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PART 01. In-depth theme of this week
PART 01. In-depth theme of this week
1. The total market value of Bitcoin, Ethereum, and cryptocurrencies hit a record high
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The price of Bitcoin reached a phased high three times, and each time it broke through a new high in the previous period. To extend the time forward, the market starting point of the first stage high (January 10) is 13,000 US dollars in early November. warehouse. The second high point is inseparable from Musks high-profile calls. Tesla announced that it will spend 1.5 billion US dollars to buy bitcoin, driving the market value of bitcoin to approach trillions of dollars. The third current stage high is 61,000 US dollars, and there is no obvious market sentiment thrust.In March, the ETH price also reached an all-time high of $2,100. The headline of Beidou Weekly in the first week of March is March is for EthereumAt that time, the EIP-1559 proposal had just been passed, and various Layer 2 solutions announced that they would be launched in March or that there would be significant progress. According to this weeks Lianwen compiled The latest developments in the second layer ecology of Ethereum
As mentioned, although there are still uncertainties and delays in the Layer 2 ecology in March, overall it is still advancing and developing very quickly. Among them, the Layer 2 solution Offchain Labs has launched the main network candidate version, and Hermez and Aztec, two dedicated The application for transfer is also launched on the mainnet. The migration of leading DeFi projects to Layer 2 has also made some progress. For example, Synthetix has supported the use of Optimistic for staking, dYdX’s second-layer network version has officially launched on the Ethereum mainnet, and Aave announced that it will deploy the Ethereum sidechain expansion solution Polygon.In addition to the prices of Bitcoin and Ethereum, the total market capitalization of cryptocurrencies is also relatively representative data. One of a series of reports published by Messari at the beginning of the year,It was predicted: At the highest point of this cycle, the total market value of the cryptocurrency market will hit 3 trillion US dollars. On April 6, this data exceeded 2 trillion US dollars, a record high.
existexistBehind it, we should see that in the past three months, traditional companies have entered the Bitcoin field by accepting Bitcoin payments (such as Tesla), asset management, or providing entry services for Bitcoin. For Ethereum, whether it is the advancement of the expansion plan, the rapid innovation of DeFi, the emergence of NFT, or the use of Ethereum as a settlement platform by mainstream payment platforms (such as Visa), it is the ecological tree of Ethereum that is becoming more and more prosperous and robust. Performance.
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2. NFT out of circleMost noteworthy in the first quarter is the, or because of the celebrity effect, or because of the wide range of NFT applications, or because of the skyrocketing data, some individuals and media who had no intersection with the blockchain in the past have joined this wave of NFT science popularization. This week, CCTV also reported on NFT, saying that NFT is a new type of digital asset verified by blockchain technology, which has attracted a lot of money since the outbreak. This large-scale science popularization is undoubtedly good for NFT, but the development of things cannot be achieved overnight, or it will take a period of time to absorb and transform these potential users who are spread.
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3. Coinbase listing and BNB skyrocketingWith the boost from the listing of Coinbase on the exchange platform tokens, the exchange platform tokens have increased several times, among which the Binance platform token BNB is the most, calculated from January 1st ($37),（$566,04-12). As the biggest beneficiary of the value spillover caused by Ethereum congestion, Binance Smart Chain surpassed Ethereum in terms of transaction volume and active user wallets in February. In March, the lock-up volume of Binance Smart Chain also continued to grow. By April 7, the lock-up volume of Pancakeswap on Binance Smart Chain exceeded Uniswap V2, ranking first among all DEXs as of press time.
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4. Cross-chain platforms Polkadot and Cosmos are further implementedMarch 29,Cosmos cross-chain function
IBC is officially live. The core components of Cosmos are the Tendermint basic consensus engine and the IBC communication protocol. The IBC cross-chain module is the core and most difficult part of Cosmos value. In the IBC protocol, not only the Cosmos chain can be interconnected, but non-blockchain-shaped, centralized systems such as databases and gateways can also realize value circulation. At present, IRIS Hub has completed the first IBC cross-chain asset transfer with Cosmos Hub.Source: Lianwen 》
According to founder Gavin Woods sharing of Polkadots latest progress on April 1, Polkadots test network Kusama will be launched soon. Kusama has complete functions and is almost the same as Polkadot. Before the launch of the Polkadot mainnet, Kusama played the role of exploring the way for Polkadot, eliminating possible problems in advance to ensure the smooth launch of the mainnet. At present, Kusama has announced the auction rules for parachain slots.
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5. Rapid innovation and iteration of algorithmic stablecoinsAlgorithmic stablecoins have been struggling underwater this year after experiencing a brief boom in the fourth quarter of last year. Basis builds its stablecoin ecosystem by enriching application scenarios. The new unsecured algorithmic stablecoins such as Float and Fei have attracted a lot of attention as soon as they appeared on the market. Among them, after the success of Feis creation, the value of stablecoins plummeted, triggering a major test of the protocol. Algorithmic + mortgage hybrid stablecoins such as Frax are relatively stable in development. The Terra version of the new algorithmic stablecoin for the Thai baht (terraTHB) has been warned of illegality by the Bank of Thailand. In early March, Messari analyst Ryan Watkins tweeted:. It is outlined and analyzed in detail in the latest Messari Premium Research Report. For now, we need a little more patience.
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6. The visible hand of regulationThe 2-year lawsuit brought by the New York State Judiciary against Tether and Bitfinex temporarily came to an end on February 23 this year with a fine of US$18.5 million, USDT thunderstormAnother large-scale regulatory lawsuit is the lawsuit filed by the SEC against Ripple at the end of December last year. At present, it will also be a protracted lawsuit. After Ripple experienced a panic plunge, its market value has now returned to fourth place.
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Understanding the DEX ecosystem begins with understanding the evolution of the AMM model:
The original AMM model is Uniswaps constant product algorithm x * y = k
Balancer introduces methods with more than two assets and weights outside of 50%/50% by implementing a constant function algorithm.
Launched in early 2020, Curve modifies Uniswaps AMM functionality to minimize slippage for relatively price-stable assets, demonstrating that subtle tweaks to CFMM curves can greatly improve capital efficiency and reduce slippage.
Biggest Problem: LPs Facingimpermanent loss（IL）。
impermanent loss
Other issues: capital inefficiency, underutilization of liquidity and issues with multi-token exposure.
-Innovate around capital efficiency and customizable AMM logic:
Bancor V2, the protocol launched in April 2020, leverages a fixed liquidity reserve and uses price updates from Chainlink oracles to dynamically adjust AMM pool weights. This aligns internal pool prices with external market prices, preventing arbitrageurs from extracting value from LPs in the form of impermanent losses.
DODO is another protocol that innovates around customizable AMM logic, pioneering the Proactive Market Making (PMM) algorithm, which leverages price oracles to adjust pricing curves so that a greater portion of liquidity is concentrated in the assets market around prices, thereby improving capital efficiency and reducing impermanent losses.
Balancer V2 is a general-purpose AMM protocol that innovates around asset efficiency, flexibility, and Gas efficiency. It implements a separate vault for saving and managing all assets deposited into the balancer pool.
Deriswap, announced by Andre Crone and Sushiswap late last year, combines trading, options, and lending into a single capital-efficient contract. It allows LPs to maintain asset exposure and earn additional yield by pooling liquidity and deploying funds across multiple applications.：
-With the increasing saturation of AMMs and professional market makers looking for more effective solutions to provide DeFi liquidity, there are market maker (RFQ) and order book (CLOB) protocol innovations based on AMM liquidity pools
Kyber launched Kyber PRO in late October 2020, enabling professional market makers to easily define and run profitable market-making operations on-chain with minimal knowledge of smart contracts. Kyber3.0 plans to transition from a single protocol to a liquidity protocol center that meets different DeFi application scenarios. In addition, there are plans to launch Kyber DMM, which can improve capital efficiency and dynamic fees through programmable pricing curves according to market conditions to reduce impermanent losses and increase LP profits.
0x has two main products: DEX Aggregator API (which allows developers to integrate cross-platform asset transactions, which has exceeded $2.5 billion in transaction volume), and Matcha, a consumer-oriented DEX aggregator, which has facilitated $2.8 billion in transactions in the past six months. Trading volume. Professional market makers can provide liquidity to 0x API users via RFQ through the hybrid system.
DODO v2.0 allows professional market makers to enter the chain through DODO Private Pools (DPP).
- An aggregator that aggregates liquidity from multiple AMMs:
Currently the two most important liquidity aggregators are 1inch and Matcha.
Due to the lack of network effects, 0 switching costs, and fee extraction, DEX aggregators will become a vicious competition, such as facing competition from wallets. MetaMask Swaps aggregates liquidity from various aggregators and AMMs, charging a service fee of 0.875% per trade.
-As Ethereum Gas continues to soar, users are turning to other Layer 1 alternatives such as BSC, Solana, and Polkadot:
Serums order book leverages Solanas higher speed and lower cost to deploy a fully on-chain and programmatic matching engine, allowing users to submit orders of specified direction, size and price. Since its inception, Serum has a transaction volume of more than $900 million and is one of the fastest growing DEXs. Given the current throughput and gas limitations of Ethereum-based DeFi protocols, Serum may continue to capture market share.
Panckeswap, the DEX protocol on BSC, recently had a larger average daily trading volume than Uniswap.
In the context of the presence of multiple successful Layer1 DEXs in the market, the aggregation of liquidity across blockchains and protocols becomes critical, and this is where THORchain steps in.
Is the DEX ecology much clearer in this way~DEX ecological panorama, development history and future》
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Fei has just completed the extremely successful genesis issuance, and then encountered the embarrassing situation of the stablecoin being unstable and falling continuously. Some people used thunderstorm and death in sight to describe this project. Not just Fei, BAC, ESD, DSD these unsecured stablecoins have been well below the surface. Are algorithmic stablecoins about to be declared dead?
Understanding the Evolution of Decentralized Open Source Monetary Policy written by Richard Burton puts algorithmic stablecoins in the history of currency development to understand. The author first introduces centralized banks, the euro, the Bank of International Settlements, and the Federal Reserve. traditional financial system. Then introduced Bitcoin, Ethereum, Maker, these new value network systems that we gradually accept. Whats next?
Thats right, there will be various open source monetary policies, and more interesting forms of stablecoins, within the next ten years.Understanding the Evolution of Decentralized Open Source Monetary Policy: From the Federal Reserve to Bitcoin, to Maker and Fei》
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sudden and progressive
sudden and progressive Fei Labs suspends FEI minting rewards to fix the Fei incentive calculation loophole. Security firm CertiK said the project, called Ghostmixer, was high risk.
Regulation and Policy
Regulation and Policy The city of Miami in the United States is working with Vitaliks to put city services on the blockchain. The US SEC has begun reviewing the WisdomTree Bitcoin ETF. Quotes and Trading
Quotes and Trading
【overall】 BTC price on South Korean exchange is 20% higher than the global average, reaching $70,000
【Ethereum】
The first NFT titled Merchants of Virtual Space by the big business magazine Forbes sold for $333,300.
【other】 Grayscale plans to turn the Bitcoin Trust into a Bitcoin ETF. Meitu’s Bitcoin-related investments have recorded a floating profit close to 19 million US dollars.
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The gas fee of Ethereum has been reduced, not because the expansion plan works, but because the preemptive trading robots that exist in large numbers on Ethereum and conduct arbitrage transactions are attacked by a robot called Flashbots. The gas fee of the extremely fast level has been lower than 70 Gwei, about 4 US dollars. It has been a long time since I have seen such a low transaction fee. It is so touching. This week, NEAR announced that the Ethereum cross-chain Rainbow Bridge was officially launched. All ERC-20 series tokens can be seamlessly transferred between NEAR and Ethereum. In the future, NEAR will also be able to handle ERC-20 token transactions very conveniently. .
Investment and Financing
Investment and Financing NFT platform Zora has raised nearly $8 million through a stake sale. Refinable, an NFT platform on BSC, completed $3 million in financing, with participation from Binance and the famous YouTube blogger MrBeast.
NFT platform Mintable completed its seed round of financing, with participation from CRC Capital and others. Solana IDO platform Solstarter has been invested by DeFiance Capital, which is a subsidiary of Three Arrows Capital. The DeFi project Kianite announced the completion of a US$1.5 million seed and private equity round of financing, led by Spark Digital Capital.
【Polkadot Ecology】
Polkadot’s privacy computing platform zCloak Network completed a $1.3 million seed round of financing, jointly led by IOSG and Hypersphere.
Evanesco, the Layer 0 privacy network protocol project of Polkadot ecology, started financing, and many institutions participated.
The Polkadot ecological infrastructure project Saito will launch IDO on Polkastarter on April 22.
【other】
【other】
Digital asset bookkeeping tool Cryptio announced the completion of a $1.2 million seed round of financing, led by Tim Drapers cryptocurrency fund Draper Associates. Privacy protection project Suterusu announced that it has received strategic financing from Fundamental Labs. Social investment platform Zignaly has completed a $3 million private placement round and will launch an NFT-based insurance agreement. secondary title
Project Progress
【Ethereum Expansion】 Flashbots achieves the purpose of greatly reducing the gas fee of Ethereum by attacking the robots specially used for front-running transactions on Ethereum. Actual data shows that more than 58% of the hash rate has been activated on Flashbots, and the gas fee of the extreme speed level has been lower than 70 Gwei. Ethereum Name Service ENS demonstrated the first Minimum Viable Product (MVP) of ENS supported by Layer 2 in the workshop, showing how to resolve ENS names on Optimism. zkSync announced the zkSync 2.0 roadmap: the zkSync 2.0 public test network will be launched in May, and the main network will be launched in August. zkSync 1.x will soon support Atomic Swap, casting and transfer of NFT, etc., and is expected to be launched on the mainnet in May.
【Public chain】
NEAR announced that the Ethereum cross-chain rainbow bridge is officially launched, and all ERC-20 series tokens can be seamlessly transferred between NEAR and Ethereum. The on-chain transaction aggregator 1inch announced a new revision, renamed 1inch Network, which consists of 5 different but interoperable components, namely 1inch Aggregation Protocol, 1inch Liquidity Protocol, 1inch DAO, 1inch Labs and 1inch Foundation. dYdXs Layer 2 perpetual contract built on StarkWare is officially launched, which greatly reduces transaction costs, lowers the transaction threshold, high capital efficiency of general margin, instant transaction settlement, faster oracle, and higher leverage and Lower liquidation penalties. Decentralized liquidity protocol Kyber Network has released a dynamic market-making (DMM) protocol designed to be more capital-efficient than its automated market-making (AMM) protocol. The cross-chain DeFi protocol Kava has completed the Kava 5 mainnet upgrade at 23:00 on April 8, Beijing time. It is equipped with the new HARD Protocol V2 version and supports floating rate loans.
【other】 Ripple, CoinShares and ConsenSys join crypto climate pact. secondary title
Traditional Finance/Large Companies
The crypto wallet Exodus has been approved by the US SEC to start offering stock trading in the Exodus wallet at a price of $27.42 per share at 9:00 pm EST on April 8.
NYDIG, a New York digital investment group, raised $100 million in financing, with participation from Starr Insurance and others.
【Blockchain+】 McDonalds France will launch NFT artwork based on its food items on April 9. American Playboy magazine opened an NFT gallery on the Nifty Gateway platform. British actor and screenwriter Laurence Fuller released the first feature film NFT Five Families on the digital asset market OpenSea. Famous trend artist Takashi Murakami launched Murakami.Flower.Punk (MFP), a series of NFT collectibles in tribute to CryptoPunks. Chinese auction company Paradise Auctions is moving into NFTs. Hainan pilots digital currency and wants to create a digital RMB consumption island.
【Mining】 The Ninth City raised US$143.8 million through the issuance of ADSs and subscription warrants.
Fidelity, Square and Coinbase will jointly launch The Crypto Council for Innovation, a bitcoin industry association aimed at addressing how bitcoin and other cryptocurrencies are regulated. Investment firm Paradigm will also be an initial member of the group.
PART 04. Voice: Academics, Institutions and Media｜KOL
Academics, Institutions and Media
Academics, Institutions and Media
CCTV reported on NFT: NFT in the form of digital artwork is recognized by the market.
US SEC consultant: At present, the SEC has no clear regulatory position on BTC and ETH.
Russian central bank official: digital ruble will be launched in 2023.
Central Bank Governor Yi Gang: Research will be conducted on issues such as the impact of digital currencies.
KOL
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About Beidou Encryption Weekly
About Beidou Encryption Weekly
