DODO Megascope this week’s Highlight:
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SBF $250 million bail
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Leverage Protocol Gearbox Protocol
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On-chain unsecured credit loans through SBT
👀 Weekly Digest
Headlines
- SBF $250 million bail
FTX co-founder Gary Wang and Alameda Research CEO Caroline Ellison pleaded guilty Wednesday to criminal conspiracy to commit wire transfer, commodity and securities fraud and money laundering against nearly all of their clients. The pair face up to 110 and 50 years in prison, respectively, on the charges. Meanwhile, SBF was extradited to the United States, where he is being held on a whopping $250 million bond. According to a screenshot of the bail agreement that leaked out, SBF's restraint restrictions include the requirement to wear an electronic monitoring bracelet, house arrest at his parents' home in California, and restrictions on spending, attending commercial activities and carrying guns.
Who is Gary Wang? This low-key Chinese-American former FTX executive was a classmate of SBF at MIT, received a degree in mathematics and computer science, and worked at Google. According to people who worked with Gary Wang in the past, Gary is a taciturn CTO who likes to write code quietly at home by himself.
SBF's bail sparked an uproar, with prominent investor Bill Ackman tweeting: "I instinctively want to believe the best in people. Combined with my strong belief that a person is innocent until proven guilty, I might have the confidence to trust a liar @SBF_FTX paying $250M bail is itself a criminal indictment and refutation of everything he has said thus far."
DeFi
- Leverage Protocol Gearbox Protocol
Simply put, Gearbox is a two-way marketplace. There are lenders and there are borrowers. It functions like any lending market, with features like liquidation, health scoring, and more. LPs are incentivized through liquidity mining, with a small portion of these rewards coming from fees borrowers pay to use the asset. A larger portion of this is the emission of native $GEAR tokens. At present, the return is quite impressive, of course, the return is also accompanied by risks. High yields are also highly dependent on the price of $GEAR, currently there is little liquidity in $GEAR, so there may be some extreme volatility when it unlocks.
The protocol allows borrowers to use up to 10x leverage on their positions. Users are free to use these borrows, although GEAR provides them with strategies that do some gas optimization to run on various DeFi platforms (Curve, Convex, Lido, Yearn) for yield. To ensure a smooth launch, some constraints were set in the test protocol: the allowed protocols and tokens were voted on by the DAO. And early adopters are subject to some limitations.
After borrowing, users can automatically farm these assets through their strategies. If a user chooses to increase their yield, their borrowed APY will increase accordingly and they will be forced to liquidate with much less price volatility. The Gear team described the effect in a Medium article:
Applying this process to Lido, for example, could mean a 23.5% return on ETH for stakers, significantly higher than the basic 3-4% return for validators.
Gearbox v2 launched a few months ago with several new features including multi-line calls and smart routing for complex transactions.
The full announcement description for V2 is a long but excellent read. It addresses how Gearbox managed to provide 10x on-chain leverage in a relatively safe manner. The basic mechanism is to limit the playing field to a known set of tokens that are known to be volatile. By focusing on some commonly used leveraged DeFi products, GEAR believes that its product safety can be guaranteed. For example, stablecoins tend to trade within tight ranges if they are functioning properly. If you expect stablecoins to indeed be close to the peg, these coins are relatively less risky.
Judging from the data, Gearbox continues to attract the attention of developers. Although Revenue did not perform very well, it still attracted funds to lock up (30d TVL increased by 38%).
Other Opinions
- On-chain unsecured credit loans through SBT
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The user mints Soul Binding Tokens (SBT) using Masa. This token is a self-sovereign, non-transferable and unique pseudonymous identifier associated with the user's wallet address.
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The user logs into his or her bank/other financial institution to prove their creditworthiness. Credit information is passed through Chainlink’s DECO Prover, where a zero-knowledge proof (ZKP) is generated to prove that credit reaches a certain threshold. ZKP is bound to the user's SBT to uniquely identify the user's wallet.
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Users can now access a pool of verified lenders on Teller, and Teller will query their ZKP to confirm compliance with the threshold.
Link:
https://twitter.com/563defi/status/1606030224289763328
Datacheck
Top @Solana NFT projects @degods and @y00tsNFTwill bridge to Ethereum and Polygon in Q1 2023.
https://twitter.com/DeGodsNFT/status/1607156858019794944
https://twitter.com/y00tsNFT/status/1607156616201392128?s=20&t=mllakIa_KA2d5M076t0TIw
Any impacts on Solana? Today's #DataCheck will look into Solana's performance over the recent period.
1)TVL
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Rank 11 (as of Dec 25, $218M Locked)
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98% reduction compared to the highest value ($10b)
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15.65% decline in the last week
2)Active Address
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740k (90 days ago)；
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370k (as of Dec 25th)；
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50% decline in the last 90 days；
3)Non-Vote Txs
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32.56M (90 days ago)；
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19.45M (as of Dec 24th)；
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40% decline in the last 90 days；
4)Volume of NFT MarketPlaces
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Total volume(7d) 1.52M SOL;
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Currently, MagicEden has nearly 90% share;
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61% increase compared to last month;
5)DAU of NFT marketplaces
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Varies in the range of 15k to 20k last 30 days;
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Currently, MagicEden has nearly 95% share;
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Significant decline after Nov.;
6)Volume of DEX
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Total volume(7d) $101.84m;
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Weekly change: -36.44%;
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Significant decrease in the last month;
7)DAU of DEXs
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Varies in the range of 20k to 25k last 30 days;
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Peak between Nov.5 and Nov.10 due to the collapse of FTX.
🚄 Bullet News
Infrastructure
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Aave will launch a public testnet for its stablecoin $GHO in January.
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Privacy blockchain Dusk Network will end the first phase of its incentivized testnet at the end of this month.
VC
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Samsung Electronics will invest more than $35 million in the Metaverse project in Latin America.
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Metaverse avatar design company House of Blueberry completed a new round of financing of approximately US$6 million.
GameFi & NFT
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DeGods, the Solana ecological NFT project, will be bridged to Ethereum in the first quarter of next year.
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National Geographic will partner with Snowcrash to issue NFTs on Polygon in January next year.
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
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