一. DEX Updates

— Key Takeaways —

💡 DODO's Hook won the Best Hook Usage Award at ETHGlobal Istanbul Hackathon.

💡 Sushi is expanding to zetablockchain, supporting native BTC swaps.

💡 Cake launches vCake: Strengthening governance and controlling $CAKE emissions.

💡 Balancer initiates a liquidity growth plan, expanding the $ARB rewards scale.

💡 Trader Joe suffers a frontend attack.

💡 Project Interpretation - Sushi begins testing native Bitcoin DeFi exchanges using ZetaChain.

💡 In terms of trading volume, the overall market continues to warm up, with a 50.12% increase in total market volume over the past two weeks compared to the previous fortnight. This might be related to the recent sideways market fluctuations and the outflow of funds to on-chain markets. Influenced by the market warming, DEX trading volumes have generally seen significant growth in the past two weeks. Notably, the main growth is not concentrated in mainstream (top market share) exchanges, but distributed across various public chains. For example, Raydium on the Solana chain, Trader Joe on the Avalanche chain, and Camelot on the Arbitrum chain.

— DEX Roundup —

DODO

• DODO team's developed Aggregator_Hook won the Best Hook Usage Award at ETHGlobal Istanbul Hackathon. Aggregator_Hook, based on Uniswap V4, aims to create a system that accurately maps liquidity providers' positions from various DEX platforms to Uniswap V4 quotes, simplifying LP operations and enhancing user experience and market liquidity. This includes:

  • Position Mapping: Mapping LP positions from different DEXs to Uniswap V4.

  • Tick Alignment: Ensuring LP positions are accurately priced and positioned in Uniswap's Tick system.

  • Liquidity Optimization: Optimizing liquidity across platforms, reducing slippage, and improving market efficiency.

  • Smart Contract Automation: Using smart contracts to automatically handle position conversion and alignment.

• Integrated with Manta Network, a multi-module ecosystem for zero-knowledge (ZK) applications.

• Announced collaboration with Gate wallet.

• Attended DevconnectIST and shared the itinerary in Istanbul.

• Participated in a Defi discussion event hosted by OKX WEB3, delving into the world of Defi with iZumi and PrismaFi.

• Completed the 29th DODO buyback distribution, repurchasing 184,400 DODO tokens, with the remaining 7,076 USDT transferred to the community treasury.

Uniswap

• Official Dune queries available to view all LP positions.

• Promoting Uniswap wallet Android: Swap protection against frontrunning and sandwich attacks.

• Published itinerary for Uniswap staff at DevconnectIST event.

• Registration form: Uniswap engineers looking to recruit residents of Turkey to better understand how cryptocurrencies are used locally.

Curve

• 4th Anniversary of Stable Swap.

• crvUSD total issuance hits a new high: $157M.

PancakeSwap

• Launches vCake to empower $CAKE: Strengthening governance, controlling $CAKE emissions.

  • Gauges Voting: Allows veCAKE holders to influence the distribution of $CAKE issuance. Users can vote on the CAKE issuance for products like Farms on BNB Chain, Ethereum, and Arbitrum.

  • Role of veCAKE: veCAKE holders can directly influence the distribution of $CAKE issuance in each pool, thereby rewarding specific liquidity pools and projects.

  • Participating in veCAKE: veCAKE is obtained by locking $CAKE, with a maximum lock-up period of 4 years. The longer the lock-up, the more veCAKE is obtained.

• Launched its own game market: Game developers can build, release, and update their

games on the platform, including crypto and NFT elements. The released tower defense game claims to have 1.5M potential players.

Balancer

• @XaveFinance developed a foreign exchange market for building liquidity on the blockchain based on Balancer. Discussed the introduction of non-USD stablecoin assets into the DeFi ecosystem with AVAX, @VNX_Platform, and @XaveFinance.

• Initiated a Liquidity Growth Plan (LGP) under the approval of ARB STIP: Injecting 1.2 million $ARB to expand rewards.

  • Arbitrum LGP Goals: Aimed at rewarding and incentivizing protocols and liquidity providers seeking efficient growth on Arbitrum.

  • Changes after ARB STIP Approval: LGP enhanced post-ARB STIP approval, offering more rewards.

  • How to Participate: Set up a pool, apply for an Arbitrum gauge, and place voting incentives/votes in any veBAL voting market.

— Market Overview —

Trader Joe

• Active trading volume on AVAX chain, with last week's volume ($1.2B) surpassing the entire month of October. Over 67% occurred on Trader Joe. Meanwhile, October's volume ($1B) doubled compared to September, with 59% occurring on Trader Joe.

• Trader Joe suffered a frontend attack, affecting about 100 users, now resolved.

• Liquid Book's first anniversary.

SuhshiSwap

• Sushi is expanding to @zetablockchain, a Layer 1 public chain focused on interoperability, supporting native BTC swaps.

• SushiSwap opened a proposal to integrate Algebra Integral (V4) into its platform, aiming to create a significant DeFi moment with this infrastructure integration.

  • Algebra Integral: A modular architecture designed for decentralized exchanges (DEX) that enhances liquidity management and fee adjustment. Represents a new approach to centralized liquidity, allowing easy integration of plugins to liquidity pools.

  • Algebra Integral Divides DEX into core codebases and plugins. This separation is intended to ensure security and flexibility.

  • Benefits of Integrating Integral into SushiSwap: The integration is expected to bring several advantages, including reduced Gas costs (saving 7-22%), enhanced modularity and customizability, and new revenue streams through innovative plugins.

  • Plugin Market Concept: The proposal envisions establishing an AppStore-like DeFi plugin market within SushiSwap, aimed at fostering innovation and providing various new functionalities in the DeFi space.

• Voting began on the SUSHI token economic model proposal, introducing a new $SUSHI economic model covering transaction fees, routing fees, staking fees, and partnerships, specifics of which can be referred to in the last issue.

— Aggregators —

1inch

• Integrated @SwaapFinance.

• Launched #1inchPortfolio tracker: A dashboard displaying wallet holdings, liquidity positions, and surpluses.

Matcha

• Jointly with @MessariCrypto released a Q3 briefing showing: Ethereum transactions historically dominate Matcha's trading volume.

Paraswap

• Actively promoting ParaSwap wallet.

• Introduced PSP 2.0 dashboard into the mobile app.

Part 2. Data Tracking

Trading Volume & Market Share

The overall market situation continues to warm up, with a 50.12% increase in overall market trading volume in the last two weeks compared to the previous two weeks. This may be related to the recent sideways fluctuation of the broader market and the spillover of funds to on-chain markets. As a result, DEXs have generally seen a significant increase in trading volume over the past two weeks. Notably, the major growth is not concentrated in mainstream exchanges (i.e., those with a large market share) but is distributed across various public blockchains. For instance, Raydium on the Solana chain, Trader Joe on the Avalanche chain, and Camelot on the Arbitrum chain have shown significant growth.

In terms of market share, Uniswap remains in the lead, maintaining a market share of 48.57%. PancakeSwap holds second place, while Thorchain has risen to third, with its token $RUNE performing exceptionally well, earning it the nickname "the small LUNA" in the market.

Part 3. Project Analysis

Sushi Utilizes ZetaChain to Begin Testing Native Bitcoin DeFi Exchanges

Sushi's Omnichain DEX on ZetaChain enables users to swap native Bitcoin and other assets without the need for wrapping or bridging. This collaboration allows for Bitcoin trades without the necessity of wrapping cryptocurrencies, using Sushi's decentralized exchange technology on ZetaChain. It includes Sushi's automated market makers (v2 and v3) and SushiXSwap, with its cross-chain exchange functionality.

• ZetaChain's approach allows for the creation of decentralized applications (DApps) interoperable with Bitcoin for native contract and transaction settlements. The cross-chain exchange contract is deployed on ZetaChain's Ethereum virtual machine. Being omnichain, it means that when deployed on ZetaChain, it can be called and passed from any connected chain, including Bitcoin.

• The integration of Sushi with ZetaChain will occur in two stages. The first is the launch on ZetaChain's testnet for basic exchanges and liquidity, followed by Sushi becoming a launch partner for ZetaChain's mainnet, introducing full Bitcoin interoperability.

• The technical process involves a cross-chain Swap contract on ZetaChain, allowing exchanges between Bitcoin and other tokens (such as Ethereum or USD stablecoins). Bitcoin is sent to a Threshold Signature Scheme (TSS) address, and after validation, ZRC-20 Bitcoin is minted and exchanged with another ZRC-20 token. The token is then transferred to the recipient on the destination chain.

• Costs, gas fees, and slippage are reduced, as users participate in a contract that manages multiple tokens through simple token transfers, rather than the cross-chain messaging and bridging methods common in today's market.

Sushiswap director @jaredgrey states: "The collaboration between Sushi and ZetaChain represents a significant advancement in DeFi. The ability to natively exchange Bitcoin, eliminating the need for wrapping or bridging, is a game-changer for the industry."