Dr. DODO is Researching

Posted on Jan 17, 2023Read on Mirror.xyz

NFT "Gumball Machine" Gumball |DODO Megascope 1.11-1.17

DODO Megascope Highlights of this week:

  • Possible risks of LSD

  • NFT "Gumball Machine" Gumball

  • NFT Leasing in Web3 Games

  • DEX market performance in this bullish week

👀 Weekly Digest

DeFi

  • Possible Risks of LSD

    Liquid Staking Derivatives (LSDs), like Lido, can pose significant risk to the Ethereum protocol and associated pooled capital when a protocol's staked share exceeds a critical consensus threshold. When funds are too concentrated, problems that may arise include:

    1. Block space cartelization;

    2. Block time manipulation;

    3. Misuse of MEV extraction;

    The other type is node operator risk, who can become a node operator, and how to prevent operators from doing evil? There are two common ways of selection: through governance (voting or other similar mechanisms) or through screening through automated mechanisms around reputation and profitability (economic selection).

    • Token Governance: Centralization risk exists, token holders can enforce cartel activities like censorship, multi-block MEV, etc. If more than 50% of the combined pledges in one LSD are merged, the merged pledges gain the ability to censor blocks, thus implementing regulatory review attacks;

    • Economic selection: Screening is based on the economic strength and reputation of node providers. The reputation built by nodes through income is not a good indicator of measurement—the income is unstable, and the indicators for evaluating profitability are difficult to standardize. Nodes can also do evil - capture more MEV by multiple blocks of MEV or by adjusting the block release time.

    Either way, it is still difficult to avoid cartelization when the consensus threshold is exceeded. When the consensus threshold is exceeded, the risk of the Ethereum protocol and the capital risk allocated to the LSD protocol are bundled together.

    To sum up, the LSD protocol has many tail risks, mainly including node risk and capital manipulation risk. It is recommended to set a hard cap on the LSD protocol’s share of the total Ethereum chain pledge.

NFTfi

  • NFT "Gumball Machine" Gumball

    The Gumball protocol aims to issue NFT (Deep Liquid NFT Market) with deep liquidity. The specific operations are as follows:

    • Creators can issue an NFT collection on Gumball and create a certain number of ERC20 tokens (GBT) for the collection;

    • GBT is issued in the form of Bonding Curve, and a 2.5% handling fee will be charged for both buying and selling;

    • 1 GBT is exchanged for 1 Gumball NFT (gNFT), and the price of GBT represents the floor price of gNFT;

    • The gNFT held by the user can be directly exchanged back into GBT (10% tax) through Gumball, and the gNFT can be exchanged for another gNFT in the same collection, and can also be traded on trading platforms such as Opensea;

    • GBT or gNFT can be used to stake to earn income, or to lend the underlying asset (ETH) from Bongding Curve.

Source: Gumball Litepaper

Gumball innovatively adopts the concept of NFT two-way basic pool, which is equivalent to that after users purchase NFT, they can return it immediately (with a certain fee, 0%-10%), without waiting for buyers to appear. GBT, a token issued based on gNFT, anchors the floor price of gNFT and solves the problem of separation of NFT and Token value. The optimistic gNFT can be directly converted into GBT. On the other hand, users who hold GBT or gNFT can also obtain income through pledge or loan.

Other Opinions

  • Inventory of block data tools: @zk7hao has made an inventory of the commonly used tools for data on the chain, from three aspects: data acquisition, data development and data application:

https://twitter.com/zk7hao/status/1614430345528762370

  • NFT Leasing in Web3 Games: Double Protocol is a fully decentralized NFT leasing protocol for blockchain games and metaverses. This article introduces the advantages of several popular chain games using leasing compared to buying NFT, as well as the obstacles for game developers to adopt their own leasing market.

https://blog.double.one/nft-rental-in-web3-gaming-6908d83814ea

Datacheck

Crypto Market had a surprisingly significant rose significantly over the past 7 days. 🎉 Total market capitalization surpassed $1 trillion, increased 17.5% compared to Jan.9th. $BTC grew 23% and $ETH grew 22%.

How did #DEX perform during the past bullish week? Find more in today’s #Datacheck.

1.Volume (7d)

  • Among the top 10 Dexes (Ranking by 7-day total volume), only Orac on Solana declined, while the rest 9 rose in trading volume compared to last week.

  • Trader Joe and DODO surged the most, with 259% & 255% respectively.

2. Volume (7d) by chains

  • Among the top 10 chains (Ranking by total volume in 7 days), only Solana had a decline, while the other 9 chains all increased.

  • Ethereum had 12.6 billion transactions in the past 7 days, up 124% and solids first place.

  • Avax, Thorchain and Fantom increased more than 200%, while BSC rose the least, around 55%.

3.TVL (7d)

  • Top 10 DEXes (Ranking by TVL) had a rising TVL.

  • Curve (Top ranking) increased 12.45% over the last week, reaching $4.3 billion.

4.Daily Tx count from DEXes

  • BNBChain, Polygon rose up significantly over the last week, however, Ethereum remains stable.

  • Jan.14th had the most txs (BNBChain - 77w, Polygon - 13.3w, Ethereum - 17.6w).

Note: Take Ethereum, BNBChain, Polygon as examples and data source is from dex.trades on dunev2

5.Daily Active Users(DAU) from DEX

  • BNBChain rose up significantly over the last week, Ethereum has a slight increase and polygon remains stable.

  • Jan.14th reached the peak, BNBChain - 15.3w, Polygon - 1.4w, Ethereum - 4.2w

6. Aggregator share declined to 16.5% from 21.3% in the past week, more trades interacted directly with liquidity pools.

7.DEX to CEX

  • DEX to CEX has increased slightly since this month, reaches 13.9%.

  • Last week, stablecoins outflowed nearly 4% from CEX. It, on the other hand, indirectly stimulated the growth of DeFi.

🚄 Bullet News

Infrastructure

  • Multichain launched zkRouter, a cross-chain infrastructure based on zero-knowledge proof. The advantages of zkRouter include privacy protection, no need for trust, security, high scalability, decentralization, etc.

  • Shiba Inu will launch a beta version of Shibarium, an Ethereum-based Layer2 network. Additionally, Shiba Inu will publish a technical blog providing all necessary information for community members wishing to participate as validators or delegators.

VC

  • Autofarm announced a $5 million investment in AI-Fi: Integrating Machine Learning into the DeFi space.

  • The lending agreement Acumen Network has received strategic investment from Blizzard, the Avalanche ecological fund.

GameFi & NFT

  • The Solana ecogame Tiny Colony has been migrated to Immutable X.

  • The Tribeca Film Festival has partnered with cryptocurrency exchange OKX to sell VIP passes as NFTs. Minted on Ethereum, the NFT, which includes special access to screenings, parties, and other perks, is priced at $899 and can be purchased directly through the Tribeca website with a credit card or in ETH through the OKX NFT marketplace. The design of the NFT artwork was inspired by the scenery of Lower Manhattan, where this year's film festival will be held from June 7-18.


About us:

「Dr. DODO」is the research arm of DODO. We track the evolvement of DeFi and related sectors. Dr.DODO leads a group of researchers to decode the crypto world, conduct in-depth research, publish distinctive views and predict the future value of the crypto world

Our DM is open! We welcome any insights & original writings.

Contact: email: [email protected]

We’re Hiring

1)DeFi / Web3 Infrastructure Researcher

2)Brand Operation

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NFT