Zug, July 6, 2023 – Bitcoin Suisse has enabled trading and custody of ARB, the governance token of the Arbitrum Decentralized Autonomous Organization (DAO), which collectively manages the development of the Arbitrum technology and ecosystem. The Arbitrum ecosystem provides Ethereum scaling solutions. Users can bridge their assets to Arbitrum networks and benefit from faster and cheaper transactions whilst inheriting strong safety guarantees from Ethereum.
Arbitrum provides layer-two-protocol infrastructure for Ethereum optimistic rollups. In terms of on-chain activity, Arbitrum stands out among alternative layer-two-solutions, ranking first both in Decentralized Exchanges (DEX) volume and Total Value Locked (TVL). In addition, Arbitrum has achieved the most progress towards full decentralization and removal of trust assumptions among general-purpose optimistic rollups, as Arbitrum One is the only Stage 1 Rollup in its class, as defined by Vitalik Buterin's roadmap on rollups taking off "training wheels".
In the near future, Ethereum’s Dencun upgrade will enable even cheaper transactions on layer-two-chains, further pushing the momentum behind continuous adoption of Arbitrum. Dencun is short for the two simultaneous upgrades Cancun on the Execution Layer and Deneb on the Consensus Layer of Ethereum and is currently expected for the fourth quarter of 2023. Its main Ethereum Improvement Proposal (EIP) is EIP-4844, which will implement proto-danksharding, allowing to store data at low prices for a short period of time. More growth is expected from the permissionless proliferation of layer-three-chains, unlocking further scalability and more specialized features. Further upgrades might lead to additional utility for ARB, potentially playing a role as a staking token for decentralized sequencers.
While gas fees on Arbitrum are paid in ETH, the ARB token itself is used to govern the ecosystem. Token holders of ARB form the DAO which then decides on protocol upgrades within the smart contract landscape, approves new layer-two-chains using the Arbitrum stack, manages the treasury and elects validators for the layer-two-chains. Thanks to its significant influence over the platform assets and future developments, the ARB token has established itself as a valuable piece of the greater Ethereum ecosystem.
Find out more in the Bitcoin Suisse Investment Navigator on General Purpose Smart Contract Platforms here. While Trading of ARB in Bitcoin Suisse Online and via Relationship Manager is possible with small amounts, deposits and withdrawals for ARB are available via Relationship Manager only for amounts larger than CHF 50'000.
