Arbitrove

Arbitrove is a yield-bearing index for community members to get exposure to Arbitrum ecosystem assets (including but not limited to blue-chip DeFi protocols, emerging protocols, NFT, Arbitrum yield-farming assets).

Arbitrove aims at creating alpha returns compared to the $ARBI token or major large cap Arbitrum tokens while limiting volatility and concentration risk. An objective methodology will be used to rank the Arbitrum assets (including by market capitalization, fully-diluted valuation, track record, on-chain liquidity depth, holder counts, categories) and the index token will follow the performance of underlying assets via a mint & redeem mechanism.

By setting up the index token standard of Arbitrum, Arbitrove can expand its use case to being the collateral of lending protocols, being the underlying asset for Arbitrum leveraged trading and more. Extra yield can be generated to token holders compared to everyone holding their tokens separately.

Also, Arbitrove could effectively solve the liquidity and slippage issue encountered by investors by both including a wide range of Arbitrum tokens in Arbitrove for community members to gain exposure, and to provide long-term liquidity to different tokens to strengthen their long-term liquidity.