all you need to know about Arbitrum's scaling potential.

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Ethereum has grown so much that it’s having trouble keeping up with demand. Powering almost 

, completing over 150,000 transactions per day with over 50,000 daily active users, it’s become apparent that even 

 won’t be scalable enough long-term. That’s why Ethereum scaling solutions such as Arbitrum are crucial to the long-term success of the 

Layer 2 solutions, including sidechains, channels, and rollups, provide Ethereum users and developers with increased speed and security without the price tag. Let’s discuss what is Arbitrum and how it takes rollups to the next level — for both beginners and advanced crypto enthusiasts.

What Is Arbitrum and What Is It Used For? 

 designed to facilitate more transaction volume on the blockchain network at a lower cost. It uses the same tooling as Ethereum, so DApp developers can quickly, easily, and securely deploy apps on Ethereum using Arbitrum. 

In short, for those wondering what is Arbitrum and what it’s used for, Arbitrum is meant to 

, prevent fraud and lower the cost of operating on the Ethereum blockchain network. This Ethereum scaling solution will make DApp development seamless, fast, and secure by providing developers with an Ethereum-based platform that limits data stored 

Ethereum scaling solutions are used to make 

 networks faster and increase their ability to handle a high volume of transactions. Examples of Layer 1 networks include Ethereum and Bitcoin. Layer 1 solutions aim to alter the protocol of the blockchain network itself, instead of adding an additional processing layer. 

, which means it’s an extension to Layer 1 that’s enabled by smart contracts which are built on-chain. Arbitrum creates additional space for transactions to be processed. The solution executes transactions off-chain before reporting back to the mainchain, enhancing speed, lowering costs, and maintaining the 

To develop a deeper understanding and know what is Arbitrum along with its uses on 

, let’s talk about some different types of Layer 2 Ethereum scaling solutions and discover where Arbitrum fits into the mix. 

Sidechains are where Layer 1 scaling began. Sidechains work by running a parallel blockchain network alongside the 

. Although sidechains are essentially extra Layer 1 space, they aren’t secured by Layer 1 and are less decentralized. The problem is they can be manipulated by fraudulent validators, and the security standards may vary from chain to chain. 

Sidechains represent a shift in how developers intend to execute transactions using blockchain. Instead of maintaining a single ledger, sidechains introduce a blockchain model built with numerous layers integrated into the main blockchain network. 

 framework offloads transaction execution to sidechains — but with a twist that ensures extra scalability. Through the use of smart contracts and 

, plasma enables an unlimited number of sidechains, or child chains, to be created and designed to work in a specific way to meet the various needs of the main blockchain network. 

, which ensure secure and enforceable exchangeability. That means any user can send funds to another user in their native platform coin faster and with less latency.

Going deeper down the blockchain scalability rabbit hole, we arrive at state channels and payment channels. Channels are 

 that allow users to make a certain number of off-chain transactions with only two transactions occurring on-chain. 

Participants have to create and fund an Ethereum transaction when they open up a new channel. While the channel is open, off-chain transactions can occur. When users are ready to close the channel, they are charged again to process the transactions. 

The channel mechanism decreases the number of transactions processed on the Ethereum network and limits gas fees for opening and closing the channel. 

More specifically, payment channels are meant to transfer funds between users, and state channels are designed to create a fee-less conduit between two parties by locking up a portion of the blockchain. Because everything occurs within the sidechain channel between two participants, it’s a highly secure solution. But it lacks the ability to scale at higher volumes. 

Before diving into what is Arbitrum, we’ll first need to discuss rollups. Rollups have become one of the most popular contract-based scaling solutions for blockchain applications. Rollups scale the mainchain by essentially “rolling up” transactions into a batch, and validating them off-chain. By rolling up and compressing the data, rollups allow higher throughput, more speed, and lowered transaction costs. 

There are two main kinds of rollups: ZK (zero knowledge) and Optimistic Rollups.

, or “zero-knowledge scalable transparent arguments of knowledge,” to validate data and perform computations off-chain. The validity proof is attached to each data bundle while still having the ability to perform increased numbers of transactions. The 

 represents powerful security, since it’s publicly verifiable proof that something is true without having to reveal its state, what it is, and in what amount. 

Optimistic rollups limit on-chain computation by performing proof of confirmation only if a node suspects that a fraudulent transaction is occurring. By performing validity proofs only when fraud is suspected, optimistic rollups increase transaction speed and throughput even further. 

If you’ve ever wondered what is Arbitrum, it’s an advanced Optimistic Rollup that stores very little data on-chain for optimal scalability. Arbitrum is built on the Ethereum network and allows for up to 

 per second (TPS). That‘s faster than 

 (Consensus Layer) expectation of about 3,000 TPS. Arbitrum works with all Ethereum developer tools, including the 

 smart contract. Numerous integration options provide standard Ethereum front-end tooling for Arbitrum, making it easy to work with — and simple to build and deploy DApps. 

Now that you know what is Arbitrum, it’s now time to understand how it works. Arbitrum follows the off-chain Optimistic protocol managed by a contract on the Ethereum chain. In a nutshell, it works by validating transactions off-chain before sending confirmation back to the blockchain. Developers can create smart contracts 

, and then compile them into code that runs on the Arbitrum virtual machine. 

A Merkle tree organizes the state of the Arbitrum Virtual Machine so that the cryptographic hash value can be calculated. The hash is then stored on-chain so that the state can be fully confirmed and finalized. Only the hash values of the final state are stored on-chain. 

The state of the virtual machine is advanced when participants in an agreement propose a DA, or disputable assertion. The assertion says that the virtual machine will execute a certain amount when calculated. Each participant in the agreement needs to bet a deposit to ensure the assertion’s validity. 

If the DA is valid, the system will enter the new state. If the DA is invalid, it’s rejected by Arbitrum, and the state will not change. 

 to process multiple DAs, while the verification node takes care of how fast it can be processed. Additionally, malicious participants can’t delay the system as with other protocols. This was customized for Arbitrum prior to their Nitro upgrade which now uses a standard and well-supported compiler on Ethereum known as Geth.

One of the most important things to understand about 

 is that there’s no need for trust. As long as there is one honest participant in an agreement, then the Arbitrum virtual machine will advance correctly, no matter if the correct branch is bet on or not. A path of trust is created over time as participants execute valid transactions with Arbitrum. 

How Arbitrum Overcomes Ethereum’s Limitations

Ethereum has gained a lot of traction since it first launched in 2015. But 

, preventing the network from reaching its fullest potential. Without scalability, developers are also limited by what the network can do and how many transactions it can process. Essentially, blockchain technology has hit a wall regarding scalability — and that’s precisely where Arbitrum can propel Ethereum forward. 

What is the blockchain trilemma? Simply put, it means scaling, decentralization and security. It has proven difficult for blockchain projects to 

 of all three. Finding a solution to this blockchain trilemma can help change the way we think about cryptocurrencies and blockchain technology. 

Right now, blockchains rely on rollups like Arbitrum to complete the trifecta and create a secure, scalable and decentralized blockchain. Let’s talk about some of the ways that Arbitrum overcomes Ethereum’s limitations. 

Ethereum can only perform about 10 TPS, but Arbitrum can handle up to 40,000 

. That’s 4,000 times faster than Ethereum alone, the most widely used L1 platform in the world. 

A common problem among popular Layer 1 networks, such as Ethereum and Bitcoin, is high gas fees. Fees for 

 can cost anywhere from 1.5% to 2.3%. Arbitrum makes it possible to complete large volumes of transactions with much less gas — and they’re working on reducing fees even further. 

 out of all the Layer 2 solutions, making it an easy pick for those who know what is Arbitrum. It’s easy to use, simple for developers to understand, and powerful enough to scale on the Ethereum blockchain. 

Arbitrum is especially beneficial for developers. It’s compatible with EVM and uses Solidity code, without compiler or version restrictions. There’s also no 

, so smart contract developers can take their projects to the next level. 

Even though Ethereum 2.0 supporters are convinced that rollups will be obsolete after its full rollout, it’s clear that Arbitrum rollups are aligned to reach unprecedented scalability. Some Layer 2 blockchains plan to release their own coins, but Arbitrum has indicated that it’s a transaction-focused organization.

 and is now running live on their mainnet. At its core, Nitro changes the way Arbitrum's engine works such that it can be written and compiled using standard languages and tools instead of the custom designs used previously.

Essentially, Arbitrum Nitro provides the network with a ton of improvements. This includes 10 times more in throughput, further lowering transaction costs on Arbitrum, 

interoperability, and creating a safer environment when passing messages from Arbitrum to Ethereum.

Arbitrum currently does not have a native coin and may be releasing one in the future. While Arbitrum has been live on the mainnet for around a year, the team has not mentioned anything around a native coin for the ecosystem. That said, it is worth mentioning that their competitor, Optimism airdropped its native coin months after making its platform available for testing and the OP airdrop was given to users who interacted with multiple facets on the Optimism network. 

Arbitrum and Optimism built on what Polygon was unable to accomplish. Although 

 is free, Arbitrum and Optimism have features that other rollups can’t compare with. They’re both built directly into the Ethereum mainchain, providing optimal 

Although Arbitrum and Optimism have several similarities, it’s their differences that set them apart. Let’s discuss some of these similarities and differences in more detail — so that you can decide which rollup is the best option for your purposes. 

Similarities Between Arbitrum and Optimism

After going through the basics of scaling solutions and what is Arbitrum and Optimism, it’s important to understand that both Arbitrum and Optimism are considered Optimistic Rollups. We briefly covered these in a previous section about 

, but now we’ll see how this plays a part in the relationship between Arbitrum and Optimism. 

Both Arbitrum and Optimism can condense several transactions into one single transaction. They then process the transactions outside the Ethereum blockchain before transmitting the data back to the main chain. 

, Optimistic Rollups such as Optimism and Arbitrum can significantly reduce the time that it takes to complete a transaction on-chain. Additionally, they can both be implemented into existing 

A disadvantage that both Arbitrum and Optimism must contend with is that any challenged transactions can be held for one week. This is one way that the rollups attempt to prevent fraudulent transactions, but it can take some time if you’d like to transfer digital assets back to the main chain. 

Differences Between Arbitrum and Optimism

At first glance, Arbitrum and Optimism seem to be identical Optimistic Rollups. However, one key difference sets the two apart — and it has to do with how they deal with fraudulent transactions. 

When Optimism processes a fraudulent transaction 

, the rollup sends the entire transaction back through the 

. When Arbitrum processes a suspicious transaction off-chain, it only sends the suspicious part of the transaction back through the EVM. 

It is through this fraud-prevention mechanism that Arbitrum sets itself apart from Optimism. And because all suspicious transactions are processed off-chain, Arbitrum can achieve a 

Table 1: Product Features of Arbitrum vs. Optimism

Which Is Better — Arbitrum or Optimism?

At this point, it’s hard to say if Arbitrum or Optimism is better. With the rate of blockchain development rapidly unfolding, we could be looking at even faster and more secure Layer 2 solutions than we thought possible.

As it is, Arbitrum currently offers the most to users when it comes to security and fraud prevention. On the other hand, Optimism’s faster transaction time is good for users who want more liquid digital assets. 

If we had to choose (and we did), we’d pick Arbitrum. 

Arbitrum supports DeFi and DApps on the Ethereum network by increasing 

 — without compromising security — while still maintaining low operating and trading costs. At the time of writing, Arbitrum represents 50% of the 

 across Layer 2 networks since last year’s 

Looking toward the future, Arbitrum has more to offer the DeFi and blockchain community than any other Layer 2.

If Arbitrum follows a similar airdrop route as Optimism, utilizing the top protocols on the Layer 2 could possibly benefit users. This includes using 

. Check out our article covering the list of protocols on Arbitrum.

Easy Deposits and Withdrawals on Bybit With Arbitrum

Finally, understand what is Arbitrum and be ready to experience it firsthand. Bybit makes it easy to deposit and withdraw ETH, USDT, and USDC on the Arbitrum network. The platform allows users to enjoy the speed, security, and cost-efficiency of trading on Arbitrum. 

Bybit is trusted by millions of users worldwide and is one of the fastest-growing crypto exchanges. You can buy Bitcoin, Ethereum and USDT hassle-free with Bybit’s streamlined process and easy-to-navigate dashboard. With over 80 payment methods and nine fiat options, Bybit offers many ways to interact with crypto, including crypto market trading, 

Making deposits and withdrawing assets are streamlined with both Bybit’s desktop and mobile app. 

In a blockchain ecosystem that’s expanding and seeking interaction between a series of chains, Arbitrum’s scaling solutions provide a look into what the future of crypto and blockchain has in store. With unmatched speed, critical built-in security protocols, and low operating costs, DeFi use cases are coming into focus with the help of its scaling potential as more users begin to understand what is Arbitrum.

What Is Arbitrum: Optimistic Rollups to Solve Scaling Without Compromise

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards