Uniswap Research Highlights Arbitrum's Profitability for Liquidity Providers

šŸ”„ Uniswap Bombshell: Arbitrum's Edge

By Arbitrum
Mar 28, 2024, 5:45 PM
twitter

New research from Uniswap has revealed that Arbitrum, an Ethereum layer 2 scaling solution, has been more profitable for liquidity providers compared to other layer 2 networks.​ The study found that due to Arbitrum's shorter block times, arbitrageurs pay higher fees to liquidity providers at the same gas price, and prices remain fresher.​ This shorter time frame translates into increased profits for liquidity providers utilizing Arbitrum.​

Sources

New @Uniswap research! Shorter block times made Arbitrum more profitable than other L2s: 1ļøāƒ£Ā Arbitragers pay more fees to LPs, at the same gas price 2ļøāƒ£Ā Shorter block times means prices are fresher Shorter time = more profit for liquidity providers using Arbitrum

Uniswap Labs šŸ¦„
Uniswap Labs šŸ¦„
@Uniswap

New research from @aadams shows L2s aren’t just good for gas savings Compared to Ethereum, the data shows that on L2s: āœ… 97.5% of swappers get better pricing āœ… LPs see ~20% larger arbitrage returns āœ… Low gas leads to more capital efficiency rb.gy/6flvm0

351
Reply
Read more about Arbitrum

Arbitrum Everywhere Episode 4: Ethereum Scaling Roadmap Discussion

The fourth episode of Arbitrum's *Arbitrum Everywhere* series features Anthony Sassano, founder of The Daily Gwei. **Key Discussion Points:** - How Arbitrum integrates into Ethereum's long-term scaling strategy - The impact of upcoming Ethereum upgrades on the broader ecosystem - Arbitrum's role in strengthening Ethereum's infrastructure This follows the previous episode with Offchain's CEO, which explored institutional adoption through platforms like Robinhood. [Watch the full episode](link in original post)

Arbitrum Announces Multidimensional Gas to Boost Network Capacity

Arbitrum Announces Multidimensional Gas to Boost Network Capacity

Arbitrum is preparing to launch **multidimensional gas**, a technical upgrade designed to increase network capacity and scalability. The Layer 2 solution emphasizes that strong execution infrastructure is driving enterprise adoption. The upcoming gas mechanism aims to provide more flexibility for onchain operations. **Key points:** - Multidimensional gas coming soon to Arbitrum - Focus on enabling programmable economies to scale - Businesses selecting Arbitrum for reliable execution - Upgrade will unlock additional network capacity

Arbitrum Launches 8-Week Mentorship Program for Early-Stage Teams

Arbitrum Foundation has opened applications for its **Mentorship Program**, an 8-week initiative starting April 13th designed to help early-stage teams launch on the Arbitrum platform. **Program highlights:** - 15 selected teams receive dedicated mentorship from ecosystem leaders including Robinhood Chain, Pendle, GMX, and Fhenix - Structured support covering product strategy, go-to-market design, network architecture, and fundraising preparation - Concludes with Demo Day featuring investor presentations - Top 3 teams share **$100K in non-dilutive awards** The program targets teams at MVP, pre-seed, or seed stage across AI, DeFi, and other onchain verticals. Applications close April 7th. This follows the recent Open House NYC Buildathon, which awarded $60K in prizes to winners including Tilt Protocol, Fangorn Network, and EqualFi. [Apply here](https://tally.so/r/aQdj2W) | [Program details](https://blog.arbitrum.foundation/introducing-the-arbitrum-mentorship-program-access-capital-and-strategic-support/)

Arbitrum Dynamic Pricing Cuts Fee Spikes by 98% During Peak Demand

Arbitrum's new dynamic pricing system has delivered significant results during recent network stress tests. **Key Performance Metrics:** - Fee spikes reduced by up to 98% during peak demand - Handled 2.4x more demand with 15% lower fees - Fee volatility decreased by approximately 17x compared to other networks **How It Works:** The system moves beyond single gas pricing to track real network bottlenecks across compute, storage, and history growth. This approach enables more predictable costs during high-traffic periods. **Business Impact:** Predictable fees allow businesses to forecast costs accurately, manage risk effectively, and scale operations with confidence. The upgrade supports reliable system design for applications operating onchain. Full technical details and data: [blog.arbitrum.io/predictability-at-peak-demand](https://blog.arbitrum.io/predictability-at-peak-demand/)

Robinhood Chain Testnet Gains Developer Momentum with $1M Support

Developers are actively building on the **Robinhood Chain Testnet**, which focuses on infrastructure testing and onboarding. Robinhood is backing serious teams through a **$1M sponsorship** of Arbitrum's Open House program. **Key developments:** - Testnet enables contract deployment, bridging, and tokenized asset flow testing - Builders can access workshops, mentorship, and technical guidance - The chain runs on Arbitrum's platform, offering custom gas tokens and fee control - Follows Robinhood's 2,000+ Stock Tokens launch on Arbitrum One for EU users The testnet represents **Phase 1** of Robinhood's roadmap to migrate from shared rails to dedicated Layer 2 infrastructure. Phase 2 will bring mainnet launch with production-ready tokenized stocks, 24/7 trading, and self-custody features. Start building: [robinhood.com/chain](http://robinhood.com/chain)