Dr.DODO brings you our newly launched weekly brief - DODO Megascope, which covers the following sectors:

• Crypto Headline

• Governance Updates

• Sector Delivery

• Data check

• CT Insights

👀 |Crypto Headline|

• BNB bridge hack is due to a successful forge of the Merkle Proof via RangeProof, leading to about $570 Million loss.

• Crypto exchange Huobi Global to be acquired by About Capital.

• After a series of disagreement with the team and two years of intense work, Stephane quit from Flashbot.

🗣️ |Governance Updates|

• TrueFi DAO proposed to reduce tfTUSD pool emissions from 10,000 TRU per day to 0 TRU per day and reduce tfBUSD emissions from 40,000 TRU per day to 20,000 TRU per day.

• Sushi proposed to partner with Nansen to set up gated Sushi community channels on Nansen Connect for SUSHI and xSUSHI holders.

• Uniswap seeks community feedback to determine the parameters for deploying the Uniswap liquidity mining program using the OP grant from Optimism.

🍀 |Sector Delivery|

DeFi

• Yearn launched Vaults in Optimism to provide mining revenue opportunities for DAI, WBTC, WETH, USDC and sUSD.

• MakerDAO continues to invest $500 million in Treasuries and bonds.

GameFi&NFT

• Digital artist Melonade launches The Big Sweep, a board game project based on NFTs such as BAYC.

• Web3 made its debut at Paris Fashion Week. French fashion designer Victor Weinsanto presents his first digital collection, M3talove, immediately after his fashion show in the Marais district of Paris on September 26.

Infra

• Babylon: middleware between bitcoin and proof of stake.

• A deep dive into BNB bridge hack.

• Lido, the leading liquid staking system on Ethereum, will support a wrapped version of its popular staked ether (stETH) token to Ethereum layer 2 networks Arbitrum and Optimism.

VC

• Singapore Web3 firm Suberra has raised $2.7 million to date over two funding rounds from investors like Spartan Capital, Delphi Ventures.

• Lasso Labs announces its $4.2M initial fundraise & beta availability.

• Horizon, the developer of non-fungible token (NFT) trading card game Skyweaver, has raised $40 million in a Series A funding round.

✨ |Data check|

Recently, Bankless released the 2022 Q3 Ethereum Ecological Report. Let's take a look at the changes in the data compared with the same period last year.

• Net revenue fell 86% to $274.12M from $1.96B in the same period last year, mainly due to weak on-chain activity due to bear market trading and reduced leverage demand. As user transactions decrease, the demand for block space decreases, and so does the amount of ETH burned through EIP-1559. Ethereum inflation rose 7.7% to 0.85% from 0.79% a year earlier.

• Average daily active addresses increased by 3.08% from 491,271 to 506,384. This spike in DAA is likely attributable to lower gas, despite a drop in overall speculative activity. The number of Ethereum pledges on the beacon chain increased by 80.2% from 7.81M to 14.08M. The increase in staking is due to the mainnet merger, as well as the adoption of a liquidity staking service, which enables users to earn staking rewards while their ETH holdings remain liquid.

• In terms of DeFi ecology, the total TVL decreased by 58.6% from $76.27B to $31.55B. While this decline can be attributed to bearish market conditions, the decline could also be due to liquidity outflows due to lower on-chain yields, making it less attractive to deploy capital. Decentralized spot market volume fell 31.6% to $192.73B from $281.68B.

• The circulation of the Ethereum ecological stablecoin increased by 20.9% from $87.82B to $106.20B. The growing demand for holding stablecoins and the $21.8B increase in the supply of USDC, BUSD, DAI, and MIM have jointly driven the growth of ecological stablecoins. This offset a $3.6B drop in circulating supply of USDT and “other” stablecoins.

• Money market debt fell 67.0% from $14.68B to $4.48B, a decline that can be attributed to reduced demand for leverage due to market conditions. Moreover, the appetite to borrow may remain subdued as a result of the post-crisis deleveraging of the hedge fund Three Arrows.

• The NFT ecological transaction volume decreased by 75.0% from $8.32B to $2.08B. The average daily transaction addresses increased by 67.8% from 13,861 to 23,254. This increase can be attributed to the broader awareness of the ecosystem by retail users and the maturity of the NFT market structure. In ETH terms, the Nansen Blue Chip-10 index fell 15.5%, a decline that could be attributed to the 24.43% rise in ETH prices over the quarter. NFTs typically underperform when ETH prices rise, as traders are less willing to give up appreciating assets.

• L2 TVL increased by 97.1% from $2.40B to $4.73B, of which Arbitrum and Optimism combined TVL of about $3.9B, accounting for 81.5% of the value of the second-layer network. Arbitrum’s Average Monthly Active Addresses (MAA) increased 468.5% from 59,773 to 339,793. Optimisim has an average MAA of 175,700.

• Arbitrum’s user growth is largely due to the popularity of the protocol, such as futures exchange GMX attracting $397.2M in TVL while generating $18.9B in trading volume. Arbitrum's network revenue fell 82.5% to $443K from $2.54M. Optimism's network revenue was $382K. The decline in Arbitrum’s revenue can be attributed to the reduced demand for block space.

• Like Ethereum, the decline in L2 revenue was due to bearish market conditions and a sharp drop in speculative activity. Note: Due to limited publicly available historical data on Optimism, we cannot make a Y/Y comparison of average monthly active addresses and network revenue.

• Source: https://newsletter.banklesshq.com/p/state-of-ethereum-report-q3-2022

🎵 |CT Insights|

• Messari discusses the relationship between DeFi stability and stablecoins:

  https://twitter.com/MessariCrypto/status/1578028374592991232

• How consensus and data availability impact decentralized scalability of blockchains：

  https://kabat.substack.com/p/how-consensus-and-data-availability