Uniswap Research Highlights Arbitrum's Profitability for Liquidity Providers

šŸ”„ Uniswap Bombshell: Arbitrum's Edge

By Arbitrum
Mar 28, 2024, 5:45 PM
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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 @AustinAdams10 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

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