Arbitrum receives 2.5 million ARB funding request from Wormhole foundation
- Wormhole Foundation submitted a funding proposal to the Arbitrum community, requesting 2.5 million ARB tokens.
- The messaging protocol has proposed 8% annualized returns for users.
- Wormhole’s objective is to attract 100 million USDC from other chains to Arbitrum.
Wormhole, a crypto and web3 messaging protocol, has submitted a proposal to encourage users to mint native USDC on the Arbitrum chain. The goal is to attract 100 million USDC and migrate it from other chains to Arbitrum.
The protocol has requested a maximum funding of 2.5 million ARB tokens and offers 8% annualized returns to users. This passive income opportunity is likely to attract investors.
Also read: Tether increased its secured loans in Q2 despite commitment to reduce lending
Wormhole requests 2.5 million ARB funding for this passive income opportunity
Wormhole’s latest proposal to the Arbitrum community offers ARB holders the opportunity to earn 8% annualized returns for a three-month timeframe in exchange for minting USDC using Circle’s Cross-Chain Transfer Protocol (CCTP).
The passive income opportunity could offer a reward of 2% total return over a three-month timeframe. The messaging protocol requires 2.5 million ARB tokens for the mint of 100 million USDC tokens.
Wormhole proposal for ARB community of holders
Wormhole will execute the grand that will be shared among its contributors, including xLabs, Jump Crypto, and 19 Guardians.
How ARB holders can earn rewards from Wormhole’s program
The reward period is 12 weeks, users will be free to move the USDC that they minted, but only the tokens held in the bridged address will accrue rewards. At the end of the reward period, unaccrued ARB rewards will be returned to the Arbitrum DAO Treasury address.
Users who do not claim their ARB tokens within a 12-week window will have an opportunity to claim them within 365 days. Post this, the unused portion will be returned to the Arbitrum DAO Treasury address.
It's important to note that this is a proposal and will need to go through a voting process before it is implemented. No investments are being received at the moment.
At the time of writing, ARB price is $0.8177, yielding 4.15% gains for holders over the past week.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
