Starknet is about to be airdropped. What ecological projects are worth paying attention to?
Original author: Shenchao TechFlow
I don’t know if the founder of Starknet was inspired by Oscar Wilde’s famous quote. This “star” on Layer 2 is about to shine and bloom in the first quarter of 2024.
On December 1, 2023, the Starknet Foundation stated that it had conducted an airdrop snapshot and would distribute STRK tokens to certain past active users and contributors in the first quarter of 2024, while unlocking tokens issued in the past.
As a result, many investors began to lay out the Starknet ecology in advance, trying to find the gems in the stars. Some people planned Rabbits (RBX), some were optimistic about Lords (Lords), and more people were looking forward to opening their wallets to welcome the airdrop.
What are the potential investment opportunities in the StarkNet ecosystem today?
How is StarkNet different?
In the Layer 2 world, StarkNet is one of the four kings along with Arbitrum, Optimism, and zkSync.
Compared with Arbitrum and Optimism, StarkNet uses zk-Rollup, which can complete the packaging transaction without knowing who the verifier is. At the same time, there is no need for a seven-day waiting period when transferring assets across chains.
StarkNet takes into account both privacy and scalability, especially the privacy and data security aspects of protecting users transaction information, which is lacking in most Layer 2 expansion solutions today.
Compared with zkSync in the same camp, zkSync uses zk-SNARKs as a zero-knowledge proof system, which is smaller and consumes less gas; while Starknet uses zk-STARKs, which has higher transparency and security.
In addition, zkSync is compatible with EVM and uses Solidity as the programming language, making it easier for developers to enter its ecosystem. Starknet uses its own Cairo as the programming language and does not support EVM. However, some projects are developing zkEVM based on StarkNet, such as Warp and Kakarot, developers can deploy to the StarkNet network faster through the Kakarot tool.
StarkNet has an account abstraction function. Users no longer need complicated mnemonics and private keys in the past, and have a better user experience.
In short, StarkNet has its own programming language Cairo, which is lacking in EVM compatibility and has a high barrier to entry for developers. However, its advantages of high throughput and low transaction costs allow it to shine in certain areas.
for example:
In the field of full-chain games, high throughput and low transaction costs make it an ideal choice for full-chain games, which has also become one of the core narratives of StarkNet.
In the field of contract wallets, StarkNets native account abstraction allows contract wallets to achieve similar functions to hard wallets.
In the field of on-chain AI, StarkNet’s technical features allow calculations to be performed off-chain and the generated proofs to be verified on-chain.
For derivatives trading, dYdX first chose StarkWare as a partner.
Which Starknet protocols are worth focusing on?
The Starknet ecosystem covers DeFi, NFT, GameFi, cross-chain bridges, contract wallets and other tracks, with more than 170 projects under construction in the ecosystem.
Among them, most of the ecology is in an early stage. In laymans terms, most protocol applications have not issued coins. RabbitX and Lords are among the few projects that have issued assets.
RabbitX
RabbitX is a permissionless perpetual exchange built on Starknet. With RabbitX, you can trade using the order book, and RabbitX offers leverage up to 20x.
Because RabbitX is built using low-latency ZK-STARK technology, it can provide users with extremely fast confirmation speeds and zero Gas, as well as fully inherit the security of ETH L1.
According to the latest data from DeFi Lama, RabbitX is currently the second largest on-chain derivatives trading platform, behind dYdX.
liquidation mechanism
RabbitX provides a good solution for liquidation. RabbitX’s margin requirements are: Liquidation Margin – 2%, Maintenance Margin – 3%. Based on this, RabbitX has set up a 3-step waterfall structure to assist in handling liquidation:
Waterfall 1: When an accounts equity falls below the maintenance margin (3%) requirement, it will undergo partial liquidation until the account returns above the maintenance margin requirement. During the liquidation period, users will not be able to place new orders, cancel orders or withdraw funds.
Waterfall 2: If an accounts equity falls below the liquidation margin (2%), the account will be liquidated at zero price (a position that sets the accounts equity to zero).
Waterfall 3: If the RabbitX insurance fund equity drops below zero, the opposite position will be automatically reduced at the insurance fund price of zero. Automatic deleveraging is the final step only when the net value of the insurance fund falls below zero.
Token mechanism
RabbitX issued utility token RBX, with an initial supply of 1 billion. The token RBX has been listed. The following is the token distribution mechanism.
Community rewards account for 32.5%
Liquidity mining rewards account for 7.5%
Treasury accounts for 20%
Investors account for 20%
The current team accounts for 15%
Future team members 3%
Consultants account for 2%
In terms of token performance, RBX performed very well, with a 10% increase in 7 days, a 123% increase in 30 days, and a 133% increase in 1 year. It has significantly outperformed the market over the past 30 days, and RBX currently has a market cap of $46.5 million.
Loot Realm
Starknet is a paradise for full-chain games, the typical representative of which is Loot Realm (Realms.World). The Realms ecosystem mainly includes two games: Loot Survivor and Realms: Eternum.
Loot Survivor is a rogue-like survival game where players fight monsters as they travel through the world. When you encounter a monster, you must decide whether to fight or run away, while allocating experience points (XP) to upgrade various attributes in order to prolong your life. survival time.
Realms: Eternum is a sandbox strategy simulation game similar to Civilization. Players need to hold at least 1 Realms to play the game. In the game, the royal family needs to build a kingdom and build an army to compete for resources or prevent being plundered by others. Buildings within the domain, etc.
In addition, there are other on-chain games based on the world view and ecology of Realms, such as the survival game Rising Revenant and the time spell game Arcane Assembler.
Loot Realm was born out of the NFT project Loot. As early as 2021, the team began to try to run it on Arbitrum, and then encountered various challenges. It was found that the Ethereum Virtual Machine and Solidity were not very suitable for such a full-chain game ecosystem, and then They discovered Starknet, started programming in Cairo, and rebuilt the game using a modular controller system.
Friends who know games should have heard of the concept of game engine. It is essentially a set of code libraries and tools packaged in modules. Game developers only need to call the interfaces of different parts of the engine to complete graphics rendering, physical simulation, Tasks such as network communication can be simply understood as a type of Saas.
In the field of traditional game engines, the most common ones are Unity and Unreal, and in the field of full-chain games, they also have their own game engines.
MUD is a full-chain game engine on EVM. It was first unveiled at DEVCON in April 2022, and was subsequently officially released by Lattice Studio on November 22, 2022.
The emergence of MUD inspired the Starknet ecosystem, If there is EVM, we can also have it. This coincided with the release of Cario 1.0 by Starknet in November. @lordOfAFew, the core contributor of Loot Realms, and Cartridge, the Starknet ecosystems Steam game distribution platform Founders @tarrenceva and founder @sylvechv of Briq (NFT construction protocol) proposed the idea of developing a full-chain game engine on the Starknet network. Until February 2023, Dojo was officially born, a native full-chain game engine of Starknet .
Therefore, what the author wants to express by saying so much is that Realm is not only a full-chain game on Starknet, but also a game ecosystem, and it is the father of the full-chain game engine Dojo.
Token mechanism
The LORDS token is the ERC 20 token that powers Realms.Wrold. The LORDS token can be used to acquire resources, summon armies, build structures, and various other actions in the Realmverse. LORDS can be produced according to different gameplay in the game and used for trading in the resource market.
The total supply of LORDS tokens is fixed at 500 million, and the tokens are distributed as follows:
Game emissions account for 57.5%;
Bibliotheca DAO (development studio) accounts for 22.5%;
Journey contract accounts for 10%
Development funds account for 5%
LP incentive ratio 5%
In terms of token performance, LORDSs growth is equally impressive, with a 7-day increase of 65%, a 30-day increase of 359%, and a 1-year increase of 687%, which is much higher than the market. LORDS currently has a market capitalization of $23.7 million.
Projects that have not issued coins
Except for the above two projects, RabbitX and Realms.Wrold, most of the ecological protocols on the Starknet network are still in a state of unissued coins.
Recently, the official has released the following diagram showing the main applications of Starknet network DeFi. This article refers to the official tweet to introduce in detail what Starknet has from the five tracks of cross-chain bridge, AMM/DEX, aggregator, lending and derivatives. DeFi protocols deserve special attention.
Cross-chain bridge
StarkGate
StarkGate serves as Starknets native and official cross-chain bridge, with each supported token associated with L1 and L2 bridge contracts that communicate through Starknets messaging mechanism. These bridges communicate through Starknets messaging mechanism, helping users transact with ETH and ERC-20 tokens on L1. This is achieved through the Starknet Alpha network and its STARK-based computational compression capabilities.
Currently, five mainstream tokens are supported across chains: $USDC, $USDT, $WBTC, $DAI, $ETH.
Official website link:https://starkgate.starknet.io/
Orbiter
Orbiter supports cross-chain assets between Ethereum and multiple L2, and can be transferred from zkSync, Optimism and other chains to Starknet.
In Orbiter Finance, there are two roles: Sender and Maker. When Sender initiates a transfer, Maker provides liquidity for it. Smart contracts ensure the security of this process. If Maker has bad behavior that causes the transfer to fail, Sender can use Makers deposit to initiate an arbitration request to the contract and then receive excess compensation.
However, it is worth mentioning that Orbiter’s currency issuance plan is not yet clear. Its founding team once said that it might issue tokens, but then changed its tune.
Official website link:https://www.orbiter.finance/home
layerswap
layerswap supports bridging multiple network chains such as Starknet, zkEVM, ImmutableX, Arbitrum and Optimism. Users can use Layerswap to instantly transfer ETH, USDC and other tokens from centralized exchanges such as Coinbase, Binance, Kraken to all major L2.
Official website link:https://www.layerswap.io/app
AMM/DEX
Ekubo
Ekubo is an automated market maker built specifically for Starknet, with centralized liquidity, scalability and high capital efficiency. It leverages the Starknet architecture to provide the best exchange execution and liquidity provider returns. In addition, all Ekubo fund pools exist in one contract, reducing storage differences and saving transaction costs.
It is worth noting that Ekubo’s TVL amount is US$8 million, ranking first on the Starknet network.
Official link:https://ekubo.org/
Brine (now renamed tanx.fi)
tanx.fi is a decentralized order book exchange based on StarkEx that provides no gas fees and fast trading capabilities, allowing users to track portfolios, obtain profit and loss analysis, and trade with ease. tanx.fi supports quantitative trading users, CeDeFi exchanges, and institutional trading users.
In the white paper document on the official website, it is clearly mentioned that the tanx.fi token $SALT will be launched soon. For more information, please actively follow the official Twitter and website.
Official link:https://tanx.fi/
JediSwap
JediSwap is a permissionless, composable AMM on Starknet that allows users to provide liquidity to trading pairs to earn fees. It supports Swap, add/remove liquidity, and ZAP functions (allowing users to convert any Single token swap to any JediSwap LP position)
JediSwap’s TVL amount is US$7 million, ranking second on the Starknet network.
Official website link:https://www.jediswap.xyz/
10 KSwap
10 KSwap is an AMM protocol built using Cairo. 10 K aims to revolutionize the performance of AMM protocols by leveraging rollup functionality, bringing lower fees, less friction and ultimately better liquidity to the L2 world and driving DeFi adoption. 10 KSwap allows token holders to freely create trading pairs without paying high fees.
Official website link:https://10kswap.com/
SithSwap
SithSwap is the next generation AMM on StarkNet with instant volatility and stable swaps with ultra-low slippage, near-zero fees and the complete security of Ethereum. SithSwap provides stable pools and dynamic pools:
SithSwap dynamic pool uses Uni V2 style pool mechanism, which is particularly suitable for asset swaps with high volatility.
SithSwap Stable Pool can optimize low-volatility assets, reduce slippage, allow dynamic pools to achieve higher capital efficiency, and increase traders return on assets.
Official website link:https://app.sithswap.com/
aggregator
AVNU
AVNU is a decentralized trading protocol and liquidity infrastructure designed to always seek to provide the best execution strategies for traders and dApps on Starknet (and L2s more broadly). The project optimizes trade execution and minimizes slippage by searching for the best trading routes across multiple decentralized exchanges (DEX). Additionally, its request-for-quote (RFQ) system integrates market maker liquidity, optimizes price discovery, eliminates slippage and provides MEV protection.
Official website link:https://www.avnu.fi/
Fibrous
Fibrous gathers all StarkNets AMMs in one place, allowing users to exchange with one click in the cheapest way, matching the best price through the order routing algorithm
In addition, Fibrous integrates multiple projects, such as Ekubo lightning account, mySwap centralized liquidity, etc.
Official website link:https://fibrous.finance/
loan agreement
zkLend
zkLend is a crypto lending protocol built on StarkNet, combining the scalability of zk-rollup, superior transaction speed, and cost savings with the security of Ethereum. zkLend meets users needs for efficient transaction speed and low transaction costs, and supports multiple tokens such as ETH/wBTC/USDC.
The protocol offers a dual solution: a permissioned and compliance-focused solution for institutional clients, and a permissionless service for DeFi users – without sacrificing decentralization.
On the official website, zkLend clearly lists its token supply as 100 million and the corresponding distribution mechanism, which directly indicates that the project will issue coins later. For more information in the future, please actively follow the official Twitter and website.
Official website link:https://zklend.com/
Nostra
Nostra is a one-stop Defi solution built on Starknet where users can lend, borrow and trade cryptocurrencies. The Nostra liquidity layer consists of the Nostra money market, UNO (Starknet native stablecoin) and Nostra Swap (Stablecoin DEX). Integrating these three products together gives users permissionless access to liquid crypto assets at any time and for any purpose with minimal impact on price.
The Nostra currency market is the core product of the liquidity layer and can continuously provide liquidity within the ecosystem. It also provides benefits to Nostra Swap and UNO minters.
Nostra Swap is the next generation stablecoin trading platform used to support the peg and growth of UNO. LPs that provide liquidity on Nostra Swap can also earn revenue from lending their stablecoins on the Nostra money market.
UNO is the first Starknet-native stablecoin. It is over-collateralized by ETH with interest, UNO can be used for DeFi, gaming, NFTs, real-world payments, and more.
Official website link:https://nostra.finance/
Hashstack
Hashstack is Starknet’s most capital-efficient low-mortgage lending protocol. Its features are:
Provide multi-chain interoperability
Improve the security of the oracle machine and adopt the TWAP mechanism
Optimize liquidation to reduce risk and recover assets
Smart loan limits based on dApp liquidity
It is worth mentioning that Hashstack has launched $HASH tokens and conducted airdrops exclusively for mainnet V1 users. The event duration is: November 27, 2023 - January 22, 2024. For more information, please follow the official website and official Twitter.
Official website link:https://hashstack.finance/
Derivatives
Paradex
Paradex is a cryptocurrency derivatives exchange and the first application chain on Starknet. Paradex will provide perpetual futures trading with deep liquidity, capital efficiency and performance, while remaining transparent and self-custody. All complex business logic in Paradex transactions is verified on L2.
Recently, Paradex’s historical transaction volume has exceeded $2 billion.
Official website link:https://www.paradex.trade/
ZKX
ZKX Protocol is a decentralized perpetual futures exchange running on StarkNet. It is built by the community and prioritizes user satisfaction. ZKX Protocol provides CEX with a competitive advantage over other DEXs by leveraging its zk-STARK technology, which provides excellent scalability and on-chain transaction advantages such as account abstraction and low-cost transactions.
Unlike other DEXs, the ZKX protocol introduces a unique risk mitigation tool called “deleveraging” to protect users from sudden market fluctuations. In extreme cases, the platform will trigger liquidation to prevent greater losses.
In addition, its token ZKX will be listed in 2024.
Project official website:https://zkx.fi/zh
Summarize
In the midst of a bear market for cryptocurrencies, Starknet has dug in and made considerable progress over the year. We can see from Nethermind’s industry review that Starknet’s related indicators have improved in the past 2023:
Active accounts rose from 2,126 to over 69,000
Block creation time reduced from 2000 seconds to 97.09 seconds
The total past cross-chain funding through StarkGate has grown from less than $6,000 to $109 million
The number of full-time developers is 166
Perhaps with the issuance of Starknet’s currency, Starknet’s official incentives for the DeFi protocol in its ecosystem, and the recovery of the overall market, the above numbers will further increase in 2024, and it will also benefit ecological projects throughout L2.
Let us wait and see how the entire ecology performs after we start researching and observing when no one is paying attention.
