Weekly Editors' Picks Weekly Editors' Picks (0603-0609)

"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:

DeFi

"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:

Trader Joe, Izumi, Maverick: Analysis of L2 Head Liquidity Customized DEX Mechanism

This article mainly introduces 3 Dex that have optimized the pricing range on the basis of V3——Trader Joe v2, Izumi Finance and Maverick Protocol.

The biggest improvement of Trader Joe V2's LB (Liquidity Book) over Uniswap V3 is to introduce the concept of "Bin" and make the liquidity distribution strategic. Bin is a price range as a unit of liquidity distribution. In Liquidity Book, liquidity is divided into discrete Bin units. The liquidity in each Bin is exchanged at a fixed exchange rate. Allows liquidity providers to pool funds within a specific price range, thereby avoiding slippage.

Izumi's AMM uses the DL-AMM algorithm, a new discrete centralized liquidity algorithm, which has the characteristics of a centralized liquidity market maker similar to Uniswap V3, but can accurately distribute liquidity at any fixed price, instead of a single price range. This makes iZiSwap more controllable in liquidity management and supports more trading methods, such as limit orders.

The automatic liquidity placement (ALP) mechanism of Maverick AMM is similar to Uniswap V3, but the important difference is that the ALP mechanism can automatically realize the dynamic rebalancing of centralized liquidity, so that the transaction slippage is lower than that of the non-centralized AMM model, but the impermanent loss and Lower than the centralized AMM model (one-sided liquidity mechanism reduces impermanent loss scenarios). Its key mechanism is to manage liquidity through the use of "Bin".

From the perspective of data performance, Maverick’s volume in the past week was 164 mln, Trader Joe’s was 308 mln, and Izumi’s was 54.16 mln; in terms of TVL, Maverick’s volume was 27.83 mln, Trader Joe’s was 140 mln, and Izumi’s was 57 mln. In comparison, Maverick can capture more volume with a lower TVL, and the capital efficiency is very high, and most of the transaction volume is routed by 1inch, which also means that Maverick has stronger price discovery capabilities.

In-depth interpretation of four new decentralized algorithmic stablecoins: Dai, GHO, crvUSD and sUSD

The increase of Dapps and platforms will drive the expansion of demand for calling data sources and APIs through oracle machines.

NFT, GameFi, and the Metaverse

Although the direction of traditional DeFi's oracle machine based on the data price feed function, it is difficult to see who will break Chainlink's monopoly in the short term, but there may still be room for second place in the remaining 10% of the market. In addition, oracle machines in subdivided fields, such as L2, credit, NFT, DID, etc., have noteworthy innovative protocols and narratives.

Greater development potential and market space are still worth exploring, such as off-chain computing scenarios, NFT and other non-standard on-chain asset pricing and deep integration of AI/ML.

NFT, GameFi, and the Metaverse

NFT bull market recovery? Eight sets of data interpret the current situation of the NFT market

The transaction status of the NFT market is still sluggish. Whether it is from the perspective of transaction volume, transaction address or market demand of buyers and sellers, it is still in the bottoming stage of the bear market, let alone the recovery of the bull market.

In terms of popularity, the NFT leader is "dimmed", and the old NFT Milady Maker "turned off" after becoming popular again.

The GameFi track is still one of the fields that will absorb the most financing in the encryption industry in 2022, with the amount of financing nearly doubling year-on-year.

Ethereum and scaling

The Four Periodic Narrative Changes of the Ethereum Ecosystem

During the development of GameFi, chain game ecosystems have played an important role. There are Gala Games, which led the last round of GameFi bull market, to introduce new ones, and TreasureDAO, which hatched the popular chain game The Beacon, gained brand awareness, and some are backed by Binance. The Block Ape Scissors want to realize the "big reshaping" of the BSC chain game circle.

Ethereum and scaling

The Four Periodic Narrative Changes of the Ethereum Ecosystem

In recent years, there have been four main narratives in the Ethereum ecosystem—ICO, stablecoin, NFT, and DeFi. Typically, the peak of each innovation narrative drives the price of ETH higher.

Since March this year, the gas consumed by contract interaction is equivalent to several times of token transfer.

Through a detailed analysis of Uniswap's trading volume, it can be found that the highest trading volume in the past 30 days is mainly related to assets with higher market capitalization, such as ETH, stablecoins, WBTC and Coinbase's pledged derivative cbETH, rather than meme coins.

Thanks to the burning mechanism of EIP-1559, they will burn a lot of ETH for Ethereum no matter how the narrative switches on Ethereum. The common promotion of these narratives actually completes the big narrative of the Ethereum chain itself.

New ecology and cross-chain

frxETH v2: Leading LSD into a New Era and Innovation Highlights

frxETH is one of the fastest growing LSDs, having amassed over 233.4 K ETH in over a year. This exponential growth is mainly due to the synergy between sfrxETH and the frxETH-ETH pool on Curve. frxETH v2 introduces some innovative mechanisms, the most important of which include: floating interest rates based on market and utilization rates and a programmable lending market, which will help develop more application scenarios and generate a new lending market.

New ecology and cross-chain

Due to the emergence of Ordinals, the market has rekindled interest in Bitcoin programmable, and Stacks outperforms other public chains in multiple indicators, reflected in market capitalization (340%), revenue (218%), network usage (~ 35% % ), DeFi TVL ( 276 % ) and DEX trading volume ( 330 % ).

hot spots of the week

In the past week,Affected by USDC de-anchoring and Paxos stopping issuing BUSD, the dominance of the stablecoin market has shifted to USDT, benefiting TRON. The market value of stablecoins on TRON increased by 30% month-on-month to US$43.6 billion; the market value of all other stablecoins issued by L1 showed a month-on-month decline.hot spots of the weekIn the past week,、Biden signs debt ceiling bill, suspending debt ceiling until early 2025, the U.S. SEC sued Binance and CZ for violating securities laws (speed read indictment），Binance.US：In-depth interpretation，), Binance responded: SEC does not protect investors, only makes news headlines (，full text，SEC's lawsuit is baseless and will vigorously defend itselfSEC qualifies SOL, ADA, MATIC, FIL, ATOM, SAND, etc. as securitiesSEC sues Coinbase，CZ：Coinbase responds，: Clear legislation is the solution, Coinbase will operate as usual,，CZ：SEC Seeks Court Approval of Temporary Restraining Order to Freeze Assets Related to Binance.USIf the asset freeze order is approved, it will only affect Binance.US, Binance.com will not be affectedAcknowledge receipt of the U.S. District Court subpoena, but do not have to appear in person, no FUD required，

In addition, in terms of policies and macro markets,, Binance Lawyer:Gary Gensler, who offered to serve as an advisor to Binance, has been asked to recuse himself from actions against BinanceIn addition, in terms of policies and macro markets,U.S. House of Representatives Proposes New Draft Encryption Bill, Assigning Clear Regulatory Powers to SEC and CFTC, Xu Zhengyu:The Hong Kong Monetary Authority is drafting a "stable currency" regulatory framework and plans to conduct a second round of public consultation within this year, Hong Kong SFC official:；

We support tokenization and would like to discuss this with the industry,View:，Jack Dorsey：Stablecoins differ between G-7 and G-20, with the latter calling for stricter restrictions，Arthur Hayes：We don't need any more cryptocurrencies, He Yi:ETH is a security，Binance Web3 wallet is currently in the testing phase；

Institutions, large companies and top projects,Arbitrum issues initial ARB allocation to second batch of DAOs, totaling 4 million，Institutions, large companies and top projects,，Synthetix Announces V3 Spot Market Alpha，Arbitrum issues initial ARB allocation to second batch of DAOs, totaling 4 million，Some users have received the funds that have not been received in the previous Multichain cross-chain，Atomic Wallet：Synthetix Announces V3 Spot Market Alpha，Curve founder was jointly sued by three major encryption VCs including ParaFi，The BNB Bridge attacker’s mortgage position is taken over by the BNB Chain team and may not directly affect the market；

NFT and GameFi fields,The Bitcoin Ordinals protocol released version 0.6.0, which supports the recognition of "cursed inscriptions"，NFT and GameFi fields,，Blur Updates Bidding Points Mechanism: Transferring NFTs for loyalty, bogus bids, etc. will no longer earn BLUR rewards... Well, another week of ups and downs.

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

See you next time~