Weekly Editors' Picks Weekly Editors' Picks (0917-0923)

"Weekly Editor's Picks" is a "functional" column of Odaily.On the basis of covering a large amount of real-time information every week, a lot of high-quality in-depth analysis content will also be released, but they may be hidden in the information flow and hot news, and pass you by.

Now, come and read with us:

Now, come and read with us:

Investment and Entrepreneurship

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Investment and Entrepreneurship

What will be the "supernatural pusher" of the next cycle?

DeFi

In addition to reminding us to pay attention to the macro trend, the author also bets on DeFi 2.0, GameFi, Web3 social, and DeSci.

Among them, the specific metrics of DeFi 2.0 include: more sustainable yields, more complex on-chain tools (and the ability to build complex structured products), more KYC, products related to the real economy (not meme production), new A stablecoin experiment (probably not an algorithmic stablecoin this time). In terms of projects, the author pays special attention to OlympusDAO because "it is establishing the narrative of an encrypted reserve currency independent of legal tender."

The next market narrative? Why are protocols like Aave and Curve creating their own stablecoins?

Aave and Curve plan to launch stablecoins GHO and crvUSD, respectively. Creating your own stablecoin can both increase protocol revenue, increase the value accumulation and utility of governance tokens, and strengthen the ability to expand and contract the supply of certain strategies or use collateral, increasing the competitive moat. But the risk is that the more complex protocol induces attacks, it is difficult to obtain deep liquidity, and better liquidation procedures are required.

In addition to DeFi protocols that issue stablecoins, other beneficiaries are those projects that directly benefit from the increase in stablecoins and the need to provide liquidity: Curve and Frax. The DeFi leaders most likely to issue stablecoins next are those that have achieved strong product-market fit and amassed significant TVL or user deposits: Compound, Lido, Uniswap.

a16z: Explain in detail the new method LVR to measure the cost of AMM LP

Given an arbitrary sequence of trades on any AMM, LVR (Loss Versus Rebalancing) is the sum of losses incurred by executing trades through the AMM rather than on the open market.

NFT, GameFi and Metaverse

LVR isolates the adverse selection costs borne by LPs. LVR is not only important to potential liquidity providers, but also to AMM designers. AMMs can only succeed if they allow LPs to earn enough revenue, which means that fee income needs to expand along with LVR. AMMs should consider dynamic fees that adjust with volume, volatility, or empirically observed LVR. At the same time, AMM designers should investigate ways to minimize LVR (and thus the required LP incentives), such as by incorporating high-quality price feed oracles for quoting to obtain prices closer to the market.

After the PFP era, which tracks of NFT 2.0 are worthy of attention?

Web 3.0

Gamefi with better gameplay, X to earn with better business model, DID, Metaverse.

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From the perspective of the next-generation data center, talk about why Web3 will eventually come

With the development of Service Mesh, some traditional services will develop towards the trend of distribution. The business and infrastructure of Web3 are deeply bound, and there are also requirements for distributed data centers.

This article explains in detail how the ENS domain name Degens got rich?

Ethereum and scaling

The article analyzes the profit methods of the top 8 addresses in the ENS domain names that have realized profits in turn: some addresses can achieve huge profits with only one or two domain names; Hundreds of times the price; a small number of addresses make profits by flipping prices in the secondary market; there are also addresses that monitor potential domain names by monitoring expired domain names.

Ethereum and scaling

How to become a personal ETH validator in the era of Ethereum PoS?

After switching to PoS, the threshold for participating in Ethereum is lowered, and running your own validator helps to maintain the decentralization and censorship resistance of the network. As things currently stand, nearly 5% APR is available in the form of ETH staking rewards.

Individuals can choose between "plug and play" solutions (Dappnode and AVADO), DIY hardware to stake individually, or Rocket Pool operators.

ConsenSys: Institutional DeFi and the Future of Ethereum

As the merger improves the security of the Ethereum network and prepares it for future scalability, the authors expect institutions to become more enthusiastic about participating in the Web3 ecosystem. Over the past two years, innovation in DeFi has created the infrastructure and tools needed for institutional adoption of DeFi. From permissioned loan pools that ensure only KYC participants, to on-chain asset management, MEV-resistant best execution protocols, and decentralized identities, more and more institution-focused projects have entered the market.The opportunity for institutional DeFi is huge, and Merge will help the market mature and create opportunities for investors to chase returns in high-risk areas.》、《Also recommend two articles that analyze the impact of mergers on Ethereum from the data dimension: "》。

After the merger is successful, Ethereum traders need to understand the data

Glassnode: On-chain data review the "historical events" of Ethereum's merger

A scaling solution cannot be stacked on top of itself and grow exponentially. The L3 proposed by Starkware includes: StarkNet with Validium data availability, application-specific StarkNet system customized for better application performance, StarkEx system with Validium or Rollup data availability, and private StarkNet instances. The vision of L3 can be summarized as customized functions, customizable expansion, and weak trust expansion.

New ecology and cross-chain

In the definition of L2, V God's personal preference is to have three characteristics: the purpose is to improve scalability, follow the "blockchain in the blockchain" model (they have their own transaction processing mechanism and their own internal state ), inheriting the full security of the Ethereum chain. So ideal rollups and ZK rollups are L2, but verification, proof aggregation schemes, ERC 4337, on-chain privacy systems, and Solidity are not.

New ecology and cross-chain

This article discusses whether the lower the gas fee, the better?

High gas means high price-earnings ratio, which can bring more benefits to stakers and put deflationary pressure on ETH supply, but the user experience will be poor.

The best option for Ethereum may be L2 - L2 is rapidly surpassing L1 in terms of absolute transaction volume and number of users.

LayerZero implements decentralized information cross-chain services by deploying a series of smart contracts (Endpoints) on the chain. The ultra-light node is running on Endpoint, and the "ultra-light" two fonts now only provide the Block header of the specified block. During the transmission process, Oracle and Relayer ensure the validity and security of information transmission.

DAO

At the security level, LayerZero disperses security defenses to four points, namely Endpoint, Oracle, Relayer, and the chain itself. They are mutually coupled, and this decentralized structure can make LayerZero more secure. More mature projects in the LayerZero ecosystem include cross-chain bridge Stargate, DEX Hashflow, lending Radiant Capital, DEX SushiXSwap, etc.

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• Vitalik: DAO is not a company, the decentralization of autonomous organizations is very important

• The three conclusions are:

• Decentralization can lead to better decision-making in concave environments, and diversification or even a naive compromise may on average outperform the consistency and focus that centralization brings.

Censorship-resistant decentralization: Applications that need to continue to function while resisting attacks by powerful external actors.

Decentralization as trustworthy and fair: DAOs assume nation-state-like functions in applications, such as providing basic infrastructure, so features such as predictability, robustness, and neutrality are valued over efficiency.

V God further demonstrated by taking VitaDAO and Ukraine DAO, algorithmic stable currency, Kleros court and Optimism retrospective financing mechanism as examples.

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hot spots of the week

In the past week,hot spots of the week，In the past week,Crypto Markets Are Underperforming OverallTetherthe fedDo KwonAt least another 75 basis points of rate hikes are expected in 2022, with no rate cuts expected until 2024,WintermuteAsked by the judge to provide financial records supporting USDT, South Korean prosecutors asked Interpol toIssue a red notice,Because there are loopholes in the wallet created by Profanity, it lost 160 million US dollars due to brute force cracking, Optimism reminds vigilance

Risks associated with Profanity, it is recommended to transfer the assets in its creation address;In addition, in terms of policies and macro markets, the White House releasedCryptocurrency Regulatory Framework，, U.S. federal regulators will meet regularly to supportDraft EU MiCAU.K.Or regard blue-chip NFTs such as BAYC as securities regulation,

U.K.Propose a new bill to combat cryptocurrency crime;In terms of opinions and voices, V God proposed "L3 Vision”: L2 and L3 need to have different purposes, such as L2 for expansion and L3 for custom functions, etc., sources saidCoinbase established a professional trading team last year for proprietary trading, which has previously denied such transactions,Coinbase respondedPurchases of cryptocurrencies for purposes such as company operations are not considered proprietary transactions,HarmonyResponse to doubts: there is no problem of excessive issuance,

Institutions, large companies and top projects,: The Horizon cross-chain bridge asset recovery proposal will not be issued;Institutions, large companies and top projects,MicroStrategyplans to launch an institutional crypto custody service,grayscalegrayscaleBinanceAnnounced that its funds will be allocated approximately 3.1 million ETHPoW tokens, seeking to sell them and distribute them to corresponding shareholders,BinanceIntegrate BUSD on Avalanche and Polygon chains, and open deposit and withdrawal,ETHWFTX and BinanceHeliumAuction bidding is underway for Voyager, with Binance currently bidding slightly higher than FTX,NomadAfter the fork, the market value and computing power plummeted,DeFi LlamaThe proposal to migrate the network to Solana was voted on,PandaDAOPublish the cross-chain bridge restart plan,

Token price API launched, aiming to price more tokens that are not directly traded,Posted a "Community Refund and Dissolution Proposal" on Snatshot;，NFT and GameFi field, OpenSea launchedNFT rarity open standard OpenRarityArbitrum support, and will launchSeaDrop function, support NFT projects to start and mint directly on the platform,Magic Eden Launches ETH Aggregator, supports the purchase of Ethereum NFT series with ETH,MoonPayWith "Editor's Picks of the Week" series

With "Editor's Picks of the Week" seriesPortal。

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