Notes of Satoshi Mamoto: To make money with coins or to put them in Defi?
Today's content includes:
Today's content includes:
1 Is it more profitable to deposit coins or put coins in Defi projects?
2 The Entrepreneurial Story of Uniswap: The Birth of Uniswap
3 Optimistic vs. ZK Rollup: A Deep Dive
4 How to become a validator in the new Ethereum 2.0 PoS system
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Is it more profitable to collect coins to make money or to put coins in Defi projects?
Currently, over 3 million worth of ETH assets (worth over $500 million) are locked in various DeFi applications. The author is from Zerion, which tracks multiple DeFi applications in real time allowing investors to track and manage their portfolios across multiple protocols.
Key points of the article:
– DeFi applications have delivered significant risk-reward improvements for investors over the past year
– TokenSet’s ETH 20-day MACO outperforms ETH buy-and-hold gains while significantly increasing locked volume
– Compound and Uniswap offer attractive yield opportunities for investors holding stablecoins
Compound income
From December 2018 to the end of October 2019, Compound returned 7.1%. Most notably, the rate increased starting in March 2019 along with MakerDAO’s stability fee increase. Lower interest rates on other mortgage lending agreements have enticed users to shift positions to take advantage of better rates.
Uniswap Pool Earnings
Available to investors who contributed assets on December 4, 2018 and stayed in the pool until October 31, 2019. Investors who provide liquidity at different times will have different returns due to different ETH/DAI prices. During this period, the Uniswap DAI-ETH pool has achieved a return of 18.15%.
Tokenset: ETH 20-day and 50-day moving average crossover strategy
Both are simple momentum strategies designed to capture returns from a continuation of a trend and return cash when the trend reverses. TokenSets released its trend trading strategy in July 2019, but we estimated the strategy's returns using daily price data from October 2018. It should be noted that our analysis does not take into account fees and slippage, which may affect the actual performance of the strategy.
The 20-day MACO strategy produced a return of 78.7%, outperforming the ETH buy and hold strategy, but the 50-day strategy underperformed with a return of 22.5%
The ETH 20-day strategy definitely outperforms other proposed DeFi strategies and ETH buy and hold strategies. This is due to the strategy avoiding most of ETH's losses while generating returns during the uptrend. The 50-day strategy similarly captured the ETH uptrend that started in March and rebalanced into a stablecoin in July, but experienced a sharp retracement in September, which significantly reduced the strategy’s ultimate return. If the strategy rebalanced faster (i.e. in cross-price terms), the 50-day strategy would have returned more than 50%, while the 20-day strategy would have returned more than 130%.
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Full text link:
https://blog.zerion.io/
Uniswap's Entrepreneurial Story: The Birth of Uniswap
Uniswap, Compound, and MakerDAO are all Defi phenomenon-level ecological projects on Ethereum, and they also contribute a lot to the compatibility that Ethereum is proud of. Uniswap is famous for taking hundreds of thousands of money , made something that took hundreds of millions of Bancor (maybe better). This article is a review of the entrepreneurial story of the founder of Uniswap. This is the birth story in the trilogy (Birth, One Year, and Later). For many entrepreneurs who want to know about Defi projects and Defi and seek entrepreneurial experience and inspiration, you can read it.
The Birth of Uniswap
On July 6, 2017, I was fired from my first job out of college as a mechanical engineer at Siemens. Frustrated and directionless, I told my friend Karl Floersch, who was working on Casper FFG at the Ethereum Foundation at the time.
At Karl's suggestion, I decided to implement an automated market maker. At the time, EtherDelta was the only attractive decentralized exchange, but the UX was messy and unintuitive. I began to think that user experience should be emphasized. I was out of work for five months, living off the cryptocurrencies I had the good fortune to buy earlier in '17.
I'm totally captivated by the infinite potential of Ethereum, however, what it feels like to be in Ethereum. Central point of failure, auditable applications, and overly complex architectures. Most DAPPs are designed entirely based on the idea of providing tokens for use cases that clearly don't need them. I started thinking of Uniswap as my own learning tool.
By April 2018, I was unemployed for 10 months. The cryptocurrency I depend on is down over 75%. Deconomy 2018 was just in time for my personal trip to Seoul, South Korea, where Karl pulled me aside and introduced me to Vitalik. Vitalik looked at my Github and said to me "Have you considered writing it in Vyper? Also, you should apply for an Ethereum Foundation grant."
Two weeks later in May, I flew to Toronto to attend and speak at Edcon2018. They seem to understand and share the values that I hope to model. I realized that the Ethereum community goes way beyond ICOs. Some people genuinely care about its vision for a decentralized financial system.
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full text link
https://medium.com/
Optimistic vs. ZK Rollup: A Deep Dive
What is Rollup?
What is Rollup?
Rollup is a Plasma-like layer 2 scalability solution: a single mainchain contract holds all funds, and succinctly aggregates the state of a larger "sidechain" (typically a Merkle tree of accounts, balances, and their states) Crypto promise. Sidechain state is maintained offline by users and operators without relying on first-tier storage (which is where the greatest scalability comes from).
What is ZK Rollup (ZKR)?
In ZK Rollup, operators must generate succinct zero-knowledge proofs (SNARKs) for each state transition, which are verified by the Rollup contract on the main chain.
What is Optimistic Rollup (OR)?
In an Optimistic Rollup, the operator will publish a new state root without being checked every time by the Rollup smart contract.
Optimistic Rollup is a technique that promises to scale general-purpose smart contracts on Ethereum in the short term. If built relatively quickly, it could provide an easy way to migrate existing dapps and services with some reasonable security/scalability tradeoff. This will allow ETH 1.0 to meet the growing demand.
ZK Rollup is a more complex technique. Today, it can be used for token transfers and special applications. However, implementing general-purpose smart contracts will take longer and require more research work to effectively wrap the EVM in zero-knowledge proofs. However, once ZK Rollup is fully developed, all existing Ethereum dapps and services will be able to easily migrate to it.
ZK Rollup will solve several problems of Optimistic Rollup:
– Elimination of nasty tail risk: theft of funds from Optimistic Rollup via a sophisticated but viable attack vector;
– Reduce exit time from 1-2 weeks to minutes;
– Enable fast send confirmation and exit with unlimited number;
– Privacy features are introduced by default.
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Full text link:
https://medium.com/
How to Become a Validator in the New Ethereum 2.0 PoS System
This article introduces how to become a verifier in Ethereum 2.0. The development status of ETH2.0 is pretty good. Even if you don’t plan to be a node, you can take a look at the development status of Ethereum 2.0.
What is the current status of Ethereum 2.0 development?
Currently active Eth2 clients include: Lodestar, Nimbus, Lighthouse, Prysm, Trinity, and Harmony + Artemis. They all have their own testnets, but all came together at an interoperability event in September and created a multi-client testnet.
How much can I earn as a validator?
Rewards depend on the overall state of the network, i.e. how many validators are online. The economics of doing this are still being studied and will be tested. The latest estimates are that validators can expect annual rewards of 4.6% – 10.3%. However, the specification is still being updated. The goal is to encourage people to become validators and have as many as possible secure the network. Therefore, the whole PoS system is a kind of collective reward scheme, where the more people are online, the more money everyone earns. And vice versa, the fewer people online, the less people earn.
How to become a validator?
– Basically, to become a validator, the following steps are required:
– Install one of the previously listed Eth2 clients.
– Get ether. In the case of the testnet, this is GörliETH. We know it's not going to be easy, so we're going to give you a faucet to get this ETH and fully submit your deposit transaction.
– Generate a verifier public and private key pair (used to sign your claim as a verifier).
– Start the validator client together with the beacon chain. You can use a beacon chain node or some existing public server.
– Deposit (mortgage) ETH to Eth1.
– Waiting to be assigned as a validator. Once the authenticator client is up and running, all you need to do is wait for it to activate. This takes a few minutes (possibly hours if it's the mainnet), as new deposits are added to the running chain from other validators during voting.
in conclusion
in conclusion
This is Phase 0 of Ethereum 2.0 (Security), which includes launching the Beacon Chain which manages the Casper Proof-of-Stake protocol for itself and all shard chains. As only Phase 0, we will not have all the new features of Ethereum 2.0.
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full text link
https://www.nodefactory.io/
Nick Szabo on Cypherpunks and Bitcoin
This is the latest episode of the Whatbitcoindid podcast. The interview is with smart contract pioneer Nick Szabo. Nick Szabo has always given me the impression that he is quite serious and academic. In this interview, I feel that he is very relaxed and down-to-earth.
Covers the history of money, BitGold (Nick Szabo 2005), cyberpunk, central banks and fiat currencies, libertarian and anarcho-capitalism, privacy, and Austrian economics.
"When Satoshi released the Bitcoin white paper, it wasn't a revolution, Bitcoin was the evolution of everything that came before it, and Bitcoin was the most trustless, most censorship resistant, most accomplished currency that ever existed". Nick did not hesitate to express his approval of Bitcoin.
full text link
full text link
https://www.whatbitcoindid.com/
