DODO #Megascope brings you this week’s Highlights:
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Polygon 2.0 Rollout
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Introducing opBNB
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Eigenlayer & Puffer Finance Project Analysis
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Data Check : Memecoin $Unleash
👀 Weekly Digest
DeFi
Polygon 2.0 Rollout
Polygon Labs recently announced the Polygon 2.0 , which aims to build the "value layer" of the blockchain network, allowing all users to create and exchange information in the future.
The goal of Polygon 2.0 is to construct the value layer of the internet, just as the internet enables anyone to create and exchange information. The value layer is the foundational protocol that allows anyone to create, exchange, and program value. It supports decentralized finance, digital ownership, new coordination mechanisms, and more, filling the missing part in the internet that serves users instead of gatekeepers, rent-seekers, or intermediaries.
Polygon 2.0 serves as the blueprint for building the value layer and includes a series of proposed upgrades that reimagines various aspects of Polygon, including protocol architecture, token economics, and governance. In the coming weeks, Polygon will provide detailed introductions to each component of Polygon 2.0, including the future of the Polygon PoS chain, the functionality and evolution of the Polygon token, and the transition to greater community governance over protocols and treasuries.
Polygon 2.0 is a ZK-based Layer 2 chain network that provides infinite scalability and unified liquidity through ZK technology. For users, the network feels like using a single chain, and it can support nearly unlimited numbers of chains, enabling secure and instant cross-chain interactions without additional security or trust assumptions. Polygon 2.0 will further expand Ethereum and realize its long-standing goals.
The important Dates for Polygon 2.0
In terms of the timeline, the most intriguing mention is on July 10th, which hints at the possibility of Polygon issuing new tokens in addition to $Matic.
Introducing opBNB
Binance has announced the launch of the opBNB Testnet on June 19th and is calling for validators and dApp developers to participate in testing.
opBNB is a Layer 2 solution based on the Optimism OP Stack, developed for Binance Smart Chain (BSC). It aims to enhance the scalability, capacity, and security of BSC, improving the scalability of L1 to reduce network congestion and fees, while maintaining a similar level of security as L1. The goal is to overcome the limitations of blockchain technology in terms of large-scale applications.
Features of opBNB
According to BNB Chain, opBNB combines the features of BSC and introduces simplified data access, an improved caching system, and algorithmic adjustments in the transaction submission process to enable batch processing. With a gas limit of up to 100 million, opBNB surpasses Optimism's limit of 30 million, allowing it to process over 4,000 transfer transactions per second with an average cost of below $0.005.
Overview of BNB Chain's New Roadmap
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BNB Beacon Chain - BNB Beacon Chain is the staking and governance layer of the BNB ecosystem.
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BNB Smart Chain (BSC) - An EVM-compatible blockchain that brings programmability and interoperability to the BNB ecosystem.
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zkBNB - zkBNB is an infrastructure that is built on zk-Rollup architecture for developers that helps them to build large-scale BSC-based apps with higher throughput and much lower or even zero transaction fees.
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opBNB - opBNB network is the Layer 2 scaling solution for the BNB Smart Chain powered by the bedrock version of Optimism opStack.
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BNB Greenfield - BNB Greenfield is an innovative blockchain and storage platform that seeks to unleash the power of decentralized technology on data ownership and the data economy.
Eigenlayer Project Analysis
Eigenlayer is one of the most attention-grabbing protocols in 2023. In the two funding rounds that have been announced so far, it has raised approximately $64.5 million in funding, with Polychain Capital, Ethereal Ventures, and Blockchain Capital leading the rounds.
Eigenlayer Project Mechanism
Restaking is the core concept of Eigenlayer. To understand this concept, we first need to explain a few terms:
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Middlewares
Some services, in addition to on-chain transaction information (which can be obtained through the Ethereum network to ensure security), also require other data to verify the security of their services. Therefore, these types of services need to establish another trust (decentralized) network. We collectively refer to such services as Middlewares, which include oracles, bridges and more.
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Actively Validated Services (AVS)
To ensure the security of Middlewares, a mechanism is needed to guarantee the correctness of the data, preventing malicious tampering of the data. This set of verification and trust mechanisms is referred to as Actively Validated Services (AVS).
In the current Ethereum ecosystem, DApps often need to integrate various Middlewares (such as Chainlink Oracles, cross-chain assets, etc.) in addition to their own services. Therefore, the security of the Middlewares' Actively Validated Services (AVS) is crucial. However, there are four main flaws in the current design:
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AVS cannot inherit trust from existing ETH. Ethereum already operates its own trust mechanism, and Middlewares cannot benefit from this existing trust mechanism and need to create a separate trust network (AVS).
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Building a new fully trusted network (AVS) from scratch is highly challenging.
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Each AVS has its own pool, and Stakers not only need to pay ETH transaction fees but also additional fees to these pools.
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AVS becomes the weakest link in the security of DApps systems. Attacking AVS would require lower costs compared to attacking Ethereum itself.
Eigenlayer's Restaking service allow the staked funds used as validators in the Ethereum network to be simultaneously staked in other Middlewares' trust networks through Eigenlayer. This enables stakers to earn staking rewards from multiple sources, while Middlewares benefit from reduced barriers to entry and the security provided by Ethereum's staking mechanism.
As shown in the diagram, each AVS originally carries a trust fund of 1B. However, with the use of Eigenlayer's services, each AVS inherits trust from the overall 13B staked funds, significantly enhancing security.
Eigenlayer Project Update
Eigenlayer launched its mainnet Phase 1 on June 15th (Beijing time), allowing the public to deposit stETH, rETH, or cbETH with a limit of 3200 ETH per asset and a limit of 32 ETH per address, and for independent node operators the Beacon Chain ETH has a limit of 9600 ETH. Currently, all three liquidity staking tokens (LST) are fully reached limit, while Beacon Chain ETH still has an allocation of nearly 8000 ETH. The protocol's TVL (Total Value Locked) is currently around 11.5K ETH, close to $20 million.
In the second phase of Eigenlayer, Operators will be introduced to perform validation tasks for AVS built on the Eigenlayer protocol. In the third phase, Eigenlayer will facilitate the launch of multiple AVS, increasing use cases including decentralized sorters, oracles, and Rollup cross-chain bridges.
Puffer Finance Project Analysis
Since the launch of Ethereum 2.0 PoS (Proof of Stake), anyone with 32 ETH can participate as a validator. However, this amount is a high entry barrier for many people, leading them to use liquidity staking protocols such as Lido/RocketPool or services provided by centralized exchanges (CEX) like cbETH from Coinbase or bETH from Binance. As a result, ETH staking has become quite centralized, with a few protocols or institutions holding the majority of shares.
Puffer Finance aims to address this issue by lowering the barrier to entry for node operators (NoOps) to just 2 ETH as a minimum deposit. This reduces the threshold and allows more non-institutionalized NoOps to participate, further decentralizing Ethereum staking.
Puffer Finance Project Mechanism
Puffer divides protocol participants into two parts:
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pDVT group - comprised of a group of NoOps.
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Stakers of pufETH LSD (Liquidity Staking Deposit) tokens.
As shown in the diagram, each pDVT Group consists of NoOps, led by a Secure-Router (SR) that represents Puffer Pool and manages validator keys. This design enables higher decentralization and minimized trust, providing a more secure way of operating validators. Each NoOp behaves similarly to regular validators, signing block proposals and attestations with their validator key shares, and forwarding the signatures to the SR. The SR's responsibility is to aggregate the signatures from NoOps, provide additional slashing protection through the Secure-Signer, and sign voluntary exit messages (VEM) when NoOps are offline or behaving improperly.
In the Puffer Pool, pDVT Groups (2 ETH) are paired with Stakers (30 ETH) to collectively operate validators. Stakers earn pufETH LSD by staking ETH and share consensus rewards with the pDVT Groups.
Additionally, Puffer has set a 22% Burst threshold, which means that when the Puffer Pool reaches 22% of the total validators, the minting of pufETH and the addition of pDVT Groups will be frozen. This limits the size of the Puffer Pool to ensure that it does not exceed consensus thresholds that could threaten the stability of the Ethereum network.
Puffer aims to promote the decentralization of Ethereum by providing a secure and decentralized liquidity staking solution through the open-source Secure-Signer and pDVT technologies. They will continue to reduce the pressure of centralization on Ethereum and provide more opportunities for validators and Stakers through the permissionless and decentralized Puffer Pool protocol.
Puffer Finance Project Update
Puffer Finance released the open-source code of its key technology, Secure-Signer, on May 18th. The development of this technology was supported by a grant from the Ethereum Foundation and made available to the public as a public good project to help protect independent stakers and the broader staking industry from potential slashing penalties.
Currently, the protocol is not yet live and there is no token issuance. However, the whitepaper explicitly mentions the intention to issue governance tokens. As a relatively early-stage project, Puffer Finance is worth keeping an eye on as it progresses and develops further.
Datacheck
https://twitter.com/DodoResearch/status/1670979545812582402