Weekly Editors Picks (1118-1124)

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郝方舟
4 months ago
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High-quality in-depth analysis articles and hot topics of the week.

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:

Weekly Editors Picks (1118-1124)

Investment and Entrepreneurship

Conversation with the Author of The Psychology of Money: 10 Tips for Crypto Investors

Financial stability itself creates instability, and trying to eliminate market cycles will only make it worse. If an investment can increase in value five times in one year, it is equally likely to lose 80% of its value in one year. This is especially true in the crypto space.

Many people enter the crypto market for the first time in the middle of the bull market, mistakenly believing that the bull market will last for a long time, but after the bull market turns to bear, more than half of them will leave. Every bear market is unique. Markets are made up of the collective consciousness of participants, and each generation will understand risk in its own unique way. In a bull market, people are often dissatisfied with their own gains because they envy others. Market cycles have become more rapid due to the influence of social media (especially in the crypto space).

Morgans own investment strategy is long-term, regular investing. Whether the market is up or down, he regularly invests the same amount into the same investments and plans to hold them for 50 years. He emphasized that this strategy can reduce the impact of emotions on investment behavior. Long-term is actually the accumulation of short-term, and investors are advised to reflect on their own motivating factors, such as financial goals, risk tolerance and investment horizon, to develop a more appropriate investment strategy. Manage your risks and dont overdo it. It is important to have a balanced mix of optimism and pessimism. Good things happen slowly and bad things happen quickly.

The schedules of successful people often include a lot of unstructured free time. This seemingly inefficient arrangement actually provides room for creative thinking and problem solving.

Conversation with DeFiance founder: How to find 100x in crypto in a bull market?

We are currently experiencing a mini bull market. Unbalanced capital inflows may lead to structural distortions in the crypto market, and VC capital inflows may disrupt the natural flow of the market. In the crypto space, there is an oversupply of capital chasing a limited number of high-quality private transactions. Institutional investors often overlook good projects with liquid tokens because they invest exclusively in venture funds. This distortion has been gradually corrected over the past 6-12 months.

Strong fundamentals combined with new marginal information can influence price action. Getting into a trend early is crucial to maximizing returns. Increasing position size depends on risk tolerance and market volatility. There are no hard and fast rules for position size, but for high-conviction investing, its usually between 10% -20%.

Decentralized derivatives are seen as a promising area in DeFi. Layer 1 solutions like Solana and Layer 2 solutions like Polygon are also considered trustworthy investments. Solana has demonstrated significant growth and resilience during market declines. People have a bullish attitude towards Polygon due to its information asymmetry advantage. Cryptocurrency can bring improvements to the gaming industry. Timing plays a big role in determining the success of a token’s integration into a game.

Successful traders have a trading framework that fits their style and are able to stick to it. Having a clear framework helps avoid unnecessary risks.

The APR is as high as 70.4%. One article summarizes 7 stablecoin mining income opportunities.

The article summarizes several opportunities to gain income through stablecoin mining, including Maverick’s trading pair: GHO-USDC (APR 70.4%), Velodrome’s trading pair: USDV/USDC (APR 32.35%), Canto’s trading pair: cNOTE / USDC (APR 22.43%), Cetus’ trading pair: USDT/USDC (APR 20.49%), Thala’s trading pair: MOD/USDC (APR 20.53%), Elixir’s trading pair: USCT/USDC (APR 27.72%), Convex’s trading pair: BUSD/3 Crv (APR 45.31%).

DeFi

PSE Trading: Is the no-liquidation agreement a Ponzi scheme?

The so-called no liquidation is essentially a transfer of risk.

The design of the cross-chain protocol Thorchain is to liquidate in advance with other mortgage assets: only when the protocol keeps borrowing, it is good for the protocol itself (Runes deflation), but it cannot withstand large-scale repayments (Runes inflation). Therefore, Thorchain’s model is destined to fail;

Because the number of loans is also controlled through the collateral ratio, the CR of the platform is 200% -500%, and the fund utilization rate is too low, which is not conducive to the lending demand in mature markets;

The mortgage lending platform Cruise.Fi transfers the liquidation risk to Lender: compared with traditional lending platforms, there is an extra layer of ETH excess returns, not just lending interest, but the project can only develop in a bull market (even if there is a major correction If it happens, there will also be holders who believe in ETH to provide liquidity). If a bear market comes and market sentiment drops to freezing point, liquidity will dry up, which will also pose a considerable threat to the platform;

T Protocol covers borrowing rates with interest: the interest charged by the platform is always less than the U.S. Treasury yield, but there are regulatory blind spots and opacity, and the ceiling has limitations.

I also recommend a very interesting archaeological post: DeFi historical research: DeFi development history before Uniswap》。

NFT, GameFi and the Metaverse

Sleepy, founder of Little Ghost: The new Meme PFP life cycle will be shorter

It is difficult for a PFP that lacks a carrier to survive for more than 6 months; the life cycle of Meme NFT in 2024 will be even shorter than now; the wealth effect of individual projects will be even crazier; some NFT IP will really drive Mass Adoption; the old projects that are still alive are listed below Every bull market is blue chip; NFT has great potential in the RWA track; NFT liquidity solutions continue to iterate, and existing products are facing challenges; there will be a super NFT project spanning multiple tracks.

Web 3.0 

a16z annual report: Web3 development status, business boundaries and regulatory innovation

Blockchain can protect consumers as AI continues to advance, upgrade traditional privacy systems, and address current pain points.

More than 40 million Americans hold crypto assets, and there are no clear restrictions on party affiliation or identity.

Like semiconductors, the crypto industry may soon migrate away from the United States. The status of the US dollar is under threat from sovereign digital currencies, and the innovation of stablecoins can strengthen the dominance of the US dollar.

Ethereum and Scaling

Placeholder Partner: Modularity will bring a golden age of Web3 innovation

From a capex vs. opex perspective, as the market matures, the emergence of open standards and on-demand infrastructure services provides more efficient business models for companies that adopt them because they do not need to spend as much time and money can bring the product to market.

The concept of virtualization illustrates how abstract infrastructure can become, and Rollup also helps blockchains scale by allowing them to support multiple virtual blockchains on top. Rollup executes transactions and smart contracts off-chain and bundles the results of multiple operations into periodic, cryptographically verifiable transactions on the main blockchain, thereby inheriting the security of the underlying network. As a result, a single blockchain can simultaneously secure many high-performance virtual blockchains, significantly increasing network throughput while minimizing transaction fees. Rollup is a virtual blockchain and a simulation environment. If abstraction is ignored, smart contracts in Rollup run just like on the real blockchain.

In addition to scalability, by separating the execution layer from the data availability, settlement and consensus layers, developers gain flexibility while leveraging the security of the main chain. The broader “modularity movement” further reduces the cost of building and scaling blockchain applications by providing developers with standards and services covering other areas of the stack.

Virtual blockchain is a powerful standard for online services in the Web3 era. As blockchain and smart contract interfaces replace the cloud services and API paradigm of Web2, virtual blockchains may become the default backend infrastructure for all online applications.

Rollup Money Tree: An overview of sorter pie distribution and decentralized solutions

When users conduct transactions on L2, the Rollup operator acts as an interface between the user and the base layer, and ultimately publishes data to the base layer.

The cost of Rollup includes L2 operator cost, L1 data availability cost, and L2 congestion verification cost. Rollup’s revenue comes primarily from transaction value and issuance.

Sorter revenue = user transaction Gas spread revenue – L2 data expenditure to L1 – sorter operating expenses.

Representatives of decentralized sorter solutions include: Espresso, SUAVE, Astria, Radius, and Madara.

Hot Topics of the Week

In the past week,Binance settles with regulators, fines $4.3 billion, CZ agrees to resign and pleads guiltyBinance faces three criminal charges, including conducting unauthorized money transfer operations, conspiracy charges and violations of the International Emergency Economic Powers Act,CZ’s sentencing hearing will be held on February 24 next year, Beijing time, CZ follow-up trends:175 million US dollars bail, can return to Dubai temporarily, but must go to the United States again next year, Binance’s new CEO:Binance capital structure is debt-free, with strong revenue and profitsSam Altman leaves OpenAIStill working at Worldcoin Development Company, Microsoft CEO:OpenAI founders Sam Altman and Greg Brockman will join MicrosoftTwitch co-founder Emmett Shear confirms he has taken over as CEO of OpenAISam Altman to return as CEO

In addition, in terms of policy and macro market, people familiar with the matter:Celsius bankruptcy reopening plan encounters obstacles in SEC, may need to provide more information for evaluationCelsius to transform into new mining-only company based on SEC feedback on updated bankruptcy planAragon DAO votes to take legal administrators to courtSingapore plans to ban cryptocurrency margin or leverage trading by mid-2024 to curb retail speculation

In terms of opinions and voices, Glassnode:If Bitcoin spot ETF is approved, it could bring in $70 billion in capital inflows, the US CFTC commented on the Binance case:We plan to continue to actively pursue illegal crypto exchanges and will not tolerate circumvention of KYC rules., founder of Blur:The NFT field needs L2, and US$40 million has been raised to promote the development of the Blur ecosystem

In terms of institutions, large companies and leading projects,Mt. Gox plans to start paying off debt with cash this yearGBTC negative premium rate narrowed to 9.78%NEAR launches NEAR DA, entering the field of modular blockchain,Web3 Foundation CEO:Polkadot is about to abandon parachain slot auctions in favor of a new mechanismPyth Network: Retroactive airdrops are open for claimBlur founder Pacman announced the launch of a new project, Op-based L2-BlastTVL surged thereafterInscription multi chain blossom

NFT and GameFi fields,Blur opens applications for the Season 2 airdrop and starts the 6-month Season 3 airdrop

In terms of security incidents, Trader Joe’s:There may be a vulnerability in the front end, users are advised not to perform any transactions on Trader JoeApproximately $9M of dYdX v3 Insurance Fund Used to Fill YFI Market Liquidation GapAttack incident review),Heco and HTX were attacked, causing losses of over 100 millionHuobi HTX will resume some deposit services and launch site-wide airdrop activitiesKyberswap was stolen for $48 million,KyberSwap:The hacker can reserve 10% of the stolen funds as a bounty, and the rest will be returned within a limited timeLido contributors learn of an early platform vulnerability affecting InfStones, Lido’s active node operator on EthereumInfStones agrees to rotate validator keys after vulnerability disclosureMining currency exchange SafeTrade falls into security doubts...Well, what a week to witness history.

Attached is the Weekly Editors Picks seriesportal

See you next time~

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