DODO #Megascope brings you this week’s Highlights:

1. Analysis of Stablecoin Project HAI

2. Starknet releases 2023 roadmap

3. Data Check: Meme Coin Hype

👀 Weekly Digest

DeFi

Stablecoin Project HAI

HAI is a multi-collateral RAI fork project deployed on Optimism, dedicated to developing the RAI ecosystem, increasing the open-source developer community, and promoting controllable anchored stablecoins.

RAI

RAI is a stablecoin deployed on multiple chains such as ETH and Arbitrum, with a unique mechanism. First, we need to understand RAI's architecture.

• Reserve assets

  • RAI only supports ETH as a reserve asset. RAI's market value is floating.

• Liquidity management

  • The protocol can devalue or revalue RAI based on changes in its market price. This process transfers value between SAFE users (users who generate RAI with ETH) and RAI holders, incentivizing both parties to return the market price to the target price chosen by the protocol. This mechanism is similar to a country devaluing or revaluing its currency to cope with trade imbalances. If SAFE users deleverage and/or RAI users go long, RAI will appreciate; if SAFE users increase leverage and/or RAI users go short, RAI will depreciate. The behavior of SAFE users fundamentally depends on changes in the ETH price.

  • In simple terms, when the ETH price increases, SAFE users can mint more RAI, and as the number of RAI on the market increases, the price drops. However, the protocol sets a redemption rate, causing the redemption price of RAI to rise, incentivizing SAFE users to buy more RAI and push up the market price accordingly.

  • When the protocol collects a negative redemption rate, the cost of holding RAI is higher, as the redemption price of RAI is decreasing.

  • The problem with RAI is its price instability; RAI holders constantly consider whether to buy or sell RAI tokens.

HAI

HAI makes many improvements to RAI, which are theoretically positive.

Features:

1. Diversified collateral: HAI supports ETH, RAI, LSD (such as stETH/rETH), and assets on Optimism (such as OP and UNI), with room to expand more collateral types. The introduction of LSD could potentially improve the issue of the protocol collecting negative redemption rates. HAI's initial collateral types are ETH and wstETH, which are expected to represent the largest market on Optimism, and OP is planned to be added as collateral in the short term.

2. More anticipated long-term governance: Compared to RAI, HAI has more governance, such as adding/removing collateral, meaning collateral types are manageable.

3. PI controller sets redemption rate: Like RAI, HAI uses a PI controller to set the redemption rate.

4. Initial price: HAI's initial price is set at $1, rather than an arbitrary value like RAI (e.g., $3.14).

Token Distribution

• 20% - Team and advisors (10+ people)

• 20% - DAO Treasury

• 20% - Buyback and burn FLX

• 40% - Community incentives

Infra

Summary of Starknet Roadmap for 2023:

Main Objectives

1. Improve network performance: Increase throughput, reduce latency, and lower transaction costs to support more users and developers.

2. Enhance user experience: Provide a smooth and predictable experience for users on the Starknet network, regardless of congestion levels.

Implementation Approach

1. Increase throughput and reduce latency:

   • Release Starknet v0.12.0, transitioning the Starknet stack to Rust, reducing block execution time and thereby increasing throughput.

   • In the absence of network congestion, significant improvements in transaction latency are expected.

   • Continue to prioritize higher throughput and lower latency even after the release of v0.12.0.

2. Lower transaction costs:

   • In v0.13.0, introduce Volition to reduce L1 (Ethereum) data costs, significantly lowering transaction costs.

   • Adapt to Ethereum EIP-4844 (expected in Q4 2023) to further reduce data costs.

3. Accelerate finality:

   • Optimize fee market: Introduce a fee market in v0.14.0 to allocate limited resources based on users' willingness to pay for transactions, rather than solely relying on queue position.

   • Optimize block intervals: In v0.15.0, adopt constant and shorter block intervals to improve Starknet's user experience.

Datacheck

Last week, the crypto market experienced a pullback, but Meme coins were exceptionally hot. Today’s #Datacheck will look at $PEPE and $AIDOGE to examine their related performance.

1/ Trading Volume of PEPE

• Nearly 80% of the volume occurs on Uniswap, with the PEPE-WETH Uni V2 pool having the highest trading volume, and the Uni V3 pool ranking second.

• The volume of Uni V2 PEPE-ETH peaked on 19th, exceeding 94 million US dollars, and then continued to decline. As of 24th, the daily volume had dropped to 7.8 million.

2/ Transfer Activity of PEPE

• During the first two days of the project launch, there was the highest transfer amount, and then it continued to decline.

• Other data also reached its peak on 19th, with over 50,000 transfers count and 21,485 unique addr participating.

• The number of holders for PEPE has been steadily increasing and has now exceeded 50,000.

3/ Top15 High-Yield Addresses Detail

• For the Top 15 sorted from low to high based on the cost of purchasing PEPE. Five addresses have a cost of less than 100 dollars, while the highest cost is 265,000 dollars.

• The addresses that purchased PEPE at a cost of $15 received a return of over 50,000 times in just a few days, and the current profit of $800,000 has been fully realized.

4/ Meme arbitrage bots driving up gas prices on Ethereum

• The mainnet gas price saw a significant increase from the 18th to the 21st, with most of the time exceeding 60 gwei.

• The MEV arbitrage targeting PEPE is mainly through sandwich attacks, with a daily trading volume of up to 100 million US dollars on 18th and 19th.

5/ Trading volume of AIDOGE

• AIDOGE is a meme from Arbitrum community, which uses AI-generated code, is being distributed for free to ARB airdrop addresses in order to acquire a large number of initial users.

• Currently, AIDOGE transactions are primarily occurring on CEX based on trading volume over the past 24 hours. MEXC has the largest trading volume, and OKX has also announced that AIDOGE will be listed on their platform starting at 2:00 pm on 25th(UTC+8).

6/ AIDOGE Claim Activity

• AIDOGE is distributing airdrops for free to ARB airdrop addresses, with most claims concentrated on 15th and 16th.

• Currently, the total number of addresses participating in the claim is close to 400,000.

7/ The popularity of memes is gradually cooling off. In the context of the overall pullback of mainstream crypto tokens, the sharp rise and fall of memes can easily attract attention, but the associated risks need to be evaluated.

🚄 Bullet News

DeFi

• Multi-chain structured product protocol Thetanuts Finance has completed a $17 million funding round led by Polychain Capital, Hyperchain Capital, and Magnus Capital. Thetanuts Finance aims to provide a range of crypto structured products, and this round of funding will provide more resources for Thetanuts Finance to achieve its long-term vision in the blockchain and crypto space.

• 0x Protocol has undergone significant upgrade iterations, including:

  • Launching a data dashboard, which allows generating API keys for new projects, monitoring and managing integrations, accessing new APIs, and utilizing more development resources.

  • Introducing a new version of the Orderbook API.

  • Website restructuring and upgrades, featuring a new UI interface and brand visuals.