Part 1. DEX Updates

— Key Takeaways —

💡 DODO is now live on @X1_Network Testnet.

💡 Uniswap protocol‘s volume has exceeded $1.76 trillion.

💡 PancakeSwap Perpetual v2 has been expanded to the Base chain and opBNB chain, supported by APX Finance.

💡 Balancer V3 upgrade is set to be released in early Q2 2024.

💡 Trader Joe UI Update: Direct display of slippage numbers in the UI interface and automatic refresh of Swap prices every 30 seconds.

💡 Project Insight - DotSwap: The Fastest BRC20 DEX, Featuring with Fully Functioning AMM and Liquidity Pools.

💡 In terms of trading volume, the overall market volume in the last two weeks has increased by 38.91% compared to the previous two weeks. On December 15th, the trading volume of DEXes on the Solana chain exceeded $1.2 billion, surpassing Ethereum, which had consistently topped the charts. Orca appeared in the top 3 for the first time, influenced by the active trading volume on the SEI chain, with Astroport DEX ranking fourth, followed closely by Raydium and TraderJoe.

— DEX Roundup —

DODO

• The liquidity mining of USDC-USDT on @Scroll_ZKP has been launched, achieving a 4283% growth in TVL over the past 7 days, with an increase of 309% and 966% on LineaBuild.

• DODO has launched on the @X1_Network testnet.

• Introduction of Advanced Slippage Recommender:

  • The DODO Advanced Slippage Recommender is an advanced tool for recommending slippage tolerance, using time series model predictions to help users reduce potential losses during exchanges.

  • The system employs the ARIMA model for predictions, a proven powerful time series forecaster, which demonstrated a 98% accuracy rate in retrospective tests.

  • Appropriate slippage protection is crucial, as both too little and too high slippage protection can affect the success rate of a transaction.

  • The beta version of dynamic slippage was first proposed and developed at the Istanbul ETH Hackathon hosted by ETHGlobal. In the future, the dynamic slippage API will be made available to all developers, allowing for broader use and integration.

Uniswap

• The Uniswap web app now supports disabling user analytics.

• Data: The total transaction volume of the Uniswap protocol has exceeded $1.76 trillion.

• Data: The transaction volume of the mobile app reached $982 million.

Curve

• A minor de-pegging of crvUSD occurred, and it was repegged following mechanism adjustments, but the issuance volume saw its first major reduction by 20%.

• One hour after the Ledger hacking incident, Curve removed the Ledger entry to ensure frontend security.

• The stablecoin pair of PayPal and USDC, PYUSD/USDC, is currently under voting.

• Proposal: The hacker compensation proposal for the pools of pETH, alETH, msETH, CRV/ETH passed. The VestSplitter contract will linearly release compensation funds over a year. This involves 71,768,597.75 CRV, with 196,626.29 released daily. The proposal has passed.

PancakeSwap

• The proposal for migrating vCAKE to veCAKE has been passed.

• @PancakeSwap has launched web3 notifications in their web application: price changes, V3 liquidity running out of range, etc.

• PancakeSwap Perpetual v2 has been expanded to the Base chain and opBNB chain, supported by APX Finance.

• Data: The trading volume of PancakeSwap Perpetuals V2 reached $4 billion.

Balancer

• The V3 upgrade of Balancer is set to be released in early Q2 2024, with more details to be gradually revealed before launch.

• Half an hour after the Ledger warning appeared, Balancer tweeted a risk reminder.

• Reminder: The 25% refund statistics for users affected by the front-end DNS hacking attack in September are about to end.

— Market Overview —

Trader Joe

• About 15 minutes after the Ledger incident, Trader Joe was actively suspending Ledger connector integration and alerting to risks.

• Announcing seamless cross-chain technology for the JOE token (compliant with OFT standards).

• UI Update: Direct display of slippage numbers in the UI interface and automatic refresh of Swap prices every 30 seconds.

• Data: The official Twitter account reached 350k followers.

Sushi

• AMA discussion on Sushi x Algebra Proposal, delving into how the plugin market will evolve, plans to compete with the upcoming Uniswap V4, and more.

• 40 minutes after the Ledger incident, Sushi alerted to the risk and blocked the website. Two hours later, Ledger was removed from the front end and the site was relaunched.

— Aggregators —

1inch

• #1inchFusion has been deployed on @BuildOnBase.

• Proposal: To establish a highly secure communication channel between users and the 1inch API, ensuring optimal data integrity and privacy. Requesting a $30,000 budget for a white paper.

Paraswap

• @paraswap has reached 5 million transactions this year.

• Exchange integration with ZeroSwap on @paraswap.

• One hour after the Ledger incident, ParaSwap disabled the Ledger connector and alerted to the risk.

• Integrated @SwaapFinance on @Arbitrum.

Matcha

• Cross Chain Swaps feature launched, supporting interactions on 7 chains, Powered by SocketDotTech.

• Matcha was unaffected by the Ledger vulnerability and can be used safely.

Part 2. Data Tracking

Trading Volume & Market Share

In terms of trading volume, the overall market volume in the last two weeks has increased by 38.91% compared to the previous two weeks. On December 15th, the trading volume of DEXes on the Solana chain exceeded $1.2 billion, surpassing Ethereum, which had consistently topped the charts. Orca appeared in the top 3 for the first time. Influenced by the active trading volume on the SEI chain, Astroport DEX ranked fourth, followed closely by Raydium and TraderJoe.

Regarding market share, Uniswap’s share was significantly compressed (previously it had always been around 47%). This is attributed to the active ecosystems of SOL, SEI, AVAX, and others, whereas Uniswap is more widely known and used on the ETH chain. The pattern of "one superpower with many strong competitors" in the market, with leading DEXes on various public blockchains vying for market share, is being strengthened.

Part 3. Project Analysis

DotSwap: The Fastest BRC20 DEX, Featuring with Fully Functioning AMM and Liquidity Pools.

DotSwap V2 utilizes an AMM (Automated Market Maker) model that leverages liquidity pools to ensure enhanced liquidity, ensuring all BRC20 exchanges are strictly executed on BTC L1 and adhere to the BRC20 protocol. Through a cleverly designed PSBT (Partially Signed Bitcoin Transactions) implementation, this further reduces network fees and transaction speeds. Users can contribute their BTC and BRC20 tokens to the liquidity pool for others to trade, which in turn generates transaction fees, eventually payable to all liquidity providers, similar to Uniswap.

• DotSwap allows users to create liquidity pools for any valid BRC20 token, thereby providing access to a variety of BRC20 tokens for trading and investment purposes.

• The exchange price for trading pairs is calculated at the time of the exchange request using the amount of BTC and BRC20 assets in the asset pool. This helps ensure that each exchange transaction is constructed and broadcast in the order of exchange requests, further reducing the risk of the transaction being front-run by mempool monitoring bots.

• The process of exchanging BTC/BRC20 tokens for BRC20 tokens typically involves several steps and may require multiple blocks. Using pre-constructed PSBTs puts the transaction chain into the same block. Ideally, this reduces the waiting time for transactions to just 1 block.