Learn about the major progress of DEX in June
Editor's Note: This article comes fromFirst class warehouse blockchain research institute (ID: first_vip1)Editor's Note: This article comes from
First class warehouse blockchain research institute (ID: first_vip1)
Balancer (BAL), #30
First class warehouse blockchain research institute (ID: first_vip1)
, Author: Ryan, reprinted with authorization by Odaily.
In June, liquidity mining became popular, COMP detonated the DeFi ecosystem, and DEX transaction volume soared. At the end of the month, BAL quickly entered the top 30 as soon as it went online. After the agreement renewal in May, June is more like a harvest month. Let's review the progress of each DEX protocol next:
Progress in June:
Integrator: Through Dex.ag, 1inch.exchange can also create a liquidity pool.
The distribution of weekly tokens is not only based on the proportion of transaction fees. For withdrawal fairness, the team reduces the distribution of BAL based on the following three factors: 1) higher transaction fees; 2) unbalanced asset pairs (25/75 instead of 50/50); 3) wrapped token pairs (cDAI/DAI) fund pool can only get 0.1 times BAL.
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Security breach: In the early hours of June 29, Beijing time, Balancer was attacked by hackers, and its two asset pools composed of STA and STONK were looted. Both STA and STONK are deflationary tokens. For each transaction, the sender of STA and STONK needs to send another 1% of tokens to the smart contract for destruction. This means that when a hacker uses WETH to trade STA, the token pool address will transfer an extra amount of STA each time. Originally, in the AMM model, to completely buy out one token requires a huge amount of another token, but the characteristics of deflationary tokens help hackers accomplish this at a lower cost: through flash loans After withdrawing ETH and converting it to WETH, multiple transactions are made back and forth with STAs in the pool, and finally the number of STAs is 0. When STA is 0, the price of STA is very high relative to other tokens in the pool. The hacker has exchanged other assets in the pool (WETH, WBTC, LINK, SNX) at the cost of 1 weiSTA many times. In the end, the pool lost $500,000.On the night of the 29th, part of Balancer’s liquidity pool was again attacked by a flash loan from dydx. The unclaimed COMP rewards in the pool were taken away by hackers, and the pool lost 10.8 ETH. 。
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1) As an AMM that was launched only in April and issued tokens in June, the market value of BAL has reached the top 30, which is closely related to Compound’s issuance of token COMP on June 15: 1) The price of COMP has soared, from the initial ten Multi-dollar rose to a maximum of more than 360 US dollars. At the same time, BAL tokens that also provide liquidity mining have a huge stimulus; 2) Balancer’s number one asset pool consists of cBAT, cUSDT and COMP, reaching 11.33 million US dollars . The Compound part can be found in
First Class DeFi Research Report for June
3) For this hacking incident, Balancer has decided to blacklist all deflationary tokens and conduct a new security check. There are two voices in the community: a) Decentralization will face these security issues. Whitelists and blacklists will both damage the mechanism without permission, leading to the possibility of project parties manipulating project rankings. If users cannot fully understand the operating mechanism of the agreement, they should not Using these decentralized protocols, Balancer only needs to make some warnings; b) Balancer should be responsible for the incident, especially if there is a security problem with the user's funds. funds for compensation.
0x (ZRX), #38
July plan:
In the future, further adjustments will be made on the fairness of BAL distribution, and the distribution amount and hard cap will ultimately be decided by the community. Next, the team should develop the silver version (currently bronze), optimize the gas cost and the pool structure. In addition, because of a security breach, the team will re-audit the code.
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Progress in June:
Community Vote: ZEIP-79 proposes to reduce the protocol fee constant from 150,000 to 70,000. This adjustment will reduce protocol fees to about $0.35-$0.70 per transaction. In terms of the overall environment, the median DEX trade size is about $500, so a fee of $0.35~0.70 equals 7 to 14 basis points of the median trade size.
Matcha update: 18 tokens have been listed, market orders and limit orders can be created, and they are still queuing up for internal testing.
0x API update: 1) Automatically decapsulate WETH; 2) Yuan transaction, this technology will solve the trouble that all transactions on the chain must hold a certain amount of ETH for handling fees. 3) Interface update: List the estimated Ethereum fee, Gas discount (using gas token technology) and 0x protocol fee for a transaction in detail.
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0x Labs & Periscope Trading: The 0x Labs organization was established, and the Matcha project belongs to this organization. At the same time, the organization launched the Periscope Trading division, Periscope is a cryptocurrency trading desk that will help display competitive prices and bring liquidity to DeFi and other P2P projects. 0x Labs is recruiting technical positions.
ZRX is now available as a collateral asset on the MakerDAO platform.
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Matcha Exchange is still in closed testing. Judging from some current information, the UI interface of Matcha is very simple, and its function is the same as that of DEX aggregators. It is a pity that there should be no leverage trading like dydx. In the future, the take-profit and stop-loss order functions used on Bamboo should be implemented, but this will not produce much competitive advantage.
Other progress of 0x revolves around the improvement of 0x protocol and 0x API, improving efficiency, improving process, and optimizing fee rate. This kind of detailed research and development is worthy of appreciation.
July plan:
Kyber (KNC), #40
0x protocol: 1) Improvement and deployment of transaction contract structure; 2) Liquidity bridge of lending agreement: including Chai Bridge and dYdX Bridge; 3) Swap transactions on the chain. The above 2 and 3 are all functions worth looking forward to, but the development is currently slow.
The matcha agreement exchange expects that the action after the open test will be to continuously add new coins. The key point is whether they have a competitive advantage over other DEX aggregation exchanges.
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Progress in June:
Community voting: Voting on the initial parameters of KyberDAO network fee distribution, the final result is 1) 65% reward, 30% rebate, 5% burn, 196 votes; 2) 55% reward, 40% rebate, 5% burn, 65 votes; 3 ) 35% reward, 35% rebate, 30% burn, 161 votes.
Listed Tokens: Automated Price Reserve (APR) new member: Quant (QNT), Federal Price Reserve (FPR) new member: pNetwork Token (PNT).
Voting pool: Cooperation pool: Stake Capital, ParaFi Capital; Protofire joins KyberDao's ecology, which allows anyone to create KyberDAO's pledge pool and become a manager without developing smart contracts during this period. The pledge pool manager can vote on behalf of KNC holders and charge a part of the fee; Kyber community pool: KCP (Kyber Community Pool), KCP is made with Protofire, and the community discusses and votes. The difference from other voting pools is that KCP is free of.
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Trading pairs: 1) Binance launched two trading pairs KNC/USDT and KNC/BUSD at 16:00 on June 12; 2) FTX exchange newly launched KNC, supporting spot KNC/USD and KNC/USDT trading pairs, Futures quarterly, second quarterly and perpetual contracts, as well as leveraged trading; 3) Two Swiss exchanges, Bitcoin Suisse and Smartvalor, respectively listed KNC tokens.
KNC can now be used as a collateral asset on the MakerDAO platform.
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Bancor (BNT), #88
The results of the community vote show that the community needs a completely different system from the previous destruction mechanism. The current network protocol fee distribution mechanism is: 70% is used to destroy KNC, and 30% is used to reward channel providers. The new initial parameters are 65% for rewarding KNC stakers, 30% for rebates for liquidity providers (who pay network fees), and 5% for burning KNC. This shows that KNC stakers hope to get more direct benefits than the indirect benefits of KNC supply reduction.
July plan:
Launch Katalyst.
Progress in June:
Trading pair: CoinEx, BKEX listed BNT.
V2 technical details update: 1) Chainlink creates BNT/USD quotes; 2) The reduction of slippage is achieved by enlarging the size of the fund pool by 20 times, and the design relies on the Chainlink price oracle to dynamically update the pricing curve of the pool so that the index price of the asset Track its market price.
Knowing about the vulnerability and being at risk, the Bancor team launched a white hat attack using the same vulnerability in order to transfer the risky funds to a secure wallet. Bancor then pushed a new network contract to make sure this type of error doesn't happen again, while Bancor.network canceled the infinite approval and asked for the exact amount instead.
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Two other automated front-runners were involved in the process because their automated software was unable to distinguish between an arbitrage opportunity and a hack. The Bancor team saved a total of $409,656 at a gas cost of 3.94 ETH, and the two auto-leaders earned $135,229 at a cost of 1.92 ETH for a total of $544,885. Bancor has contacted the owners of both bots and negotiated a return of the funds.
V0.6 was audited by Kansolabs, while the current v2 is being audited by multiple parties, including ConsenSys Due Diligence.
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July plan:
Summarize
Announce technical details and officially launch V2.
