#bnb #AltLayer

On January 17, 2024, Binance announced the launch of the 45th new coin mining project AltLayer ($ALT). Users can then invest BNB and FUSD into the ALT mining pool on the Launchpad official website after 8:00 (Eastern Time Zone) on January 19, and receive $ALT token mining rewards within 6 days. Combining the recent funding of Binance Launchpool, peer benchmarking, and mining cost calculation, we preliminarily estimate that the opening price of $ALT will be around 0.2U to 0.3U.

1. Project Introduction

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1) Basic Introduction

AltLayer is a RAAS (Rollup As a Service) and re-staking Rollup provider that combines Optimistic Rollup and ZK Rollup technologies, and is committed to providing developers with a highly customized and scalable blockchain execution environment. AltLayer allows developers to easily and quickly deploy their own Rollup based on mainstream public chains such as Ethereum while ensuring security and decentralization. This application-specific Rollup execution layer can customize functions and parameters according to the actual needs of the project, such as transaction fees, consensus mechanisms, virtual machines, etc. Compared with direct deployment on public chains or layer 2 networks, AltLayer provides projects with greater flexibility and controllability. Compared with self-built chains, AltLayer reduces maintenance costs and improves resource utilization efficiency.

2) Product Features

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Currently, RaaS projects on the market can be divided into three categories: SDK, codeless solutions and shared sequencers. Among them, the SDK solution provides developers with a complete set of general software development kits, making the deployment of Rollup as easy as deploying smart contracts. The codeless Rollup deployment solution is designed to make it easier for developers to create and manage Rollup.

The transaction sequencer is the core component of the Layer 2 architecture. It collects transactions off-chain, generates blocks, and submits data to the main chain. The solution of the shared sequencer is to share the decentralized sequence table service with multiple Rollup networks. The Rollup sequence table is responsible for grouping and compressing transactions and then submitting them to the main chain. This decentralized design enhances the network's ability to resist censorship, ensures efficient and seamless processing of transactions, and realizes the safe and stable operation of the Rollup system. AltLayer's products cover the above three areas and are committed to providing a more comprehensive RaaS service.

3) Technology Application

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AltLayer uses Optimistic Rollup technology to build a fast and scalable application chain layer that can be easily deployed on the public chain to obtain security. It supports EVM and WASM and can be used as an elastic expansion solution to provide expansion support for different public chains and applications.

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AltLayer supports multiple chains and processes transactions in three steps: aggregation, block generation, and verification. It has a single producer or multiple producers to reach consensus on producing blocks. In addition to verifying blocks, verifiers must submit data to the main chain. It has three levels of finality, and users can choose the required security level. At the same time, it also has a shared sorting node cluster Beacon layer, which assigns sorting nodes to users according to user requirements. Considering that OP-Rollp execution may be controversial, it uses binary search to gradually narrow the scope to efficiently resolve disputes.

4) Rollup type on AltLayer

<1> Flash Layer Rollups

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FlashLayer is a temporary, one-time rollup provided by AltLayer, with optional fraud proofs, which can be quickly created when the short-term demand for dApps increases, such as during airdrop activities. FlashLayer can quickly expand capacity to prevent base chain congestion. When the activity ends, it can transfer the state and assets back to the base chain and then be deleted to release resources. FlashLayer provides a use-and-go instant expansion solution, avoiding the waste of resources to permanently maintain a chain or contract.

<2>Persistent Rollups

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AltLayer provides permanent and secure rollups that are application-specific and compatible with both EVM and WASM. Persistent rollups are ideal for long-term applications, such as GameFi, SocialFi, MetaFi, and DeFi. Compared to the transient Flash Layer, permanent rollups provide a customized execution environment for these long-running applications. It inherits the security of optimistic rollups, while also having the ability to parameterize and customize for specific applications and support multiple virtual machines, making it particularly suitable for the long-term applications mentioned above, such as GameFi, SocialFi, MetaFi, and DeFi.

5) Competitive Advantage

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•AltLayer is the only RaaS platform that provides short-term Rollup services. Its Flash Layer allows developers to quickly create disposable Rollups for short-term traffic spikes. This avoids the waste of resources to build an entire chain for temporary needs.

•AltLayer builds a decentralized Beacon layer as a shared sorter network, which makes it one of the few decentralized sorter RaaS platforms. Decentralized sorters improve the security and reliability of Rollup.

•AltLayer implements anti-fraud mechanisms such as binary search and has been effectively run on multiple public chains. This ensures the secure execution of AltLayer Rollup and makes it one of the few RaaS platforms that can run fraud proofs.

• AltLayer has been committed to supporting multi-chain environments from the beginning, while supporting mainstream virtual machines such as EVM and WASM. This allows developers to flexibly deploy AltLayer Rollup in different networks, and its multi-chain and multi-virtual machine support capabilities are in the leading position in the industry.

6) Ecological development

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AltLayer provides a versatile rollup stack that has been integrated with all mainstream modular technology stacks to meet different rollup needs. In addition, AltLayer is the only RAAS platform that natively supports WASM.

•In terms of operating environment, AltLayer already supports EVM and WASM, but Solana and Move environments are still under development.

•In terms of verification, AltLayer has implemented a binary fraud proof, but fraud proofs in the mainnet environment are still under development.

•In terms of multi-chain support, AltLayer already supports chains such as Ethereum, but Solana support is still under development.

2. Financing History

Financing rounds

AltLayer has completed two rounds of financing, raising $22.8 million and selling 18.5% of its tokens. The latest round of valuation is $180 million.

The seed round was completed in July 2022, led by investors including Polychain Capital, Jump Crypto and Breyer Capital, with participation from Polkadot founder Gavin Wood, Balaji Srinivasan, former Coinbase CTO Balaji Srinivasan, Circle co-founder Sean Neville, Synthetix co-founder Kain Warwick and Jordan Momtazi.

In August 2023, AltLayer received investment from Binance Labs.

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3. Team Information

CEO: Yaoqi Jia was the co-founder and CTO of Zilliqa and one of Forbes Asia's 30 Under 30. He received his PhD in Computer Science from the National University of Singapore and has published several top journal papers in the fields of cybersecurity, privacy, and distributed system security. His work has been recognized by multiple vendors such as Google and Apple and has attracted media attention. He currently hosts the Advanced Systems Workshop at the National University of Singapore and is involved in the Cybersecurity Research Group.

CTO/Co-Founder: Tan Jun Hao: Co-founder and CEO of AltLayer, he is an experienced blockchain developer and entrepreneur. He was a core developer of Synthetix, responsible for developing and maintaining the project's smart contracts and front-end. He was also a senior software engineer at Kyber Network, involved in the development and optimization of decentralized exchanges.

Token Economy

1) Token distribution and unlocking

The total supply of $ALT is 10 billion, and 11% of the tokens will be unlocked at the opening.

$ALT token release period:

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2) Token Function

  • Economic Staking: ALT tokens will be used together with re-staked assets to provide economic staking. If malicious behavior is detected, the staking will be forfeited.

  • Governance: ALT token holders can vote on governance decisions.

  • Protocol Incentives: Operators in the AltLayer ecosystem can earn ALT tokens as a reward for their services.

  • Protocol Fees: Network participants need to use ALT tokens to pay for internal network services.

V. Community Situation

Twitter: 571.1K; https://twitter.com/alt_layer

·Discord：667K；https://discord.com/invite/altlayer 

·Telegram: 6.5K：https://t.me/altlayer

6. Token launch performance prediction

Binance Launchpool historical performance:

From the figure below, we can see the performance of Binance's newly launched tokens through Launchpool and Launchpad recently. We can see that the recent Launchpool launch has performed well. After the start of Q4 2023, the opening returns of several tokens such as MEME, ACE, NFP, AI and MANTA were significantly higher than previous projects.

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Funding comparison:

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The opening circulation of $ALT tokens is 11%, corresponding to 1.1 billion tokens. The seed round valuation of the project is 80 million US dollars, corresponding to 0.0008 US dollars per token. According to the current valuation, the opening circulation market value is 8.8 million US dollars.

From the perspective of funding, the projects in the last five phases are more referenceable. According to the average opening transaction volume of the last five Launchpool projects, it is 397 million US dollars. If the opening transaction volume of $ALT tokens reaches this value, according to the circulating market value of 8 million US dollars, the turnover rate is about 49.7x. In addition, the average increase in the opening circulating market value of the projects in the last four phases is 46.3x, corresponding to an average market value of 316 million US dollars. If the opening of $ALT tokens reaches this circulating market value, the corresponding price is about 0.32 US dollars.

Mining cost calculation:

If we consider Binance's BNB borrowing cost, the mining cost of $ALT is about 0.29U.

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If we refer to the Binance borrowing cost, the BNB mining cost of $ALT is 0.29U.

OTC market reference:

Currently in the OTC market, the average transaction price of $ALT tokens is around US$0.24.


References:

ALT报告，Binance Research，https://www.binance.com/zh-CN/research/projects/altlayer

ALT report, Worldchain Research, https://foresightnews.pro/article/detail/43557

AltLayer Dev Doc,https://docs.altlayer.io/altlayer-documentation/welcome/overview

Note: This article does not constitute any investment advice and investors should be aware of investment risks.