Unlike other rollup networks, like Boba or Loopring, Arbitrum does not have a token. Offchain Labs claims the network does not need one, since all transactions on the sidechain are settled with ETH, the native cryptocurrency of the Ethereum blockchain.
What is arbitrum one?
The Arbitrum One ecosystem is a layer-2 mainnet which powers smart contracts that will later be validated by the Ethereum network (layer-1). Fees charged by Arbitrum will be paid in ETH and the development team expects a reduction of around 50 times the usual fees paid per transaction on layer-1.
Is arbitrum a decentralized cryptocurrency exchange?
Arbitrum has been integrated into several decentralized finance protocols, such as SushiSwap, Curve and Abracadabra. Data from DeFi Llama show that $2 billion worth of cryptocurrency is locked up within Arbitrum’s smart contracts. Approximately 30% is from decentralized exchange ( DEX) SushiSwap.
