OKX Ventures quarterly investment report: multi-sector layout, infrastructure projects account for 60%

With the milestone event of the U.S. SEC’s approval of the BTC spot ETF in January 2024, the crypto industry has gradually emerged from the cold winter and entered a boom. We saw that the total market value of Crypto reached US$2.6 trillion in the first quarter of 2024, the total supply of stablecoins exceeded US$150 billion, and the market value of Bitcoin once exceeded silver. More new narratives such as re-staking, the combination of Web3 and AI, and Bitcoin programmability have emerged and performed strongly, promoting further innovation and development in the encryption market.

The capital market is gradually recovering, with total financing in the quarter exceeding 1.8 billionUS dollars, a 50% increase from the previous quarter. During this period, OKX Ventures has continued to increase its investment, deeply participate in, continuously explore high-potential and innovative projects and teams in the encryption industry, actively invest and empower entrepreneurs, provide all-round support, and contribute to the development of the encryption industry.

Review of key projects for the quarter

OKX Ventures investments in the first quarter of 2024 cover infrastructure, Bitcoin ecology, AI+Depin, Gamefi, Defi, Socialfi and other tracks, of which infrastructure projects account for 60% of the total investment. We believe that the perfection of infrastructure is still the mainstay driving the development of the entire industry. Complete infrastructure can effectively improve the efficiency and safety of the entire industry and provide a solid foundation for the rapid development of the industry.

1. infra

Infrastructure is the top priority for industry development. It includes but is not limited to underlying products such as L1/L2 public chains, development platforms, and wallets. These products determine the development speed of upper-layer applications, so the infrastructure of the blockchain has always been A track that crypto investment institutions focus on. Recently, with the explosive growth of the Bitcoin ecosystem and the emergence of Ethereums Dencun upgrade, OKX Ventures has also invested heavily in this effort to promote the continuous improvement and upgrading of the infrastructure.

• AltLayer It is a highly scalable application-specific execution layer system built on Optimistic Rollups. It can be extended by connecting to Layer 1 and Layer 2 such as Ethereum, Solana, Polkadot, Cosmos, and even Arbitrum, Optimism. To better serve developers, AltLayer created Rollups-as-a-Service (RaaS), a versatile, custom Rollup creation platform that requires no programming experience. In addition, AltLayer introduces the concept of instantaneous Rollups. This is a highly optimized rollup technology that allows dApp developers to quickly deploy specific rollups, provide security through Layer 1, and then easily settle when needed.

• Cysic It is a zero-knowledge (ZK) hardware company that aims to provide efficient hardware acceleration solutions for the ZK proof protocol to help reduce ZK proof generation time and power consumption. The Cysic team has developed FPGA and GPU underlying code libraries for multi-scalar multiplication (MSM), number theory transformation (NTT) Merkle hash number calculations, etc. This is an important part of the ZK protocol, and is also developing ASIC solutions. Running computations such as MSM on the CPU can be very power-intensive and time-consuming, which is why Cysic is focused on trying to accelerate these components using FPGAs, GPUs, and ASICs.

• DEXTools is the worlds leading DEFI portfolio and cryptocurrency price tracking application. For enthusiasts and traders in the crypto world, DEXTools helps them stay up to date with live cryptocurrency prices, price alerts, whale movements, blockchain statistics, and DEFI market trends. With an average of 20 million monthly users, DEXTools is an important hub between users and Defi.

• Eclipse Is an Ethereum Layer 2 solution powered by the Solana Virtual Machine (SVM) to improve the scalability and efficiency of the blockchain. It integrates the secure settlement of Ethereum with the high-performance execution of SVM, the data availability of Celestia and the zero-knowledge proof of RISC Zero, aiming to achieve high throughput without sacrificing security.

• Lumoz It is a decentralized ZK-RaaS network and a PoW network that supports ZKP mining. It uses a mechanism that combines PoS and PoW. Lumoz aims to simplify the use of ZK-Rollup and promote its widespread adoption, thereby facilitating large-scale deployment of zkEVM-based application chains. Developers can deploy their ZK-Rollup (zkEVM) on multiple chains through Lumoz. For miners, Lumoz is a multi-chain PoW protocol that supports mining on various public chains and generates zero-knowledge proofs for ZK-Rollups.

• Taiko It is a decentralized ZK-EVM and universal ZK-Rollup. The aim is to allow developers and users of dApps developed for Ethereum L1 to use them on Taiko without any changes. Through Taiko, developers can more easily deploy dApps to L2 and inherit the security of Ethereum while generating lower transaction fees than L1. Taiko consists of three parts: zkEVM for generating proofs, L2 rollup nodes for management, and Taiko Protocol for rollup verification.

• ZeroGravity (referred to as 0 G)It is the first data availability system with a built-in universal storage layer, which is highly scalable and decentralized. It achieves scalability by dividing the data availability workflow into data publishing channels and data storage channels. Its products include a data availability layer: 0G DA and a data storage layer: 0G Storage.

• zkMe is a zk Identity Oracle that provides anonymous user verification on-chain for increased security and privacy. zkMe verifies user credentials without revealing any personal information to anyone. When a user (credential holder) uses zkMe to create a DID, they will obtain a unique SBT, which is cryptographically bound to its public key and used as proof of identity, enabling users to authenticate without revealing any sensitive information through ZKP its identity.

As the most important track in crypto infrastructure, OKX Ventures has bet on popular projects such as AltLayer and Taiko. The development of the DA layer supports projects such as ZeroGravity. We also work closely on other infrastructure projects, such as DEXTools, the leading cryptocurrency price tracking application.

2. Bitcoin Ecology

It can be said that the Bitcoin ecosystem is the starting point of this bull market. From the end of 2023 to the beginning of 2024, a variety of protocols, infrastructure, token standards, cross-chain bridges, Rollups and other innovative solutions are constantly emerging, activating the Bitcoin ecosystem. The prosperity and development of the currency ecology. OKX Ventures has also followed suit, and has made significant progress in terms of funding, cooperation and resource grafting.

• Babylon It is a Bitcoin staking protocol that allows Bitcoin holders to pledge their idle Bitcoins to increase the security of the PoS (Proof-of-Stake) chain and earn profits in the process. . It is a PoS Cosmos zone blockchain that uses extractable one-time signature (EOTS) technology to introduce the PoS chain in the form of original chain pledge to achieve cross-chain and non-fork Bitcoin pledge. mechanism, and uses Bitcoin PoW as the timestamp and data availability layer to provide native security based on BTC.

• B² Network It is an EVM-compatible Bitcoin second-layer network developed based on ZK-Rollup, which enables EVM ecosystem developers to seamlessly deploy Dapps. B^ 2 anchors the data merkle tree root hash and proof of zk-rollup to the Bitcoin network through tapscript, puts the process and results on the chain for easy verification, and achieves BTC layer 2 with higher legitimacy and usability.

• Merlin Chain is developed by the Bitmap Tech team and is a Layer 2 based on the BTC network and using ZK-Rollup. Using ZK technology, transactions are compressed, and then the compressed transaction data and ZK certificates are uploaded to Taproot on Bitcoin L1 through the decentralized Oracle network for use by the entire network to ensure transparency and security.

• UniSat The wallet is a head BTC and inscription wallet that supports the inscription, transaction and other services of BTC assets such as BRC 20, and serves as one of the index service providers to provide infrastructure services for assets such as BRC 20 for the encryption industry. Unisat continues to delve into the BTC ecosystem. For example, it recently launched a proposal to add the function of independent minting and destruction of BRC 20 to support the issuance of stable coins in BRC 20, and will launch the Bitcoin expansion plan Fractal.

• bitSmileyIt is the first native stablecoin project in the BTC ecosystem. It is a comprehensive financial protocol built on the Bitcoin blockchain as part of the Fintegra framework. Its core product is BitUSD, an over-collateralized stablecoin based on BTC. Users stake BTC to the BitSmiley DAO and mint BitUSD. Unlike Maker DAO, bitSmiley auctions the platform’s future revenue as debt and repays creditors first. Additionally, BitUSD adopts the new bitRC 20 inscription format that is compatible with BRC-20.

• Bounce Finance It is a multi-chain decentralized auction protocol. Focusing on Auction as a service, it provides a variety of auction products, including token and NFT auctions, real-world collectible auctions, advertising space auctions, and SDKs and plug-ins. In addition, Bounce Finance also provides Private Launchpad service, an on-chain solution designed to simplify the IDO of new projects. Currently, Bounce Finance is focused on the BTC ecosystem, focusing on providing incubation and auction support.

• DLC.Link A range of applications are provided through Discreet Log Contracts (DLC) that allow application developers to easily integrate native Bitcoin. The platform locks Bitcoin in on-chain escrow, from where it can be leveraged by Ethereum and other smart contract blockchains. This “trustless bridge” enables lending, trading, derivatives and more. At the same time, dlcBTC’s non-custodial packaging method allows users to manage Bitcoin by themselves without worrying about third-party risks, such as asset mismanagement or theft.

As you can see, OKX Ventures has made a wide range of investments in the Bitcoin ecosystem in the past few months, from L2’s technical facility Bitmap, to defi protocol Bounce Finance, to the inscription wallet Unisat. Through our comprehensive layout of the Bitcoin ecosystem, It provides good support for the development of the entire ecology and even the encryption industry. At the same time, we are also actively carrying out cooperation related to the Bitcoin ecosystem, such as Babylon, to promote the accelerated development of the industry by encouraging more and more participants to join.

3. Gamefi

In the second half of 2023, Gamefi will gradually begin to regain its vitality as the general trend develops. Marketplaces and infrastructure related to full-chain games, card games, and Web3 games have received widespread attention from the capital market. During this period, OKX Ventures has also made plans in advance and has become one of our investment priorities.

• Carv.io is a Web3 identity company gaming aggregation platform that develops solutions that combine web2 and web3 data to create unique user web3 IDs. On this basis, Carv has also established a series of data infrastructure on the game chain. Its mission is to establish a game identity owned by players and realize data value through game data sharing. Its main products include: CARV Protocols underlying data solution CARV Protocol and the first Dapp on its Protocol, CARV Play, which provides basic functions such as game distribution, game activities, and on-chain activities.

• Mocaverse Platform It is a decentralized version of the app store for web3 games entertainment created by Animoca Brands integrating its 450+ portfolios. Its users can apply for a Moca ID, which will become their Web3 login (similar to an Apple ID), allowing users to interact with Dapps on the platform.

• Lumiterra It is a multiplayer open world survival game. In the game, players can freely choose to cultivate combat talents, farm talents, and gathering talents. No longer limited to traditional professions, players can create unique characters based on their own interests. At the same time, the Sodium wallet built by Lumiterra uses ERC-4337, ZK and MPC technology to enable users to easily log in and manage assets with extremely high security.

• BLOCKLORDS It is a 3A SLG multiplayer strategy game (MMO) based on a multi-chain network launched by the game studio MetaKing Studios. Players can play different medieval characters, and in the process manage their own farms, recruit teams, collect resources, assign heroes to teams, and upgrade buildings. Create your own unique epic in a medieval universe.

• L3 E 7 It is a pure 3D LBS (Location Based Service/Location Based Service) game. Through map graphics rendering technology, players are immersed in a 3D metaverse world. The metaverse of L3 E 7 is created based on cities in the real earth, where players can experience what the real world looks like, and is presented through a cyberpunk art style.

It can be seen that OKX Ventures in the field of Gamefi, from the game identity solution Carv to the large-scale 3D game L3 E 7, fully supports all aspects from basic settings to upper-layer applications. At the same time, we are also vigorously carrying out relevant cooperation, such as Mocaverse, to involve more users through activities and promote the vigorous development of the Gamefi field. In the future, the combination between gaming projects and DeFi projects will surely continue to improve, creating more attractive games and more sustainable business models.

4. DeFi

DeFi is an important innovation in the encryption market. It provides financial services to a large number of user groups in a decentralized manner through smart contracts. OKX Ventures has seen that since Defi Summer, projects in this field have been constantly innovating, providing various high-potential use cases for Web3 users, especially the liquidity staking boom since Ethereum moved to the PoS chain, providing Web3 users with a way to The option to bring benefits and increase asset utilization, and the re-pledge derived from it, both bring benefits to users and bring security to the project. The two have become the two directions that receive the most attention in the Defi field, stimulating continuous project innovation and ecological improvement.

• Navi It is one of the DEFI protocols with the highest TVL in the SUI ecosystem. Currently, it has a TVL of about US$150 million. Navi provides users with lending services for long-tail assets on the chain. It also cooperates with HeroSwap, Ondo Finance, Cetus and other protocols to unlock and improve various Defi use cases, and provides users with fully decentralized liquidity staking through the acquisition of the LSD protocol Volo. services, and further build a one-stop Defi platform.

• Ether.fi Providing a completely decentralized liquidity staking service, the pledged tokens have grown rapidly since the beginning of 2024, and the current total value has exceeded US$2.9 billion. Ether.fi supports pledgers to maintain control of keys when performing pledge proxies, and the ETH pledged to Etherfi will naturally be put into EigenLayer for re-pledge, thereby ensuring a higher degree of decentralization and bringing benefits to users. It will include multiple rewards for staking, re-staking and platform rewards to promote the rapid growth of the protocol.

• Renzo It is also a leading project focusing on the new field of liquid staking. In addition to allowing users to pledge native Ethereum to obtain liquidity staking and re-pledge benefits, it also supports the use of more LSD tokens for re-pledge. Currently, Renzo has more than US$1.25 billion in assets pledged on it.

OKX Ventures focuses on innovative and high-potential projects in the DEFI field, and is optimistic about the vitality that emerging narratives can bring to the DEFI field, helping its projects to provide complete and high-quality products and services for Web3 users.

5. AI

We have seen the explosive growth of the AI ​​​​track, and the encryption industry has been exploring the combination with AI. Both Web3 and AI are developing rapidly, and new integration points are constantly emerging. OKX Ventures focuses on projects and teams that can bring innovation to the encryption field and bring potential application scenarios and opportunities in the process.

• io.net It is a decentralized GPU network based on Solana. It aims to build a distributed computing network by aggregating idle GPU resources from around the world to provide low-cost and efficient computing resources for artificial intelligence (AI) and machine learning (ML). And through a simple UI interface, integrated platform, data management program and architecture, etc., we strive to provide a computing power platform with higher performance and more complete infrastructure.

• Myshell Focus on building an interactive AI robot creation platform. The platform can generate an AI that interacts with the user through the information input by the user. By adding voice templates, it can shape an AI with a unique personality, interaction method and voice based on the users settings. In addition to In addition to chatting and communicating with users, it can also cover use cases such as translation and text generation.

• 0x Scope It aims to build an open data layer for Web3 data analysis and provide a series of tools and services to help users understand and utilize Web3 data. Through a clear and direct interface, data analysis reports can be generated for the Web3 industry like ChatGPT. Or perform comprehensive on-chain behavior analysis on a specific address, etc.

• FLock It is an AI co-creation platform that encourages users to contribute computing power, AI models and private data by building a decentralized platform to promote the generation of community-oriented AI models. Promote AI innovation through cooperation from all parties.

• Meson Network It aims to build a decentralized bandwidth network, adopt user-friendly nodes, and use incentive models to collect and redistribute loans contributed by users around the world, linking both ends of the supply to form a sustainable economic cycle. Meson Network currently has more than 250,000 nodes worldwide, supporting bandwidth needs around the world.

AI and Web3 can combine and help each other in many aspects. From using AI to empower Web3 infrastructure to using AI to power Web3 application platforms, we are optimistic about the ability of high-quality teams to promote better integration of the two. OKX Ventures believes that with the further development and integration of the two fields of Web3 and AI , the relevant integration points will be more perfect, and this will also stimulate further development in the fields of Web3 and AI.

Conclusion

OKX Ventures believes that with the innovative breakthroughs in the Bitcoin ecosystem, L2 has entered an acceleration period, high-quality game content has moved from the testing stage to official release, and DeFi has continued micro-innovation with the development of infrastructure. 2024 will be the year Very exciting. At the same time, OKX Ventures also looks forward to actively cooperating with high-quality project parties and providing in-depth support to provide users with high-quality services and contribute to the industry.