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PART 01. In-depth theme of this week
This week we focus on 3 themes:
The impact of the Coinbase listing on the crypto market, and some indicators of the stage of the bull market;
Learn about the current niche risk rating protocols Saffron Finance and BarnBridge.
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Impact of No.1 Coinbase listing on the market
As the listing time of Coinbase approached, both BTC and ETH hit new highs, and well-known exchange platform coins BNB, FTX, OKB, and HT also hit new highs successively. The listing of Coinbase has attracted much attention, and more people are concerned about how the listing of Coinbase will affect the cryptocurrency market. Now another boot has landed: In the short term, the high-spirited market sentiment has not been sustained after Coinbase’s listing, and the topic of BTC’s sharp drop on Sunday has entered the Weibo hot search list.
If you use the traditional model to understand Coinbase, it is more like a brokerage that covers a transaction settlement platform. After the listing, due to the transparent financial report, its stock price trend will be highly positively correlated with Bitcoin - the market is good, the commission income is high, the financial report is good, and the stock price rises. Thats all.
There is no doubt that we are currently in an encryption bull market, but the specific stage of the bull market has a wide range of impacts on decision-making. If the holder divides encrypted assets into long-term funds and short-term funds, and prepares to withdraw short-term funds in this round of bull market, then the timing must be considered. #18 The Beidou Encryption Weekly Report introduced the leading indicators of Bitcoin’s large-scale correction, but unfortunately, most of the data mentioned in the article are inter-institutional data, and it is difficult to obtain public platforms. 7 Indicators to Help You Judge When to Get Off The indicators involved in this article are relatively common and easy to obtain, which can be used as a reference.
1. The previous high of BTC
60,000 US dollars is three times the previous high. The previous two rounds of data were linearly decreasing or exponentially decreasing. The current multiple is relatively low. This is why most institutions or bigwigs see BTC in this round of bull market conservatively at 80,000-100,000 US dollars, and aggressively see 150,000-200,000 US dollars or even higher.
2. Proportion of BTC
Dogecoin’s rise against the trend this week is quite indicative of a bull market, but judging from the proportion of BTC’s market value, every peak of the mad bull in history ended with the proportion of Bitcoin reaching a low point. Taking the end of the bull market in 2017 as an example, the altcoins exploded, and the proportion of BTC dropped to 32.45%, declaring the end of the bull market. The current proportion of BTC is 53.3%, which is still a long way from 30%.
3. Altcoin issuance and market value
There are several salient features in the middle and late stages of each bull market: the rise of many cottages is completely unreasonable, the valuation is exaggerated, and new projects emerge in endlessly.
4. Bitcoin trading platform balance
At the end of the bull market, there is a distinctive feature: that is, a lot of bitcoins poured into the trading platform and began to cash out. Bitcoin is now in a phase of outflow from trading platforms. In early March, Glassnode data showed that the number of Bitcoins held by centralized exchanges has dropped by about 20% in 12 months.
5. ETH/BTC volatility
In the last round of bull market in 2017, ETH/BTC fluctuated almost like a roller coaster, reaching a volatility of up to 15%, while the volatility of ETH/BTC in this round of bull market remained below 5% for a long time.
6. Jiangzhuoer Bitcoin 60-day Index
The logic of index creation is that when a round of bull market ends with frantic market sentiment and severe bubbles, and short-term price increases exceed the speed of newcomers and new funds entering the market, the bull market bubble will burst and a bear market will begin. This process is described in mathematical language, that is, the cumulative increase in the 60 days is too high. The 2017 bull market peak 60-day index is 140%. Recently, due to BTCs sideways trading for a long time, this index has fallen by 35%.
The search index reflects the publics concern for Bitcoin. When the search index soars, it is one of the symbols of the end of the bull market.
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No.2 Learn about MEV from Flashbots
The literal meaning of miner extractable value (MEV) is a little confusing. But it is easy to understand with a specific example. Suppose there is a price difference between Kyber and Uniswap, worth $10,000. The arbitrage bot notices this opportunity and submits a trade to capture it, 2 things happen next:
Miners receive the arbitrage transaction request, copy this strategy and execute it first, so as to obtain the price difference benefit of 10,000 US dollars;
Other bots notice this arbitrage opportunity and quote higher transaction fees, starting a bidding war for the right to arbitrage. This kind of auction is called Priority Gas Auction (PGA);
In this example, the potential profit of $10,000 is the MEV. There are two ways for miners to obtain income: to identify MEV and capture it; in the competition of many robots (PGA), to reap the benefits of fishing (getting high gas fees). At this time, the difference between the auction settlement price (gas fee) and the total MEV is the profit of the winning robot.
Recently, Flashbots reduced the peak gas fee of Ethereum by nearly 50% compared with the previous peak. Flashbots solution, MEV-Geth, makes arbitrage opportunities public and shared with stakeholders, the process is as follows:
First of all, Flashbots realizes the identification of MEVs that may exist on the Ethereum network at the code level.
The searcher sorts these transactions to form a transaction bundle.
The transaction package is valued in the hidden bid auction hosted by the miners (off-chain auction), and the most beneficial transaction package is selected and a block template is generated.
This block template becomes the next block to be packaged on the chain.
In the design of MEV-Geth, a part of MEV benefits have been distributed to miners, even higher than traditional PGA benefits. Flashbots solution balances the interests of miners and arbitrageurs, reducing unnecessary on-chain PGA. Since arbitrageurs cannot get priority packaging, they reduce the transaction frequency, thereby alleviating network congestion and rising handling fees.
>Source: Lianwen
>Link:https://www.chainnews.com/articles/329849267718.htm
Link:
KeeperDAO
Other anti-MEV regimens
https://www.chainnews.com/articles/895117681388.htm
KeeperDAO allows arbitrageurs to form partnerships to reduce the impact of the PGA. The leading idea is to avoid Gas fee competition (PGA). The specific method is that Keeper takes turns to arbitrage and share profits, ensuring that even after sharing profits, the arbitrage value can be maximized. However, the competition between arbitrageurs using the KeeperDAO scheme and other arbitrageurs will still generate high transaction fees.
Archer DAO
Archer DAO has the same idea as Flashbots: share MEV interests with miners, but Archer DAO does not give miners the right to decide, but arbitrageurs decide which transactions need to be packaged.
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No.3 Risk Grading Agreement Saffron Finance and BarnBridge
Why Care About Risk Grading Protocols? The current DeFi has almost no risk classification. Either bear all the risks of lending or providing liquidity, or not participate or bear. And as more and more users enter DeFi, this either-or choice will not be able to meet the demand.
Incuba Alpha, a blockchain investment institution, launched the Vertical Expansion of DeFi: Interest Rate Agreement Will Bring New Changes to the Decentralized Financial World launched in December last year, which made a detailed analysis and forecast on the development of the interest rate agreement. In traditional finance, interest rates are the benchmark for key factors in the pricing of large categories of assets. They are mainly divided into central bank policy interest rates, money market interest rates, credit market interest rates, and bond interest rates. Similarly, there are various interest rates in DeFi protocols:
Makers interest rate policy includes stable rates and DSR (DAI Savings Rate);
The interest rates of Aave and Compound include deposit rates and lending rates;
Liquidity mining like Curve or other DeFi protocols offer expected APY rates.
These interest rates have different credit ratings, but they are all floating interest rates with no fixed term, and have a strong centralized influence on interest rate pricing. In the future, DeFi will create interest rates in three main ways:
1. Create zero-coupon bonds, such as Yields ytoken, UMAs uUSD, and Notional Finance. These agreements all adopt the method of mortgage ETH to issue stable currency zero-coupon bonds with a fixed term (such as yETH-DAI-3month). It is an ETH credit issuance similar to zero-coupon government bonds.
2. Token securitization methods, such as Barnbridge, Benchmark and Centrifuge. They package cash flow income based on Aave or Compound, carry out structured grading and asset securitization, and the inferior investors will bear the floating interest rate, and the priority investors can obtain fixed-term and fixed-rate income. The yield curve of this dimension needs to be supported by the credit of the underlying asset cToken or aToken, similar to commercial bank financial bonds.
3. Introduce interest rate swap financial derivatives, such as Horizon, Swap.rate, DeFiHedge, etc. Interest rate swap refers to the exchange of two funds with the same currency, the same principal and the same term for fixed interest rate and floating interest rate. DeFi users can exchange floating interest rates for fixed-term fixed interest rates with counterparties by signing such interest rate swap contracts.
Saffron Finance
Risk grading agreements belong to the above-mentioned second method of interest rate creation. Two risk grading agreements are introduced below: Saffron Finance and BarnBridge.
Saffron Finance is a peer-to-peer risk trading protocol where users (ie, liquidity providers) customize their risk and return profile by using SFI pool grading. Currently, Saffron Finance provides 3 options for liquidity providers:
The S tranche offers floating rates.
Income enhancement Class A, the income of Class A is 10 times that of Class AA.
Risk Mitigation AA file.
In exchange for a higher rate of return, participants in Class A must pledge SFI (protocol native token) to mitigate the risk of failure of the underlying lending platform (ie Compound or Aave). The higher the rating, the more adequate the insurance, the lower the risk, and the lower the rate of return for its liquidity providers (users). It reflects the consistency of income and risk. If you are willing to take a certain risk, you can use your risk exposure to obtain higher income.
The native token SFI of the Saffron Finance protocol is used to obtain the grading specified on the protocol through Staking and management protocols. In the upcoming V2 version, SFI holders will also have the right to obtain protocol fees.
BarnBridge
Saffron is supported by many excellent investment institutions such as Dragonfly Multicoin Coinbase Ventures.
BarnBridge is a risk tokenization protocol. Its SMART Yield Bonds protocol allows users to transfer out the proceeds from the debt pool of other projects such as Aave, Compound, Cream, or Yearn Finance. Risk ratings, while being tokenized.
Users can purchase tiered tokens representing junior or senior, and investors who purchase senior bonds will receive a guaranteed yield/interest rate for the duration of the bond. In a bullish situation, junior tier holders will receive high returns, but in a less optimistic situation, juniors income will be given priority to senior tier holders to ensure their income level.
Part 2 Direct attack: Burst｜Policy｜Market
https://mp.weixin.qq.com/s/YPIH_T2iJSXDQkTMP1Clcg
Part 2 Direct attack: Burst｜Policy｜Market
sudden and progressive
sudden and progressive
Over $623 million worth of stolen bitcoins were transferred on Bitfinex in 2016, accounting for 10% of the total stolen.
The Yancheng police cracked down on the case of setting up casino BigGame on EOS, involving 8 billion yuan of funds.
Regulation and Policy
Regulation and Policy
There is market news that the U.S. Treasury Department will accuse several financial institutions of using cryptocurrencies for money laundering.
The Central Bank of Turkey will ban cryptocurrency payments from April 30.
Turkish Court Files Dismissal Action Against Central Bank Banning Bitcoin Payments.
The U.S. Senate officially confirmed former CFTC chairman and encryption expert Gary Gensler as SEC chairman.
U.S. senators are drafting bills establishing tax filing requirements for cryptocurrencies.
Quotes and Trading
Quotes and Trading
【overall】
【overall】
Coinbase jumped to become the 9th most downloaded app on the Apple App Store in the US.
【Bitcoin】
On Wednesday, Bitcoin reached a record high of 64,500 US dollars, and on Sunday, Bitcoin fell below 52,000 US dollars ranked 7th on the Weibo hot search list.
【Ethereum】
【Ethereum】
The Ethereum ETF, filed by Purpose Investments, Evolve ETFs and CI Global Asset Management, will list on the Toronto Stock Exchange (TSX) on April 20 local time.
【NFT】
On-chain liquidity underwriter KeeperDAO topped $60 million in profits.
Artist Paks first NFT auction in cooperation with Nifty Gateway at Sothebys earned over $16.6 million.
The Prism Gate discloser Edward Snowdens first NFT work, Stay Free, has been auctioned on the Foundation platform, and the decentralized organization PleasrDAO has successfully auctioned it for 2,224 ETH (approximately US$5.47 million).
Ryan Tedder, three-time Grammy Award winner and frontman of American pop-rock band One Republic, will release a series of NFT collectibles on Origin.
【other】
【other】
Nasdaq set the reference price for Coinbases listing at $250 per share, and the closing price on the first day of listing was $328, a 31% increase from the reference price. Coinbase has officially launched Ethereum 2.0 staking services.
Part 3 Cornerstone: Investment and Financing｜Project
Part 3 Cornerstone: Investment and Financing｜Project
Investment and Financing
【NFT】
Investment and Financing
Multicoin participated in REALYs seed round financing, and Alameda Research and SNZ participated in the investment.
NFT investment firm NFT Investments has raised $48.3 million through the AQSE Growth Marketplace.
LD Capital strategically invests in NFT trading platform Juggernaut.
Corra.Finance, an NFT creation platform, has received investment from a number of institutions.
NFT platform Art Blocks completed a round of financing led by The LAO and others.
【DeFi】
CryptoSlam, an NFT collectible data statistics website, was invested by Mark Cubans Radical Investments.
DeFi startup Pendle has raised $3.7 million in funding led by MechanismCap.
Avalanche ecology BENQI completed $6 million in financing, led by Ascensive Assets.
Enso Finance, a social trading protocol, completed a $5 million financing, with participation from institutions such as Polychain and Dfinity.
Loda, a decentralized lending platform, completed a financing of US$3 million, with participation from Framework and Mechanism.
DeFi mining aggregation platform UniFarm completed a $2 million financing.
The Defiant, a DeFi media platform, completed a $1.4 million Pre-Seed round of financing.
MakiSwap, the Huobi ecological chain project, completed a financing of 1.4 million US dollars.
Coin98 Labs, the DeFi division of Coin98 in Vietnam, completed a financing of US$1.25 million.
The cross-chain exchange platform WeStarter completed a million-dollar financing, with Continue Capital, SevenX Ventures and other institutions participating in the investment.
DeFi long-tail lending market factory Moma Protocol has completed multi-million dollar financing.
AntiMatter, a cross-chain sustainable derivatives protocol, received strategic investment from Huobi DeFi Labs.
【infrastructure】
【infrastructure】
The second-layer privacy protocol Suterusu has received a strategic investment from LayerX Capital.
Polka.Domain, a Polkadot-based DNS NFT domain name marketplace, completed a $400,000 private round of financing.
Step Finance, Solanas ecological asset management platform, completed a $2 million private placement financing.
Polkadots Layer 0 privacy network protocol Evanesco has completed a new round of financing, with participation from AU21, FBG, and Krypital Group.
Nerve Finance completed a $2 million strategic round of funding led by 3 Arrows Capital, CMS Holdings and Alameda Research.
【other】
【other】
ConsenSys completed $65 million in financing, with participation from MasterCard, JPMorgan Chase, and UBS.
Project Progress
Project Progress
【Ethereum】
The Ethereum mainnet has completed the Berlin hard fork upgrade, and the next upgrade is expected in 3 months.
【Public chain】
【Public chain】
【DeFi 】
Zcash plans to activate the network upgrade 5 that will migrate to the Halo proof system on October 1, and release an iterative product suite.
MakerDAO passed the first entity financing implementation proposal, and will add New Silver Series 2 DROP as Maker protocol collateral.
Decentralized trading protocol Bancor has added support for limit orders.
1inch announced the integration of Kyber Networks DMM, which will provide 1inch with huge liquidity through this integration.
Kava DeFi completes another major integration, with Binance directly integrating Hard Protocol money markets using the Kava API.
Polygon provides Aave with second-tier liquidity mining rewards, with a total of 40 million US dollars a year.
BadgerDAO will cooperate with Yearn this week to launch the WBTC single-currency smart pool, which is only open to 1,500 addresses.
【NFT】
The Aave ecological NFT game Aavegotchi announced that the first batch of Gotchis has been bridged to ETH and divided into 1 million pieces through Unicly.
【other】
Traditional Finance/Large Companies
Traditional Finance/Large Companies
【Asset Management】
【Asset Management】
Rothschild Investments bought 265,302 shares of Grayscale Ethereum Trust, worth approximately $4.75 million.
Morgan Stanley has confirmed that its wealth management clients will have exposure to Bitcoin through two crypto funds.
Brevan Howard Asset Management will start buying cryptocurrencies.
Galaxy Digital submitted a Bitcoin ETF application to the US SEC.
【VCs】
Tribe Accelerator, a blockchain accelerator backed by Enterprise Singapore, has raised $70 million in financing.
【Institutional Services】
Reuters reports: PayPal plans to launch cryptocurrency settlement services in the United States.
【Blockchain+】
【Blockchain+】
NYSE Launches First Trade NFTs Commemorating Stocks Like Spotify
【Mining】
Part 4 Voices: Academics, Institutions and Media｜KOL
Part 4 Voices: Academics, Institutions and Media｜KOL
Academics, Institutions and Media
Academics, Institutions and Media
Federal Reserve Chairman Powell said that encrypted assets are a tool for speculation.
Governor of the Bank of Japan: I am paying attention to the actions of central banks on digital currencies.
Campos Neto, President of the Central Bank of Brazil: Brazil will soon have news about digital currencies.
Goldman Sachs CEO: Cryptocurrencies are critical to the future of the global financial system.
Founder of Bridgewater Fund: Investors use Bitcoin to diversify their portfolios.
Alibaba: Large technology companies around the world will face scrutiny, and data regulation is a global trend.
KOL
Bloomberg news: The Biden administration is stepping up research on digital renminbi.
The surge in Dogecoin may be caused by the Twitter marketing strategy of Slim Jim, an American bacon stick brand.
>>The founder of Cardano said that the dogecoin bubble will surely collapse, which will bring huge losses to retail investors.
Information sources for Part 2, Part 3, and Part 4: Lianwen, Block Rhythm,.
About Beidou Encryption Weekly
The Big Dipper is composed of seven bright stars. Because it is easier to identify, it has become an important star group to indicate the direction.
Beidou Encryption Weekly presents the main theme of the past weeks information by analyzing in-depth articles and taking stock of the main news of the week, allowing you to quickly grasp the pulse of the industry.
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