Weekly Editors Picks (1007-1013)
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.
Next, come and read with us:
invest
The overall market was sluggish in September, with many indicators at the lowest levels for the year. The main contradiction in the market is still the lack of funds, and this contradiction cannot be solved now. The core constraint of the main contradiction still lies with the Federal Reserve. You should continue to pay attention to fundamentals, make timely allocations, and wait patiently for the real buying point.
Active addresses and the like alone don’t tell the full story that BTC’s on-chain metrics have improved this month. The number of whale addresses and the number of addresses excluding 0 assets decreased in September.
The activity of on-chain addresses does not necessarily reflect the activity of BTC investors. After in-depth ecological analysis, it can be said that more activities on the chain indicate investors confidence in the BTC ecosystem. Ordinals and Inscriptions are the main reasons for the active ecology on the BTC chain. And through the analysis of the amount of a single transaction, we can observe signs that market sentiment is picking up.
Judging from the data on the chain, the story of BTC is gradually escaping from the expensive payment instrument setting, and ecological innovation will become the main force in the continuation, providing more possibilities for the BTC ecosystem. In addition, the BTC halving (block reward halving) is also one of the important factors affecting the BTC market.
LD Capital: Analysis of ETH’s recent price performance and direct influencing factors
In the past year, ETH has been in a weak position relative to BTC. However, in the long term, ETH/BTC is in growth mode.
The factors that influence the strength of ETH are very complex. At the macro level, it includes changes in the Federal Reserve’s interest rate hike policy and changes in the SEC’s regulatory attitude. At the micro level, it includes the development of the ETH ecosystem, the rise of the second layer, token consumption and supply, enthusiasm for market capital participation, etc.
Fundamentally, since the merge, ETH has been in a deflationary state, with an inflation rate of -0.217%. However, in the past two months, on-chain transactions have been deserted, gas income has dropped significantly, and ETH has entered a state of inflation, with an annualized inflation rate of 0.275% in the past 30 days. Since the Shanghai upgrade, ETH pledges have continued to rise, with the current pledge rate at 25.33%. There has been selling pressure recently. ETH contract positions are in a downward trend this year.
Start a business
Sequoia America internal sharing: The critical moment has arrived, who will survive in the future?
Dont expect the economy to rebound as quickly as it did after the pandemic began because monetary and fiscal tools to drive economic recovery have been exhausted.
At the same time, Sequoia also advises founders to act quickly to extend runway and comprehensively examine the business for excess costs. Dont think of cutting valuation as a negative, its a way to save cash and grow quickly, which will help you go further.
In the process of the rise of Ethscription, KOL also found a lot of traffic passwords, which played a role in fueling the flames. The content of the post included #ETHS. As long as it takes some time to bloom silently and wait for the ETHS army to come, You can get a lot of one-click triple combos. In addition, another operating method of the Ethscription army is to compare ETHS with L2. This new narrative has been strongly spread within the community.
DeFi
DWF Labs: Ecological overview and strategic analysis of decentralized perpetual contracts
Perpetual contracts are a product suited to the crypto world, with flexible contract terms that simplify the trading experience by better aligning funding rates with spot prices, making it easier and more intuitive for users to manage leveraged positions.
The limit order book model creates a decentralized CEX experience (DYDX, Hyperliquid, etc.); the introduction of vAMM for perpetual contracts is to more adapt to the AMM model of DeFi (Perpetual Protocol); the new versions of Perp and Drift integrate the two major Advantages: Connect the order book and AMM to achieve optimal trading; representatives of the liquidity pool models in perpetual contract DEX include GMX and Synthetix.
The liquidation-free lending agreement is a lending agreement with Ethereum as the main collateral and predetermined terms. Its beauty lies in its simplicity: Borrowers determine a clearing price when they originate a loan, and as long as they repay by the set deadline, their collateral is safe.
This agreement gives borrowers more room to set liquidation prices, providing a buffer against hasty liquidations that platforms such as Aave may trigger. On the other hand, lenders can enjoy potential returns higher than deposit rates on traditional platforms such as Aave, especially if the ETH market price is favorable to them.
GameFi
Without ZKP, all signatures authorizing changes to state (off-chain) would have to be verified on-chain, which does not significantly reduce costs compared to on-chain transactions. Zero-knowledge proofs provide convenience for solving this problem. Zero-knowledge state channels can effectively scale multiplayer games and reduce the cost of on-chain verification while ensuring the security and fairness of the game. Teams like Ontropy, Paima Studios, and cartridge are all working toward this goal.
Web3
NGC Ventures: Intent-centered design in blockchain systems
Existing intent-related projects include Cow protocol + Cow swap, Soul wallet, and UniswapX. Upcoming intent protocols include Anoma, SUAVE powered by Flashbots, and Essential.
While intents optimize the user experience flow, they also create a set of risks and challenges: Intents rely on outsourcing decision-making to third parties - processors and block builders; users interacting with intent-centric systems There is also the risk of their intentions being misinterpreted, such as by performing the wrong actions and having unintended consequences; with the emergence of intent-centric systems, new security threats may emerge, such as accidentally granting unauthorized account access permissions, data breaches that lead to user privacy breaches, and information breaches that lead to other traders front-running or market manipulation.
At present, Web3 payments can be roughly divided into two categories: deposit and withdrawal payments, and cryptocurrency payments (on-chain and off-chain);
Web3 payment infrastructure is gradually taking shape, linking wallets, custody, and stable coins. More important than this is how to build payment scenarios;
Compliance is the foundation of the payment business. The cross-regional and cross-scenario complex nature of the Web3 payment business brings huge challenges to regulatory compliance;
The biggest opportunity for cryptocurrencies may not be seen as a cryptocurrency, but as a new set of payment methods.
Crypto’s biggest use case: Building permissionless identities
Flywheel effect:
As applications like crypto consumers rise, they will all naturally rely on permissionless identity as a natural authentication standard.
These apps will be able to start sensing the context of your past behaviors and actions as well as those in other apps.
The ability to import environments from the past and elsewhere creates a better user experience.
Users are demanding that more applications support public key-based authentication in order to log in and use applications.
As the number of applications that support public key authentication increases, the more utility users gain from their permissionless identities.
MetaMasks growth flywheel is failing, and pan-user applications have become the new entry
During the rapid rise of the DeFi and NFT fields, thanks to MetaMasks asset and user scale advantages, more and more dApps choose MetaMask as the preferred solution to connect on-chain businesses, thus further enhancing MetaMasks asset scale and user scale. .
But MetaMask is not the core driving force for incremental user entry (the entrance should be the starting point for active demand collection and distribution, not just a place for traffic); the core business scenarios on the chain are migrating: the non-DeFi category of pan-user application layer The project is rising rapidly; MetaMask, as the leader of the EOA account system, has certain conflicts with the essential goal of account abstraction; there is a misalignment between the iterative ideas and the nature of the product: As a Web3 chain product with the largest number of C-end users, the product ideas But it is oriented towards developer priority.
The new entrance will be a Web2 super application that continues to invest in Web3 business and has clear goals. The head effect and redistribution ability determine whether a sustainable entry can be formed.
Bitcoin Ecology
Computing anything on Bitcoin, what do developers think about BitVM?
BitVM is a new computing paradigm designed by Robin Linus at Zero Sync, integrating Optimistic Roll Up, Fraud Proof, Taproot Leaf and Bitcoin Script.
BitVM allows the expression of Turing-complete Bitcoin contracts without changing the consensus rules of the Bitcoin network, and can execute any computable function for offline calculations without leaving any traces on the chain.
The Turing completeness mentioned in the white paper is only an extreme ideal situation. If both parties do not cooperate in establishing an agreed consensus off-chain, it will be difficult to achieve a true contract execution solely by relying on the limited on-chain execution environment of the Bitcoin network.
BitVM is currently only suitable for on-chain operations between two Parties that have agreed on a consensus; how BitVM uses a script with a single taproot address to implement the smallest programming unit cannot exceed the execution logic framework of Bitcoin; the scenarios supported by BitVM under ideal conditions are very limited and relatively It is suitable for scenarios where heavy off-chain calculations are needed and only part of the consensus and asset transfers need to rely on the chain.
BitVM is like building a giant computer larger than a room in an era when everyone can use a mobile terminal.
Ethereum and Scaling
The current double pledge has two flaws: centralization risk for node operators and unnecessary consensus burden.
A meaningful role that agents can play in the staking system is the option to participate in the consensus mechanism. There are three ways to increase the power of representative selection: improving voting tools within pools, increasing competition between pools, and fixing representation rights.
If implemented correctly, fine-tuning the proof-of-stake design can solve two problems in one fell swoop: Give those who don’t have the resources or ability to do independent proof-of-stake today an opportunity to participate in proof-of-stake, thereby retaining more power in In their hands; reducing the number of signatures that the Ethereum consensus layer needs to process in each slot contributes to decentralization and makes it easier for everyone to run validating nodes.
Solutions to the problem can be found at different levels of abstraction: permissions granted to users within proof-of-stake protocols, user selection between proof-of-stake protocols, and establishment within protocols. This choice should be carefully considered, and it is often better to choose a minimum viable setup to minimize the complexity of the protocol and the extent of changes to the protocol economics, while still achieving the desired goals.
IOSG Ventures: Why is Aribitrum Stylus the most important technological innovation of L2 this year?
Stylus is a revolutionary new smart contract environment designed for Arbitrum that allows developers to write efficient, interoperable programs in programming languages like Rust, C++ and Solidity. It opens general computing to blockchain and welcomes developers using different technology stacks. Through innovative solutions like Stylus, Arbitrum can complement its leadership position with unique technical capabilities and continue to stay at the forefront of the Layer 2 race.
New ecology and cross-chain
TON and Telegram: Toward Mass Adoption’s New Narrative and Investment Opportunities
The development of TON is backed by Telegram, and we are trying to draw a blueprint for the future: providing an on-chain low-fee, highly parallel transaction environment where users can experience a variety of user-friendly partially/fully decentralized applications and have a clear on-chain portrait. and social graph, to freely entering and exiting the encrypted world and the real world, etc. This is a complete life journey of an Internet user.
The growth points of TON Ecosystem are intuitive, and the ecosystem is accelerating its development. The combination of TON and Telegram has made the ceiling of the entire ecosystem very high.
Another recommended popular science article: veDAO Research Institute: EVM vs non-EVM, who is the future direction?》。
Hot Topics of the Week
In the past week,Geographical conflicts profoundly affect the crypto world，WSJ：Hamas-linked wallet received tens of millions of dollars in cryptocurrency，FTXThe court hearing is in progress (special topic)），SBF’s ex-girlfriend arrives in court to prepare to testify in the SBF case, FTX co-creator Gary Wang completes SBF lawyer cross-examination，SBF believes Binance leaked Alameda’s balance sheet to CoinDesk；
In addition, in terms of policy and macro market,Overall U.S. CPI remains unchanged, core CPI maintains downward trend, Fed Governor Bowman:It would be appropriate to raise interest rates further and keep them at restrictive levels for some time, Fed Bostic:No further interest rate hikes are needed at this time, Fed Governor Waller:Inflation data for the past three months has been very good and the Fed has achieved the good inflation levels it hoped for，SEC says cryptocurrencies have no intrinsic value, are investment contracts in Coinbase case，G20 leaders issued a joint communique and unanimously adopted a cryptocurrency regulatory roadmap；
In terms of opinions and voices,OpenAI CEO: Bitcoin is a super logical and important step on the technology tree, Charlie Munger:Most Cryptocurrency Investments Will Go to Zero, insiders:Bitmain has paid some of its delayed September wages, Polkadot service providerParity Labs denies rumors of employee layoffs；
In terms of institutions, large companies and leading projects, X (formerly Twitter)Added comment function only for verified users，Pfizer-backed VitaDAO forms biotech company, aiming to conduct research on human longevity,JP Morgan has launched the first blockchain-based collateral settlement，CoinList launches multi-chain staking fund for US-compliant investors，Binance Feed renames Binance Square and transforms into a social platform，Okcoin removes users from some regions, all assets need to be withdrawn before October 12th,Uniswap releases an introduction to the TWAMM mechanism, aiming to reduce price fluctuations，Arbitrum launches first round of voting for its Short-Term Incentive Program (STIP), allocating up to ARB 50 million in incentive funds to all eligible projects therein,sFRAX, a pledged vault based on U.S. Treasury bonds, is now online，Scroll mainnet generates genesis block, Islamic Crypto ProjectIslamic Coin Launch the token ISLM and issue community airdrop rewards，The stablecoin DAI reserves in the USDR treasury are completely exhausted, non-current assets dominate,Tangible announces USDR de-anchoring solution, Baskets swap will be launched, Stars Arena:There is a major security vulnerability in the smart contract, please do not deposit any funds，Funds have been transferred to the new Gnosis Safe multi-signature wallet and some access has been restored,backApproximately 90% of the funds have been recovered and 10% of the bounty will be provided to the attackers，Huobi HTX attacker returns 4999 ETH；
NFT and GameFi areas,Yuga Labs announces team reorganization, will focus on three new directions in the future, multiple mainstream exchangesOnline Big Time(BIGTIME)…Well, it’s been another week of ups and downs.
Attached is the Weekly Editors Picks seriesportal。
See you next time~
