Perp DEX on Arbitrum with OLP-style token + CEX-level speed

Perp DEXs like Variational and Ethereal Everyone knows GMX is the undisputed champion of perpetuals on @arbitrum. It is a massive success. So why would the Arbitrum Foundation spend time and grant money incubating brand new PerpDEXs like Variational Protocol and Ethereal Perps? It seems counterintuitive, but it is actually a brilliant strategy. The simple answer is that they want to capture all the value. Hyperliquid, for example, is incredibly popular, and it uses Arbitrum's cheap gas fees for transactions. But that is all Arbitrum gets: a tiny gas fee. All the other high-value actions, like trading fees and token appreciation, are captured by Hyperliquid's own ecosystem. #Arbitrum needs its own champions. Variational Protocol is a perfect example of this strategic thinking. It is attempting to recreate the success of GMX’s GLP with its own OLP (Omni Liquidity Provider) mechanism. If that new token model works, it could attract a massive wave of sticky liquidity that ties its value directly to the Arbitrum ecosystem. They want a token that is deeply integrated into the entire lending and yield stack, not just a standalone trading platform. The other motivation is speed and CEX competition. The first wave of PerpDEXs like GMX V1 were game changers, but they were still a bit slow compared to Binance or FTX. Newcomers like Ethereal Perps are designed with CEX-level speed and sub-five-millisecond execution. That is crucial for high-frequency traders. Arbitrum is betting that these new designs will close the gap entirely, drawing even more professional traders away from centralized exchanges. You can think of GMX as the reliable, blue-chip index fund of Arbitrum DeFi. It is great, it is safe, but it is mature. The foundation needs the cutting-edge, high-risk, high-reward startups to test new technology. They need innovation. They are giving these newcomers grant money to experiment with new liquidity models and new asset classes that GMX might not touch yet. This is all about diversification. #Arbitrum understands that relying on just one protocol, no matter how successful, is a single point of failure and a massive missed opportunity. They are trying to build a competitive and resilient derivatives market where users have a choice. More innovation means a stronger ecosystem for everyone. Wouldn't you rather have five competing DEXs fighting for your business than just one big one?