DODO #Megascope brings you this week’s Highlights:

1. DODO V3 Launches Beta Testing

2. Analysis of the Whitepaper Released by Hashkey

3. Analysis of Sui Ecosystem-Related Projects

4. Data Check: Shanghai Upgrade Related Data Analysis

👀 Weekly Digest

DeFi

DODO V3 Launches Beta Testing

Introduction to DODO V3

DODO V3 is a Leveraged Market Maker (LMM) that allows professional liquidity providers (such as market makers) to create leveraged liquidity pools using retail LPs' assets. DODO V3 effectively addresses the issue of impermanent loss (IL) in liquidity management by taking advantage of professional liquidity providers in quoting and adjusting market-making parameters, providing better returns and liquidity for different participants.

• Leveraged Market Maker (LMM): Professional LPs are responsible for market-making and liquidity management, while retail LPs inject capital to earn interest, resulting in more efficient liquidity management. Professional LPs will inject a sum of capital as priority capital, which will be affected first in the event of losses, while the capital injected by retail LPs is subordinate capital. In this way, DODO V3 establishes a leveraged tool for professional LPs, allowing them to use more capital for market-making with leverage, while retail LPs can earn higher returns and improve capital efficiency for the entire system.

• Mixed Asset Pools: Increasing capital utilization, each professional LP has an independent liquidity pool and can customize fees, prices, and token amounts. Through DODO's PMM market-making algorithm, liquidity management is performed efficiently.

• Low Gas Fees: Gas fees are lower when adjusting parameters such as price, reducing transaction costs.

• Designed for All Types of Professional LPs: Whether institutional market makers or individual developers researching in their spare time, as long as they possess strong technical capabilities, they can profit from market-making through DODO V3.

Advantages of DODO V3

• Solving Impermanent Loss Issue: The LMM provides a promising solution by encouraging professional LPs to make markets, addressing the impermanent loss issue and providing retail LPs with opportunities to generate higher returns.

• Better Liquidity Management Paradigm: Under the AMM framework, LPs passively make markets and lack liquidity management means, while Uni V3 and others require LPs to manually adjust the market-making range, which raises the barrier to entry. Retail LPs do not have the time or expertise to frequently adjust their market-making strategies. Through DODO V3's LMM, the market-making abilities of professional LPs are better utilized, and retail LPs only need to provide capital without worrying about liquidity management.

• Significant Improvement in Capital Efficiency: For a long time, the capital utilization efficiency of LPs has been low. Concentrated liquidity can improve capital efficiency, but it relies on LPs' market-making capabilities. Under the LMM framework, capital efficiency is greatly improved for both professional and retail LPs.

Hashkey Releases New Whitepaper

Last week, Hong Kong brought together Web3 practitioners from around the world, particularly from the Chinese community. As one of the organizers of the Web3 Festival, Hashkey released a whitepaper on Web3's new economy and tokenization, aiming to explore the applications, development, and challenges in the Web3 field. This section will summarize the key content of the whitepaper and discuss the value and significance of the three-token model.

Whitepaper Key Points Summary

• Web3 Value Network: Web3 is a value network represented by blockchain, emphasizing trustworthy data, data sovereignty, and value interconnection. In Web3, all value can be tokenized and efficiently, intelligently combined, converted, circulated, and distributed within the Web3 value network.

• Three-Token Model: The Web3 new economy will generate new currency markets, capital markets, and commodity markets that require the use of different types of tokens as value markers for economic activities, including utility tokens, equity tokens, and non-fungible tokens (NFTs), representing usage rights, equity, and digital certificates, respectively - the "Three-Token Model".

• Web3: Underlying Logic and Evolutionary Trends: The Web3 new economy will surpass the internet economy in terms of economic systems, economic organization, financial systems, value creation rules, value distribution rules, stakeholders, business models, distributed decision-making mechanisms, and value capture. The Web3 new economy's underlying protocol stack has a built-in currency system and value system that enables value creation at the protocol layer. The Web3 new economy will combine many digital technologies at the application layer, and its value creation space will be no less than that of the internet.

• Overall Goal of Token Economics: By reasonably designing token supply mechanisms, application scenarios, and related financial products and markets, token economics aims to incentivize stakeholders to actively participate in Web3 new economy activities, promoting token value growth.

• The "Trinity" Relationship in Token Economics: In token economics, monetary policy, mechanism design, and financial engineering form a "trinity" relationship. The goal of monetary policy is to regulate token supply and demand, adapting the effective supply and circulation speed of tokens to the development needs of the Web3 new economy. The goal of mechanism design is incentive compatibility, coordinating the consistent actions of multiple participants under asymmetric information and non-uniform objectives through the design of distributed decision-making dynamic game mechanisms and algorithms. The goal of financial engineering is risk-return conversion.

• Web3 New Economy Surpassing the Internet Economy: From the perspectives of property rights systems and capital income distribution systems, economic models can be divided into the "Main Street Model" under the industrial economic model, the "Silicon Valley Model" under the internet economic model, and the "Shared Capital Model" under the Web3 new economic model. The "Shared Capital Model" is a more advanced model than the "Silicon Valley Model," allowing all stakeholders to share the benefits brought about by value growth.

Three-Token Model

The three-token model includes utility tokens, equity tokens, and non-fungible tokens (NFTs), representing usage rights, equity, and digital certificates, respectively. The significance of this model is that it provides various types of value markers for economic activities within the Web3 value network, allowing these activities to be more efficiently combined, transformed, circulated, and distributed. This helps clarify the value sources and purposes of tokens, reducing market confusion and risks.

• The Three-Token Model may provide a clearer framework for regulation: The various token designs in Web3 have been difficult to adapt to traditional regulatory frameworks, largely because token types are not clearly defined, and many tokens have intertwined value sources, having both utility token and equity token characteristics. The introduction of the three-token model may provide a clearer framework for regulation, guiding token economy design and benefiting existing regulatory agencies in clarifying regulatory targets.

• The Three-Token Model provides a clearer approach to token design: There have been many theories about token type divisions in the market, including similar utility and equity token divisions. According to the three-token model, utility tokens are mainly used for accessing certain products and services and act as value units for building network effects, while utility tokens may not involve financing activities; equity tokens primarily address financialization issues, enabling simpler listings and trading, more convenient and faster fundraising, and participation in protocol dividends; and non-fungible tokens mainly serve to secure asset rights, acting as digital certificates linking Web2 and Web3.

• Design principles of utility tokens in the three-token model help avoid legal issues: Utility tokens are not recorded as assets on a company's balance sheet, meaning they do not belong to the company's property and will not affect the company's accounting and tax treatment. Utility tokens are usually not raised through financing activities such as issuance, sale, or subscription. This makes utility tokens less likely to be considered securities, thereby reducing the risk of violating securities laws. Their design makes them more like a service or a right rather than an investment. By following these design principles, utility tokens are more likely to be regarded as a service or usage right rather than an investment. Thus, utility tokens involve fewer legal issues, particularly those related to securities law risks. However, laws and regulations vary from country to country and region to region, so it is still necessary to pay close attention to local legal requirements and compliance when designing and launching utility tokens.

Sui Ecosystem Projects

With the imminent launch of the Sui mainnet, this section analyzes several potential projects in the Sui ecosystem.

MovEX

MovEX is an AMM + order book hybrid liquidity decentralized exchange (DEX) based on Sui. It combines the advantages of AMM and order books, providing efficient trading experiences for users through mixed liquidity pools.

Features:

• Mixed Liquidity: MovEX combines the advantages of AMM and order books, creating mixed liquidity pools that ensure minimal slippage for traders and fairness for liquidity providers.

• Single-Sided Liquidity and Customizable Price Range: Liquidity providers can customize the price range, provide single-sided liquidity, and effectively manage impermanent loss.

• Smart Liquidity Management: MovEX offers decentralized and non-custodial smart liquidity management services, helping project creators improve capital efficiency and market-making returns.

• Initial Liquidity Offering (MoveEX ILO): Project creators can conduct customized initial token sales through MoveEX ILO, selecting timeframes, price ranges, and auction algorithms to maximize fundraising opportunities.

• Automatic Formation of Liquidity Pools: After the token sale event ends, the collected stablecoins or native tokens of the public chain will be automatically paired with project tokens to form liquidity pools.

OmniBTC

OmniBTC is an innovative lending platform built on LayerZero and Chainx. It proposes a new path for OmniLending, which is cross-chain lending, allowing users to carry out asset collateralization, borrowing, and repayment operations across multiple chains. This LayerZero-based architecture reminds us of Radiant, an all-chain lending platform on Arbitrum.

Features:

1. Cross-chain lending: Users can deposit collateral on ChainA (Ethereum), borrow assets on ChainB (Aptos), and repay loans on ChainC (Sui).

2. Core components: The OmniLending protocol consists of Pool/BridgeAdapter/PoolManage, responsible for maintaining assets, calling cross-chain protocol interfaces, and managing liquidity and community governance functions.

3. Settlement system and cross-chain interoperability protocol: OmniBTC's core settlement system is located on Chainx, with the entire chain serving OmniLending. The first cross-chain interoperability protocol integrated into OmniLending is LayerZero.

4. BTC cross-chain and custody: OmniBTC can successfully achieve BTC cross-chain and custody, and its mirrored asset XBTC can easily flow between EVM chains, Aptos, and Sui.

BlueMove

BlueMove is a multi-chain NFT marketplace based on Sui, dedicated to providing users with a convenient and secure NFT trading experience.

Features:

1. Modular system: BlueMove's smart contracts are customized based on a modular system, allowing new features to be launched over time while maintaining security.

2. Rich features: Features such as collection offers, feature offers, and multiple cancellations enable users to trade NFTs more flexibly.

3. MOVE token economy: BlueMove introduces the MOVE token, rewarding users for buying or selling NFTs, and allowing them to stake MOVE to share platform trading fees.

4. Creator rewards: During the NFT sales process, creators can receive royalty income.

Datacheck

Last Thursday, Ethereum successfully completed the Shanghai upgrade, marking the final transition of Ethereum to Proof of Stake. Upon the upgrade, ETH staked on the Beacon Chain became available for withdrawal, which has a significant impact on the entire Staking ecosystem. Today’s #Datacheck will focus on the data metrics post the upgrade.

1/Price of ETH

• Within hours of the successful completion of the upgrade, the price quickly rose and exceeded $2100.

• The last time ETH reached $2,100 was in May of last year.

2/Summary of withdrawal after upgrade

• After the upgrade, the staking ratio dropped from 15.63% to the current 14.94%.

• As of today, 1.06 million ETH have been withdrawn and 460,000 ETH have been deposited in the same period.

• The number of ETH in queue for withdrawal is 924,000 ETH, and the number of validators involved in withdrawal is around 482,000.

3/Withdrawal data change (hourly)

• Withdrawal of ETH can be divided into two parts: the node Rewards and the principal.

• ETH withdrawals are mainly based on the withdrawal of Rewards earnings, the withdrawal of principal only increased significantly at the end of last week.

• After the upgrade, the number of deposited ETH also increased significantly compared to before the upgrade.

4/Data Change of LSD

• Although the upgrade was successful, most of the LSD protocols are currently unable to provide withdrawal functions, so each LSD protocols shown growth for the last 7 days.

• The number of ETH staked by Frax has increased the most in the last 7 days, reaching 12.73% and 24.62% in 30 days.

• Lido's market share is still above 30%, even after the successful Shanghai upgrade, it is difficult to shake it in the short term.

5/Post-upgrade hiccup - Lido node operator slashing incident

• At 13:02 UTC on April 13, Lido DAO contributors alerted the RockLogic GmbH (“RockLogic”) Node Operator participating in Lido on Ethereum protocol of a slashing event taking place affecting 11 of the validators that they operate.

• The total projected impact of 13.77 ETH comprised of ~2.4% of  daily rewards.

• Effectiveness rating of RockLogic GmbH's node service has fluctuated significantly over a 7-day period, with a low of 78.46%

6/Price of stETH

• After the successful completion of the Shanghai upgrade, stETH's risk of depeg is reduced and the price rises.

🚄 Bullet News

NFT

• Moonbirds will launch a token, $TALONS, which includes various benefits such as exclusive merchandise, IRL events, and more. NFT holders will accumulate this token daily.

Market

• ETHGlobal Tokyo Hackathon has concluded, with multiple finalist projects receiving prizes in various fields, including wallets, NFTs, DeFi, social, payments, and security. These projects will share a $375,000 prize pool provided by 36 sponsors. ZKVoiceKey, BAILOUT, AokiApp NFT, and Octoplorer are among the finalists.

DeFi