Arrow
@ArrowCrypto_eth
@ArrowCrypto_eth.Commodity Trader, Crypto Researcher
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If we don’t come up with something subversive, it feels like the PoS narrative is not far away from death.
shitcoin always shitcoin
shitcoin always shitcoin
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DeFi Evaluation Method: Analyzing Liquidity Protocols
The key point of evaluating liquidity protocols is to grasp the essence. The core is "lending", but the difference lies in whether the protocol can have a good price discovery mechanism, whether it can provide sufficient liquidity, and whether it can avoid unnecessary costs. loss.
If you want to set up a liquidity protocol, you need to comprehensively consider the following aspects, including ① the construction of a capital pool; ② the over-collateralization mechanism; ③ the effectiveness of the oracle machine; ④ the design of the interest rate function; ⑤ the design of the liquidation mechanism; ⑥ the core mechanism design.
The key point of evaluating liquidity protocols is to grasp the essence. The core is "lending", but the difference lies in whether the protocol can have a good price discovery mechanism, whether it can provide sufficient liquidity, and whether it can avoid unnecessary costs. loss.
If you want to set up a liquidity protocol, you need to comprehensively consider the following aspects, including ① the construction of a capital pool; ② the over-collateralization mechanism; ③ the effectiveness of the oracle machine; ④ the design of the interest rate function; ⑤ the design of the liquidation mechanism; ⑥ the core mechanism design.
The key point of evaluating liquidity protocols is to grasp the essence. The core is "lending", but the difference lies in whether the protocol can have a good price discovery mechanism, whether it can provide sufficient liquidity, and whether it can avoid unnecessary costs. loss.
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[DeFi Evaluation Method: Uniswap Iteration Review]
Recently I am doing a summary of the evaluation methods of the DeFi track. After studying some cases, Uniswap is a typical representative in terms of influence and iterative logic.
The internal logic of Uniswap's iteration from V1 to V4, as well as the launch of the UniswapX protocol, is functional innovation and mechanism optimization for DEX transactions.
V1 initially implemented AMM in the encryption field, V2 reduced ETH risk exposure and launched a price oracle that is more difficult to manipulate, V3 solved the problem of low capital efficiency through centralized liquidity, V4 implemented customizable DEX, and the UniswapX protocol was strengthened through the auction mechanism The competitiveness of third-party aggregators enables optimization of price slippage.
The internal logic of Uniswap's iteration from V1 to V4, as well as the launch of the UniswapX protocol, is functional innovation and mechanism optimization for DEX transactions.
V1 initially implemented AMM in the encryption field, V2 reduced ETH risk exposure and launched a price oracle that is more difficult to manipulate, V3 solved the problem of low capital efficiency through centralized liquidity, V4 implemented customizable DEX, and the UniswapX protocol was strengthened through the auction mechanism The competitiveness of third-party aggregators enables optimization of price slippage.
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Let’s talk briefly about Blast @Blast_L2
In short, by staking the cross-chain ETH and then distributing the income to everyone, it can be understood that a certain point income will be given on the basis of Lido. The future gameplay should focus on strong social interaction, and may also be similar to Blur's model. .
The main focus is native yield, which can provide native income.
Blast: Blur’s launch of Ethereum L2, the only Ethereum with native income from ETH and stablecoins, just received $20 million from Paradigm and Standard Crypto
Blast’s revenue comes from Ethereum staking and the RWA protocol. Revenues from these decentralized protocols are automatically returned to Blast users, with the default interest rate for other L2s being 0%. On Blast, interest rates are 4% for Ethereum and 5% for stablecoins.
Logic: When users cross-chain ETH or stablecoins into Blast, they will be deposited into on-chain treasury bill protocols (T-Bill) such as MakerDAO, and the proceeds will be transferred back to Blast through Blast's automatic basic stablecoin USDB user.
In short, the cross-chain past ETH is pledged, and then the income is distributed to everyone. On the basis of Lido, a certain point income will be given, so the future gameplay may focus on strong social interaction, or it may be similar to Blur's model.
Compared with other decentralized sequencers that have no movement in L2, they still keep the Gas fee for themselves in the end. Blast returns this revenue directly to developers through the program. Developers can keep this revenue or use it to subsidize gas costs for users.
The model of staking ETH to POS is somewhat similar to the savings protocol Anchor of the former star project Luna. It is essentially the staking income of blockchain POS. bETH is ETH in the staking state and can obtain an annual eth income of about 5%. At the same time, you can also receive interest income paid by the borrower.
The concept of real income/native income should be mentioned more and more in the future. Yesterday, I wrote an article [DeFi Evaluation Method ②: Analyzing Liquidity Agreement] and mentioned the concept of national public chain in the tweet.
Later, the concepts of treasury bonds on the RWA chain and the risk-free interest rate based on the native risk on the chain may be proposed more. In this way, the construction of the native bond market on the chain will be more colorful.
In short, by staking the cross-chain ETH and then distributing the income to everyone, it can be understood that a certain point income will be given on the basis of Lido. The future gameplay should focus on strong social interaction, and may also be similar to Blur's model. .
The main focus is native yield, which can provide native income.
Blast: Blur’s launch of Ethereum L2, the only Ethereum with native income from ETH and stablecoins, just received $20 million from Paradigm and Standard Crypto
Blast’s revenue comes from Ethereum staking and the RWA protocol. Revenues from these decentralized protocols are automatically returned to Blast users, with the default interest rate for other L2s being 0%. On Blast, interest rates are 4% for Ethereum and 5% for stablecoins.
Logic: When users cross-chain ETH or stablecoins into Blast, they will be deposited into on-chain treasury bill protocols (T-Bill) such as MakerDAO, and the proceeds will be transferred back to Blast through Blast's automatic basic stablecoin USDB user.
In short, the cross-chain past ETH is pledged, and then the income is distributed to everyone. On the basis of Lido, a certain point income will be given, so the future gameplay may focus on strong social interaction, or it may be similar to Blur's model.
Compared with other decentralized sequencers that have no movement in L2, they still keep the Gas fee for themselves in the end. Blast returns this revenue directly to developers through the program. Developers can keep this revenue or use it to subsidize gas costs for users.
The model of staking ETH to POS is somewhat similar to the savings protocol Anchor of the former star project Luna. It is essentially the staking income of blockchain POS. bETH is ETH in the staking state and can obtain an annual eth income of about 5%. At the same time, you can also receive interest income paid by the borrower.
The concept of real income/native income should be mentioned more and more in the future. Yesterday, I wrote an article [DeFi Evaluation Method ②: Analyzing Liquidity Agreement] and mentioned the concept of national public chain in the tweet.
Later, the concepts of treasury bonds on the RWA chain and the risk-free interest rate based on the native risk on the chain may be proposed more. In this way, the construction of the native bond market on the chain will be more colorful.
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【Project Express】AlloyX——Liquidity Staking Protocol for RWA
(This article is for project research only and does not represent any investment advice) AlloyX is a DeFi protocol that aggregates tokenized credit to bring liquidity, composability, and efficiency to the real-world asset ecosystem. AlloyX helps protocols, DAOs, and institutional investors provide liquidity for on-chain tokenized credit while reducing funding drag. AlloyX's aggregation platform enables users to build and customize investment strategies based on their own yield, risk and liquidity preferences.
Credit protocols in real world assets (RWA) provide AlloyX with instant opportunities. RWAs are tangible assets that exist in the real world and are brought onto the chain through tokenization, such as loans, accounts receivable, invoices, and real estate. Tokenized RWA credit has continued to grow as a crypto asset class since 2020, with deposits reaching over $1 billion when it peaked in mid-2022. However, with what appears to be only one asset type in RWA for a huge length of time, this asset class is not only fragmented but also very diverse on various parameters that investors need to consider.
Credit protocols in real world assets (RWA) provide AlloyX with instant opportunities. RWAs are tangible assets that exist in the real world and are brought onto the chain through tokenization, such as loans, accounts receivable, invoices, and real estate. Tokenized RWA credit has continued to grow as a crypto asset class since 2020, with deposits reaching over $1 billion when it peaked in mid-2022. However, with what appears to be only one asset type in RWA for a huge length of time, this asset class is not only fragmented but also very diverse on various parameters that investors need to consider.
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Pacman — Decentralized leveraged yield and liquidity aggregation protocol
Overview
Pacman is a decentralized leveraged yield and liquidity aggregation protocol that is community-driven and runs on Arbitrum and zkSync. As such, Pacman Finance is a community-driven project where token holders can vote on proposed changes to the protocol to ensure transparency and fairness. All performance fees will be distributed to VePAC token holders who hold system governance rights. Pacman leveraged liquidity mining is supported by a powerful incentive system CFOO (a system that combines multi-liquidity leveraged revenue mining provided by a unique vetokenomics system, SushiSwap, UniSwap and Ve(3,3) permissionless liquidity market) .
Pacman is a decentralized leveraged yield and liquidity aggregation protocol that is community-driven and runs on Arbitrum and zkSync. As such, Pacman Finance is a community-driven project where token holders can vote on proposed changes to the protocol to ensure transparency and fairness. All performance fees will be distributed to VePAC token holders who hold system governance rights. Pacman leveraged liquidity mining is supported by a powerful incentive system CFOO (a system that combines multi-liquidity leveraged revenue mining provided by a unique vetokenomics system, SushiSwap, UniSwap and Ve(3,3) permissionless liquidity market) .
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[Research Essay] RWA Imagination: Building a Bridge between Reality and Encrypted Worlds
RWA (Real World Asset) refers to physical assets, also called real world assets. Such assets usually refer to items with actual use value, such as real estate, machinery and equipment, raw materials, commodities, etc. Unlike digital assets (such as Bitcoin, Ethereum and other cryptocurrencies), RWA is an asset that actually exists and can be touched.
In the financial field, RWA is usually used to refer to physical assets that can be used as collateral for loans or other debt instruments, such as real estate, cars, boats, etc. These physical assets can be used to reduce risk because their value is relatively stable and can be sold when needed to pay off debt.
In the financial field, RWA is usually used to refer to physical assets that can be used as collateral for loans or other debt instruments, such as real estate, cars, boats, etc. These physical assets can be used to reduce risk because their value is relatively stable and can be sold when needed to pay off debt.
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[Project Express] Zunami Protocol——The first decentralized income aggregator
Overview
The Zunami Protocol is a DAO working with stablecoins that solves major problems with current yield protocols by simplifying interaction with DeFi, making it easier and cheaper while increasing profitability by differentiating and rebalancing users' funds. It has an automatic revenue generation mechanism, which reduces the entry threshold and gas costs through transaction batching and automatic compounding mechanisms. The Zunami protocol is currently based on the Ethereum blockchain and also supports BSC and Polygon. Zunami plans to support Avalanche and other popular alternative chains in the future.
Original intention
The Zunami Protocol is a DAO working with stablecoins that solves major problems with current yield protocols by simplifying interaction with DeFi, making it easier and cheaper while increasing profitability by differentiating and rebalancing users' funds. It has an automatic revenue generation mechanism, which reduces the entry threshold and gas costs through transaction batching and automatic compounding mechanisms. The Zunami protocol is currently based on the Ethereum blockchain and also supports BSC and Polygon. Zunami plans to support Avalanche and other popular alternative chains in the future.
Original intention
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[Event Review] Go2Mars Group Members Open Mic Episode 1: Azuki and NFT Market Review
Go2Mars weekly open mic for friends is a live interactive column officially established by Go2Mars for the Go2Mars readership. The operation staff will collect topics of interest to the group members every week for in-depth research and explain and discuss them in the open mic column. In the weekly open mic session, readers and listeners can directly interact with analysts and guests to ask questions via mic.
On July 2, Go2Mars held the first OpenMai content sharing session and conducted an in-depth analysis of the recent NFT market. The following is the content shared by this guest:
Mars Weekly Reader Open Microphone Issue 1 (20230702) 43:51
On July 2, Go2Mars held the first OpenMai content sharing session and conducted an in-depth analysis of the recent NFT market. The following is the content shared by this guest:
Mars Weekly Reader Open Microphone Issue 1 (20230702) 43:51
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ambient_finance — An effective combination of decentralized and centralized transactions
Ambient (formerly CrocSwap) is a decentralized trading protocol that allows a two-way AMM that combines centralized and ambient product liquidity on any pair of blockchain assets. Ambient runs the entire DEX within a single smart contract, where a single AMM pool is a lightweight data structure rather than an independent smart contract. This design makes Ambient the most efficient Ethereum-based DEX currently.
Mechanism analysis
Automated Market Maker (AMM)
In Ambient, liquidity is provided through the Automated Market Maker (AMM) mechanism. Unlike traditional limit order books (LOBs), liquidity is not provided by individual orders, but by the overall liquidity of a liquidity pool made up of funds provided by liquidity providers (LPs).
Mechanism analysis
Automated Market Maker (AMM)
In Ambient, liquidity is provided through the Automated Market Maker (AMM) mechanism. Unlike traditional limit order books (LOBs), liquidity is not provided by individual orders, but by the overall liquidity of a liquidity pool made up of funds provided by liquidity providers (LPs).
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[Research Essay] ZKML and Distributed Computing Power: Potential Governance Narratives for AI and Web3
About ZKML: ZKML (Zero Knowledge Machine Learning) is a machine learning technology that combines zero-knowledge proofs and machine learning algorithms to solve privacy protection issues in machine learning.
About distributed computing power: Distributed computing power refers to decomposing a computing task into multiple small tasks and assigning these small tasks to multiple computers or processors for processing to achieve efficient computing.
The Current Situation of AI and Web3: Out-of-control Bee Swarm and Entropy Increase
In "Out of Control: The New Biology of Machines, Society and the Economy", Kevin Kelly once proposed a phenomenon: the bee colony will make election decisions in a group dance according to distributed management, and the entire bee colony will follow this group dance. The largest swarm in the world dominates an event. This is also the so-called "soul of the bee colony" mentioned by Maurice Maeterlinck - each bee can make its own decision and guide other bees to confirm it, and the final decision is truly that of the group. choose.
About distributed computing power: Distributed computing power refers to decomposing a computing task into multiple small tasks and assigning these small tasks to multiple computers or processors for processing to achieve efficient computing.
The Current Situation of AI and Web3: Out-of-control Bee Swarm and Entropy Increase
In "Out of Control: The New Biology of Machines, Society and the Economy", Kevin Kelly once proposed a phenomenon: the bee colony will make election decisions in a group dance according to distributed management, and the entire bee colony will follow this group dance. The largest swarm in the world dominates an event. This is also the so-called "soul of the bee colony" mentioned by Maurice Maeterlinck - each bee can make its own decision and guide other bees to confirm it, and the final decision is truly that of the group. choose.
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Bug Finance——Another attempt at the ve(3,3) model on Polygon
The ultimate goal of BUG Finance is to become the main liquidity layer on Polygon. The protocol reconstructs the ve(3,3) model, allowing users and the protocol to obtain veBUG by mortgaging liquidity instead of simply locking $BUG tokens, and setting up new incentive mechanisms and exit mechanisms to allow liquidity to change. is more sticky. Promotes the depth of liquidity across the entire platform.
BUG Finance’s improvements on ve(3,3)
The Solidly model is designed to match rewards with long-term commitments. This turns out to be a flawed goal, in the regular ve(3,3) model, everyone who locks their tokens to obtain a veToken gains voting rights. This means they get a share of the fees on the platform, as well as incentives and bribes to ensure they continue to hold their veTokens, since veNFTs can be traded on the secondary market, making the native token less in demand.
BUG Finance’s improvements on ve(3,3)
The Solidly model is designed to match rewards with long-term commitments. This turns out to be a flawed goal, in the regular ve(3,3) model, everyone who locks their tokens to obtain a veToken gains voting rights. This means they get a share of the fees on the platform, as well as incentives and bribes to ensure they continue to hold their veTokens, since veNFTs can be traded on the secondary market, making the native token less in demand.
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[Project Express] Asymetrix——Asymmetric Profit Distribution Protocol Based on LSD
For individual investors with limited funds, the annualized rate of return that ETH staking can bring is generally only about 5%, which is difficult to stimulate their investment interest. Their involvement in the cryptocurrency market is often driven by the search for higher rates of return. Asymetrix provides them with the opportunity to centrally distribute the returns of all stakers to a lucky few among them through a fair and transparent mechanism, allowing them to obtain excess returns, while other stakers only maintain their capital and do not receive any benefits. any proceeds.
How the protocol works
Users deposit staked ETH (stETH) into a public pool supported by smart contracts. Once the user deposits to the Asymetrix protocol, the smart contract mints PST (Pool Share Token) at a 1:1 ratio and sends it to the user's wallet. PST tokens reflect a user’s stake in the protocol and are required for withdrawals. In the current version of the protocol, the minimum deposit amount is 0.1 stETH. However, deposits do not necessarily have to be in multiples of 0.1 stETH (i.e. 0.11234 stETH is acceptable).
How the protocol works
Users deposit staked ETH (stETH) into a public pool supported by smart contracts. Once the user deposits to the Asymetrix protocol, the smart contract mints PST (Pool Share Token) at a 1:1 ratio and sends it to the user's wallet. PST tokens reflect a user’s stake in the protocol and are required for withdrawals. In the current version of the protocol, the minimum deposit amount is 0.1 stETH. However, deposits do not necessarily have to be in multiples of 0.1 stETH (i.e. 0.11234 stETH is acceptable).
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Go2Mars Weekly Global Funding Highlights (5.29-6.4)
Weekly Financing Overview is Go2Mars Capital’s investment and financing information section. According to incomplete statistics from Go2Mars Capital, as of this Sunday (5.29-6.4), a total of 14 investment and financing events have occurred in the global encryption industry this week. The total financing amount reached US$138.8 million, and the number of financings was the same as the previous period; the total financing amount decreased by 0.07% month-on-month. Among them, four have raised more than 10 million yuan, namely Anoma, Magic, Illuvium, and Transak.
Overall market conditions (as of press time):
Total market capitalization: $1.15 trillion Total market capitalization 7D increase: +7.71%
Bitcoin circulating market value: $524.946 billion, accounting for 45.32% of the world’s total market value, global index ($) 27305.37
Overall market conditions (as of press time):
Total market capitalization: $1.15 trillion Total market capitalization 7D increase: +7.71%
Bitcoin circulating market value: $524.946 billion, accounting for 45.32% of the world’s total market value, global index ($) 27305.37
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【Secondary Optimization of Interest Relationship】FOO Token Model — A Model Design to Achieve Sustainable Development of Protocol
In this article, farmers refer to the group that performs liquidity mining in the protocol. They provide liquidity to the protocol and obtain rewards from the protocol; while LP refers to the group that provides liquidity for the protocol tokens, and the income comes from transaction fees.
introduction
Traditional liquidity mining faces several major issues and challenges. First, the tokens rewarded by liquidity mining are often sold by farmers immediately after being obtained, which causes the token price to drop, thereby harming the interests of token holders. Secondly, the reward mechanism will distort the interest rate and price of the agreement, causing real users to be squeezed out and the actual use value of the agreement to be reduced. In addition, the management mechanism of liquidity mining rewards is often opaque, the distribution and use of tokens are unclear, and ownership is too concentrated. Finally, the reward mechanism may increase the security risk of the protocol, leading to the theft or loss of funds, and the reputation of the protocol being damaged.
introduction
Traditional liquidity mining faces several major issues and challenges. First, the tokens rewarded by liquidity mining are often sold by farmers immediately after being obtained, which causes the token price to drop, thereby harming the interests of token holders. Secondly, the reward mechanism will distort the interest rate and price of the agreement, causing real users to be squeezed out and the actual use value of the agreement to be reduced. In addition, the management mechanism of liquidity mining rewards is often opaque, the distribution and use of tokens are unclear, and ownership is too concentrated. Finally, the reward mechanism may increase the security risk of the protocol, leading to the theft or loss of funds, and the reputation of the protocol being damaged.
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Vertex Protocol——One-stop decentralized trading platform
Vertex Protocol is a vertically integrated application built on Arbitrum, a cross-contract decentralized exchange (DEX) protocol that provides users with spot, permanent contracts and integrated currency markets. Vertex is committed to building a new vertical inheritance exchange that can combine the security advantages of DeFi with the convenience advantages of CEX. Vertex's mission is to make decentralized trading accessible to everyone. In today's mainstream DEX track, Vertex Protocol has brought a new development direction.
Product mechanism
Vertex is powered by a hybrid unified central limit order book (CLOB) and an integrated automated market maker (AMM). Vertex's liquidity is significantly enhanced as positions in the paired LP market fill the order book.
Product mechanism
Vertex is powered by a hybrid unified central limit order book (CLOB) and an integrated automated market maker (AMM). Vertex's liquidity is significantly enhanced as positions in the paired LP market fill the order book.
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Hourglass Finance — Providing comprehensive infrastructure for time-limited tokens
Hourglass Finance is a protocol that utilizes time-limited (LP tokens) to increase long-term liquidity and stability of DeFi protocols. It consists of two parts: a platform that allows users to stake LP tokens in vaults of varying maturities to obtain time-limited LP tokens, and a marketplace that allows users to trade these tokens. Different from the ve(3,3) mechanism, Hourglass Finance not only locks the governance tokens, but also locks the LP tokens, thereby reducing the secondary pressure and providing a stable total locked value (TVL), thus having Help stabilize currency prices.
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[Making blockchain nodes smart] Fetch.AI — Intelligent open infrastructure based on Cosmos
Fetch.ai is an open source software project aimed at building infrastructure for developing modern, decentralized and peer-to-peer (P2P) applications. Fetch.ai leverages artificial intelligence and automation technology to provide a variety of tools and frameworks to create and connect intelligent agents to perform complex tasks in the digital economy. An intelligent agent is an autonomous software code that can act on behalf of a human, organization, or machine. Fetch.ai's network is a cross-chain protocol based on Cosmos-SDK, which can implement advanced cryptography and machine learning logic on the chain. Fetch.ai also has its own cryptocurrency, called FET, with a current circulation of 746 million and a maximum supply of 1.153 billion.