Arbitrum, Ether Liquidity Providers Earn $500K From ARB Airdrop
Entities providing liquidity to one of the most-anticipated token issuances in recent times made over $500,000 in profits in the first few hours, data shows.
Arbitrum’s governance tokens, ARB, went live for claiming on Thursday. The tokens can be used to vote on decisions on future changes to the Ethereum scaling protocol.
Uniswap data shows over $180 million in volume was traded on the ARB/ETH liquidity pool, netting $542,000 in fees for liquidity providers (LPs). LPs are entities that provide two different tokens to any decentralized exchange’s smart contracts - netting a cut of fees charged by that exchange on each trade.
Data shows 9,900 ether (ETH) and 9.34 million ARB are locked on the Uniswap liquidity pool at writing time on Friday. Another relatively smaller liquidity pool on Trader Joe locks up over $3 million.
Annualized yields on the Uniswap pool are between 90%-100% in Asian morning hours on Friday. The Trader Joe pool is a significantly larger 800%.
Meanwhile, Nansen data shows over 75% of all tokens were claimed as of Friday, with over 800 million ARB now held by users. ARB has a circulation supply of 1.2 billion and is trading at $1.30 with a market capitalization of $1.7 billion.