Arbitrum’s DeFi ecosystem continues to evolve into one of the most active and diverse in crypto. Lending, yield tokenization, real world assets, and restaking protocols are reshaping liquidity across the network, signaling a shift from traditional DEX focused models to utility driven and yield efficient platforms. Lending @aave remains the leader with 1.09 billion dollars in total value locked across 18 chains, showing its dominance in cross chain liquidity. Despite a slight monthly decline of 5.7 percent, its wide integrations and user base continue to anchor DeFi lending. Morpho, active across 28 chains, posted a strong 6.4 percent daily gain, though its 30 percent monthly drop shows volatility or liquidity rotation. Euler and Compound Finance together hold over 200 million dollars, proving the durability of established lending protocols. Real World Assets The tokenization trend continues to grow. @USDai_Official leads with 581.5 million dollars in total value locked and distributes 45 thousand dollars in daily incentives, the largest in the ecosystem. Spiko, with 226.7 million dollars, shows consistent growth of 2.6 percent monthly, signaling confidence from institutions entering RWA lending. This marks a maturing market where traditional yields meet on chain liquidity. Yield and Restaking @pendle_fi dominates the yield tokenization sector with 475.9 million dollars in total value locked and 14.2 percent growth this month. Its success comes from restaking integrations and structured yield products that appeal to advanced DeFi users. KernelDAO leads the restaking narrative with impressive growth of 22.8 percent daily, 29.6 percent weekly, and 192 percent monthly, reaching 132.7 million dollars in total value locked. This surge proves restaking is the fastest growing meta on Arbitrum. Trading and Revenue Trading protocols remain strong contributors to revenue. Uniswap, spanning 39 chains, generated 228 thousand dollars in fees within 24 hours, the highest among all protocols, even after losing almost half its total value locked over the past month. GMX, the flagship perpetuals exchange on Arbitrum, holds 414.7 million dollars in total value locked and produces 45.9 thousand dollars in daily revenue while distributing 33.5 thousand dollars to holders. GMX continues to demonstrate one of the healthiest profit sharing models in DeFi. Risk Management and Curators Supporting infrastructure protocols such as @gauntlet_xyz , @k3_capital , and @eulerfinance collectively hold around 300 million dollars in total value locked. They provide risk modeling, governance, and data tooling for the ecosystem. Gauntlet’s 18 percent weekly growth shows the increasing importance of risk management and smart automation for on chain protocols. Emerging Protocols Players like @0xfluid and @Dolomite_io are gaining attention. Fluid, with 219 million dollars in total value locked, grew 2.7 percent this month and distributed 18.8 thousand dollars in daily incentives, showing competition through better yield routing and liquidity aggregation. Dolomite’s gradual rise to 71.8 million dollars with steady weekly growth highlights demand for more flexible lending experiences. Key Insights Aave and USDAI together account for about 42 percent of the total liquidity on Arbitrum, showing dominance but also room for growth in other categories. GMX and Uniswap remain the largest sources of on chain revenue, highlighting that trading remains DeFi’s economic backbone. Real world assets and restaking platforms are attracting new capital faster than traditional lending, marking a sector rotation. Incentive programs are becoming more targeted and efficient, replacing the older model of unsustainable emissions. Conclusion Arbitrum’s DeFi landscape is entering a new stage of maturity. Beyond established leaders like Aave and Uniswap, growth is being driven by real yield, tokenized assets, and modular restaking systems. Liquid restaking platforms such as KernelDAO, yield products like Pendle, and RWA lenders such as USD AI show that the future of Arbitrum finance is about efficient, composable, and revenue generating capital. Arbitrum is no longer only known for speed and low fees. It is becoming the center of capital efficiency, where lending, staking, and real world assets connect to create the next generation of decentralized finance.