Will the 314 protocol be the next ERC721?

Original｜Odaily

Author｜Wenser

The 314 protocol boom driven by ERC 314 is gradually spreading to various chains. The last protocol standard that attracted so much attention may have been the ERC 404 protocol led by Pandora. Going back further, the recent hot phenomenon even reminds many people of the previous NFT craze led by ERC 721.

From its launch on March 27 to now (April 8), X 314 on the BSC chain has achieved an increase of more than a thousand times in just two weeks (the online price is US$0.00349. As of writing, the price is about US$4.2, which is high. point has exceeded 5.3 US dollars), and there are also various 314 protocol tokens coded with Meme prefixes. The X 314 sector on the one-stop on-chain trading platform Ave.ai attracts many transactions with an increase of more than 30% at every turn. the readers eyeballs.

In view of the hot performance of the 314 protocol, Odaily will lead everyone to understand this new protocol standard that claims to revolutionize the lives of middlemen such as DEX(Note: At present, the 314 agreement is just a common name for the agreement. It generally refers to the contract standard for tokens that can be bought and sold through contract transfer. It is not endorsed by an official organization. Odaily reminds users that the market prices of new projects are highly volatile and the investment risks are extremely high. High, please be sure to pay attention to asset safety and choose investment targets carefully).

The origin of the 314 agreement: a new type of agreement spawned by a social experiment

https://app.simplifyerc.com/

So, where did the 314 Agreement come from?

Speaking of which, we also need to move forward in time, to Wednesday about 3 weeks ago.

On the evening of March 20, 2024, the ERC 314 protocol token SIMP was launched. Previously, the project raised 20 ETH and a total of 1 million tokens, which were distributed according to the proportion of 45% for LP, 45% for seed round pre-sellers, and 10% for multi-signature CEX wallets. The innovation of this project is that users can directly transfer ETH to its contract to complete the token purchase, transfer tokens to its contract to sell, and the gas cost is much lower than DEXs swap transaction operation. of the projectOfficial website white paperThe ERC 314 protocol was explained and introduced in detail, and it was mentioned that any project party can deploy ERC 314 protocol tokens.

ERC-20 VS ERC-314 comparison

Since then, SIMP has skyrocketed from a low in just a few hours to breaking through $50 in the early hours of the next day, an increase of hundreds of times.

March 21, ERC 314 protocol official account@Simplify_ERC 314 (The account has now been cancelled) Posted on the X platform emphasizing that the project is a social experiment. Subsequently, some community members reported that there was a problem with the contract formula of the agreement, and the LP Owner rights of the liquidity pool were not really transferred. Moreover, many people were attacked by clips during the buying and selling process, resulting in increased transaction losses. Although professional smart contract engineers subsequently investigated Contract formula Zero and the price dropped to around $0.08. As of writing, the SIMP token has risen to around $0.5 due to market sentiment on the 314 protocol.

The innovation of the ERC 314 protocol, which was originally expected to omit intermediate links such as DEX, save transaction operation costs, and prevent MEV attacks to a certain extent, came to an abrupt end. However, the new 314 protocol inspired and driven by it is already on the way.

On March 22, deployed on the BSC chainLONG 314 tokens are online, users can directly transfer BNB and interact with the contract address to buy and sell tokens.

On March 26, the project was officiallyexpressIn order to optimize the shortcomings of ERC 314 and LONG 314, the protocol is planned to be expanded and upgraded. A sales cooling mechanism and an LP burning mechanism will be added in the future to avoid bot attacks and promote token price increases.

On March 37, the X 314 protocol token deployed on the BSC chain was launched.

On March 29, X 314 started a staking lottery, and the contract was upgraded to a 60-second transaction cooldown, 6% LP automatic burning for 24 hours, and more than 1 million X 314 tokens destroyed every day.

April 1, BSCNews official accountPost a sponsored tweetPromote the X 314 project.

April 2, X 314 tokensPrices skyrocketed, the data on the chain has attracted attention.

On April 6, Ave.ai launched the X 314 section and added the X 314 Telegram community promotion space in the homepage banner.

April 7, X 314 token priceBreaking through $1。

On April 8, the price of X 314 tokens continued to rise, once exceeding $5.3. As of writing, the price of X 314 has dropped back to around US$3.8.

Driven by the rise of the X 314 protocol and tokens, the transaction volume of many projects in the X 314 sector of the Ave.ai platform has surged, and buying and selling activities are extremely active.

The most popular 314 tokens at the moment

The following are the 314 protocol-related token projects that are currently active and have high market value and liquidity. The data mainly comes from Ave.ai(Note: Odaily is only for sharing and communication and does not provide endorsement for any project. Users are advised to DYOR, pay attention to asset safety, and choose investment targets carefully.of)。

 X 314 : Around $3.80

Total token supply: 21 million;

Contract authority: not given up yet (official explanationBecause the contract is still being updated, problems need to be fixed and optimized);

Circulation market capitalization: approximately US$33 million;

Total LP liquidity: ~$1.8M.

As the current leading token in the X 314 sector, X 314 can be described as the “master” of the protocol——

• A certain degree of inheritance and innovation has been carried out on ERC 314 and LONG 314

• The LongSwap platform provides a smooth Swap trading experience

• There is a certain groundbreaking sales cooling mechanism and LP combustion mechanism

• 90-day staking incentive campaign

• Community user incentive lottery activities and other operations

Thanks to recent market performance and market operation activities, the X 314 telegram community currently has more than 13,000 people, and community communication is relatively active. It is worth mentioning that X 314Official accountGot CZ’s attention,It is not yet certain whether this account is a purchasing account.

LONG-314 : Around $0.25

Total token supply: 21 million;

Circulation market value: approximately US$6.18 million;

Total LP liquidity: ~$360,000.

LONG 314 is a token issued based on ERC 314. It is issued by the X 314 project. The X 314 official account has previously releasedRelated Tweets, and the token is compatible with the 314 Protocol Swap platformLongSwapBinding.

BNB 314 : Around $0.09

Total token supply: 20.23 million;

Circulation market value: approximately US$2.08 million;

Total LP liquidity: ~$250,000.

BNB 314 was launched on April 6. The project team stated that it was co-sponsored by BNB Whale and the local community. It is consistent with X 314 in terms of buying and selling operations, transaction cooling mechanism and clip prevention, but the LP deflation rate is 12%/day.

Y 314 : Around $0.04

Total token supply: 20.4 million;

Circulation market value: approximately US$900,000;

Total LP liquidity: ~$130,000.

Y 314 was launched on April 6, focusing on the first 314 protocol chromosome concept coin. It can be seen that this is a pure X 314 project, so please be aware of the risks.

BTC 314 : Around $0.04

Total token supply: 17.8 million;

Circulation market value: approximately US$720,000;

Total LP liquidity: ~$130,000.

BTC 314 was launched on April 5. It is similar to other 314 protocol tokens. The only difference is that the 24-hour automatic burning of LP is only 2%.

DAPJ: 0.000048 USD

Total token supply: 6.6 billion;

Circulation market value: approximately US$320,000;

Total LP liquidity: ~$90,000.

DAPJ was launched on April 7. It is different from the above 314 protocol tokens. It is issued on the Base chain and focuses on the Meme concept.

314 Agreement: Is it a technological innovation or a flash in the pan?

Previously, when SIMP was launched, the ERC 314 protocol caused a wave of heated discussions. The following are some excerpts:

As early as March 19, the on-chain platform EV Terminal was launched on the X platformPost a messageA detailed explanation of ERC 314 and SIMP was given, saying that the ERC 314 standard will change the way token purchases are made and effectively reduce gas costs on Ethereum. Not long ago, EV Terminal alsoAnnounced on official Twitter, SageERC 314 has acquired Simplify, the previous SIMP issuance project provider, and will start integrating SIMP with SAGE.

Previously, when SIMP first came to the forefront, crypto KOLs@0x SunNFT think, The core concept of ERC 314 is to optimize token transaction gas, and only one transfer is needed to complete the sale, and the restriction that only one transaction can be carried out with the same address in the same block prevents clamping, relatively speaking It has certain innovations and “can be regarded as a project that can make people’s eyes shine.”

Founder of AC Capital, Manager of Open_RugCryptocurrency | CryptoVERC 314 is regarded as the latest progress of Ponzi on Token, directly realizing Token as an L2 and Uniswap on Token, replacing the functions of L2 and DEX, and to some extent making it Facetswap wants to do things that have not been done, the level is even much higher than Pandora that negates NFTX (that is, the project that proposed the concept of ERC 404).

crypto researcherHaotianThen the failure of SIMP and ERC 314 protocols was briefly analyzed.Review summary, he believes that, first of all, ERC-314, like token standards such as ERC 20, can be called a new standard, but its innovation has been over-praised.

Secondly, ERC 314 adopts a black box pricing mechanism. Through this predefined and decentralized method, it reduces the slippage and high gas fees problems in real-time swap calculation prices. The disadvantage is that this The black box logic setting within the contract needs to be based on user trust, and whether the contract publisher has done evil is also a key issue.

Finally, ERC 314 has made some fine-tuning of the original trading paradigm, adding a kind of preprocessing or black box operation logic to the contract pricing mechanism and token buying and selling methods. I prefer it. It is believed that this is an intent transaction paradigm, which is particularly suitable for some small MEME currencies to use private placement circulation methods. Because it involves complex contract logic and possible centralized trust issues, it is difficult to become a mainstream large-scale asset circulation method. .”

Overall, Haotian believes that ERC 314 is a niche micro-innovation method that is more suitable for the usage scenario of niche speculation on Meme and is difficult to be accepted by the mainstream market.

The recent upsurge in the 314 protocol driven by low, CZ attention, backed by platform and pledge and other advantages to spread, it is quite the style of an army of local pushers. Therefore, the future market performance of the 314 sector represented by X 314 is still highly uncertain.

in conclusion

In general, X 314 has made certain innovations on the basis of ERC 314. The transaction cooling mechanism and LP burning mechanism have also alleviated the intensity of PVP on the chain to a certain extent, thus avoiding the mistakes of SIMP. , and the ecology on the BSC chain has re-grown new branches, but due to the extremely strong liquidity, the friction cost of buying and selling transactions has been reduced to a minimum, so it is difficult to avoid short-term price fluctuations and market value rises and falls. .

In addition, the project partys control over contract authority is also a potential risk in this type of project. Therefore, participating in this type of project is risky. The subsequent development of the project and the trend of the token largely depend on the structure of the project party. and operations.

Therefore, it is difficult for the 314 protocol to become a standard protocol like ERC 721 and be widely used in the short term. However, we have reason to believe that mechanisms that can accelerate the efficiency of capital liquidity circulation and enhance the decentralized trading of tokens will develop into more on-chain ecosystems in the future. In some tracks and fields, they will form a certain complement to trading channels such as DEX.