$PENDLE + @GMX @arbitrum DeFi’s engine and PMF backbone 🧵

Arbitrum’s total DeFi TVL sits around $3.4B according to @DefiLlama In the 24h snapshot, chain level fees are almost $25k But how much of that gets funneled through a handful of dApps? That’s what we’ll unpack.

@GMX_IO > GMX is the top perp venue on Arbitrum, often driving the bulk of derivatives (funding, liquidations, spreads) fees. > In TVL terms, GMX is routinely among the top 3 on Arbitrum (e.g. approx $522m cluster) > So $GMX health is tightly correlated with @arbitrum’s revenue under stress.

@pendle_fi > Pendle gives @arbitrum a yield trading primitive: tokenizing future yield (PT / YT). > Pendle holds over 70% of the total TVL and in just 7 days, pendle reports over $100k in revenue (which is 80%), among other impressive metrics in yield derivatives usage. > Plays a unique role anchoring the LSD + yield curve side of the stack.

Concentration and risk If $GMX or $PENDLE face a shock (exploit, liquidity crunch, user flight), a big slug of Arbitrum’s fee engine is vulnerable. That said, this “risk” is also a feature: these apps are deeply integrated, composable, and almost proprietary infrastructure. The question: is it fragility or defensibility?

3 Possible Thoughts: ➤ @arbitrum reliance on GMX and Pendle reflects depth over breadth, i.e fewer hubs with stronger traction. ➤ but could this be a risk? because overdependence could cause system risk if the hubs falter. ➤ also what matters is whether new apps can emerge to tilt the balance, or if @GMX_IO and @pendle_fi will continue improving and leading the way.

Tagging some DeFi chads so you don’t miss out on anything related @0xAndrewMoh, @Mars_DeFi, @patfscott, @CryptoShiro_, @Flowslikeosmo, @crypto_linn, @arndxt_xo, @Axel_bitblaze69, @TheDeFiKenshin, @Hercules_Defi, @cryptorinweb3, @FabiusDefi, @0xelonmoney, @_SmokinTed, @St1t3h, @thelearningpill, @Nick_Researcher, @splinter0n, @eli5_defi, @0xAmin7, @0xDefiLeo, @0xCheeezzyyyy, @yashasedu, @jeff_degen, @RubiksWeb3hub, @monosarin, @Defi_Warhol, @rektonomist_, @0x99Gohan, @belizardd, @poopmandefi, @twindoges, @0xfreestyler, @pinkbrains, @PendleIntern @Rightsideonly.