IOSG: Imagine the first Layer 2 solution that ran out of DeFi

Original title: "IOSG Weekly Brief | Imagine the first Layer2 solution in DeFi #53"

Original source: IOSG

Part.1 Insight

What is Layer 2 technology?

Quoting the definition from the Web3 Foundation: "Layer 2 is the enhancement layer at the bottom of the Web 3 technology stack. This component includes meta-protocols or Layer 2 protocols that provide Enhancements such as scaling, computation, and encrypted messaging.”

More specifically, Layer 2 technology builds on the existing Layer 1 blockchain, To solve their fundamental problems, especially scalability issues such as slow transfer speed and low throughput.

Why do we need Layer 2 solutions?

The need for Layer 2 solutions originally came from scalability issues, which arguably remain the biggest pain point in the blockchain industry. At present, Layer 2 solutions have been regarded as an important part of scalability solutions in the blockchain field.

*ETH 2.0 Expansion Road

However, people found that it needs to be applied on the blockchain network (Bitcoin, Ethereum, etc.) Scaling is very difficult.

Layer 2 current classification

*Current classification of Layer 2 projects

Fraud Proofs

Fraud Proofs provide evidence that a state transition was incorrect. They are optimistic about the world because of the assumption that blocks only represent the correct state of L2 data. But in reality, the submitted block may contain the wrong state.

The main advantage of fraud proofs is that they are not required for every state transition, but only for failures. Therefore, they require fewer computing resources and are more suitable for environments with limited scalability.

Validity Proof

In the validity proof, the representation of some off-chain calculations delivered to the smart contract. A smart contract only updates its state after a computation has been proven to be valid.

The biggest advantage of proof of validity is that the state on the blockchain is always correct and can be trusted immediately.

The main disadvantage is that every state transition needs to be proven, whether or not that transition is contested by others. This will affect scalability.

From the following figure, we can compare different Layer 2 solutions in terms of security, throughput, availability, etc.:

The field

2020 is a year of rapid development of Layer 2 technology. Many projects have not only launched their mainnets, but have also started partnering with different DAPPs to trial their technology. Some recent Layer 2 project collaborations are listed below:

Optimism– Synthetix

Starware– Deversifi

OMG – Tether

Matterlabs(Zk-sync)– Curve

Conclusion

< The p>Layer 2 solution provider race has just begun. These programs have finally started to achieve some results over the past few years. Many industry experts believe that there may be a “winner takes all” situation in this space due to composability and network effects.

Among projects offering Layer 2 solutions, Optimistic Rollups may be the short-term winner as Optimistic Rollups is highly compatible with existing ETH development tools.

However, there are other solutions such as Zk-rollups which are superior in terms of security, performance and usability On Optimistic Rollups. Still, from a developer perspective, Zk-rollups are difficult to use because they require extra effort from the developer. These other layer 2 solutions could also gain ground if they become more compatible with the ETH ecosystem, or if projects decide to migrate to other development environments due to the constraints of the ETH ecosystem.

IOSG Ventures is also looking forward to the interactive development of different Layer 2 solutions. If they can work together without compromising security, capital efficiency, then we are likely to see a world where Layer 2 solutions thrive.

Part.2 Industry Pulse

FTX will be launched on Paypal, Zoom, Weilai, Push Equity Token Spot and Contracts of Special Companies

*Derivatives

Cryptocurrency Derivatives The trading platform FTX will launch Square (SQ), PayPal (PYPL), MicroStrategy (MSTR), Moderna (MRNA), Zoom (ZM), Weilai Nio (NIO), Twitter (TWTR), Uber ( UBER) and NVIDIA (NVDA)’s equity token spot and quarterly contracts.

DeFi project Yam Finance will soon launch the insurance agreement Umbrella Protocol

*Insurance Protocol

YAM is currently developing an Alpha test version, which will then be tested in the community. The core component of the Umbrella Protocol is the MetaPool, where the party providing protection can store funds, and the party seeking protection receives a premium. Each MetaPool contains multiple Coverage Pools, and each Coverage Pool has a specific protocol or contract. A party seeking protection may seek protection by accessing these contracts or agreements.

The total lock-up volume of the Ethereum mutual insurance project Nexus Mutual reached 89.9 million US dollars, a record high

*Insurance

According to DeFi Pulse data, the total lock-up volume of the Ethereum mutual insurance project Nexus Mutual (NXM) reached 89.9 million US dollars, a record record high. According to nexustracker data, Nexus Mutual's current effective insurance coverage is more than $51.41 million.

Benchmark, an on-chain income aggregator that can isolate underlying assets from income, will be launched soon

< p>*On-chain income aggregator

Anonymous developers announced that they will soon launch Benchmark, which can isolate the income from the assets that generate the income, so that Token holding The buyer of the right to sell its income right within a fixed period of time, so as to lock in profits and obtain funds in a timely manner, while the buyer of the right of income does not have to purchase and mortgage the underlying assets, and does not have to worry about the risks of mortgage and liquidation.

Decentralized trading protocol Bancor announced the liquidity mining plan, the first batch will support 8 capital pools

*Liquidity mining

The first batch of BNT liquidity mining will support 6 large capital pools ETH, WBTC, USDT, USDC, DAI , LINK, and two medium-sized fund pools OCEAN and renBTC, among which, 100,000 to 200,000 BNT will be allocated to the large fund pool and 10,000 to 20,000 BNT will be allocated to the medium-sized fund pool every week. Users who will provide liquidity to the eight proposed pools will be rewarded in BNT starting Nov. 16 and when the program finally launches, Bancor said.

DeFi Fixed Rate Generation Protocol 88mph will restart a new round of liquidity mining on November 21

*Liquidity Mining

The newly launched liquidity mining will also last for 14 days, and 88,000 MPH Token will be distributed to participating users. Deposit aUSDC, cUSDC, cUNI, yUSD and ycrvSBTC tokens and purchase floating interest bonds to obtain MPH Token. However, 2 days after the start of the mining activity, the attack was shut down urgently due to a contract loophole. The project team responded quickly and transferred the funds safely, and completed the loophole repair in less than 24 hours.

On-chain option protocol Opyn launched 5 options products based on ETH, UNI and WETH

*On-Chain Options

The 5 new option products are WETH put options with a strike price of $460 on December 4, and December 25 ETH call with $500 strike expiring, ETH call with $640 strike expiring Dec. 25, UNI put with $3.5 strike expiring Dec. 25 and $25 Dec. A UNI call option with a strike price of $4.

The person in charge of the Ethereum 2.0 project believes that the start threshold of the ETH 2.0 genesis block can be lowered to 100,000 ETH

*ETH2.0

Danny Ryan, the person in charge, said, "In my opinion, as long as there are more than 100,000 coins in the Ethereum 2.0 deposit contract ETH is enough, and it makes sense to lower the threshold to prevent Ethereum from being in trouble for too long.” As of now, the Ethereum 2.0 deposit contract address has received 104,416 ETH. The minimum ETH deposit amount (524,288), the Ethereum 2.0 network will be launched on that day, otherwise it will be launched 7 days after the minimum pledge amount is met.

The asset cross-chain protocol Ren has added a multi-chain support function for its RenVM, which can cross-chain seven types of assets to Ethereum and Binance Smart Chain

 *Cross-chain

Ren Protocol, an asset cross-chain protocol, announced the addition of multi-chain for its RenVM Support functions and upgrade the cross-chain SDK RenJS library. Through this upgrade, the following seven types of assets will be able to cross-chain to Ethereum and Binance Smart Chain, including Bitcoin (BTC), Bitcoin Cash (BCH), DigiByte (DGB), Dogecoin (DOGE), Filecoin (FIL), Terra (LUNA) and Zcash (ZEC).

Vitalik: The expansion plan Rollup may affect the technical specifications of the second phase of Ethereum 2.0, which is basically in a frozen state

*ETH 2.0

Vitalik Buterin said that before the expansion scheme Rollup’s plan for data fragmentation has not been confirmed, the second phase of Ethereum 2.0 The technical specifications of the stage are basically in a frozen state. He said that Ethereum 2.0 can achieve scalability through Rollup in the first stage, processing 100,000 transactions per second, so adding built-in computing shards is useless. "The best understanding is that Rollup is a kind of computing. film.”

DAO platform SubDAO received funding from the Web 3 Foundation

*DAO

Web 3 Foundation Grant updated the funding review list and added SubDAO (subdao.network), a DAO platform focused on solving the diversified governance of the Substrate chain. SubDAO is a Substrate-based platform dedicated to creating a platform that allows any organization to create and manage cross-chain DAO organizations. It is also the first incubation project of the PAKA Labs accelerator.

Ethereum expansion program Arbitrum Rollup launches Arbitrum Burner wallet

*ETH 2.0

*ETH 2.0

p>

Offchain Labs, the development team of Arbitrum Rollup, the expansion plan of Ethereum, launched the Arbitrum Burner wallet. This application is forked from Burner, and can easily transfer ETH, etc. Token.

L2 Lab, which focuses on the second-layer protocol, launched the decentralized exchange ZKSwap on the Ethereum Ropsten test network

*DEX

This project is based on the second-layer expansion solution ZK-Rollup technology, and realizes the function of Uniswap on the second-layer network of Ethereum, which can Enable frictionless and real-time exchange functionality. L2 Lab plans to promote the Layer 2 DEX exchange standard, so that all existing DEXs can seamlessly access and use ZKSwap's two-layer network exchange protocol.

Part.3 Investment and financing events

The venture capital fund Polychain purchased 100 YFI again, holding a total of 2% of the total supply Token

*YFI

Messari CEO Ryan Selkis tweeted , Encrypted venture capital fund Polychain Capital purchased 100 YFI Tokens again, and currently Polychain holds 2% of YFI's supply of Tokens. It is not clear when Polychain Capital bought YFI and the exact price, but it may have bought Token when YFI rose and contributed to the rapid price fluctuations.

NFT trading market Mintbase has completed $1 million in seed round financing and will deploy it on the NEAR platform

*NEAR

NFT trading market Mintbase completed a $1 million seed round of financing to promote the large-scale adoption of NFT (non-homogeneous tokens). The financing participants include Sino Global Capital, Woodstock Fund, Sustany Capital, D1 Ventures, Animoca Brands, Block Oracle Capital, Arweave and other institutional investors, as well as Lin Hou, Luis Moure, Yin Cao (Cao Yin), etc. angel investors.  

Note: Mintbase is a marketplace for buying, selling and minting NFTs. Allowing businesses and creatives to launch their own stores is a proven smart contract. Currently, Mintbase has 949 independently deployed smart contracts (stores), minted more than 45,000 NFTs, and has more than 80,000 transactions on Ethereum. In the future, it plans to rewrite all smart contracts from Solidity to Rust and deploy them in open Network platform NEAR Protocol's WASM compiler for cheaper and faster transactions.

Fireblocks, a digital asset security company, completes the $30 million Series B financing led by Paradigm

*Digital Assets

Fireblocks, a digital asset security company, completed a $30 million Series B round of financing led by Paradigm. Existing investors Cyberstarts, Tenaya Capital, Swisscom, Galaxy Digital, Digital Currency Group (DCG) and Cedar Hill Capital continued to participate in the investment, and the cumulative financing amount of Fireblocks has reached 46 million US dollars. Fred Ehrsam, co-founder and managing partner of Paradigm and co-founder of Coinbase, will join Fireblocks’ board of directors following the closing of this funding round. Fireblocks plans to continue to expand its services globally next year, and is committed to enabling new innovations in digital payments, banking, transactions, and improving the security of the digital asset ecosystem.

DEX.AG completes $3.1 million in financing led by Framework Ventures and rebrands as Slingshot

< p>*DEX

Decentralized Exchange (DEX) Aggregation Service DEX.AG announced to change its name to Slingshot, and completed $3.1 million in financing at the same time. This round of financing was led by Framework Ventures led the round, with participation from Electric Capital, IDEO CoLab, Coinbase Ventures, Winklevoss Capital, Digital Currency Group and Robot Ventures, among others. Slingshot was born at the hackathon in 2018, and the cumulative transaction volume has exceeded 100 million US dollars so far.

Original link

a>

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia