This week's summary:

This week's summary:

- V God participated in the Shanghai ETH Web 3.0 Developer Summit and gave a comprehensive speech on the upcoming The Merge. How will it affect Ethereum?

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1. Industry dynamics last week

1. Industry dynamics last week

Last week, after the market experienced the worst stablecoin thunderstorm in history, the entire market calmed down to a certain extent. After Terra felt that it was hopeless to save the market, he launched a new proposal, but the market’s trust in it decreased and followed. The regulatory pressure to come may be the straw that breaks the camel's back. Speaking of the market, as of writing, BTC closed at 29965.3 USDT, basically unchanged from last week. Although Bitcoin has fallen for 7 consecutive weeks on a weekly basis, judging from the doji in the graph, it seems that the short-term decline has stabilized. , the market may usher in a short-term correction or sideways trading, but the formation of a bear market has already reached a consensus. From the perspective of US stocks, the Nasdaq closed at 11354 points this week, and there is still some room for decline. Investors are still advised to be cautious.

On Friday, May 20th, the Ethereum Shanghai Web 3.0 Developer Summit hosted by members of the Ethereum Shanghai Preparatory Committee was successfully held online. The conference invited domestic and foreign political and business circles to discuss the development of Web 3.0 Internet technology in China and the world. successful people presenting at conference. Among them, Vitalik, the founder of ETH, also attended the meeting and gave an update report on the development of Ethereum 2.0. As we all know, the purpose of Ethereum 2.0 is to solve the current Ethereum PoW consensus performance, green energy and other issues. The roadmap is mainly divided into 3 parts, The Beacon Chain, The Merge and Shard Chains, which are currently in the second phase of The Merge node.

There are 4 noteworthy parts in V God's speech:

1. Dilute the concept of ETH 2.0 again, and use "Consensus Layer" and "Execution Layer" to distinguish the Ethereum blockchain before and after the upgrade. In January of this year, the Ethereum Foundation announced this matter. The previous ETH 1.0 will be called Execution Layer, which is used to process and execute transactions, and ETH 2.0 will be called Consensus Layer, which is used to provide PoS consensus. One of the reasons why the foundation does this is to prevent wrong psychological cognition. ETH 2.0 does not create a new chain on the basis of abandoning 1.0, but updates on top of 1.0. Ethereum is still the previous Ethereum. V God’s speech this time completely abandoned the idea of ​​ETH 2.0.

2. The Merge may happen in August at the earliest. After PoS goes online, all PoW mining machine nodes will be offline and replaced with PoS nodes. The way to achieve this operation is through the "difficulty bomb", which can make miners mine The tool for exponentially increasing difficulty is a means to forcibly cancel PoW incentives. It can prevent new Ethereum forks from being generated while updating nodes more effectively (if PoW cannot generate blocks, forks cannot be formed).

3.64 shards are too difficult to achieve, the third stage will switch to Danksharding. Vitalik proposed that the past proposal of 64 shards was a bit difficult on the evolutionary path of Ethereum, and each shard required a separate committee to manage. Danksharding can be understood as a super-large shard. Combined with updated data structure technology, the short-term goal of Proto-Danksharding can increase the size of the shard by 1MB, and the TPS can be increased to 5000; the long-term goal is 16MB. Combined with Rollup technology, the TPS can be increased to 80000. At the same time, V God also gave a 100% affirmation to the Rollup technology. Rollup will definitely be an indispensable technology for future Ethereum expansion.

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2. Macro and analysis

2. Macro and analysis

The market is relatively flat this week. After experiencing the blood-sucking effect of the LUNA crash last week, most of the currency prices are basically sideways. We judge that the possibility of sharp rises and falls in a short period of time is small, and the short-term will be mainly sideways. The optimistic situation is to fall sideways. After a period of time, it will follow the US stocks.

BTC is basically sideways at 30,000 USDT.

The Nasdaq index reversed V-shaped on Friday. At present, the technical bear market of US stocks has been established, and follow-up needs to pay attention to inflation and the economy.

1. Technical indicators:

1. Technical indicators:

1) Arh999: 0.54 We think that there is already a cost-effective configuration.

2) MVRV: 1.25, the cost performance of the configuration is also gradually reflected.

4) Changes in the number of ETH addresses: The number of ETH addresses basically remained stable.

2. Summary:

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3. Summary of investment and financing

3. Summary of investment and financing

• During the reporting period, 38 investment and financing events were disclosed, with financing of approximately US$1.49 billion. In terms of specific tracks, the Web 3.0 track has 16 projects accounting for more than 45%, and other tracks such as NFTs, Cefi, Defi, and Infrastructure account for a relatively average number of between 4-6. Among them, there are 2 projects that have raised more than 100 million yuan, including Lithosphere Network's $400 million seed round financing and Robinhood's $600 million financing.

2. Organization of the week

2. Organization of the week

1) HaunVentures lays out the encrypted tax track

•After Paradigm, TigerGlobal and other institutions led the investment in the encrypted tax and accounting software company TaxBit in the first half of 2021, during the reporting period, HaunVentures completed an undisclosed strategic investment in TaxBit;

• This investment 1) is in line with the HaunVentures team’s origin as a regulatory agency, and its investment philosophy embraces the general background of regulation; 2) It is also a unanimous vote for the FASB on May 11, 2022 to add digital asset accounting to its meeting discussion agenda , and said that it will issue positive feedback that is more suitable for digital asset accounting guidance in the future.

2) Tiger Global continues to make efforts in the field of infrastructure

•As the number and acceptance of DAO organizations continue to increase, the demand for security and profitability of DAO Treasury assets will also increase. In view of this:

• Tiger Global, which focuses on comprehensive financial service platforms and infrastructure investments in the encryption field, completed a US$15 million A-round equity investment in Coinshift, a Web3 infrastructure project, as the lead investor during the reporting period;

•Coinshift provides companies and Dao organizations with multi-signature tools through the Gnosis Safe smart contract to simplify fund management. Including the implementation of large-scale capital payments (such as employee salaries, bonuses, etc.), providing reasonable asset allocation solutions for idle funds, such as using yield aggregators, AMM pools, etc., and formulating allocation strategies based on risk appetite.

3) Goldman Sachs is deeply involved in the encryption trading track

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4. Encrypted ecological tracking

4. Encrypted ecological tracking 

1）Sandbox：

1. Metaverse

•Sandbox released the reward roadmap for landowners in 2022 last week. First, 5 million SAND airdrops will be airdropped to landowners on 5/23, followed by a 1,000-day commemorative event on 9/22. Standard send SAND airdrop.

•Secondly, the Staking plan was released, which will gradually launch SAND-ETH, SAND-MATIC, and SAND liquidity pools this month, and will launch liquidity pools only for landlords in June and July.

• At the same time, Sandbox also announced its partners for the next few rounds of Land Sale, including Ubisoft, ParisHilton, Warner Music, Gucci and Adidas. The lineup is very strong.

• In terms of construction, Sandbox will provide estate creation functions in the second half of the year; release Experience on Land and Estates; land lease; concerts and other new construction options.

• On 6/20, Sandbox will hold a large-scale offline meeting of landlords at the NFT NYC venue in New York. All landlords can participate for free, and will hold offline meeting of landlords in many places in the fourth quarter.

2. NFT digital collection

1) NFT dynamic summary:

•In the past week, the overall NFT market trading volume was sluggish, the floor price was more in a sideways state, and players took a wait-and-see attitude towards top projects.

• Ranking by market capitalization and trading volume:

2) Major overseas NFT events:

• Morgan Stanley said in a report last week that the sharp falls in bitcoin, ethereum and other tokens had nothing to do with the fall in the stock market. Instead, the higher price is due to "investor speculation and limited actual user demand." With the collapse of Terra's stablecoin UST, the market will also undergo a broader re-evaluation of the prices of other digital assets including cryptocurrencies, NFTs, digital real estate, etc. Investors should remain vigilant because it may be the next drop of. We believe that in the past year, the correlation between the encryption market and the US stock market has gradually increased, mainly related to the macro environment of the currency. When the currency circulation declines, theoretically high-risk assets must face the risk of falling and liquidation. However, it is true that the NFT and digital real estate markets, or any assets without core value anchors, will collapse more easily than traditional financial products when the bear market comes, so the transaction volume continues to gather at the head.

• Since the addition of the channel to buy and sell Solana NFTs on OpenSea, the number of NFT SOL projects launched has continued to increase and sales have continued to grow. Among them, Okay Bears can be described as a rising star on the Solana chain. The trading volume of Okay Bears ranked TOP10 in the daily trading volume ranking of Opensea several times. On May 16, the floor price of 247 SOL hit a record high.

• "Calm Bear" Okay Bear is a PFP NFT collection series based on the Solana blockchain. It consists of 10,000 different bears. Users can have exclusive access to the park after holding it, where holders can build a Desirable neighborhood.

• •The official website of the Element market released an announcement, announcing the official launch of the Avalanche version. In the first month of its launch, "0 transaction fee" will be fully implemented. New features include:

• Batch purchase: through the shopping cart, users can purchase multiple NFTs at one time, only need to pay a gas fee, saving up to 50% gas for users;

• Asset notification: When your NFT receives a quote or sells, the Element market will remind you to check it quickly to avoid missing important asset information.

3) NFT-related financing:

3) NFT-related financing:

• Music NFT startup Serenade announced the completion of a new round of financing of 6 million Australian dollars (about 4.2 million U.S. dollars), with investors including executives from various companies in the music industry and Wolverine Hugh Jackman. Serenade stated that they plan to use this latest financing to expand globally, including opening an office in the United States and relaunching the Serenade 2.0 NFT marketplace.

3.GameFi：

• Pine Protocol, an NFT encrypted lending agreement, announced the completion of a $1.5 million seed round of financing, led by Sino Global Capital, AmberGroup, and Spartan Group. The new financing will be used to further develop the Pine platform and Pine protocol, and add Solana, BNBChain, Avalanche, and Fantom, etc. Multi-chain support. The Pine platform is built on top of the Pine protocol, allowing permissionless instant lending of cryptocurrencies using NFTs as collateral. Currently, Pine supports OpenSea and LooksRare and will add more markets in the future. Additionally, NFT owners will be able to retain the functionality of their NFTs, such as receiving airdrops and accessing closed channels, even if they are staked as collateral. It is understood that since the alpha version was launched in February and the product was officially launched at the end of April 2022, the Pine platform has facilitated more than $2 million in loans. NFT users can currently get crypto loans on 30 popular NFT collectibles, including BAYC (BoredApe Yacht Club), Azuki, CloneX, Moonbirds, Doodles, and more.

1) Investment and financing and on-chain data

• During the reporting period, there were 6 investment and financing incidents in NFT & Games. The notable incident was that a16z Games announced the establishment of a US$600 million game fund to invest in game studios, communities, infrastructure, tools and other projects.

2) Institutional Tracking – a16z established a Game department and set up a US$600 million game fundhttps://a16z.com/2022/05/18/games-fund-one-building-the-future-of-games/）•Background: During the reporting period, a16z Games announced the launch of the first game fund GAMES FUND ONE of US$600 million, which will be dedicated to investing in game start-up companies, and also released a promotional video about GAMES FUND ONE (link

In just 1 minute and 15 seconds, the video shows more than 30 metaverse game projects that a16z has already deployed, including Forte, DapperLabs, YugaLabs, SkyMavis, etc.;

• Investment direction: GAMES FUND ONE will invest in three main areas, including game studios (independent game projects), player communities (such as Discord, Twitch similar projects) and game infrastructure;

• "Game + Business" management team: Crypto and Games have been divided into two independent departments by a16z, Games is no longer managed by Chris Dixon, Andrew Chen, JonathanLai, and James Gwertzman form a "Game + Business" compound background management team. Among them, Jonathan Lai has experience in Morgan Stanley, Riot Studios, and Tencent games, and has a typical game and business background. James Gwertzman is a serial entrepreneur in the field of game infrastructure and the person in charge of Microsoft Cloud Games. He once led the development of "Plants vs. Zombies";

•Fund investors: formed by the founders of relevant projects in the a16z investment portfolio around the scope of fund investment, including founders or co-founders of Roblox, Discord, Blizzard, Zynga, Twitch, and SkyMavis;

•Reference conclusion: a16z established a special game fund of 600 million US dollars at this point, undoubtedly after the "512 incident" that happened not long ago and the attack on the Ronin side chain, which caused the AxieInfinity game to experience a double decline. Positive good. In addition, the fund's investment targets can be used as investment reference.

3) Institutional Tracking – DuskBreakers, a powerful alliance with abundant resources

•Project background: Metatheory, a blockchain game company founded by Kevin Lin, the co-founder of the game video platform Twitch, has completed a US$24 million Series A round of financing led by a16z and participated by companies such as PanteraCapital and FTX Ventures. Metatheory will focus on producing high-quality chain games based on blockchain technology, and is currently developing its first game, DuskBreakers;

•Founder's industry status: The Twitch platform is one of the main positions for live broadcasting of well-known games such as League of Legends, Dota2, StarCraft 2, and Warcraft, etc., and currently has more than 9.3 million fans on twitter. The founder has rich network resources including game development, promotion and operation, and has unshakable influence in the game industry;

4. Infrastructure infrastructure

4. Infrastructure infrastructure

1) Dynamic summary of the public chain:

1) Dynamic summary of the public chain:

• The overall TVL of the encryption market is weak. Last week, the overall lock-up volume of the public chain (including Staking) continued to decline, falling from US$103.1 billion to US$99.7 billion.

• Ethereum's share decreased slightly, from 61% last week to 59%. Solana once again surpassed Polygon to enter the top five.

• •Tron’s sequential upward momentum:

• TRON DAO funded the establishment of a $10 million incentive fund to support Terra developers migrating to the TRON ecosystem including the TRON network and BTTC. This incentive plan will help Terra developers get out of the predicament as soon as possible, regain vitality, and continue to innovate; ØAccording to the data of the blockchain browser TRONSCAN, the total number of TRON accounts exceeded 94 million;

• The circulation of TRON’s decentralized algorithm stablecoin USDD exceeded 450 million, corresponding to the destruction of TRX exceeding 4.7 billion TRX. As a result, the liquidity of TRX has continued to decline and the price has risen.

2) Public chain ecology:

•Terra

2) Public chain ecology:

• On May 20, Terra officially revised the previous Terra recovery plan, adjusting the initial token distribution ratio and release ratio. The plan will be to hard fork the Terra blockchain, creating a new chain without the algorithmic stablecoin UST. The original blockchain will be renamed Terra Classic (token changed to LUNC) and the new chain will become Terra (token LUNA). The token LUNA will be airdropped to the original LUNA, UST holders and developers in proportion, totaling 1 billion. The distribution ratio is as follows:

• Developers: 10%, used to motivate and compensate developers, with unlocking time and conditions

• Community treasury: 30%, for governance and incentives for developers

• LUNA holders before attack: 35%

• Holders of aUST (Anchor’s LP token) before the attack: 10%, with a cap of 500K whales, covering 99.7% of holders

• LUNA holders after being attacked: 10%

UST holders after being attacked: 15%

The snapshot time before the attack is 2022.05.07 23:00:04+08:00, and the snapshot time after the attack is 2022.05.27 03:59:51+08:00. Coin holders of centralized exchanges can also get airdrops, according to After the total amount of currency held by the exchange is distributed, it will be distributed to each user address by the exchange.

Currently, 62.67% of the votes in favor of the hard fork proposal are expected to pass.

The proposal seems to indicate that Do Kwon has basically given up saving the original LUNA and UST tokens, and abandoned the algorithmic stable currency, focusing on the construction of the new LUNA chain. However, LUNA, which has lost its stable currency, is not necessarily attractive as a layer 1 public chain. After losing the trust of users, we are somewhat skeptical about Terra's comeback.

•Comdex

In addition, it is not necessary for developers to stay on the Terra chain. Juno, the platform-based public chain of the Cosmos ecosystem, has almost the same underlying architecture (consensus protocol Tendermint, development tool Cosmos SDK, and smart contract framework CosmWasm), and the community has voted to allocate 1 million JUNOs to support the migration of Terra developers. Fanfury, an existing sports game project on Terra, has announced that it will migrate to the Juno Network and recast its tokens.

With the collapse of UST, there is a lack of decentralized stablecoins in the Cosmos ecosystem, and stablecoins are needed to supplement its DeFi liquidity and promote development.

On May 17, the Cosmos ecological algorithmic stable currency project Composite (CMST) announced its launch, which will be deployed on the layer 1 application chain Comdex in the Cosmos ecosystem.

CMST uses an over-collateralization model similar to DAI, which is minted by over-collateralization (not less than 150%) of assets supporting IBC. The anchoring of CMST prices is achieved through the following mechanisms:

Arbitrage: When the price is higher than $1, users can mint CMST at a price of $1 and sell it for arbitrage. When the price is lower than $1, users can buy CMST at a low price and unlock collateral worth $1 to make a profit.

Interest rate policy: Since CMST is essentially a debt generated by mortgage assets, interest charges (Interest APR) will be incurred. The agreement will control the supply of CMST by adjusting deposit and loan interest rates.

Stable currency trading market: The agreement will have a built-in exchange market for CMST and DAI/USDC/USDT to ensure the stability of the arbitrage mechanism.

Liquidation: When the price of mortgage assets falls and the mortgage rate falls below 150%, the mortgage assets will be auctioned. Since CMST will support all IBC assets, its reserve assets will have a wide diversity, avoiding the price fluctuation of a single asset from affecting the overall debt.

In addition to the stable currency CMST, Composite will also launch the governance token HARBOR to adjust various policies of the protocol. The agreement will use the accumulated interest income, liquidation income and other income to repurchase and destroy HARBOR. In addition, when CMST is higher than $1 for a long time, the agreement will also mint additional CMST to buy back HARBOR; when the anchor is broken for a long time, the agreement will use HARBOR to buy back CMST and destroy it.

Note: USCX in Roadmap is renamed CMST

Comment: Due to the existence of Terra, UST has always been the most widely used stablecoin in the Cosmos ecosystem, so Cosmos does not need to develop its own decentralized stablecoin. The UST crash has also brought serious damage to the Cosmos ecosystem, but it has also given opportunities to other projects in the ecosystem.

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5.DAO Decentralized Autonomous Organization

UnicornDAO

5.DAO Decentralized Autonomous Organization

UnicornDAO announced the completion of $4.5 million in financing, with participation from World of Women and Moonbirds NFT series, MoonPay, Polygon, FlamingoDAO, and Yuga Labs.

Founded by Nadya Tolokonnikova, a founding member of Russian feminist punk band Pussy Riot, the project aims to provide infrastructure for feminism on the blockchain, collect related NFTs, and empower female and LGBTQ NFT creators. According to its website, the organization's vision is to create equality for identities and LGBTQ+ people in the real world and in the Web3 world.

The organization absorbs members by selling seats. The core members are limited to 99 people and need to pay 50 ETH.

We see that more and more DAO projects are beginning to establish influence in the real world. This may be the only way for the encrypted world to expand its influence and move towards Web3.

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5. JZL team news

JZL Capital is a professional organization registered overseas, focusing on blockchain ecological research and investment. The founder has rich experience in the industry. He has served as the CEO and executive director of many overseas listed companies, and has led and participated in eToro's global investment.

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JZL Capital is a professional organization registered overseas, focusing on blockchain ecological research and investment. The founder has rich experience in the industry. He has served as the CEO and executive director of many overseas listed companies, and has led and participated in eToro's global investment.

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