Table of Contents
What Is Arbitrum?
Arbitrum One is an Ethereum Layer 2 blockchain developed by Offchain Labs and launched in August 2021. It uses an optimistic rollup architecture: transactions are executed off-chain and their results are posted to Ethereum L1 in batches. Rather than verifying every transaction immediately, the network assumes they are valid ("optimistically") and gives a 7-day challenge window during which fraud proofs can be submitted to dispute invalid state transitions.
The result is a network that is dramatically cheaper and faster than Ethereum mainnet while still benefiting from Ethereum's security and decentralization as its settlement layer.
Key facts about Arbitrum:
- Built by Offchain Labs; governed by the Arbitrum DAO
- Mainnet launched: August 31, 2021
- Gas token: ETH (ARB is the governance token, not the gas token)
- Architecture: Optimistic rollup with 7-day withdrawal challenge period
- Two networks: Arbitrum One (general purpose) and Arbitrum Nova (gaming/social via AnyTrust)
Technical Specs
Here are the exact network parameters for Arbitrum One and its Sepolia testnet:
| Parameter | Arbitrum One (Mainnet) | Arbitrum Sepolia (Testnet) |
|---|---|---|
| Chain ID | 42161 | 421614 |
| RPC URL | https://arb1.arbitrum.io/rpc | https://sepolia-rollup.arbitrum.io/rpc |
| Block Explorer | https://arbiscan.io | https://sepolia.arbiscan.io |
| Gas Token | ETH | ETH (test) |
| Architecture | Optimistic Rollup (ArbOS) | |
Arbiscan (arbiscan.io) is Arbitrum's primary block explorer, powered by the same team behind Etherscan. It lets you inspect transactions, contracts, and token balances. Use the Sepolia testnet for free development and testing before spending real ETH on mainnet.
EVM Compatibility
Arbitrum achieves full EVM compatibility via ArbOS, a custom execution environment that runs Ethereum's EVM. Unlike some L2s that are only "compatible," Arbitrum aims for EVM equivalence — meaning the same bytecode that runs on Ethereum runs unchanged on Arbitrum.
- All Solidity and Vyper contracts deploy without modification
- Hardhat, Foundry, and Remix work by pointing at Chain ID 42161
- ethers.js, viem, and web3.js connect natively
- MetaMask, Rabby, Coinbase Wallet, and Trust Wallet all support Arbitrum One
- Largest developer ecosystem among L2s — most DeFi protocols deploy on Arbitrum first
DeFi Ecosystem
Arbitrum consistently ranks among the top two or three L2s by TVL and developer activity. Its ecosystem covers every major DeFi category:
GMX — Perpetuals and Spot
GMX is Arbitrum's flagship protocol and one of the most recognized DeFi apps across all chains. It offers perpetual futures trading with up to 50× leverage, backed by a multi-asset liquidity pool (GLP). GMX was originally built for Arbitrum and later expanded to Avalanche.
Uniswap V3
Uniswap V3 on Arbitrum handles billions in monthly volume. Its concentrated liquidity model makes it ideal for token launches where you want to provide liquidity in a defined price range rather than across the full curve.
Camelot DEX
Camelot is Arbitrum's leading native DEX. It is purpose-built for new token launches, featuring a launchpad (Camelot Nitro), dual-token liquidity incentives, and a strong community around ecosystem-native projects. Most Arbitrum-native tokens list on Camelot first.
Aave, Compound, Pendle, Radiant
Aave V3 and Compound V3 provide lending and borrowing with deep liquidity. Pendle Finance lets users trade yield — a unique instrument that attracted significant TVL on Arbitrum. Radiant Capital was Arbitrum's first cross-chain lending protocol.
Creating Tokens on Arbitrum
Arbitrum fully supports the ERC-20 token standard. Any token that works on Ethereum mainnet works identically on Arbitrum One. The active trading community and deep DEX liquidity (especially on Camelot and Uniswap V3) make Arbitrum a strong choice for launching new tokens.
💡 No-code token creation: Deploy your ERC-20 token on Arbitrum at createmycoin.app/arbitrum-token in under 5 minutes. Choose your name, symbol, and total supply. The fee is 0.02 ETH — no coding required. After deploying, add liquidity on Uniswap V3 or Camelot to make your token tradeable.
Once your token is live, recommended next steps:
- Verify your contract on Arbiscan so community members can audit the source code
- Add token metadata (logo, website, description) via Arbiscan's token update form
- Create a liquidity pool on Camelot or Uniswap V3 with your initial token allocation and paired ETH or USDC
- Distribute tokens through an airdrop, presale, or liquidity mining program to build your holder base
The ARB Governance Token
In March 2023, Arbitrum launched the ARB token through one of the largest airdrops in crypto history, distributing ARB to wallets that had actively used the Arbitrum network before a snapshot date. The airdrop distributed approximately 11.6% of the 10 billion total supply to eligible users.
ARB is used for on-chain governance of both Arbitrum One and Arbitrum Nova through the Arbitrum DAO. ARB holders can propose and vote on protocol upgrades, treasury spending, and governance parameter changes.
⚠️ Important: ARB is NOT the gas token. ETH pays for all transaction fees on Arbitrum One and Arbitrum Nova. You do not need to hold ARB to use the network — you only need ETH. ARB is a governance and speculative asset.
If you are launching a token on Arbitrum, do not confuse your token economics with ARB. Your users will pay gas in ETH, and ARB is a completely separate asset they may or may not hold.
How to Get Started
Step 1: Add Arbitrum to Your Wallet
Add Arbitrum One to MetaMask or any EVM wallet with these settings:
- Network Name: Arbitrum One
- RPC URL: https://arb1.arbitrum.io/rpc
- Chain ID: 42161
- Currency Symbol: ETH
- Block Explorer: https://arbiscan.io
Step 2: Bridge ETH to Arbitrum
You need ETH on Arbitrum to pay gas fees. Options:
- Official Arbitrum Bridge (bridge.arbitrum.io): Bridge from Ethereum. Note: withdrawals back to Ethereum take 7 days due to the optimistic rollup challenge period.
- Fast bridges: Across Protocol, Stargate, or Orbiter Finance provide faster bridging (minutes) from Ethereum and other chains, usually for a small fee.
- Centralized exchange withdrawal: Most major exchanges (Binance, Coinbase, OKX) let you withdraw ETH directly to the Arbitrum One network, bypassing the bridge entirely.
Step 3: Explore Arbitrum
With ETH in your Arbitrum wallet, you can:
- Trade perpetuals on GMX
- Swap tokens on Camelot or Uniswap V3
- Lend and borrow on Aave V3 or Compound V3
- Trade yield on Pendle Finance
- Deploy your own ERC-20 token at createmycoin.app/arbitrum-token
FAQ
What is Arbitrum One?
Arbitrum One is an Ethereum Layer 2 blockchain developed by Offchain Labs using an optimistic rollup architecture. It launched in August 2021 and offers lower fees and faster transactions than Ethereum mainnet, with ETH as its gas token and Chain ID 42161.
What is the ARB token?
ARB is Arbitrum's governance token, launched in March 2023 via a large community airdrop. It is used to vote on protocol upgrades through the Arbitrum DAO. Importantly, ARB is NOT the gas token — ETH pays gas on Arbitrum.
How do I add Arbitrum to MetaMask?
Open MetaMask, go to Settings → Networks → Add Network, and enter: Network Name: Arbitrum One, RPC URL: https://arb1.arbitrum.io/rpc, Chain ID: 42161, Symbol: ETH, Block Explorer: https://arbiscan.io.
How do I create a token on Arbitrum?
You can deploy an ERC-20 token on Arbitrum in minutes using CreateMyCoin. Visit createmycoin.app/arbitrum-token, connect your wallet, set your token name, symbol, and supply, then deploy for a 0.02 ETH fee. No coding required.
What is the difference between Arbitrum One and Arbitrum Nova?
Arbitrum One (Chain ID 42161) is the main general-purpose L2, suitable for DeFi and most applications. Arbitrum Nova (Chain ID 42170) uses AnyTrust technology for ultra-low costs and is designed for gaming, social apps, and high-frequency interactions where the highest security guarantees are less critical.