Original author: Karen, Foresight News
Recently, Starknet released a new roadmap, which identified plans to support the use of STRK to pay transaction fees in the V3 transaction structure, which also implies that the STRK token is about to be launched.
What are the five main things identified in Starknet’s new roadmap? How far has the Starknet token process advanced? What DeFi protocols are worth focusing on?
Starknet roadmap update identifies five major issues
According to the latest roadmap released by Starknet, Starknet has identified five major issues, namely network stability improvement, V3 transactions, transaction fee market, using EIP-4844 to reduce L1 fees, and reducing transaction costs through Volition mode.
Among them, in terms of network stability improvements, Starknet released v 0.12.0, which was regarded as a quantum leap in July this year, focusing on improving network throughput and making major improvements to the sequencer. The network released Starknet v 0.12.1 (optimizing transaction efficiency) and v 0.12.2 (enabling P2P authentication and improving maximum throughput and TPS). This month, Starknet v 0.12.3 was released on the test network (removing support for Starknet feeder gateway support).
The V3 transaction structure being built by Starknet will support payment of transaction fees in STRK. The V3 transaction structure will also support the following features (not all available in Starknet V 0.13.0):
Fee market:The fee-based market, starting with Starknet v 0.14.0, enables users to optimize their trading processes during periods of congestion.
paymaster mechanism: Similar to EIP-4337, it enables entities other than the transaction sender to pay transaction fees through fee abstraction.
Volition mode:To reduce data availability costs, hybris state design is introduced to allow users to choose their favorite data availability mode.
Nonce generalization:Enables users to send multiple transactions simultaneously by specifying different channels for different transactions.
Account deployment will occur on the accounts initial call or statement transaction.
According to the SNIP 10 proposal regarding the STRK fee token,One of the main purposes of STRK is as a fee payment token on Starknet. However, the original transaction version will continue to maintain ETH as the fee token.The Starknet sequencer will use off-chain STRK provided by Pragma OracleETH price feed. Starknet explained that this is only a temporary solution to the centralized situation, and a long-term decentralized protocol proposal will be released at a later date.
also,Starknet also plans to use EIP-4844 to reduce L1 costs.EIP-4844 reduces transaction fees by introducing blob carry transactions.
Some planned dates for Starknet network upgrades are as follows:
V 0.12.3 mainnet will be launched on December 11, 2023.
The V 0.13.0 Goerli test network will be launched on December 5, 2023. If necessary, the date may be pushed back a week to December 13.
January 22, 2024: V 0.13.0 mainnet,Pending governance vote.
Starknet token distribution model and advancement process
In November 2022, Starknet deployed the token STRK on the Ethereum mainnet, and the contract is: 0x Ca 14007 Eff 0 dB 1 f 8135 f 4 C 25 B 34 De 49 AB 0 d 42766.STRK will be used as a pledge token, governance token to participate in the Starknet consensus mechanism, and to pay transaction fees.
In terms of transaction fees, Starknet has previously stated that it expects fees to be paid using native STRK tokens only. Plans like the one above that use both STRK and ETH for transaction fees may only be used for transition purposes.
Discussions also raged in the Starknet forums about the potential risks the decision to use both STRK and ETH for transaction fees could create for sequencers.
STRK staking may also be used to ensure the liveness and security of the network. These services may include sequencing, reaching temporary L2 consensus before reaching L1 finality, STARK proof services and data availability provision, etc.
Starknet disclosed token economics in mid-2022. The maximum total supply of STRK tokens is 10 billion, including:
17% allocated to StarkWare investors;
32.9% is allocated to core contributors, including StarkWare and its employees and consultants, as well as Starknet software development partners;
50.1% is distributed by the StarkWare Grant Foundation, of which:
9% as Community Provisions, applicable to people who work for Starknet and provide support or development for its underlying technology;
9% is used as a community rebate (used to partially cover the cost of joining Starknet from Ethereum); 12% is used to fund research and work in developing, testing, deploying and maintaining the Starknet protocol;
10% is set aside as a strategic reserve to fund ecosystem activities consistent with the Foundation’s mission;
2% is determined by Starknet token holders and the foundation and donated to highly respected institutions and organizations such as universities, NGOs, etc.;
8.1% is unallocated to further support the Starknet community in a community-determined manner.
All tokens allocated to core contributors and investors will be subject to a 4-year lock-up period (linear release after one year of full lock-up).
Since this year, the pace of Starknet’s decentralization and token distribution has also been accelerating. In March 2023, the Starknet Foundation announced the appointment of five committees, among which,
The Provisions Committee is responsible for planning, supervising and executing the supply of the Starknet ecosystem token STRK;
The Early Adopter Grants Committee is dedicated to promoting the growth of the Starknet ecosystem by providing grants to innovative teams building on-chain applications on Starknet;
The Developer Partnerships Council will introduce the Starknet ecosystem by cultivating and overseeing new strategic developer partnerships;
The Governance Committee is tasked with playing a key role in the continued decentralization of the Starknet ecosystem;
The Ecosystem Admissions Committee is responsible for empowering and integrating new developers and community members into the Starknet ecosystem.
In May, the Starknet Foundation announced the first round of 67 grant recipients for the Starknet Early Adopter Grant (EAG) program. The total budget reaches 10 million STRK tokens, accounting for 0.1% of the initial STARK token issuance (10 billion), which will be allocated to project parties through multiple rounds.
Among the projects that have received donations, projects launched on the main network before April 5 this year can unlock 100% of the grant tokens, projects on the test network can unlock 25% immediately, and the remaining 75% can be unlocked 2 months after the main network is launched. distributed within. Currently, there are 429 STARK holder addresses, most of which may be token donations.
In October, the Starknet Foundation also launched the Starknet Early Community Member Program (ECMP), which is dedicated to recognizing community contributors who have contributed to Starknet so far. It plans to distribute 50 million STRK tokens to those who contributed in the early days of the network. Includes rewarding individual contributors for technical discussions, organizing Starknet-related events, and regularly publishing Starknet-branded content. The application window is currently closed and the committee will make a decision on December 29, 2023.
Which DeFi protocols are worth focusing on?
According to L2B EAT data, the current locked-up amount of Starknet is US$169 million. This figure includes all assets that are cross-chained to Starknet but have not yet been used. According to DefiLlama data, the DeFi locked-up amount on Starknet is only US$35 million.
Source: DefiLlama
Although Starknets locked-up amount in Layer 2 is not impressive and has even stagnated since August this year, its ecosystem has been steadily expanding. The picture below is the ecological picture released by Starknet later this month.
In order to guide and promote the development of the DeFi ecosystem on Starknet, the Starknet Foundation also announced the establishment of the DeFi Committee in November. The committees task is to research, design and implement on-chain liquidity. The committee has a budget of 50 million STRK.
The DeFi Committee is chaired by six members, namely: Starknet Foundation Administrator Damian, Argent Co-Founder and CEO Itamar Lesuisse, zkLend Co-Founder Jane Ma, AVNU Co-Founder and CEO Mentor, Nostra Product Responsible People Richard Thomas-Pryce and ZKX CTO Vitaly Yakovlev.
The author selected 8 DeFi protocols worthy of key interactions and briefly introduced them.
JediSwap
JediSwap is a permissionless and composable AMM protocol on Starknet, built by the Mesh Finance community. JediSwap was launched on the Starknet mainnet in December 2022. Its current TVL is approximately US$10 million, ranking first on the Starknet network.
JediSwap received a grant of 150,000 STARKs in May this year, and before that in January 2022, JediSwap also received an official grant from StarkWare.
In JediSwap, liquidity providers can earn a 0.3% fee proportional to their share of the pool. Fees are added to the pool, accumulate in real time, and can be claimed by withdrawing liquidity. JediSwap has also launched the ZAP function in recent months, allowing users to exchange any single token to any JediSwap LP position with just one Starknet transaction. According to the roadmap released by JediSwap in the second quarter, index products will be released in the first quarter of next year.
Ekubo
Ekubo is a Starknet ecological AMM protocol built by Moody Salem, former Uniswap team engineer lead and consultant. Ekubo uses centralized liquidity and a till model. All pools are managed in a single contract. When users exchange with the pool or update their positions on Ekubo, the token transfer will be postponed until the end of the transaction. Aggregators can save them in Ekubo for later use, completely avoiding expensive token transfers.
In addition, Ekubo also supports customizing pool behavior by writing extension contracts. Third-party developers can use the Ekubo AMM protocol to build oracles, new order types, trading strategies and even privacy solutions.
According to Moody Salem, he joined Uniswap Labs as the fifth employee in April 2020 and wrote most of the early Uniswap interface, created the token list, and wrote the first exchange routing algorithm for V2 and V3. Submitted about half of the V3 code and ultimately led the design of V4.
In October this year, Ekubo released a proposal discussion on the Uniswap Governance Forum, proposing to establish a partnership with Uniswap DAO, in exchange for 20% of the future Ekubo protocol governance tokens in the form of an investment of 3 million UNIs (approximately $12 million). share.
Subsequently, the Uniswap community voted to pass the Invest in Ekubo Protocol temperature check proposal, but Ekubo decided not to advance the proposal regarding Uniswap DAOs investment in Ekubo and would not put the proposal to an on-chain vote because of the required changes to implement the proposal. It would place a heavy burden on Ekubo and distract from the development of the Ekubo protocol.
mySwap
mySwap, an AMM protocol on Starknet, launched a new version last month with a centralized liquidity (CL) configuration that allows liquidity to be provided for a specific price range to improve capital efficiency, or to provide liquidity for the entire price range. As of the time of writing, mySwap has nearly $7 million locked up.
SithSwap
SithSwap is a dual liquidity engine AMM that supports variable pool (similar to UNI V2) and stable pool (similar to Curve) transactions. SithSwap is based on a dual-token incentive system consisting of the native SITH token xSITH, a transferable utility and governance token, with both tokens provided as rewards.
SithSwap completed a seed round of US$2.65 million in June 2022 at a valuation of US$25 million. Lemniscap led the investment, with participation from Big Brain Holdings, GSR Markets, D Web3 Capital, Ghaf Capital Partners and others.
SithSwap disclosed it a long time agoTokenomics, the total supply of SITH is 100 million, including:
50.1% is used to release rewards and will be distributed in the next 3 years;
10% is allocated to core contributors and released linearly within 1.5 years;
6.8% is allocated to the treasury, of which 2% is allocated to partnerships and 4.8% to development funds;
10.6% allocated to seed investors;
Of the 22.5% genesis portion, 15% is used for the public sale, 5% is used for initial liquidity, and 2.5% goes into the genesis pool as xSITH is distributed linearly within 6 months.
The picture below is the token release schedule modified by SithSwap 3 months ago. It can be seen that governance tokens will be released this quarter.
AVNU
AVNU has developed a request for quotation (RFQ) system and a DEX aggregator on Starknet, where the aggregator aggregates liquidity such as 10 kSwap, JediSwap, mySwap, Ekubo, SithSwap, etc. In the RFQ system, the AVNU API integrates off-chain liquidity, which comes from professional market makers using the RFQ system, which is more suitable for large transactions. AVNU charges 0.02% for direct routing and 0.15% for complex routing.
Argent, the leading smart contract wallet on Starknet, will integrate AVNU on its mobile wallet, allowing users to exchange tokens on multiple trading platforms.
AVNU has also introduced a points system that allows users to earn points through transactions. The number of points is related to the number of transactions, transaction amount, frequency, etc.
zkLend
zkLend is a native L2 money market protocol built on Starknet. It completed a US$5 million seed round of financing in March 2022. Delphi Digital led the investment. Other investors include StarkWare, Three Arrows Capital, Alameda Research, MetaCartel DAO, Amber Group, Genesis Block Ventures et al.
zkLend was officially launched on the Starknet mainnet in October this year. Its functions or features include inputting multiple calls, supporting more assets (including wstETH), etc. According to the zkLend roadmap, cross-chain lending and zkLend institutional MVP will also be enabled in the fourth quarter.
zkLend also disclosed token economics on the official website, with a total of 100 million tokens, 17% allocated to private and public investors, 15% allocated to the team and advisors, 17% allocated to the ecosystem, 35% allocated to staking and distribution rewards .
The zkLend white paper points out that ZEND tokens can be pledged and exchanged for stZEND, and stZEND holders can share the protocol revenue, increase release rewards, and obtain governance rights.
Nostra
Developed by Tempus Labs, the team behind yield tokenization and fixed interest rate protocol Tempus, Nostra serves as a liquidity layer on Starknet, supporting lending and trading services. Nostra will also launch UNO, Starknet’s native stablecoin pegged to the U.S. dollar. After users deposit ETH into Lending, they can be converted into iETH-c and used as collateral for minting UNO.
Tempus Labs allocated 5 million DAI to Nostra in August last year to support the development of the Nostra ecosystem.
Warm reminder: Most Starknet native projects are in the early stages of development, and users should interact with caution. Investors should conduct adequate research and due diligence before interacting with any protocol to understand its risks and potential rewards.
refer to:
https://www.starknet.io/en/roadmap
https://community.starknet.io/t/announcing-the-early-community-member-program/102092
https://github.com/starknet-io/SNIPs/blob/main/SNIPS/snip-8.md
https://github.com/ob1337/SNIPs/blob/snip-10/SNIPS/snip-10.md
