Ethereum News
Arbitrum expands developer access through Stylus
Offchain Labs enables smart contract development in Rust, C, and C++ through the Arbitrum Stylus upgrade. This technical implementation allows developers to use languages that compile to WebAssembly, or WASM, alongside the existing Ethereum Virtual Machine, or EVM, environment. Stylus provides a faster runtime than the EVM, where WASM languages see a 10x improvement in execution for some contracts. This efficiency reduces costs for complex smart contracts because computation and memory requirements decrease.
The upgrade targets a developer base far larger than the existing Solidity community. Estimates show 3 million Rust developers and 12 million C developers, while the Solidity developer count sits at approximately 20,000. Stylus allows these engineers to build on Arbitrum without learning a new programming model. This new capability benefits high-compute applications such as AI, cryptography, and gaming.
| Feature | Specification |
|---|---|
| Supported Languages | Rust, C, C++, Solidity |
| Execution Environment | Dual WASM and EVM |
| Performance Gain | Up to 10x for WASM contracts |
| Deployment Target | Arbitrum One, Nova, Orbit |
The deployment of Stylus follows a history of technical scaling. Arbitrum One launched on August 31, 2021, focusing on transaction throughput. This launch addressed scalability hurdles by using optimistic rollup technology. The network processes transactions in two stages: sequencing to order transactions and deterministic execution. Offchain Labs operates the centralized sequencer, which publishes transaction order to Ethereum via an Inbox smart contract.
Competitive pressure and sequencer economics
Base, the Layer 2 network from Coinbase, competes directly with Arbitrum for transaction volume. In early 2026, Base reached 663,000 daily active addresses and 11.57 million daily transactions, which exceeded Arbitrum’s metrics. This competition follows the March 2024 implementation of EIP-4844, which reduced data availability costs for all networks by approximately 90%. While this reduction lowered fees for users, it compressed the sequencer margin for networks like Arbitrum.
Arbitrum maintains the largest absolute sequencer revenue among Ethereum Layer 2s because of its high volume and established DeFi ecosystem. However, Base operates a distinct economic model because it lacks a native token, meaning all sequencer revenue goes to Coinbase. Arbitrum’s revenue stays within the ecosystem and the DAO treasury. The Arbitrum DAO manages a treasury of $3 – $4 billion in ARB tokens.
| Network | Primary Use Case | Sequencer Model |
|---|---|---|
| Arbitrum One | DeFi, derivatives, yield | Offchain Labs centralized |
| Arbitrum Nova | Gaming, social, high-frequency | Offchain Labs centralized |
| Base | Consumer apps, Coinbase ecosystem | Coinbase centralized |
| Optimism | DeFi, Coinbase ecosystem | OP Labs centralized |
A single flaw in the Stylus module import validation caused a vulnerability in September 2024. This bug allowed the deployment of a faulty Stylus program that could trigger a panic in the Arbitrum Nitro sequencer. This panic could crash the network, preventing the sequencing of blocks. The Arbitrum Foundation awarded an $80,000 bounty to the researchers who found this issue.
Scaling the ecosystem through Orbit and Stylus
Arbitrum Orbit allows teams to launch customized chains using the Arbitrum tech stack. Developers configure these chains with specific gas tokens, governance, and fee parameters. More than 100 Arbitrum chains were live or in development by the end of 2025. Under the Arbitrum Expansion Program, participating chains return 10% of net protocol revenue to the Arbitrum ecosystem after settling costs.
The Stylus upgrade targets efficiency in two ways. It uses a separate WASM virtual machine to handle non-Solidity code, while the original EVM handles Solidity. For certain instructions, Stylus executes 150 ADD instructions for the same cost as one ADD instruction in Solidity. This makes the upgrade a major execution layer change for the network.
The rollout of Stylus on Arbitrum One and Nova happens during Arbitrum Day. This expansion follows the 2022 debut of Arbitrum Nitro, which powers all Arbitrum-based chains. Nitro uses Geth-derived execution and ArbOS for chain-specific functionality. The technology also supports the deployment of large-scale applications like Aave V3, which is one of the largest cross-chain deployments of the protocol. In December 2025, Aave V3 on Arbitrum held $2.2 billion in supplied assets and $1 billion in borrowed assets.
How will the DAO balance the need for increased minimum base fees against the goal of maintaining low costs for the growing developer base?
