Research: USDG Annual Yield Could Reach 80% of Arbitrum's Revenue Over the Past Year

TechFlow reported on November 13 that, according to a Blockworks Research report, USDG could bring Arbitrum a new source of reserve yield. The research estimates that under an optimistic scenario, Arbitrum's retained annual revenue could reach US$18.5 million, equivalent to 80% of its revenue over the past 12 months.

In the base-case scenario, the research estimates that by October 2027, USDG supply on Arbitrum will reach US$615 million, generating US$21.5 million in annual reserve yield. After protocol integration revenue sharing, Arbitrum will retain US$10.2 million, equivalent to 44% of its revenue over the past 12 months. These estimates depend on assumptions including incentives, adoption rates, and reserve yield rates.

The report disclosed that the research was commissioned by the Arbitrum Foundation, and Blockworks retains final editorial control.

Source: TechFlow