Weekly Editors' Picks Weekly Editors' Picks (0527-0602)

郝方舟

Odaily资深作者

@OdailyChina

2023-06-03 08:00 (UTC+8)

This article is about 4018 words, reading the full article takes about 6 minutes

High-quality in-depth analysis articles and weekly hot spots.

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High-quality in-depth analysis articles and weekly hot spots.

"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.

Therefore, every Saturday, our editorial department will select some high-quality articles that are worth spending time reading and collecting from the content published in the past 7 days. You bring new inspiration.

Now, come and read with us:

Investment and Entrepreneurship

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a16z Encryption Entrepreneurship Course: After "Token Design", "Protocol Design" is launched

Investment and Entrepreneurship

A quick look at a16z's investment landscape in the first quarter of 2023

a16z's current largest portfolio positions are: UNI ($74.4 million), COMP ($8.82 million), and MKR ($2.59 million)."Stable Horde"Its top 5 cryptocurrency investments in the first quarter of 2023 are Story Protocol (to be launched, very little information), interoperability protocol LayerZero Labs, wallet Capsule Wallets, decentralized IM protocol and application Town (HNT Labs), security company Stelo Labs. Its top five non-cryptocurrency investments in the first quarter of 2023 are OpenAI, Orbital Therapeutics, Character AI, Pinecone, and Replit, and it is actively deploying in the AI field."Unstable Confusion"a16z Encryption Entrepreneurship Course: After "Token Design", "Protocol Design" is launched"What protocols have in common is that they are formalized interactive systems that facilitate complex group behavior, which is a core component of the protocol. The power of the Internet protocol lies in its ability to connect not only human-to-human interactions, but software as well. We know that software is highly adaptable and efficient, capable of integrating mechanisms. As such, the Internet Protocol is arguably one of our most important, if not the most important, types of protocols."The protocol in the Web1 era is decentralized and has no clear economic model. The protocol in the Web2 era is centralized and has a clear economic model. The protocol in the Web3 era is decentralized and has a clear economic model. The system of Web3 will continue to exist, and the development of economic relations is included in the agreement, and there is more room for flexibility and innovation."a16z gave an example, how to integrate the existing Web2 protocol"Convert to Web3 protocol", the solution consists of"Pay proportional to contribution

, that is, workers can freely join or exit the system at a lower cost, attracting more participants;

DeFi

R.I.P. "decentralized"stable currency

, that is, the responsiveness and quickness of the application is critical to the user experience. Potential mechanism designs include verification mechanisms, pricing strategies, storage mechanisms, and task allocation strategies."overcollateralized"The main points of decentralized protocol design are: avoiding design elements that lead to centralization risks, reducing switching costs and promoting interoperability, using Web3 technology to create decentralized systems, in-depth research and selection of the best solution.

decentralized

stable currency

Stablecoins, or Collateralized Debt Positions (CDPs), have the equivalent of 200% collateralization (or 50% loan-to-value, or LTV). The price of BitUSD is determined based on its weight relative to BTS on the BitShares built-in DEX, there is no direct mechanism to enforce a $1 price anchor for bitUSD, no real-time price feed from oracles, and low trading volume on the BitShares exchange Easily manipulated, illiquid and highly volatile.

Outlier Ventures: Comprehensive interpretation of the current situation of unsecured lending

In contrast, DAI wins in terms of over-collateralization and a good liquidation system. In 2020, multi-collateral DAI was born, supporting more collateral besides ETH to mint DAI. The author believes that the Maker final proposal released by Rune is a radical change, starting Maker's chemotherapy plan to treat its centralized cancer - accumulating ETH into Maker PSM, and finally converting all remaining USDC into ETH, becoming A censorship-free, free-floating non-stablecoin. Maker and DAI face deeper problems: revolving funding, greater centralization, custody risk.

Launched in summer 2020, Basis Cash was a poorly conceived and practiced Ponzi scheme, it didn't fail catastrophically, it just never maintained its peg to the dollar. UST is not backed by anything, it is an unsecured "stablecoin" with a pure minting power algorithm. As increasing yields lent to Anchor Protocol depositors push to tipping point, 10x leverage on UST via Abracadabra's Degenbox (Bentobox) strategy, providing Anchor with nearly 100% yield, nearly $3 billion more deposits earn unsustainable, ridiculously highly leveraged returns from Anchor. This Degenbox strategy is the most profitable yield strategy ever built on top of Terra's ridiculous Ponzi scheme.

Algorithmic stablecoins simply won’t work in the long-term. It cannot maintain its peg to the U.S. dollar unless more flows into the trustless decentralized currency than spending. This means that for every dollar of Decentralized USD, there needs to be more than one dollar of funding backing it. The “Three Dilemmas of Decentralized Stablecoins” are price stability, censorship resistance, and capital efficiency.

Outlier Ventures: Comprehensive interpretation of the current situation of unsecured lending

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A snapshot of some of the agreements to provide unsecured loans to institutional borrowers

Centrifuge is currently the most successful unsecured lending protocol in terms of FDV valuation and TVL. Although they also suffered from some overdue loan issues, their strength lies in RWA's innovative approach.

The overall valuation of all native unsecured lending tokens underperformed and failed to outperform the cryptocurrency market. The 2022 bear market has had too many partial crashes or even full crashes, leading to less trust in the space.

Considering the huge influence of unsecured lending in the traditional financial field and the trend of the market to optimize capital efficiency, decentralized unsecured lending still shows a huge potential for growth and innovation.

NFT, GameFi, and the Metaverse

Comprehensive interpretation of the status quo and prospects of DeFi insurance agreements

Articles dive into the following protocols: Nexus Mutual, Unslashed, InsurAce, Risk Harbor, Ease.org, Sherlock, Tidal Finance, InsureDAO, Neptune Mutual, Bridge Mutual, Cozy Finance, Bright Union, and Solace.

Different insurance providers offer different coverage types: protocol insurance, escrow insurance, decoupling insurance, yield token insurance, audit insurance, slashing insurance, cross-chain bridge insurance, excess insurance. Current practitioners are prioritizing protocol upgrades to improve capital efficiency, coverage capabilities, and user experience, and are developing customized insurance coverage and marketplaces to meet the specific insurance needs of DeFi users.

Anyone can participate and the transparency of on-chain operations is often highlighted as a key advantage of a decentralized insurance system.

NFT, GameFi, and the Metaverse

Ryan Carson is the former COO of PROOF, he left the project a few days after the presale, which is not accepted; 0; the team canceled the highly anticipated PROOF conference, and then scrapped the metaverse planning Highrise and Moonbirds tokens; PROOF put nearly 50% of its total reserve funds in bankrupt Silicon Valley banks; the starting point is too high, and the narrative tells Too full, and continuous operational mistakes, and a lack of understanding of the dynamics of the NFT market made them take the next many wrong steps.

IOSG Ventures: In-depth interpretation of the full-chain game engine

Data analysis of the status quo of the NFT lending track: Blend won 80% of the market share in the first month of its launch

In the NFT lending market, Blend ranks first with a market share of 82.9%, Paraspace ranks second with 7.8%, and NFTFi ranks third with 5.2%.

Players in the NFT lending market have been reshuffled, and the main reason behind this change is: Blend is backed by the leading NFT trading market Blur, and by not charging borrowers and lenders any fees, it continues to add support for Punk, Azuki, BAYC , Milady, DeGods and other popular NFT series and the launch of the ETH loan batch repayment function to create a competitive advantage; not long ago, due to internal "infighting" incidents in Paraspace, a large number of users panicked and fled. Although the internal fighting was finally resolved, the impact on the business was Obvious.

In a full-chain game, the game state will all be stored on the blockchain, which means a unique set of challenges and the creation of new infrastructure.

Bitcoin ecology

Ethereum, OP and StarkNet are the three key ecosystems.

Ethereum and scaling

Although the current full-chain game playability and interaction difficulty need to be optimized, the types and technical limitations of deployable games are also very obvious. But the whole-chain route is truly subverting traditional game logic, and it is one of the most potential tracks that we have seen after DeFi that can combine narrative and products. This fundamentalist feature also makes the quality and activity of the developer community very high. Soon, a series of ecological games, tools, guilds and other projects relying on its underlying architecture will appear on each engine of the full-chain game, and a real metaverse economy and social interaction will be born.

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Bitcoin ecology

Research Report: In addition to BRC 20, Bitcoin also has Layer 2 RGB

EDCON 2023: Vitalik Buterin's speech summary and high-quality project inventory

DAO

V God: At present, the biggest challenges of Ethereum come from four aspects: privacy, security of consensus algorithm, security and scalability of smart contracts, which also represent the problems that Ethereum needs to solve in the future, so as to make decentralized programs The operation is more efficient and easy to access. At the same time, Ethereum will pay more attention to the security of user accounts and ensure the traceability of assets.

The two perfect solutions to ensure wallet security are multisig (more suitable for cold wallets) and social recovery (social recovery, more suitable for hot wallets). Stealth addresses are an important technology to protect privacy, and Proof of Innocence will guarantee the "justice" of this technology. ZK-SNARK social recovery can take into account both social recovery and privacy, and is a secure encrypted asset management solution.

Vitalik at EDCON Montenegro: Opportunities and Challenges for Ethereum

The core proposition of Lido's recent innovative governance proposal is to support a "dual governance scheme", that is, in addition to LDO holders, stETH holders will also be given governance rights over the Lido protocol.