IOSG: The dispute between the application chain and L2 Rollup under the dYdX departure event

Original title: "IOSG Weekly Brief ｜DYdX Departure Event: Application Chain and L2 Rollup Controversy #130"

Original source: IOSG

Part.1 Insight

The dispute between application chain and L2 Rollup under dYdX leaving event

Editor: Olivia, IOSG Ventures

This article is only for industry learning and communication, and does not constitute any investment reference

TL;

- DRdYdX main reason for leaving Starkware: Stark The technology development cycle is long, it will take time for the L2 solution Node Operator network to be fully decentralized, dYdX explores future composability, and the Cosmos SDK provides a friendly development soil

- In addition to the consideration of transaction speed and cost, the imagination space of application chain is also reflected in Token empowerment.

- Compared with the general public chain, the application chain has better flexibility in terms of rapid update and iteration.

- New multi-chain narrative changes: high-quality applications have a weak attachment to the underlying chain, while the underlying chain/network has a strong attachment to high-quality applications. In the past, applications would think about how to retain users, but now it is the public chain's turn to think about the issue of "app retention".

引 & nbsp;

June 22, announced by dYdX Its v4 version will be launched as an independent blockchain based on the Cosmos SDK and Tendermint consensus, with a fully decentralized off-chain order book and matching engine capable of increasing throughput by several orders of magnitude. In addition, DYDX is proposed as a dYdX v4 Native Token (depending on community opinion). The team plans to open source dYdX v4 by the end of 2022.

For the convenience of readers, let’s make an analogy before the text begins: Ethereum Rollup is like the city center The advantage of the old real estate is that there are prosperous business districts and transportation facilities around (combinability), and the disadvantage is that the decoration is dilapidated (slow infrastructure iteration), and the owner is not allowed to decorate (the application of custom nodes is not supported). dYdX is a big tenant of this building, and usually has no social interaction (does not rely on composability), so it decided to move to the suburbs to build a small villa. At this time, I happened to meet a good decoration team (Cosmos SDK), who once had a big production in the suburbs (Terra), so they hit it off and left Rollup aside.

The reason why dYdX gave up StarkWare and built its own chain

Decentralized derivatives market

Taking the largest centralized trading platform Binance as an example, the trading volume of its derivatives far exceeds its spot trading volume. (Taking the data on June 26, 2022, taking BTC/USDT as an example, its contract trading volume is about the same as the spot trading volume 8 times)

Binance spot market trading volume

Binance Derivatives market trading volume 

The situation in the decentralized trading market is different. Comparing the data of spot and derivatives trading volume, Uniswap V3, the largest long-tail asset spot trading market on Ethereum, has surpassed mainstream derivatives trading protocols such as dYdX/Perpetual protocol.

This means, There is still a lot of untapped potential for on-chain decentralized derivatives. At present, the biggest obstacle to decentralized derivatives trading, that is, the reason why pro traders tend to use centralized trading platforms is mainly because the infrastructure on the chain cannot support the throughput required by derivatives trading platforms. This is also the reason why dYdX chose starkware at the beginning - from the perspective of the protocol, the mechanism of off-chain zero-knowledge proof generation + on-chain proof can ensure the high-frequency trading requirements required by the derivatives protocol. From the perspective of users, rollup can provide Ethereum L1 has far lower fees (about $0.03 in fees per transaction).

And starkware has indeed done it. Taking advantage of its validity rollup, it has achieved real-time reporting in terms of oracle update and greatly improved the separation of logic and execution The advantages of dydx's trading mode - the L2 version has achieved a huge leap of 10x to 25x in terms of leverage compared to L1. - It is actually the reason for our Long-term bullish rollup.

Since starkware has brought a lot of performance advantages to dYdX, what caused it to leave starkware?

We believe there are four points:

- Stark technology development cycle is long

- It will take some time for the L2 solution Node Operator network to be fully decentralized

- dYdX’s exploration of future composability

- Cosmos SDK provides a developer-friendly Soil

1. Stark technology development cycle is long

< p>Zero-knowledge proof has always been the most difficult subject in cryptography, not just crypto. One of the biggest difficulties in zero-knowledge proof lies in the generation of zero-knowledge proof - how to translate a computational integrity (provable statement) into a verifier- The proof of friendly has always been the goal of the academic community. (Yes, the succinct/scalable and transparent here describe Stark, which is the underlying technology of starkware's rollup.) STark is considered to be the end of zero-knowledge proof, but it is naturally the most time-consuming and labor-intensive development at the practice level. .

It seems to be the same in practice - dYdX founder hints that the node performance of rollup is not enough to support its required tps (throughput is crucial for orderbook) which is very interesting Interestingly, the original sentence quoted in the blog is off-chain and decentralized, but it can basically be both off-chain and decentralized only relying on zk technology, so whether dYdX will completely break away from starkware in the future, or even return to zksync of the same zk faction A question mark. Or go to cosmos to build a zk chain, but it is not logical.

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 2. It will take time for the L2 solution Node Operator network to be fully decentralized

At present, the Rollup network has the problem that the Node Operator/Sequencer is not decentralized enough, and Vitalik  also proposed some solutions, such as: sequencer auction, random selection from PoS  set, DPoS voting, etc. (see: An Incomplete Guide to Rollups).

This problem also exists in the Starkware network. At present, the number of sequencers is very small, and they are all deployed by starkware labs themselves, although this is a common rollup at present The status quo, but referring to the downtime of the arbitrum sequencer some time ago, the dYdX team is not at ease with this very centralized sequencer setting, because the downtime means a huge risk for both traders and protocols : Traders are all profit-seeking. Once there are any security concerns, the platform's user retention rate will face great challenges. Of course, in the long run, the security brought by zk rollup+Ethereum L1 is much higher than that of cosmos. But one understanding is that although such security is guaranteed, it depends entirely on starkware's face (development progress).

At the beginning of this year, dYdX expressed its determination and confidence to achieve decentralization in the roadmap outlook at the beginning of the year. This explains why dYdX did not go to another currently relatively centralized rollup solution.

3. dYdX's exploration of future composability

Currently dYdX is built on starkEx, and starkEx does not support the composability between dapps, starkNet is a universal virtual machine, which not only allows dapps in the ecosystem to be composable, but also allows the integration with Ethereum L1 Smart contract interaction (currently known forms of interaction include relatively simple asset interaction), but dYdX has not yet migrated to starkNet.

In addition, with the development of defi, a series of combinable products based on the decentralized derivatives trading market, such as structured products, are It is a new direction in the future, and dYdX naturally does not want to miss such an opportunity due to the limitations of starkware's current technology. (Currently there are some arguments that the derivatives market relies more on the oracle to provide real-time value updates, rather than composability. This theory has certain logical support, and composability may not be as high a priority for the derivatives trading market as tps)< /p>

4.Cosmos SDK provides a friendly development soil

Tendermint is regarded by developers as a very complete set of tools for developing L1, which greatly helps developers lower the threshold for developing public chains. There are also some excellent L1s developed based on this, whether it is relatively independent Terra or EVMOS within the cosmos ecosystem. Moreover, IBC has opened up a bridge for communication between heterogeneous chains, and established a foundation for dYdX to use btc as collateral on the cosmos chain in the future.

The most important thing is the autonomy provided by Tendemint, that is, a public chain can have its own nodes. Compared with starkware’s self-operated nodes, dYdX can ensure These nodes are specialized rather than generalized like starkware, because prover nodes have to face not only the dYdX project, but also the off-chain proof requirements of other projects, and there is no strong proof at present starkware intends to provide technical support for dYdX's demand - orderbook matching.

In the blog published earlier It clearly points out its demand for customized nodes and, from the perspective of Token value capture, the value positioning of L1Token far exceeds the value positioning of a dapp. At the same time, nodes can capture a large number of mev values, and these mev values are in L2's economic model is all captured by starkware's native nodes, and has no value for dYdXToken.

Another possible reason: I don’t have a strong sense of belonging to the starkware ecosystem

cairo and solidity are two Completely different programming languages, and there is no logical interoperability (one is mainly to write zk circuits, the other is to write smart contracts, the status quo is to attract more developers starkware has created a third-party compiler, which can help complete the transition from solidity to Cairo compilation), and at that time, starkware labs basically helped dYdX complete the entire cairo code writing (cairo is the language developed by starkware itself). Therefore, from the perspective of the project party, there is not much sense of belonging to the language and even the ecology.

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What potential impact will the dYdX exodus event have on Ethereum and Layer2?

Image source: https://finematics.com/yearn-vaults-eth-vault-explained/

In addition to the first-mover advantage, the strong gravity of Ethereum, It also lies in its "combinability" and "network externalities".

Composability is a system design principle that deals with the interrelationships between components. A highly composable system provides components that are optional and can be combined in various ways to meet specific user requirements.

Different from the walled gardens established by traditional Web2 oligarchs, composability endows DeFi with core innovation. For example, yield aggregation protocols like Yearn rely on complex composability (borrowing, liquidity mining, yield farming, etc.) to build strategies that optimize capital efficiency. Imagine that if these agreements are distributed on different chains, the complexity and risk of the strategy will increase exponentially.

The main product of dYdX is a perpetual contract platform, and its external dependence is limited to oracle machine price feed. We can think of the composability use case of dYdX is that some derivatives aggregators will appear in the future, based on some existing derivatives DEX to build structured products, such as using dYdX’s order book to launch new products, just like Perpetual Protocol refers to Uniswap The transaction information is the same. However, composability is not integral to dYdX compared to yield aggregators such as Yearn, or more basic lending protocols and DEXs.

Network externality means that the utility that each user gets from using a product is positively related to the total number of users. The larger the number of users, the higher the utility each user gets. The network externalities on Ethereum are particularly obvious, and the solid user base makes Ethereum the preferred platform for application development for a long time.

Similarly, in terms of transaction depth and slippage, dYdX itself has network externalities, and the greater the number of users, the better the depth and low slippage will be; but Does not rely on Ethereum's network externalities. As a leading perpetual contract DEX, dYdX has accumulated a certain user base, and Trader is a relatively fixed group, which can maintain a good user retention. Therefore, it is speculated that after migrating to Cosmos, with the further optimization of transaction speed and cost, in addition to the original user migration, dYdX may gradually attract more users.

Having said that, it is precisely because of the huge volume of Ethereum that every small step forward requires careful argumentation, and the development progress is often unknown . After Vitalik proposed "Rollup-centered Ethereum Roadmap" and "Endgame", Ethereum's roadmap has turned to focus on optimizing the base layer to serve Rollup, and proposed a new sharding scheme Danksharding (expected Will be realized in 18-24 months) and the intermediate program Proto-Danksharding (realized in 6-9 months). In the crypto world, time is money. This time is obviously too long, and the development process is still accompanied by many uncertainties.

Due to the extensive and deep involvement of the generalized public chain, it is impossible to take too many steps too fast in upgrading and optimizing, and it is necessary to update quickly Iterated items constitute constraints. The application chain is more flexible. Compared with relying on the underlying chain, the project side can more freely make a fuss around the application chain.

By the same logic, games are another application scenario that does not depend on composability. The game has its own operating ecosystem, and the external requirements are often only deposits and withdrawals between systems. Moreover, user experience is the top priority of the game. If the underlying chain cannot meet the performance requirements, the game itself has the motivation to leave.

Talking about Layer2 again, let’s look back at the basic logic of its narrative: the throughput of Ethereum itself is not enough to support large-scale applications, poor transaction costs and speed hurts the user experience. However, under the market conditions of the bear market, the gas fee and transaction speed remain in a relatively reasonable range, which weakens users' demand for Layer 2 to a certain extent.

In addition, dYdX was originally the head native project of Ethereum, and as an application that was invested in Layer 2 in the early stage, its method of building an application chain will naturally be adopted by other The project can be seen in the eyes: since it can not be done on Ethereum, why use Layer2? With this in mind, if the head application follows the gourd and starts to build its own application chain, then we may have to appropriately lower our expectations for Layer 2 valuation.

Where will the application chain go in the future?

Before dYdX, some projects have been exploring the direction of the application chain.

As early as June 2020, Axie Infinity  proposed the idea of establishing a Ronin chain in a Medium blog post, and officially launched Ronin in February of the following year. Peak TVL since then has been close to $1.5 billion. But in April of this year, Ronin Bridge was hacked and $625 million worth of assets were stolen.

In March of this year, DeFi Kingdoms launched DFK Chain based on Avalanche , which is verified by Avalanche's subnet and compatible with EVM.

In addition to the consideration of transaction speed and cost, the imagination space of application chain is also reflected in Token empowerment.

Nascent co-founder Dan Elitzer mentioned the vision of UNIChain in a tweet: the current cost of Uniswap users is mainly on transaction fees, gas fees and potential MEV costs , both of which are paid to Ethereum miners. If UNIChain is launched, can these two expenditures be assigned to $UNI? While Uniswap has a TVL of over $5 billion and is the absolute leader among DEXs, $UNI has been tepid. It is indeed a good idea to realize the value capture of $UNI through the application chain.

Of course, as a DEX, Uniswap still has a lot of dependence on Ethereum. After all, most Tokens are still based on the ERC-20 standard, unless cross-chain  The facilities are perfect enough, and UNIChain may only stay in the imagination stage.

But this idea can be extended to other protocols. The DeFi Kingdoms we mentioned above have taken the lead, further extending the use case of $JEWEL from governance Token to gas fee payment on DFK Chain. Among them, 25% of the $JEWEL collected as Gas fee will be rewarded to validators, 50% will be burned, and the remaining 25% will be rewarded to the community. It can be seen that the adoption of application chain has made the original Token of the project have a wider space.

In addition, security is an issue that the application chain has to consider. For example, Aave 's TVL is nearly 7 times the market value of its Token. If it breaks away from the security guarantee of Ethereum, it will bring great risks to the funds on the chain.

So for applications with strong security requirements, joining the multi-chain ecology of Polkadot  or Cosmos is an option. At the same time, Polkadot and Cosmos also provide integrated security guarantees compared to the potential security risks brought by their own chains.

Developers can develop blockchains based on Substrate. If they want to join the Polkadot ecosystem, they need to pledge DOTs to participate in the bidding for Polkadot parachain slots, or Lease parathreads to enjoy the shared security provided by the relay chain.

On Cosmos, developers can build application chains based on the Cosmos SDK and access the Cosmos ecosystem through IBC. As for security issues, Cosmos provides the Interchain Security solution. Multiple chains in the ecosystem can share the same validator set for block generation. (The low market value of Token may cause security risks) The security of a mature network can be rented.

Application retention problem: the weak attachment of high-quality applications to the underlying platform

Simple sorting out the public The narrative logic of the chain: as early as 2017 and 18, we wanted to be a general public chain, and proposed to be an Ethereum killer and achieve millions of TPS, but these former killers eventually disappeared and even became assistants; In the summer of DeFi in 2010, a single spark burned into a prairie fire. Since then, the scalability of Ethereum has become an urgent need, thus expanding capacity expansion and multi-chain narration; until today, two years later, everyone found that these valuation monsters were dragging their feet. , Downtime, downtime, it seems that they are not very reliable-in the end, I simply feel that I have come out to be a chain.

Image source: https://www.dapp. com/dapps/

From the above figure, apart from games, there are still a few applications that have captured more than 1,000 users on Ethereum. For the application, it needs to have a certain volume and user accumulation first, and then it is more appropriate to do the application chain. For small-scale applications, many current public chains can meet their throughput requirements. For new applications, relying on the public chain can provide a certain degree of exposure and convenience (in terms of user learning costs and deposits and withdrawals). Doing application chain before a certain scale also increases unnecessary cost burden.

If the native application on Ethereum is used as the application chain, the migration cost needs to be taken into consideration—are users willing to migrate while the application is being migrated? What is the substitutability of the product on the original chain? (For example, users of Uniswap as an application chain can turn to Sushiswap ) If more application chains start to emerge in the future, the entire ecology will become fragmented compared with the original, and a good cross-chain infrastructure is also required.

Further, we jump out of the context of Ethereum and dYdX to see the relationship between the underlying chain and the application. The best situation is: the application is backed by a powerful The underlying chain enjoys the composability it provides; and high-quality applications will also feed back the underlying chain and bring user growth to it.

However, we believe that high-quality applications are weakly attached to the underlying chain, while the underlying chain is strongly attached to high-quality applications. First of all, in the current multi-chain structure, if the application is good enough, it is not difficult to find a foothold; secondly, the intersection point between the underlying chain and the user is mainly reflected in the application layer. The perception is only reflected in speed and cost. If there is only good infrastructure but no high-quality applications, the value of the underlying chain will not be fully reflected.  

In the past, applications would think about how to do user retention. After dYdX, maybe it is time for the public chain to think about the issue of "application retention".

Part.2 Investment and financing event

Former Sushi CTO raised $8 million in seed round for its NFT lending platform Astaria

* Lending Platform

NFT lending platform and liquidity engine Astaria completed $8 million in seed round financing, participating investors include True Ventures, Arrington Capital, Ethereal Ventures, Wintermute, Genesis Trading, LedgerPrime, Hypersphere Ventures, The LAO, etc. The founder of Astaria is former SushiSwap CTO Joseph Delong, which supports users to borrow and borrow Ethereum by staking NFT. Astaria founder and CEO Justin Bram said the round will be used to expand its current team of eight. The platform will launch as early as September this year.

Backd completes $3.56 million financing led by Advanced Blockchain AG

* DeFi

DeFi protocol Backd announced the completion of $3.56 million in financing, Advanced Blockchain AG led the round, with participation from Spartan Group, Maven 11, Struck Crypto, Apollo Capital, and Divergence Ventures. It is reported that Backd maximizes the compound income of DeFi users' assets by deploying reactive liquidity pools. Through Backd's revenue aggregation liquidity pool and core protocol architecture of operations, it automatically entrusts liquidity to external protocols, thereby improving asset utility and efficiency.

Endaoment completed a financing of 6.67 million US dollars, Coinbase Ventures and others participated

* Community Foundation

Endaoment, an encrypted charitable community foundation, and Endaoment.Tech, the software development company behind it, announced the completion of $6.67 million in financing, Shine Capital led the round, with Coinbase Ventures, Coinbase Giving, Circle Ventures and Circle Impact Fund, Higher Ground Labs, Framework Ventures, Quiet Capital, Hypersphere, with participation from Tim Ferriss, NFT artist Pplpleasr and Snowfro.eth, Noah Zinsmeister, Adam Nash, and others. It is reported that Endaoment, a tax-exempt community foundation, is providing the first crypto-native Donor Advised Fund platform to enable large-scale crypto-native charitable giving.

Magic Eden completes $130 million Series B financing at a valuation of $1.6 billion, led by Electric Capital and Greylock
< /p>

* NFT

Solana ecological NFT market Magic Eden completed 130 million with a valuation of 1.6 billion US dollars USD Series B financing, co-led by Electric Capital and Greylock. Magic Eden plans to use the funds to expand its primary and secondary markets and explore multi-chain opportunities. Previously, in March, Magic Eden completed a financing of 27 million U.S. dollars, and participating investors included Sequoia Capital, Paradigm, Greylock, etc.

Krew has completed $4 million in financing and will be officially launched in June

* DeFi 

Klaytn-based DeFi incubator Krew announced it has attracted $4 million in investment, co-led by Quantstamp and Ascentive Assets . It will be officially launched in June. Future plans to provide consulting services for incubation projects, including liquidity provision, marketing knowledge sharing, providing design advice and market entry strategies. In addition, Krew’s first DeFi platform, the Klaytn-based non-custodial cryptocurrency lending protocol KLAP (KLAP), will be activated.

Doodles completed the first round of financing, led by Seven Seven Six

* NFT

NFT project Doodles announced at the NFT NYC conference that the project has completed its first round of financing, led by Reddit co-founder Alexis Ohanian Venture capital Seven Seven Six led the round, with an undisclosed amount. In addition, well-known music producer Pharrell Williams will join the Doodles team as chief brand officer. Williams will help Doodles shape the strategy of the series of NFTs in music, artwork, consumer products, animation and events. Williams will also serve as executive producer of Doodles Records: Volume 1, an album of Doodles-related music, which will be released in partnership with Columbia Records.

Cryptoys completes $23 million Series A financing, led by a16z

* NFT 

Cryptoys, a digital toy and game NFT platform, has completed a $23 million Series A financing, led by a16z, and participating investors include Mattel , Dapper Labs, Draper & Associates, Acrew Capital, CoinFund, Animoca Brands and Sound Ventures, etc. This round of financing will be used for the development of the Cryptoys platform. It is reported that Cryptoys is a toy NFT marketplace platform under OnChain Studios, which is expected to be launched on the Flow (FLOW) blockchain in the next few months. According to previous news, OnChain Studios completed a $7.5 million seed round of financing led by a16z in October last year. Earlier this June, toy brand Mattel partnered with toy NFT marketplace Cryptoys to showcase its brand exclusively on the platform. OnChain Studios also plans to create a Cryptoys metaverse and other earn-to-play games in which some of Mattel’s intellectual property will be made into playable avatars.

EyesFi completes $2 million in financing, led by Multicoin Capital

* NFT

NFT value discovery platform EyesFi completed $2 million in financing, led by Multicoin Capital, with participation from Puzzle Ventures and Delta Blockchain Fund. It is reported that EyesFi was established in the second quarter of 2021. The team has gained more than 10,000 loyal users through the NFT valuation system, asset management system, 3D Gallery, etc. Early contributors can mint Genesis Utility NFT for free.

AC Capital has raised $20M for its second crypto fund to focus on early Web3 Project

* Fund Financing

Focus on Blockchain And fintech investment firm AC Capital has raised $20 million for a second crypto fund. The fund will focus on early stage Web3 projects in areas such as infrastructure, GameFi, NFT, and Metaverse. Founded in 2020, AC Capital has invested in more than 100 blockchain startups including Metis, Derace, and StarSharks.

Crypto venture capital firm 1confirmation launches $100 million NFT fund

*NFT Fund

Nick Tomaino, founder of crypto venture capital firm 1confirmation, issued a post announcing the launch A $100 million NFT fund to support creators at the forefront of culture. And said that the most influential creators in the next decade will launch NFT, and the new fund is committed to supporting them early in their journey and leading billions of people around the world from content consumers to owners.

Part.3 IOSG post-investment project progress< /h3>

MachineFi Lab launches $50 million Series A financing

* public chain 

IoTeX developer IoTeX core development team MachineFi Lab announced the launch of $ 50 million A round of financing. According to the company’s co-founder Jung Sun, the funds raised will be used to significantly expand the MachineFi Lab team and promote MachineFi Lab’s global machine sharing economy platform. According to McKinsey, by 2030, the total value of the machine economy may reach 13 trillion US dollars. According to previous news, MachineFi Lab completed a $10 million seed round of financing led by Samsung Next, Draper Dragon Fund, and Jump Capital, Hashkey Capital, IOSG Ventures, Escape Velocity, Jump Crypto, Goodwater Capital, Xoogler Ventures, Wemade, Hanwha Impact, Alpha Grep, DHVC, Vista Lab, NewBuild VC, etc. participated in the investment.

Magnety has been launched on the test network

* Wallet

The StarkWare-based DeFi social wallet Magnety has been launched on the test network. Users can create "funds" on the test network, trade on Alpha Road Finance, and track assets Express, create a personalized profile, mint Magnety Stacking Vault shares, and more.

The first week of Arbitrum Odyssey will end at 1:00 on the 28th, and more than 180,000 transfers have been made, totaling about 35,000 ETH

* Expansion

The first week of Arbitrum Odyssey (Bridge week) will be held at Beijing time Ends at 1:00 on June 28. It is understood that the theme of the first week of Odyssey is the cross-chain bridge. Dune data shows that up to now, the Arbitrum Odyssey activity has carried out a total of 186,960 transfers, totaling 35,590.46 ETH, of which the highest single transaction is 510ETH. The highest total amount of cross-chain bridge transfers is Hop Protocol, which accounts for 45.1% of transfers exceeding 15,190 ETH. The second is Celer Network, which accounts for 14.3% of transfers exceeding 4,810 ETH. The third is Multichain, which exceeds 3330 ETH transfers accounted for 9.9%.

StarkWare releases StarkEx V4.5, which supports Volition, ERC-1155 and transaction bundling

* Layer 2 

Zero-knowledge proof research and development organization StarkWare officially released StarkEx V4.5, which supports hybrid Volition, an on-chain (Rollup mode) and off-chain data (Validium mode) solution, allows users to choose to store data on-chain or off-chain for each transaction, and fully supports ERC-1155 Token and transaction bundling. StarkWare stated that in the future, L3 StarkEx on StarkNet, StarkEx high throughput and supporting ERC-1155 will be realized. Among them, L3 StarkEx on StarkNet can be directly interoperable with StarkNet applications, and can also reduce the cost of proving and updating new status. Gas cost and lower latency for state updates.

ConsenSys Releases Infura NFT API Beta

* Infrastructure

Ethereum infrastructure developer ConsenSys has announced the launch of the NFT API Beta for its Infura suite of blockchain development tools, which enables Infura users to Easily verify digital assets and create metadata templates, customize and develop NFTs. As for the use cases of Infura’s NFT API, Nayana Singh, general manager of products at ConsenSys, said that the focus of NFT is mainly in the field of art, entertainment and collectibles. Use cases include music, gaming and virtual worlds, and several companies have inquired about loyalty programs.

Synthetix is upgraded to Algol version, set liquidation penalty parameters

* synthesis Assets

According to the official announcement, the synthetic asset protocol Synthetix has been upgraded to the Algol version at 15:00 on June 23, 2022 Beijing time , this version adds SIP-251, setting the mortgage loan liquidation penalty ratio and the SNX pledge mandatory liquidation penalty ratio as 10% and 30% respectively.

Part.4 Industry Pulse

Ether The Beacon Chain has been deployed on the Sepolia test network, and it is expected to be merged on June 29

*Infrastructure

The Ethereum client Nethermind tweeted: "Ethereum Sepolia testnet has deployed the beacon chain, Ethereum's second public testnet chain merger is just around the corner. The exact date has not yet been determined. As of last week’s consensus development conference call, the target date is around June 29.” According to previous news, the merger of the Ethereum Ropsten testnet was completed on June 9.

zkSync releases V2 update information: adding abstract accounts and increasing compatibility with Ethereum EVM< br>

* Layer 2 

ZKRollup-based Ethereum Layer 2 Expansion Solution zkSync released the V2 update today, with structural changes aimed at improving user experience, increasing compatibility with the Ethereum EVM, and upgrading the performance of the zkSync v2 test network. Among other things, this upgrade adds "Account Abstraction", which reduces the number of account types, or the number of entities that can send the ETH balance of a transaction. Account abstraction enables authorization to be programmable, allowing for more diversity in wallet and protocol design and improving user experience. This upgrade also adds L2 to L1 messaging and adds support for the transaction attribute msg.value. Furthermore, the addition of L2 to L1 messages makes it possible to simplify the protocol interface and replace hard-coded operations with generic L1-to-L2 communication. To implement these changes, the zkSync 2.0 testnet has been reset. This means that the contract has to be redeployed, and the state of account balances and transactions has been reset.

Horizon, the cross-chain bridge between Ethereum and Harmony, was attacked and lost about $100 million

*Cross-chain 

Harmony’s official twitter issued a post today saying that it found that the asset cross-chain between Ethereum and Harmony The chain bridge Horizon was attacked, and the loss amount was about 100 million US dollars. Harmony said it is currently working with relevant departments and experts to track down the attackers and recover the stolen assets. In addition, Harmony said that the trustless Bitcoin cross-chain bridge was not affected, and the trading platform has been notified and the Horizon cross-chain bridge has been suspended.

Bancor: Suspend the impermanent loss protection function, and reactivate it after the market stabilizes

* DeFi 

Decentralized trading protocol Bancor issued a market status update, saying Bancor's impermanent loss protection due to harsh market conditions (Impermanent Loss Protection) function is suspended, and will be reactivated later as the market stabilizes. The funds on the agreement are safe, and deposits are not currently accepted. At the same time, withdrawals performed during this period will not be eligible for impermanent loss protection, and users who remain in the protocol will continue to earn benefits and be entitled to their fully protected value when impermanent loss protection reactivates. Bancor V3 allows users to obtain 100% impermanent loss protection on the day of staking.

The Solend community's proposal to revoke the previous takeover of the giant whale account has been approved

< b>* Ecological Lending Protocol 

Solana Ecological Lending Protocol Solend's SLND2 proposal released today received 99.8% support rate passed, the proposal included: invalidating proposal SLND1; increasing governance voting time to 1 day; formulating a new proposal that does not involve the power to take over accounts in an emergency. Earlier news, Solend urged a giant whale (address starting with 3oSE) to repay the loan as soon as possible to avoid the risk of liquidation. According to news yesterday evening, the Solend community’s governance proposal SLND1, which sets special margin requirements for giant whales and can temporarily take over whale accounts, has been passed.

ParaSwap Launches Peer-to-Peer NFT Trading Application

* DEX Aggregation Platform  

DEX aggregation platform ParaSwap announces peer-to-peer NFT trading app, said to be the first of its kind on the Apple App Store application. The app allows sellers to create custom orders for their NFTs, which can be sent directly to buyers, and using ParaSwap's DEX engine on the backend, both parties can use their favorite Tokens for transactions. The application will use Ramp as the legal currency entrance, and there will be no transaction fees in the first three weeks or before the transaction volume reaches 500,000 US dollars. Gas fees generated by using tokens other than Ethereum for transactions on the platform will be permanently refunded.

Uniswap Labs acquired Genie, an NFT aggregation market, and will airdrop USDC to Genie users in August

* DEX

Uniswap Labs announced that it has acquired Genie, an NFT aggregation market, aiming to expand its products to ERC-20 And NFT, the specific transaction terms have not been disclosed yet. Uniswap Labs said that the acquisition will integrate NFT into its products. Starting with the Uniswap web application, users will soon be able to trade NFT on its marketplace. Uniswap Labs will also integrate NFT into developer APIs and widgets . In addition, Uniswap Labs stated that it will conduct USDC airdrops to historical users who have used Genie multiple times before April 15 or users who hold Genie Genesis NFT. Claim within one month. Uniswap Labs stated that the acquisition was conducted by Uniswap Labs and had no impact on the Uniswap protocol, Uniswap governance, or UNIToken. Genie users will continue to receive uninterrupted service to the Genie website until the new Uniswap NFT experience is available.

dYdX plans to use the Cosmos SDK to launch its own application chain, and the new chain is expected to be launched in the next few months
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* DEX 

The decentralized derivatives trading platform dYdX plans to use the Cosmos SDK to launch its Dedicated Lisk, a decentralized off-chain order book and matching engine will be developed and transferred from Ethereum to dYdX specific Lisk. The new chain is expected to launch in the coming months. But it has not yet been decided what will happen to the current version on StarkEx.

THORChain main network has been launched, and the treasury control will be handed over to the community

* Cross-chain

THORChain, a cross-chain DeFi protocol, announced today that the mainnet has been launched and has officially entered the stage of development, expansion and adoption. THORChain is currently being further decentralized. Node operators have gradually replaced centralized control, and the control of the treasury will soon be handed over to the community. Over the next 12 months, the majority of RUNEToken vesting will be locked in Node bonds. RUNE will be unlocked when the price is 1/10 of the all-time high. The specific unlocking method is: 20 million RUNE will be unlocked, and 20% will be unlocked every 3 months for 12 months. 41 million RUNE remain locked in Node bonds for at least 12 months. Additionally, the vault will no longer issue refunds to liquidity providers or node operators. The focus will be solely on development, security and scalability.

P2E game Axie Infinity plans to start land pledge from June 23rd to 28th

*GameFi

P2E game Axie Infinity tweeted: "Land Staking (Land Staking) is being tested and tested on the testnet Optimization. The team plans to start land staking after deploying the Ronin Bridge, which is expected to start between June 23rd and 28th.

Ledger will be launched NFT marketplace, Web3 service platform and Web3 education platform

*  Web3 

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The encrypted hardware wallet Ledger announced that it will launch the NFT market Ledger Market, the Web3 service platform Ledger Enterprise Create, and the Web3 education platform Ledger Quest and Ledger Academy. According to reports, the NFT market Ledger Market is cooperating with some brands, including LVMH's Tag Heuer, NFT series DeadFellaz and Brick/Babylon, etc. Web3 service platform Ledger Enterprise Create aims to help Ledger expand to Web3 projects and safely enter the NFT field, Ledger Quest is a Web3-focused game platform, and education platform Ledger Academy , designed to allow users to broaden their understanding of blockchain technology and security.

eBay Acquires NFT Trading Platform KnownOrigin

* NFT 

The e-commerce giant eBay has completed the acquisition of the NFT trading platform KnownOrigin today. The specific amount and terms have not yet been disclosed. This acquisition aims to combine eBay's influence and reputation with KnownOrigin's leading technology Combined to provide support for a new generation of NFT creators, sellers and buyers.In March, KnownOrigin, an NFT trading platform, completed a $4.85 million financing led by GBV Capital and Sanctor Capital.

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