Dr. DODO is Researching

Posted on Feb 08, 2023Read on Mirror.xyz

Shanghai Upgrade & High Trading Volume of Canto DEX|DODO Megascope 2.1-2.7

DODO #Megascope brings you this week’s Highlights:

  1. The market impact brought about by the Shanghai upgrade

  2. The politics behind Uniswap’s proposal

  3. The trading volume of Canto DEX skyrocketed

  4. Delphi Labs and Attic Labs completed the development of PCL AMM

👀 Weekly Digest


The Market Impact Brought About by The Shanghai Upgrade

The following part of the data analysis refers to Tripoli's research and Alan's research.

  • The current market funds have chosen to avoid risks, waiting for the market reaction after the Shanghai upgrade.

    • ETH has turned into a deflationary phase, but the price increase still lags behind BTC;

    • It is unclear to what extent the Shanghai upgrade will bring ETH selling pressure.

  • Shanghai upgrade may bring ETH selling pressure

    • After the Shanghai upgrade, Ethereum will allow the withdrawal of the 16.45 million ETH locked and pledged on the beacon chain since December 2020. Among them, about 1 million ETH belong to the accumulated consensus rewards and can be withdrawn immediately;

    • When withdrawals are enabled, partial withdrawals will begin processing; performing a sweep of validators and distributing rewards to those in the 0x01 pool. In tandem, validators in the 0x00 pool who have requested to switch their credentials from 0x00 to 0x01 will begin to fill the pool changing the composition over time. Both of these operations happen at a rate of 16 validators per block. That is to say, the validator who holds the 0x00 certificate will need to switch the certificate to 0x01 before making a withdrawal;

    • Tripoli's research shows that when withdrawals are enabled, Ethereum's withdrawal mechanism will cause the 0x01 pool to be heavily biased toward Lido validators at the beginning;

    • Where this profile peak depends on what percent of 0x00 validators immediately switch their credentials, but in the most extreme case where all 0x00 validators request to change, the profile will peak after 70 hours with partial withdrawals per block of approximately 37.34 ETH—of which 3.01 ETH is from Lido validators. That is to say, the profile rate will not peak at the beginning, it depends on the decision of the 0x00 verifier;

    • Some market participants also believe that the Shanghai upgrade will make its staking income more certain and flexible, which will stimulate more new ETH holders to participate in staking.


The Politics behind Uniswap’s Proposal

Uniswap has experienced major governance disputes in the past week. a16z voted against the deployment of Uniswap to the BNB Chain. In fact, it actually opposed the bridge cross-chain through Wormhole. This incident reflects the competition for the interests of the major stakeholders behind Uniswap. Let's sort out the ins and outs of the story:

  • Why Uniswap should be deployed to BNB Chain?

    • Uniswap applied for a commercial source code license in 2021 to prevent others from forking its source code. The license will expire in April 2023;

    • After the license expires, anyone can fork the Uniswap code, and of course fork Uniswap on the BNB Chain. Therefore, Uniswap needs to be deployed to the BNB Chain in advance to establish a first-mover advantage.

  • What tool should Uniswap use for cross-chain?

    • Cross-chain tools such as Wormhole and LayerZero hope to be selected by Uniswap. Wormhole and LayerZero have obvious advantages, and other cross-chain tools participating in the competition include Celer and deBridge;

    • The debate around what kind of cross-chain bridge Uniswap should use for bridging quickly expanded, making this proposal one of the most active proposal discussions in Uniswap history.

  • Stakeholders behind the game

    • Since Wormhole and LayerZero have not issued coins, all major VCs stand behind them. There are Jump and Folius Ventures behind Wormhole, and a16z and Sequoia behind LayerZero;

    • The attitudes of major VCs are obvious. However, for neutral groups, they have no obvious bias;

    • In the off-chain voting stage, Wormhole ranked first. Since a16z used Fireblocks to host UNI tokens, off-chain voting was not possible;

    • When the proposal entered the on-chain voting stage, a16z cast a total of 15 million UNI tokens as a negative vote, while other data sources show that a16z may control 41.5 million UNI through 11 addresses. And Uniswap may miss the first-mover advantage on BNB Chain;

    • The current proposal voting has not yet ended, and the final result is still unclear.

The Trading Volume of Canto DEX Skyrocketed

  • Benefiting from the continuous warming of the Canto ecology, the trading volume of Canto DEX continued to skyrocket, and the trading volume in the past two weeks has entered the top ten of DEX;

  • Canto is an EVM-compatible chain built through the Cosmos SDK, aiming to provide free public infrastructure, especially DeFi services.

  • Canto DEX is one of Canto's core products, which is free. In order to prevent the possibility of a predatory evolution toward rent-seeking behaviors, Canto DEX cannot be upgraded and it has no official interface. And it runs in perpetuity without the ability to implement fees.

  • Canto DEX only provides two kinds of liquidity pools, the range liquidity pool and the concentrated liquidity pool. The formula used by the concentrated liquidity pool of Canto DEX is yx^3 + xy^3 = k.

PCL AMM Algorithm

The PCL AMM algorithm is a passive concentrated liquidity algorithm developed by Delphi Labs and Attic Labs. This algorithm will be used for the upgrade of Astroport, a decentralized exchange on Cosmos.

  • The PCL AMM has a higher degree of liquidity concentration than the AMM using the constant product market-making formula;

  • PCL AMM allows users to provide liquidity in a certain price range, thereby improving capital efficiency;

  • Compared with Uni V3, the highlight of PCL AMM is that it can automatically adjust the market-making price range for LP and reduce the liquidity management cost of LP.


Bend DAO

According to Dune data, the number of collateral NFTs on BendDAO has reached a new high.

Loans Issued by Mainstream NFT Lending Protocols Reached A New High

The total amount of loans issued by mainstream NFT lending protocols have exceeded US$657 million, of which NFTfi has issued a total of US$338 million in loans and BendDAO has issued a total of US$227 million in loans, ranking the first and second largest NFT lending protocols respectively.


@CantoPublic has achieved significant growth in the past two weeks. $CANTO rose from $0.1 to the current $0.5, with a peak of $0.68. Today’s #Datacheck will look into the recent performance of Canto.

  1. About Canto

Canto is a DeFi-focused L1, fully EVM compatible, and is designed to support the Free Public Infrastructure (FPI). Its primitives include:

  • Canto DEX — a zero-fee DEX for liquidity providers;

  • Canto Lending Market (CLM) — a pooled lending Compound v2 fork;

  • $NOTE — a fully collateralized unit of account token issued by the CLM which also serves as a USDC/USDT soft-pegged stablecoin within the ecosystem.

  1. Canto Metrics

After Contract Secured Revenue(CSR) was submitted, Canto observed significant growth. CSR allows devs to claim a percentage of all transaction fees paid by users when interacting with smart contracts.

  • 24h Txs: $20k to $120k, up 600%;

  • 24h Fees: nealy reached $20k;

  • DAU: More than 10k, reaching 55k in the past week.

  1. TVL & 24h Volume
  • TVL: Increased from $67M at the beginning of 2023 to $181M, up 270%;

  • 24h Volume: Ranking No.4 with $137M and surpassed Polygon temporarily.

  1. Canto DEX
  • TVL: Total of $115M, accounting for 65% of TVL on the whole chain;

  • 24h Volume: Among all DEXs, Canto DEX ranks No.4, reaching over $120M in one day.

5)Canto Lending Market

  • TVL: Total of $59.8M, accounting for 33% of the total TVL;

  • Total Supply: $217M;

  • Total Borrows: $44M;

  • Demand of Borrowing: $cNOTE > $cUSDT > $cUSDC, zero demand for other tokens.

  1. $NOTE
  • Price stays above $1, reaching the highest at $ 1.05 on Feb 3rd.

More about $NOTE https://docs.canto.io/overview/canto-unit-of-account-usdnote

🚄 Bullet News


  • BNB Chain Greenfield white paper released, focusing on web3 data storage business.

  • Russian state-owned commercial bank Sberbank expects to launch an ethereum-compatible DeFi platform by May and open for testing in March. According to relevant sources, the platform will support use through MetaMask.


  • Yield Guild Games (YGG) Japanese subsidiary DAO YGG Japan announced the completion of a private equity round of financing worth approximately US$2.95 million, with participation from 18 investors including SQUARE ENIX, SEGA, Gate.io Labs, Infinity Ventures Crypto (IVC), and ForN Gaming Guild company. Through this round of financing, YGG Japan has raised a total of US$5.75 million in financing.

  • Decentralized longevity scientific research organization VitaDAO announced the completion of a token financing of $4.1 million, with participation from Pfizer’s venture capital arm, Shine Capital, L1 Digital, and Balaji Srinivasan.

SoicalFi & NFT

  • Damus, a mobile client based on the decentralized social protocol Nostr, was released and received strong feedback from the community. It said that it will launch a Bitcoin reward function for posts in the next version.