DODO #Megascope brings you this week’s Highlights:

1. Arbitrum Orbit released

2. Applications of ZK Stack - Hyperchain

3. Maverick Protocol & Hyperliquid Project Analysis

4. Data Check : Changes in Data after the Upgrade of Optimism Bedrock

👀 Weekly Digest

DeFi

Introduction to Arbitrum Orbit

Offchain Labs, the development team behind Arbitrum, released Arbitrum Orbit development tools on June 22nd. Arbitrum Orbit is an L3 upgrade based on the Arbitrum L2 Rollup. It serves as a scalability solution for the settlement layer, allowing developers to easily launch their own chains.

With Arbitrum Orbit, developers have the option to build dedicated application chains based on the existing Arbitrum L2 chains (One, Nova, and Goerli testnets). They have a high degree of autonomy in choosing consensus mechanisms, governance models, gas fee tokens, economic models, and more.

Arbitrum Orbit simplifies the process of launching custom chains, providing developers with a streamlined experience and empowering them to create tailored solutions that meet their specific requirements. It builds upon the scalability and security features of Arbitrum L2 Rollup, offering enhanced scalability and performance for decentralized applications.

Arbitrum Orbit Applications

The visible advantages of Arbitrum Orbit include its permissionless nature and developer-friendliness. Currently, L3 solutions in the market are focused on creating public or private chains for DApps, similar to Dapp Chains targeted by the Cosmos ecosystem. The launch of Orbit simplifies the difficulty for DApp teams to develop their own Dapp Chains. Moreover, Orbit is inherently compatible with the EVM, allowing developers to use familiar tools like Solidity to develop on their own public chains. The goal is to attract more DApp development teams to build their own chains on this foundation. Orbit is permissionless, and developers have a wide range of customization options, including the highly valued gas fee tokens and economic models.

Derivative protocol Syndr recently announced the construction of Syndr Chain using Arbitrum Orbit technology, becoming the first L3 Orbit Chain to be announced. The goal is to provide users with better derivative services, including perpetual contracts, futures, options, etc., achieving high performance, low latency, and gas fee-free transactions, providing a user experience comparable to centralized exchanges (CEX).

Introduction to ZK Stack

Following the release of Optimism's OP stack framework for rapid L2 deployment and Arbitrum's introduction of its own L3 framework, Arbitrum Orbit, the zkSync development team at Matter Labs, a leading zkRollup technology provider, also launched its open-source framework called ZK Stack two days ago. ZK Stack is a modular open-source framework designed for building custom ZK-powered L2 and L3 solutions (Hyperchains) based on the zkSync Era code. While OP stack focuses on the L1 → L2 market and Arbitrum Orbit targets the L3 application chain market, ZK Stack has even greater ambitions, targeting both the L2 and L3 markets.

Applications of ZK Stack - Hyperchain

ZK Stack is a modular framework for building custom ZK-powered Hyperchains. It provides crucial functionality for sovereignty and seamless connections, enabling developers to customize and shape their chains to meet specific requirements. Hyperchains built using ZK Stack operate independently without the need to maintain state and consensus. They can directly rely on Ethereum, ensuring high security. Furthermore, Hyperchains can utilize ZK proofs to directly verify state changes among themselves, without the need for lengthy fraud proofs sent back to the mainnet, resulting in high interaction efficiency. Additionally, the Hyperbridge network creates a seamless interoperable network that overcomes fragmentation in cross-network liquidity, positioning Hyperchains as a leading highly scalable unified liquidity network and setting an example for others.

Compared to L2 solutions built with OP stack or L3 solutions with Arbitrum Orbit, Hyperchain excels in terms of interoperability. It enables fast verification of data correctness across L1, L2, and L3 through ZK proofs and benefits from the decentralized nature of the Ethereum mainnet for higher security. This makes Hyperchain more powerful in terms of interconnectivity compared to the multi-chain universe built by Cosmos.

Maverick Protocol Project Analysis

Maverick is an innovative decentralized exchange (DEX) that focuses on concentrated liquidity. Its flagship feature is a dynamic allocation automated market maker (AMM) designed to provide the most liquid market for traders, liquidity providers, DAO treasuries, and developers. It is currently deployed on the Ethereum mainnet and zkSync Era chain.

Maverick Protocol Project Mechanism

Maverick stands out from most AMMs by using a bin design similar to Trader Joe's liquidity pools, where LPs are divided into blocks called bins. It provides liquidity providers with significant flexibility in terms of pool fees, price range intervals between different bins, and liquidity shares within each bin. Liquidity providers have the ability to customize these parameters and offer four main LP rebalancing strategies to users when deploying their liquidity. Here is a brief explanation of the four different LP strategies:

• Mode Static

  LPs operate similarly to existing AMMs, where they have the option to add liquidity in the following three ways:

  • Exponential: Liquidity is highly concentrated around the current pool price (Active bin), with the remaining liquidity distributed in an exponentially decreasing manner across surrounding bins.

  • Flat: Liquidity is evenly distributed across a series of bins centered around the current pool price. This is similar to Uniswap v2.

  • Single Bin: Liquidity is deployed only in the Active bin. This is similar to Uniswap v3.

• Mode Right

  Mode Right is suitable for LPs who have a bullish outlook on the market and expect prices to continue rising. As the pool moves to the right, Mode Right keeps the quote asset's bin directly to the left of the price range, ready to capture gains whenever the price falls within the range.

• Mode Left

  Mode Left is similar to Mode Right, but the complete opposite, and is suitable for LPs who have a bearish outlook on the market. When you are bearish, Maverick continuously moves liquidity to the right side of the current Active bin.

• Mode Both

  Mode Both allows LPs to add liquidity to the current Active bin or the adjacent bins. When the price moves in either direction, Mode Both reallocates the liquidity back to the previous Active bin and follows the price fluctuations. Essentially, it functions as a very narrow range in Uniswap v3, constantly rebalancing around the current price. As a result, Mode Both carries a much higher risk of impermanent loss. Additionally, due to the constant rebalancing in a volatile price environment, LPs may also incur permanent loss.

Advantages and Disadvantages

• Maverick is more suitable for tokens with lower price volatility or a relatively stable price trend, such as stablecoins or liquidity staking tokens (LST). Concentrating liquidity in low-volatile assets can enhance capital efficiency and reduce the impact of price fluctuations.

• It offers high flexibility, providing liquidity providers with more options and variable factors to consider. This allows projects to incentivize users based on specific liquidity pools and customize rewards accordingly.

• The high level of flexibility and customization may come at the cost of complexity. The multitude of options and parameters may be overwhelming for novice users, making it more suitable for experienced users or market makers who are familiar with the intricacies of the platform.

Maverick Project Update

Maverick Protocol has been live on the Ethereum mainnet for nearly three months, and its trading volume is already among the top five on Ethereum. It was also one of the first protocols to be deployed on zkSync, showcasing its ambition to become the leading DEX on zkSync. In addition, Maverick was selected as the latest project on Binance Launchpool, a remarkable achievement for a project that has been live for less than six months. This demonstrates its strong background and credibility. Furthermore, the Maverick Protocol's native token, $MAV, is scheduled to launch on Binance on June 28th.

Hyperliquid Project Analysis

Hyperliquid is an on-chain order book-based perpetual contract exchange. Unlike the oracle-based pricing mechanism of GMX, Hyperliquid offers users an experience closer to centralized exchanges, with fast and low-cost trading, including features like take-profit and stop-loss orders, as well as API support. It also supports a wide range of tradable assets compared to most on-chain perpetual contract platforms, currently offering trading for up to 26 cryptocurrencies.

Hyperliquid Project Mechanism

Hyperliquid establishes its own Hyperliquid L1 chain to overcome the scalability issues of Ethereum and layer-two networks. Hyperliquid L1 utilizes the Tendermint consensus engine from Cosmos, enabling a throughput of 20,000 orders per second. This allows for real-time order placement, order cancellation, position liquidation, and more, providing users with an experience similar to centralized exchanges.

Another notable feature is the Vaults mechanism. Unlike other on-chain perpetual platforms where Vaults typically act as counterparties to traders, Hyperliquid Vaults follow the concept of copy trading. It allows DEX traders to replicate other users' trading strategies. Users can create their own Vaults for others to deposit funds and participate in copy trading. In addition to user Vaults, Hyperliquid also has two types of protocol Vaults: Liquidation Vaults and Market-Making Vaults.

Hyperliquid Project Update

Currently, the Hyperliquid DEX is in a closed alpha testing phase, and users can enter the protocol through invitation codes. They can deposit funds into Hyperliquid via the Arbitrum-Hyperliquid L1 bridge to engage in trading or deposit funds into Vaults to earn profits. The protocol's Total Value Locked (TVL) is currently around 3 million USD.

DataCheck

https://twitter.com/DodoResearch/status/1673273102221070337?s=20

🚄 Bullet News

• NFT project Azuki launched its sub-project, Azuki Element, today with an airdrop and sale event. Aside from the reserved airdrop NFTs, the 10,000 Element NFTs offered for sale were sold out within a mere 15 minutes at a price of 2 ETH each. However, after the reveal, the community strongly reacted to the striking similarity in art style between Element NFTs and the original Azuki. As a result, not only did the sub-series Azuki Element experience an immediate market downturn, but the Azuki NFT itself also dropped by nearly 20%.

• According to a report by The Block, the Financial Institutions Division (FID) of the state of Nevada in the United States has filed a petition with the court to take over the daily operations of cryptocurrency custodian Prime Trust. Meanwhile, TrueUSD, a USD stablecoin closely associated with Prime Trust, has notified some users that deposits of both fiat and digital assets have been temporarily suspended by Prime Trust. As a result, the minting and redemption functions of TUSD will be temporarily disabled.