DODO #Megascope brings you this week’s Highlights:

1. AAVE stablecoin GHO was deployed to Testnet

2. Maker DAO planned to launch Spark Protocol

3. Token launch of Blur

4. Frequent U.S. regulatory actions against crypto arouse market sentiment

5. Data Check: Camelot's outstanding performance deserves attention

👀 Weekly Digest

DeFi

AAVE Stablecoin GHO was Deployed to Testnet

AAVE decided to launch the stablecoin GHO last year. On February 9, GHO was deployed to the Goerli test network, and the relevant code and documents were made public. GHO is characterized by decentralization, over-collateralization, Facilitators (GHO issuing entities). In addition, the upper limit of GHO issuance and the discount rate are determined by AAVE DAO.

• Decentralization

  • GHO is a decentralized stablecoin. Decentralization is reflected in the fact that the minting and burning of GHO are all on the chain. All GHO operation rules are determined by smart contracts. No single entity can control the issuance of GHO. The key parameters are determined by AAVE DAO.

• Over-Collateralization

  • Users can borrow GHO after depositing collateral. When users borrow GHO, GHO is minted by the Facilitator;

  • Users repay GHO after paying interest. When the user repays the GHO loan, the GHO will be burned by the Facilitator;

  • There is a certain discount rate and interest for depositing collateral and borrowing GHO;

  • GHO cannot be supplied to the Aave V3 Ethereum Pool where it is minted, which prevents GHO from being loaned out in AAVE, and the minting of GHO will be mainly based on user needs.

• Facilitators

  • A Facilitator can trustlessly mint and burn GHO tokens through various strategies. Although there is a Facilitator, the rules for the issuer to mint and burn GHO are open and transparent on the chain, and the facilitator’s access is determined by AAVE DAO;

  • For now, there are two Facilitators, AAVE V3 Ethereum Pool ****and Flash Minter;

  • GHO's Facilitator plan covers collateralized issuance to uncollateralized issuance. The advantage of this design is that AAVE provides a framework for the issuance of stablecoins, and other entities can apply to become Facilitators, which can give full play to the advantages of each Facilitator in their asset field to support the issuance of stablecoins.

• The Upper Limit of GHO Issuance and The Discount Rate

  • The upper limit of GHO issuance is determined by AAVE DAO;

  • The discount rate is determined by AAVE DAO.

• Pegging Mechanism

  • GHO is 1:1 pegged to the US dollar. If the market value of GHO is unpegged, arbitragers can quickly smooth out the price difference;

  • If the market price of GHO is higher than $1, arbitragers can deposit collateral to borrow GHO, then sell GHO in the market, repay the loan, and complete the arbitrage, making the market price of GHO drop, and vice versa.

Maker DAO Planned to Launch Spark Protocol

On February 9, MakerDAO announced the establishment of Phoenix Labs and will launch the Spark Protocol, which will focus on the decentralized lending market. Phoenix Labs will be responsible for its own profit and loss as MetaDAO and launches its token. The key points of Maker DAO's plan at this stage are: forking AAVE V3 to start the lending market; bootstrapping EtherDAI to enter the LSD market.

• Forking AAVE V3 to Start The Lending Market

  • Spark Lend is forked from AAVE V3, and will distribute 10% of the profits to AAVE in the next two years after its own DAI borrowing reaches 100 million US dollars. The proposal has been submitted to AAVE;

  • Spark Lend is expected to complete product development in April this year;

  • Spark Lend supports D3M and PSM and will focus on high-liquidity mainstream collateral lending.

• Bootstrapping EtherDAI to Enter The LSD Market.

  • EtherDAI is MakerDAO's LSD product, and EtherDAI is 1:1 anchored to ETH;

  • sEtherDAI is the yield-bearing version;

  • There will be a Peg Stability Module (PSM) to support EtherDAI;

  • Maker will provide liquidity mining rewards for EtherDAI.

NFTfi

Token Launch of Blur

Blur has surpassed Opensea in trading volume in recent months. What are the features of Blur? What are the points that need to be paid attention to when Blur launches token?

• Key Features

  • Developed for professional NFT traders, aggregator plus NFT trading market;

  • The aggregator guarantees the best quotation. And the outside platforms cannot access Blur's market, making the floor price of a large number of NFTs on Blur lower than other trading markets and aggregators for a long time;

  • Optional royalties save transaction costs. And Blur used seaport to bypass the Opensea blacklist.

• Token Launch

  • Blur has carried out three airdrops in total. The number of airdrops users get is based on the user’s Opensea transaction data, pending orders and transaction volume on Blur, and the number of bid orders placed on Blur;

  • The number of airdrops has not been determined, and what Blur airdrops to users is a mysterious box. The specific number of tokens that can be issued is currently uncertain;

  • It is necessary to pay attention to the token economic design and specific details of the Blur tokens.

Other Opinions

U.S. Regulatory Actions against Crypto Are Frequent, Arousing Market Sentiment

In the past week, there have been frequent regulatory actions in the United States, mainly because the SEC has sanctioned a number of entities, which has caused fluctuations in market sentiment. The regulatory attitude of the U.S. regulators towards stablecoins, DeFi, Ethereum staking, Ethereum, etc. will become the focus of market attention in the next period of time.

Summary of Regulatory Aspects

• On February 8, Binance suspended all U.S. interbank transfers.

• On February 9, rumors in the community saud that the SEC would crack down on crypto staking services.

• On February 10, the SEC accused Kraken of issuing unregistered securities. Kraken announced the termination of its staking service for US users and paid $30 million to settle with the SEC. The news of the SEC crackdown on staking services hit the market.

• On Feb. 10, New York regulators investigated Paxos.

• On February 13, the SEC stated that the BUSD issued by Paxos is unregistered security, and planned to sue Paxos for violating investor protection laws and may take enforcement action. The market responded strongly, with positive sentiment towards the decentralized stablecoin sector. Of course, the SEC's prosecution is not guaranteed to win. Paxos stated on February 14th that it strongly disagrees with the SEC because BUSD is not a security under the federal securities laws and will sue the SEC if necessary.

  • This is the first time the SEC has made a securities designation for a stablecoin.

• On February 14, according to Bloomberg, the SEC's new proposal intends to change the "qualified custodian" rules, which will make it more difficult for hedge funds and others to cooperate with crypto companies. If the proposal is passed, institutional funds involved in investing in the crypto may have to be transferred outside the United States.

The community has also had heated discussions on the SEC's supervision. Some wonderful discussions are as follows:

https://twitter.com/jason_chen998/status/1624586139943440384

https://twitter.com/NintendoDoomed/status/1625076182550208512

https://twitter.com/0xAA_Science/status/1625060477733847040

https://twitter.com/adamscochran/status/1625174442123972608

Datacheck

Camelot (Arbitrum native DEX) has grown significantly in the past week. $GRAIL increase from less than $700 to ATH $3050, over 3 times higher.

So Today’s #Datacheck looks into Camelot’s recent performance.

1. Apart from token price, TVL & trading volume grow rapidly

• TVL: Currently reaching 52M, up 70% in a week;

• 24h Trading volume: an obvious growth in the past 7 days, and over 20M on Feb 8th;

• Among all DEXes of Arbiturm, Camelot ranks No.3 and surpasses Trader Joe with 10m volume higher, but there is still a gap between Camelot and Top 2 (UniV3 and Sushi).

2. Trading activity

• Users: number of daily trading addresses was around 1.5k last week, and reached a peak of 1,846 on Feb 8th;

• Txs: number of daily transactions was over 5k last week, and reached a peak of 9,919 on Feb 9th.

3. Top Pairs

• Swaps mainly happened in GRAIL-USDC and ETH-USDC;

• More than half of the trading volume came from GRAIL-USDC;

• Fee generated by GRAIL-USDC accounts for more than 70% of the platform.

4. About $GRAIL & $xGRAIL

• $GRAIL is Camelot's native token;

• $xGRAIL is a non-transferable escrowed governance token, corresponding to staked $GRAIL;

• 55.18% of $GRAIL converted to $xGRAIL(it can be earned from benefits, such as dividends, yield booster).

5. Deflationary mechanisms

• 12.5% of protocol fees can be used to buy back & burn $GRAIL;

• xGRAIL redeems to GRAIL: xGRAIL:GRAIL ratio can be lower than 1:1 (depend on the vesting duration). All of the GRAIL excess will automatically be burned;

• xGRAIL deallocations: 0.5% (xGRAIL can be allocated to earn benefits, but deallocations need GRAIL tax);

• Over the past week, total amount of daily Grail burn has risen from 570 to 720, with 26% increase.

🚄 Bullet News

Infrastructure

• Taurus has completed a $65 million Series B round led by Credit Suisse. Taurus focuses on providing digital asset services such as custody and tokenization to financial institutions in Europe and has a market share of 50% to 60% in Switzerland.

• Web3 infrastructure provider Caldera has raised $9 million in two rounds led by Sequoia and Dragonfly. Caldera provides L2 solutions based on the Rollup.

DeFi & NFT

• The proposal to deploy Uniswap to BNB Chain was passed on February 10, with a support ratio of 65.89%.

• Magic Eden will lay off 22 employees in a company restructuring; Magic Eden has integrated MoonPay, and users can now purchase NFTs with credit or debit cards.