DODO #Megascope brings you this week’s Highlights:

1. Paradigm launches open-source MEV Bot framework Artemis.

2. crvUSD deployed on mainnet.

3. SUI mainnet launches, featuring analysis of three DeFi projects.

4. Data Check: Performance of BRC-20 tokens.

👀 Weekly Digest

DeFi

Paradigm launches open-source MEV Bot framework Artemis

Introduction to Artemis

Artemis is a Rust-based MEV (Miner Extractable Value) bot framework and strategy library. The framework is designed to be simple, modular, and efficient. Artemis provides flexible and reusable components to help developers write their own MEV bots and become repositories for contributing strategies and keepers. Additionally, Artemis's framework architecture is centered around an event handling pipeline, including three components: a collector, a strategy, and an executor.

Artemis offers ready-to-use common Bot components, which can be mixed and matched to write strategies, allowing searchers to focus on implementing the core logic of each opportunity. The framework is written in Rust and adapted to the Ethereum tool ecosystem for improved performance. Additionally, Artemis includes tools such as Dockerized deployment, Prometheus, and Grafana monitoring and alerting, making it easy to run in production environments.

Artemis's significance for the MEV race

New searchers and protocols entering the MEV market face many obstacles. As new searchers, there is a lack of incentives for bot operators to share their code, so new searchers often have to rewrite the same components and rebuild similar infrastructure, leading to a waste of resources. As a new protocol, it is difficult to find searchers to run Keepers because it is challenging to attract their attention before the protocol reaches scale.

Artemis aims to alleviate some of these issues by providing flexible and reusable components to write MEV bots and serving as a repository for contributing strategies and Keepers. The fact that Artemis is open-source means that new participants can use the framework to quickly get started in the MEV market, avoiding the problems of duplicating component development and rebuilding infrastructure, and reducing entry barriers.

In conclusion, Artemis's open-source and architectural design make it an attractive tool in the MEV market, helping to address the problem of MEV market concentration and providing a way to enter the MEV market quickly.

crvUSD deployed on the mainnet

Curve released the crvUSD whitepaper last year, introducing its unique liquidation mechanism, LLAMMA. We also conducted a brief analysis of the LLAMMA mechanism last year, https://twitter.com/DodoResearch/status/1595407756647075840.

LLAMMA mechanism review

• Over-collateralization of stablecoins.

• Gradual liquidation, gradually liquidating collateral as the collateral's price drops, exchanging it for USD assets rather than waiting for a specific liquidation price to liquidate the collateral. This design enables collateral to be liquidated for more value as the price drops.

• Floating interest rate design to adjust the demand for crvUSD.

crvUSD contract has been deployed

After deploying the contract, Curve has revealed more details, including the supported collateral and the first liquidity pool created. Currently, crvUSD is in the testing phase, and Curve has also undergone redeployment to fix some bugs.

• Collateral supported by crvUSD: sfrxETH

• Stablecoins supported for exchange: TUSD, USDC, USDT, PAX

• There are already many examples of testing based on crvUSD, and the crvUSD UI has not been disclosed, so ordinary users cannot interact through the frontend at present

Analysis of SUI Mainnet DeFi Projects

WispSwap

WispSwap is a DEX that combines both AMM and order book models, and incorporates a decentralized prediction market. WispSwap has the following characteristics:

1. Low slippage: WispSwap uses a hybrid model of AMM and order book to reduce slippage, which is a common issue in traditional AMM DEX.

2. Decentralized prediction market (DPM): DPM on WispSwap is implemented through Wisp-Prediction, which is the first product on the Sui blockchain to implement DPM. In Wisp-Prediction V1, binary options are used as prediction targets. Users can bet on whether an event will occur by purchasing binary options contracts. The plan is to expand Wisp-Prediction by adding other markets for users to predict, allowing them to place bets on real-world events, including but not limited to sports and political events.

3. WispSwap also offers services such as Launchpad, mining, and self-built pools.

Cetus

Cetus is a DEX and centralized liquidity protocol built on the Sui and Aptos blockchains. The main features of the project include the following four aspects:

1. Permissionless: All major tools and features of Cetus are built on a basically permissionless standard. This allows users or other applications to use their protocol for their own use cases at any time, whether it is building new trading pools or distributing incentives to rent liquidity from public markets.

2. Programmability: Cetus is building a highly customizable liquidity protocol based on CLMM. Users can almost perform various complex trading strategies on Cetus by flexibly combining swaps, range orders, and limit orders, which can be implemented on centralized exchanges. In addition, liquidity providers can use CLMM to execute various maker strategies to maximize their liquidity efficiency.

3. Composability: Cetus advocates the concept of "liquidity as a service" and therefore focuses on ease of integration when building products. Developers and applications can easily access liquidity on Cetus to build their own products, such as liquidity vaults, derivatives, leverage mining, etc. New project teams can also set up exchange interfaces on their own front ends quickly by integrating the Cetus SDK, thereby quickly accessing liquidity on Cetus and even the entire market.

4. Sustainability: Cetus adopts a dual token model of CETUS and xCETUS. Long-term and dynamic incentives are implemented through protocol revenue to reward users who actively participate in the protocol.

Bucket Protocol

Bucket Protocol is a protocol that provides 0% interest loans and local stablecoin ($BUCK), supporting multiple over-collateralized crypto assets as collateral, such as $SUI, $BTC, $ETH, and potentially LSD in the future. The protocol has designed efficient liquidation mechanisms, layered oracle systems, and Flashloan services. The characteristics of the protocol include:

1. 0% interest rate: As a borrower, you don't have to worry about accumulating debt.

2. Minimum collateral ratio of 110%: Utilize existing collateral more efficiently and achieve higher capital utilization.

3. Direct redemption: $BUCK can be redeemed for underlying collateral at face value at any time.

4. Multiple collaterals: Users can choose different crypto assets as collateral.

5. Flashloan pool: Provides Flashloan pool for arbitrageurs, improving the efficiency of market price transmission.

6. Decentralized stablecoin: $BUCK is fully backed by on-chain crypto assets.

Datacheck

BRC-20 is a new experimental token standard on Bitcoin (a type of non-fungible token that is encoded based on the Ordinals protocol and has a consistent appearance in text). It has gained significant attention in the past two weeks, similar to MEME, and attracted market discussion and capital inflows. Today’ #Datacheck will review the data performance related to this narrative.

1/ BRC20 Tokens

• With a total market capitalization of 720 million US dollars, it ranks outside the top 60 of ERC20 list.

• The 24h trading volume of BRC-20 was 200 million US dollars, surpassing the volume of DEX on Polygon (100 million), but lower than the volume of DEX on Arbitrum (300 million) during the same period.

• By market capitalization ranking, only $ORDI exceeds 100 million US dollars, reaching 400 million. $Bank, ranking 5, has a market capitalization of only 20 million.

• According to the sorting of BRC-20 holders, the highest token holder does not exceed 10,000, and $SHIB, ranking 10, only exceeds 2,000, indicating that the number of actual participating users is relatively small.

2/ Txs & Fee

• BRC20 was born on March 8th, but it didn't gain significant trading volume until April 23rd.

• Trading volume continued to rise from April 23rd, but from May 2nd to 5th, the hype dropped significantly due to the MEME erc20 token .

• On May 6th, it regained attention and reached a daily trading volume peak of 396,000 on May 7th, with transaction fees reaching 245 BTC on the same day.

3/ Share of BRC20 on Bitcoin network

• Txs based on the Ordinals protocol (BRC721 or BRC20), BRC20's share significantly surpassed BRC721's from April 22nd.

• On April 30th, BRC20's txs accounted for over 50% of all txs on the BTC network for the first time.

• On May 7th, it reached a peak with a share of 65%.

4/ Different types of tx on BRC20.

• BRC20 transactions consist of Deploy, Mint, and Transfer.

• The majority of BRC20 transactions are minting, and there are not many turnover-related transactions.

• Looking solely at the Deploy transactions, it can be seen that the period from March 8th to 15th had the highest times. Therefore, the current popular BRC20 has a significant number of early holders who acquired tokens through minting.

5/ The biggest beneficiary from BRC20 - Miners.

• Transaction fee income has continued to rise, leading to an increase in block rewards. As an example, on May 8th, the total network transaction fee income reached 635 BTC, accounting for 74% of the block rewards.

• As a comparison, 90 days ago, miners' transaction fee income was only 18 BTC, and the current increase has reached 35 times.

6/ Congestion on Bitcoin network is apparent.

• Taking May 8th as an example, the average transaction fee on the network was $31, while before May, the fees were generally kept within $3 or less.

• The number of transactions in the memory pool has also significantly increased in the past month, currently maintaining at nearly 60,000 unprocessed transactions.

7/ The popularity of BRC20 has brought benefits to miners. However, for participants, the current action centers around ‘Mint’ rather than ‘Transfer’. It is uncertain whether such popularity can be sustained and bring more value. Meanwhile, as the Bitcoin ecosystem grows rapidly, network congestion issues, and related second-layer and lightning network solutions are worth continuous attention in the future.

🚄 Bullet News

DeFi

• Deus stablecoin DEI suffered a hack, where attackers exploited a burn logic flaw in the DEI contract to obtain about $6.3 million. The attacker used the approve->burnFrom->transferFrom function in the contract to transfer 1.1 million DEI to their own account and then converted it to USD to complete the attack. The vulnerability was due to the call permission issue and parameter error in the burnFrom function and requires fixing based on actual business needs.

Market

• Voyager released an important update on the preliminary compensation for customers, which has $1.334 billion in existing assets, equivalent to 75.68% of the total amount claimed by customers. Users can choose to receive the initial compensation in cryptocurrencies or cash and may receive additional funds in the future. After 30 days, the platform will liquidate accounts and pay users in USD via check or ACH. Once the liquidation process is approved, the platform will reopen as soon as possible, with the cryptocurrency transfer window closing after 30 days.