ETH Weekly | Grayscale ETH Trust is trading at a discount; EIP1559 sparks controversy (2.22-2.28)

Author | Qin Xiaofeng

Author | Qin Xiaofeng

Produced | Odaily

1. Overall overview

1. Overall overview

Second, the secondary market

Second, the secondary market

1. Spot market

image description

(ETH daily chart, picture from OKEx)

The ETH daily chart shows that the price fell below the 60-day moving average ($1,410), and the short-term oversold may rebound above the 60-day moving average; the short-term bearish pattern has not been broken, and may further pull back to the 100-day moving average ($1,100) and $1,000 mark.

2. Fund flow                                                                 

2. Fund flow

(data from Tokenview)                                      

(data from Tokenview)

Tokenview dataIt shows that the number of transfers on the chain increased sharply last week, and the number of large-value transfers of "above 5,000 ETH", "above 10,000 ETH" and "above 50,000 ETH" increased by 45%, 32% and 44.4% month-on-month respectively. The frequency of changes has increased significantly.

OKlink data3. Ecology and technology

3. Ecology and technology

1. Technological progress

1. Technological progress

EIP-1559 performance test: a total of 6426 blocks were processed in 22 hours, with an average of 41 million Gas per block

On February 26, Abdelhamid Bakhta, the blockchain protocol engineer of the Ethereum client Hyperledger Besu, released an EIP-1559 performance test update. After 22 hours of uninterrupted testing, a total of 6426 blocks were processed, with an average of 41 million Gas per block. , a total of 12 million transactions were executed, with an average of 2139 transactions per block, and 95% of the blocks were worth at least 15 million Gas.

2. Voice of the community: EIP1559 sparks controversy

On February 22, Ethereum developer Ryan Berckmans tweeted today that the Ethereum EIP-1559 proposal is likely to be launched in the "London" hard fork in July this year. EIP-1559 attempts to reduce transaction fees by introducing a fixed fee and burning mechanism. It was first proposed by Vitalik in 2018 and is expected to make the fee market of the Ethereum blockchain more predictable and relieve congestion. But miners are not unanimous.February 26,fish pond

Published an article entitled "Standing on the Right Side of History: EIP-1559", expressing formal support for the EIP-1559 proposal. The article mentions that both the community and the core developers support the ongoing development of Ethereum, including EIP-1559. It is important to stand on the side of users and core contributors, and F2Pool hopes to stand with users and developers; most community members, including investors, have positive feedback on EIP-1559 and expect this to work on the price , if EIP-1559 fails to be implemented, it will adversely affect the short-term price of Ethereum. Yuchi said that he always keeps an open mind and is willing to participate in fruitful discussions. Still open to hearing more opinions on EIP-1559.

• On the same day, the Spark Mining Pool, which accounts for 32.95% of the total computing power of Ethereum, announced its opposition to the EIP-1559 proposal. The reasons given are as follows:

• We are miners, and we are also token holders. We purchased the first Ether from the Ethereum Crowdsale in 2014.

• EIP1559 burning TX fees is a redistribution of wealth from miners to holders. That's why so many people support it. They think less ether, higher price, will make them richer, right? By this logic, why not burn the hacker's ether, why not burn the short seller's ether?

• But it's the tyranny of the majority in the name of user experience (it's not). This is robbery. Why do we love ETH and BTC? Because it gives us perfect property rights.

Ethereum developers Tim Beiko and trent recently released the EIP-1559 community development report, collecting the views of the top ten Ethereum applications on EIP-1559 with a total lock-up volume of more than 21 billion Dollar. Most Ethereum applications such as 1inch, AAVE, Balancer, Curve, MakerDAO, Sushiswap support the implementation of EIP-1559.

3. Project trends

3. Project trends

(1) A serious loophole was found in the Primitive smart contract of the option agreement, and the official hacked to protect user funds

It's official, a serious vulnerability has been found in the Primitive Finance smart contract of the Ethereum chain options protocol. Since the contract cannot be upgraded or suspended, the official chose to hack the smart contract themselves to protect user funds. Hacked funds are safe. All hacked funds will be returned to their owners. A post-mortem analysis of the breach, a timeline for actions taken to protect user funds, and next steps to immediately return user funds will all be forthcoming, officials said.

(2) DeversiFi, the second-layer DEX of Ethereum, launched a transaction exchange function without paying Gas

DeversiFi, a decentralized exchange based on the expansion plan StarkEx, announced the launch of the token exchange function Simple Swaps to supplement the previous order book-based trading function. DeversiFi said that in addition to paying the fee for entering the network for the first time, there is no need to pay Ethereum Gas fees when using this function, and transaction fees will be reduced for early users.

(3) Brave releases BAT roadmap 2.0: Exploring the establishment of DEX based on Layer 2

The privacy protection browser Brave released the development roadmap 2.0 on February 22, and the plan covers 18 months. According to the roadmap, Brave plans to explore in the DeFi field, and will look for the possibility of building a DEX based on Layer 2 and combining other Layer 1 blockchains with Ethereum. In addition, Brave Wallet will undergo a new upgrade and revision to support DeFi and NFT functions.

(4) dYdX Layer 2 Perpetual Contract Alpha version is now launched

dYdX announced that after 7 months of research and development, its new Universal Margin Perpetual Contract is now live on the second-tier mainnet, along with a newly designed branding, website and trading experience.

It is reported that in order to significantly expand the trading volume, dYdX and StarkWare established a Layer 2 protocol for universal margin perpetual contracts based on StarkWare's StarkEx scalability engine and dYdX's Perpetual smart contract. Users can now trade at zero gas cost, which not only reduces transaction fees, but also lowers the minimum transaction threshold.

StarkWare's zkSTARKS technology is a form of ZK-Rollup technology that significantly increases dYdX's ability to settle transactions while still placing its security on the underlying Ethereum blockchain. StarkWare's dYdX integration combines STARK proofs for data integrity with on-chain data availability to ensure a fully non-custodial protocol. Transactions are settled on the Layer2 system, which periodically issues zero-knowledge proofs to Ethereum smart contracts to prove that state transitions within Layer 2 are valid.

In addition to migrating to layer 2, dYdX also built a new product and trading system from scratch for perpetual contracts. In addition, the official stated that the Alpha version of this internal test will be targeted to invite users, liquidity providers and strategic partners to use it. After comprehensive testing of the stability of the system, a public beta of the product will be launched within a few weeks.

(5) Optimism, the Ethereum expansion plan, announced that the mainnet will be launched in March

Optimism, the Ethereum expansion program, announced that it will launch the main network open to the public in March. At that time, any contract can be deployed instead of the public beta version. The team also announced that it had completed the financing led by a16z in November last year.

According to foreign media reports, Andreessen Horowitz (a16z) announced that it led the A-round investment of Optimism, an Ethereum expansion solution, with a financing amount of US$25 million.

Defipulse5. Borrowing

The data shows that last week, the value of locked-up collateral on the chain fell from US$43.288 billion to US$33.915 billion, a week-on-week drop of 21.6%; A drop of 426%. Specifically, last week, ETH mortgages rose from 7.809 million to 8.474 million, an increase of 8.5%; BTC mortgages dropped from 48,705 to 46,008, a decrease of 5.5%.

6. Mining

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etherchain.org(data from etherchain.org)

On February 24, a DeFi user paid a transaction fee of 500,801 gwei ($36,000) for a Uniswap transaction. This fee was an input error, because the user manually entered the two gwei prices together. The fee of 500,801 gwei should be It was originally intended to enter 500 gwei or 801 gwei.

4. News

4. News

(1) Data: The revenue of Ethereum miners exceeded $1 billion for the first time in February, a record high

According to data from The Block Research, the revenue of Ethereum miners exceeded $1 billion for the first time in February this year, a record high, a substantial increase from the revenue of miners in January (up to $800 million), of which transaction fees were about $541 million.

(2) Data: DeFi lending platform liquidated hundreds of millions of dollars in assets

According to DeBank data, the liquidation volume of the lending agreement on Ethereum reached 131 million US dollars last Tuesday, surpassing the record of 93.3 million US dollars in November last year, setting a record high. Among them, the liquidation volume on Compound reached 100 million US dollars, ranking first. Aave V2 ranked second with 10.97 million US dollars.

(3) In the past month, the Ethereum arbitrage robot made a profit of more than 107 million US dollars

Bots exploiting flaws in the ethereum network for arbitrage have made at least $107 million over the past month, research shows. This arbitrage strategy is called Miner Extracted Value (MEV). Generally speaking, miners sort and pack according to the gas price given by the transaction. The order of these transactions has no effect on a single transfer transaction. The situation is different when it comes to DeFi transactions. For example, in Uniswap, for the same two buy orders for a certain trading pair, the transaction that is executed first will get more tokens. If you can always buy the same token before a buy order and sell it right after, you will profit without risk.

(4) Data: The trading volume of DEX in February reached a record high of 64.83 billion US dollars

Monthly trading volume on decentralized exchanges (DEXs) reached $64.83 billion in February, up slightly from $61.16 billion in January. Uniswap remains the market leader in the DEX space, with its monthly trading volume surpassing $30 billion for the second month in a row. In addition, the monthly income of Ethereum miners also reached the highest level ever in February. About half of the revenue comes from transaction fees, which reflects the high cost of transactions on the web today.

(5) CoinShares plans to list Ethereum ETP on the Swiss Stock Exchange

（6）Digital asset investment firm CoinShares plans to launch a physical-backed ethereum exchange-traded product (ETP). This is the second digital currency product traded on the exchange after the Bitcoin product (code: BITC) was launched in January this year. The product will be listed on the SIX Swiss Exchange under the symbol ETHE with a base rate of 1.25%.

Canadian investment management company CI Global may launch its first Ethereum ETF