Dr. DODO is Researching

Posted on Dec 20, 2022Read on Mirror.xyz

Binance FUD, Factors Affecting zkEVM Adoption|DODO Megascope 12.12-12.18

DODO Megascope main content this week:

  • Several easily distorted facts that caused Binance FUD

  • DeFi Yield Aggregator

  • Factors affecting zkEVM adoption

👀 Weekly Digest

Headlines

  • SBF Arrested by Bahamas Police

    Bahamian police arrested SBF last Tuesday, pending a formal extradition request, after the U.S. filed criminal charges of wire fraud and securities conspiracy. Bahamas Chief Judge Joyann Ferguson-Pratt said SBF was denied bail because the risk of escape was too great.

    The Commodity Futures Trading Commission (CFTC) brought multiple charges against SBF, FTX, and Alameda, including: wire fraud, conspiracy to commit wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodity fraud, conspiracy to commit money laundering, conspiracy to defraud the United States, and campaign finance violations Law.

    FTX creditor Kevin O'Leary blamed the bankruptcy of the FTX exchange on malicious competition between the two oligopoly exchanges in an unconstrained market. He believes that after the fall of FTX, Binance became the largest unregulated exchange in the encryption market monopolists, urging regulation of the crypto industry.

  • Several easy-to-distort facts causing Binance FUD

    • Mazars stops auditing Binance

      Fact: Mazars stopped all its cryptocurrency audit operations, not just Binance;

    • FUD triggers Binance run

      Fact: FUD did cause Binance to experience a short-term net outflow of funds, but this situation has gradually returned to normal. On-chain data shows that Binance has processed more than $14 billion in withdrawals in the past week, while the current reserve remains at $55 billion. And no malicious behavior similar to FTX was found in the data on the chain.

    • Incomprehension and misinterpretation of CZ's statement on CNBC

      Fact: The $2.1 billion that CZ tweeted is the FTX shares held by Binance, which consists of BUSD and FTT, and has nothing to do with user funds, so it will not affect users' withdrawals. When faced with CNBC’s questions, CZ’s response was that if the funds were requested to be recovered, their lawyers would deal with the matter. This answer did not evade the question, but it was also reasonable and should not be a reason for FUD.

    • A large amount of BUSD in Binance's reserves

      Fact: BUSD is not issued by Binance. BUSD is issued by Paxos, backed by U.S. dollars and Treasury bills, and is approved and regulated by the New York State Department of Financial Services (DFS).

DeFi

  • DeFi Yield Aggregator

    DeFi yield aggregators (Yield Aggregators) are protocols that automate DeFi investment strategies. The strategy process can include:

    1. An agreement that an investment will generate interest (or income)

    2. Collect these rewards, usually paid in the investment agreement's native token (also known as "harvesting")

    3. Sell these tokens in DEX

    4. Obtain corresponding interest and reinvest in the same agreement, thereby expanding investment scale and return

    5. Repeat all steps when profitable

    Manually completing the above steps requires a lot of time and trial and error costs. Managed with a revenue aggregator, you can reduce costs, optimize the revenue cycle (protocols are constantly scanning the network), and reduce the time required to manage all investments.

    By using the Yield Aggregator Protocol, the only step investors need to do is transfer assets into their smart contracts and receive a receipt for that transaction. Then, the protocol will deploy the funds into different investment strategies, and the smart contract will manage the positions and be responsible for reinvestment. Top aggregation income agreements include: Yearn Finance, Beefy Finance, BadgerDAO, Autofarm and Idle Finance.

    In addition to yield aggregators, DeFi aggregators also include DEX aggregators and multifunctional aggregators. The DEX aggregator aggregates the liquidity of multiple protocols and uses an aggregation algorithm to find the best trading path. For more information on DEX aggregators, please refer to recent Chinese article published by DODO Research: Panoramic analysis of DEX aggregators: ecological development, product comparison, aggregation algorithm

Other Opinions

  • Factors Affecting zkEVM Adoption

    Last Tuesday ConsenSys launched the Private Beta zkEVM testnet to scale Ethereum.

    Unlike L1, zkEVM has a trade-off between Ethereum compatibility and performance - the more compatible a zkEVM is with today's version of Ethereum, the less efficient its implementation will prove to be. Optimizing for Ethereum compatibility will bring higher fees, although this fee is basically the same as Optimistic Rollup. Users need to weigh: pay slightly higher transaction fees for performance-optimized zkEVM, or accept weaker or slower L1 finality guarantees. An EVM equivalent of zkEVM would have advantages in terms of developer adoption, whereas a zkEVM optimized for performance would require more backend changes from developers and infrastructure providers.

    From the perspective of Arbitrum and OP's adoption, incentives such as token issuance may not be as effective as a release method like Arbitrum's full public beta. Looking back at the recent performance of layer 2 assets, Optimism stands out – OP was the biggest gainer in terms of market capitalization, trading activity, and number of active addresses in the last month. However, these increases were motivated by Bedrock upgrades, and judging from the decline in TVL and stablecoin usage, these users are not sticky.

    Full article:

    https://messari.io/report/l2-brief-factors-that-will-influence-zkevm-adoption?referrer=all-research

  • Brief analysis of multi-authority NFT management protocol

    EIP-5496 provides NFT with shareable multiple on-chain permissions, and has entered the LastCall state and is about to pass the review.

    On-chain permissions include: Verifiable: the rights and interests can be verified

    Transferable: Equity can be transferred to others

    Shareable: Benefits can be shared with multiple people

    Expirable: rights can be set to expire

    By binding NFT rights to the underlying NFT, users can manage permissions independently.

    All the rights and interests are IDized, and the rights and interests are handed over to the outside of the contract to be determined on the chain, which is more convenient for the design and verification of rights and interests, and saves gas; the disadvantage is that it is impossible to intuitively see what rights and interests this NFT has, only 1, 2 , 3 For these ID numbers, a third-party product is required to independently set up a rights and interests content and query function to index to the corresponding ID.

    https://twitter.com/jerome_wong99/status/1604464048690827264?ref_src=twsrc^tfw|twcamp^tweetembed&ref_url=notion%3A%2F%2Fwww.notion.so%2Fdodotopia%2FDr-DODO-is-Researching-6c18bbca8ea0465ab94a61ff5d2d7682%3Fp%3D83ce883c74a04d91bafced4a0e644780%26pm%3Ds

    Datacheck

    Former U.S. President Donald Trump has released his first Digital NFT Trading Card on Polygon, users can pay with credit card or crypto, each priced at $99.

    https://collecttrumpcards.com/

    Let’s see how Trump’s NFT performed.

    1)Important Date

    • Start of sale: 2022-12-15 22:45 UTC+8

    • End of sale:2022-12-16 13:58 UTC+8

    Which means, it is Sold Out in 15 hours 13 mins.

2)Mint & Holders

  • Total Minted: 45,000 (1,000 minted by Trump)

  • Holders: 12,874

  • Nearly 65% hold only 1 card

  • 187 users hold over 45 cards (Note: BUY 45 NFTs and you are GUARANTEED a TICKET to a Dinner with the President)

  1. Purchased by Credit card & Crypto
  • Two mint types : Admin Mint (Using CC and mint by developer)、Buy(Using crypto and mint by yourself)

  • 84% NFTs minted by "Admin Mint" type

  • 13k users paid using credit card

  • 1.2k users paid using crypto

4) Attracting crypto newbies

  • 9.3K holders do not have any MATIC or wETH

  • Nearly 9.3K/13K = 72% purchasers bought with credit cards

  • 21,462 of 45,000, 47% NFTs hold by crypto newbies

  1. As of Dec 18th. Price rose to 1k. Nearly 8 times higher from the bottom.

  1. Onboarding new users to Polygon
  • Volume up 7 times compared to last week

  • Active Wallet up 33% compared to last week

🚄 Bullet News

Infrastructure

  • Web3 email platform Mailchain already supports users sending messages to any ENS or address.

  • Avalanche development company Ava Labs launched the web version of the encrypted wallet Core, which can be used together with the browser plug-in version to help users view and use the Avalanche network, Avalanche subnet and Web3 applications in Ethereum, with cross-chain, transaction, and fiat currency purchases , control, search and many other functions.

VC

  • Encryption app developer Utorg announced the completion of a $5 million seed round led by Dragonfly, TA Ventures, and Web3 fund Hypra.

  • Decent, a Web3 creator tool, announced a $3.5 million seed round. Decent is a no-code contract builder and protocol for creators to easily build highly customizable token-based projects, including gas-saving standard NFT contracts, starter kits for customizable release pages, and more.

GameFi & NFT

  • Korean game company Wemade launched WeKonomy, a comprehensive blockchain project.

  • Trump launched NFT on Polygon, Delphi Research researcher Teng Yan retweeted that the Trump NFT series team minted 1,000 NFTs at its vault address, and kept many rare ones, including autographed 1-of -1 NFT.


About us:

「Dr. DODO」is the research arm of DODO. We track the evolvement of DeFi and related sectors. Dr.DODO leads a group of researchers to decode the crypto world, conduct in-depth research, publish distinctive views and predict the future value of the crypto world

Our DM is open! We welcome any insights & original writings.

Contact: email: [email protected]

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