Weekly Editors' Picks (0805-0811)

郝方舟

Odaily资深作者

@OdailyChina

2023-08-12 08:00 (UTC+8)

This article is about 3141 words, reading the full article takes about 5 minutes

High-quality in-depth analysis articles and a weekly review of hot topics.

AI Summary

Expand

High-quality in-depth analysis articles and a weekly review of hot topics.

Weekly Editors Picks is a functional column of Odaily. In addition to covering a large amount of real-time information every week, it also publishes a lot of high-quality in-depth analysis content, but they may be hidden in the information flow and hot news and pass you by.

Therefore, our editorial department will select some high-quality articles worth spending time to read and collect from the content published in the past 7 days every Saturday. From the perspectives of data analysis, industry judgment, opinion output, etc., we will provide those in the encryption world with You bring new inspiration.

Now, come and read with us:

invest

veDAO Research Institute: Use artificial intelligence models such as ChatGPT to easily guide crypto investments

The article introduces 5 AI-assisted encryption investment products: Kaito, Ora.ai CryptoAiden, Web 3 Summary, decentralized investment and financing platform veDAO, Assisterr.

DeFi

Conversation with Paradigm Research Director: How will DeFi 2.0 change everything?

Uniswap X changes decentralized exchanges, MEV, and interoperability.

While Uniswap V4 is primarily concerned with reducing losses suffered by liquidity providers due to arbitrage, Uniswap X is primarily concerned with protecting swappers and ensuring they get the best execution price. The core idea of Uniswap X is to shift from a specific transaction path to the users transaction intention. The Dutch auction mechanism is a key component in Uniswap X and an excellent decentralized price discovery tool.

Certain cross-chain technologies may create a representative asset, which may become a security risk. It is better to use those official cross-chain technologies created for a specific chain, because these cross-chain technologies create real, official assets, not representative assets.

Suave provides similar capabilities for off-chain operations, allowing complex operations to be performed off-chain while maintaining decentralized characteristics. Suave also provides powerful tools for application developers, allowing them to execute code efficiently and privately off-chain while relying on the guarantees of decentralization.

Behind the Curve attack: DeFi suffers from yield disease

Letting whales and institutions with tens of millions of dollars in on-chain assets make money is the most realistic problem facing DeFi. The basic income is low and the currency price performance is not good. How to improve the income of LPs?

The idea of the founders of Curve is to take a chance on the market and make the price of CRV higher. Different from other established DeFi, Curve has two advantages: due to Curves veToken bribery mechanism stimulation, CRV liquidity is poor; The team provides many operational possibilities, and one of the methods is to conduct short-selling behavior under the pretext of reluctant to sell. After this crisis, the founder successfully kidnapped everyone to help CRV carry the sedan.

In addition to PoS staking rewards and protocol token emissions, is there any other way to provide stable and considerable income for large investors? Real Yield and RWA may be the answer. But for now, RWA cannot fundamentally solve DeFi’s “yield disease” and can only wait for the bull market.

MakerDAO increases DSR to 8%, what are the pros and cons for the protocol?

Since Maker has invested more than $2 billion in RWA, currently only about 20% of DAI is stored in the DSR contract to earn interest, so giving DSR a higher short-term subsidy will not make Maker fall into a loss. But the move also lowered Makers profit expectations and may also indicate that Makers growth has entered a bottleneck period.

The potential impact of increasing the DSR is: the increase in DAI issuance, the decrease in short-term expected returns, and the increase in P/E may increase the income of stablecoin deposits in other lending agreements, which may increase the demand for USDC and increase the balance of PSM.

An in-depth analysis of the LSD track: Why is Lido still a favorite?

Liquidity staking is one of the few areas in cryptocurrency where protocols have achieved unique product-market fit by addressing the capital efficiency issues faced by token holders on proof-of-stake (PoS) blockchains. This results in the track having the largest TVL ($22 billion) in the DeFi field. If capital efficiency issues with PoS chains persist, there will be a long-term need for liquidity staking solutions. Due to its common usage and non-volatility, the quality of earnings in this industry is better than other DeFi industries.

Since Lido has built a strong network effect around stETH with a proven track record of reliability and decentralized validator technology using SSV and Obol, it is well positioned to capture industry growth.

In the medium term, Lidos revenue has the potential to triple, mainly due to: increased market capitalization of Ethereum, increased stake-to-equity ratio of Ethereum after the Shanghai upgrade, increased market share of decentralized liquidity staking protocols, and continued dominance of Lido.

NFT, GameFi, and the Metaverse

Fat Penguin CEO writes a long article: Six key points in the development of NFT

Building a globally recognized brand is the best way to accumulate value for NFT holders: marketing, emotional connection, sustainability, touchpoints, experience, institutional play.

Dismantling the Dark Forest, the originator of full-chain games: ZK’s application potential in games

Dark Forest (Dark Forest) is an MMO Cryptographic Fog of War chain game. Information hiding is achieved through fog of war - areas on the game map are obscured until the player discovers them. Dark Forest uses zero-knowledge proof zkSNARKs technology to allow players to publicly submit verifiable valid actions while maintaining privacy, thereby achieving incomplete information. Cheating, bribery, cooperation, automation are all allowed, except for game-breaking bugs, because youre in the Dark Forest.

At present, there are 55 open source plug-ins officially reviewed and included in the plug-in library. It is mainly divided into three categories: visualization, trading market, and automation.

Dark Forest weakens the Fi element and pays more attention to gameplay, thus building a rich game experience and diverse gameplay; at the same time, experimenting with new functions.

Web 3.0

AI agents and authentication, the next explosive crypto narrative?

The crypto market is highly narrative driven. The driving units are divided into: stories that people can understand; beliefs formed around the stories; Memes that summarize these beliefs.

AI is at an all-time high while cryptocurrencies are at an all-time low. Cryptocurrency is of great significance to the native Internet economy. Because AI agents live on the Internet.

PoW

PoW may seem obsolete, but innovation doesnt stop

At the macro level, the bear market looks at PoW. After Ethereum transfers PoS, the remaining computing power needs to find new carriers, so new PoW projects have performed well recently.

Furthermore, PoW plus decent innovation can also successfully rise in a bear market. Previously, the essence of innovation was to solve the three aspects of improving the blockchain: transaction speed, privacy and transaction form diversity. New opportunities for PoW projects include PoW combined with NFT, stable currency, AI, and Bitcoin.

Ethereum and Scaling

Evaluating ETH with price-earnings ratio: the more expensive the more counter-intuitive to buy

A valuation multiple is a heuristic for estimating the value of an asset. Similar valuation multiples can also be applied to cryptocurrencies. Market capitalization divided by total fees is the valuation multiple of a cryptocurrency. Market capitalization represents the markets current perception of an assets value. Fees are the gross revenue generated by the protocol. Ethereum is currently trading at a valuation of 100 times its seven-day annualized fees. Since the summer of 2022, Ethereum’s fee multiple has fluctuated between 25x and 235x.

History has shown that it is best to buy when ETH is trading at its peak P/E and sell at its trough. Buy when ETH is trading at its highest valuation multiple, and sell when it is trading at its lowest valuation. This conclusion can be explained by the following: the market is forward-looking; the value of Ethereum is not based on multiples of fees.

The Ultimate Guide to zkEVM: Comprehensive Comparison of 6 zkEVM Options

Polygon zkEVM (+ 2.0), zkSync Era, Linea, Scroll, Taiko Comparison

DAO

MakerDAO Joint Creation: Why are we merging the DAI and Maker brands?

The current decentralized financial system is broken, and it’s time to replace it with a system that benefits everyone. Maker Endgame achieves this through the power of DeFi and DAOs: overcoming their weaknesses, doubling down on their strengths, and fueling the accelerated growth of DeFi.

Maker is the oldest DAO and controls the largest decentralized stablecoin. Annual revenue is $142 million+ and project expenditures are $44 million+.

Alignment Engineering is a decentralized solution that keeps all participants in the DAO aligned. The goal is to make collaboration an easy option.

DAI and MKR will continue to exist, and their temporary codenames are: NewStable (NST) and NewGovToken (NGT). The revaluation of upgrading MKR to NGT is 1: 12000. NST will be able to mine NGT tokens. We hope to avoid the complexity of a single DAO by separating advanced functionality and innovation into different SubDAOs. Regular NewStable (NST) holders can mine the tokens of these SubDAOs for free. These self-organizing communities can then innovate, build and distribute products on top of the core DAO, generating revenue. In doing so, they can benefit and grow the entire ecosystem.