What are the things worth paying attention to at the DuneCon conference?

Original source: @DodoResearch

Encrypted data analytics platform Duneanalytics  hosted DuneCon  on September 15th in Berlin. The meeting is divided into two venues, Main Stage and Studio, and the Main Stage lasts about 8 hours. Guests including Uniswap Labs, 0x Labs, 1confirmation, Optimism, etc. were invited to share their adventures with Dune and blockchain data. The live broadcast record of the venue can be viewed on the official website: https://dunecon.com/livestream

Dodo Research classifies this conference by Topic Interpreted and organized the content:

Topic 1: Conference Speech & DuneAnalytics API

1/Opening Ceremony

At the opening In a keynote, Dune Co-Founder @hagaetc  explores the broader context of open finance and permissionless innovation.

– Perspective: Innovation requires a dynamic and open economy where new companies, up-and-comers and outsiders can challenge the status quo;

– Opinion: The crypto industry is the largest open dataset on the planet, and Dune will house the largest and richest open dataset on the planet;

– Data: Dune runs over 10 million SQL queries per month; In 20 days, Solana produced more data than Ethereum produced in its lifetime;

– And the Dune engine is a future data platform that will achieve more functions.

2/ DuneAnalytics API

– A new product was announced at the meeting: DuneAnalytics API

– Dune Co-Founder & CTO @mewwts  thinks: "The API will really open up the scope of what you can do with Dune. Building APIs allows us to do what we are good at and our community to do what they are good at, building amazing things. ”

– official support API service tutorial: https://github.com/bh2smith/dunecon-workshop…

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3/Review Dune

In the Founder Interview & AMA session at the end of the meeting, Mario Gabriele took everyone to review the past of Dune:

Haga and Olsen provided personally in the early days of Dune Customer service is inefficient but represents the enthusiasm and original intention of the two founders. Such as solving Query problems for Matteo Leibowitz – Uniswap Labs members on Friday nights, and even teaching SQL every week.

Dune's community cohesion is also what makes it special. The working mechanism of the community is similar to POW. Members in the community need to bring real skills and communicate with each other. Dune has become a channel for the Wizards in the community to display their research results, and many people have gotten ideal positions because of it.

When Dune began to be recognized gradually, the first thing they did was to create an API so that more protocols could be connected to give back Community.

Finally, Dune adheres to the concept of "practical art", that is, since we want to create a product, why not let the process Be fun, beautiful and detailed.

Topic 2: How to use Dune as an investor to analyze projects—Richard Chen, 1confirmation

There are three parts in total:

1/How to see Dune's chart

Richard's summary The general trend of successful projects he sees on Dune:

– exponential growth (eg 50% MoM) but still small values on the y-axis ;

– Frenzied vertical rise;

– Retracement from all-time highs, but new bottoms are higher than previous all-time highs.

At the same time, he used three projects (SuperRare, OpenSea, Nexus Mutual) as examples to prove this point of view.

2/ When reading a Dune chart, The content background is very important

There are three differences between Web3 and Web2, which confuse the data and make the judgment biased.

Compared to Web2, Web3 has:

– Punnett model;

- The farce within the team will affect the entire Twitter encryption circle.

2.1/ Ponzi tokenomics

In this part of the Ponzi model, Richard mainly explained Reflexivity works in both directions through Axie Infinity, that is, reflexivity is two-way. One cannot look at an upward trending Ponzi data image and think that it has reached the point where the product meets the market.

2.2/ Liquidity Mining

Richard gave liquidity mining "Pay Token to people so that people can use your product, is It does not conform to the logic of the product." He also talked about the current state of the lending market, which breeds the emergence of such projects that do not conform to product logic.

2.3/ Products and Team

In the third part, Richard once again explained the importance of products and teams through the comparison of Sushiswap and Uniswap.

If the product is just copied, without differentiation and innovation, it will eventually fail. At the same time, the organizational structure of the team also has a huge impact on the project. A good team has more Missionaries than Mercenary Founders.

3/ Hot Takes

a.Marketplaces > Aggregators

Richard believes that the Marketplaces The role of the aggregator is greater than that of the aggregator. Aggregators only make sense if the underlying market is decentralized. But the crypto market is still mostly winner-take-all.

Richard explained that he believes aggregators are overhyped by the market. Until 2022, aggregators still have a large market share, and it is still the underlying interaction involved.

As bookmakers or winners, when the market is very scattered, they can take almost most of the profits. Richard also believes that the next market must also be a decentralized market.

b.NFT  Financialization > NFT Marketplaces

Richard believes that the role of NFTFi is greater than that of the NFT market, and NFT's financial mortgages are more resistant to selling pressure.

During the bull market, NFT holders want liquidity and high leverage.

During the bear market, NFT holders (especially users with blue-chip NFTs such as Bored Ape Yacht or Cryptopunk) prefer to obtain downside protection. It is more similar to a put option, which can provide hedging protection for your assets.

Topic 3: Interpretation of Uniswap V3 Data— @AustinAdams10  @xin__wan , Uniswap Labs

It can be roughly divided into three parts:

1. How is Uniswap data generated?

Event records most of the useful data, the difficult part is to parse these Events and record them in the database; Dune solves this problem and builds on Event Many indexes are built.

2. How to use Uniswap data?

a. Briefly analyze the user retention table, Token transaction volume table and DEX comparison table made by Dune. In the DEX comparison, the transaction volume of Uniswap ETH/USD Accounting for more than 60% of it, DODO's stablecoin trading pairs account for a large part of it, which has certain advantages.

b. Uniswap Labs uses Dune to assist Product development and decision-making, such as user retention data to assist product function development.

3. Analysis JIT(Just In Time) liquidity.

a.JIT liquidity simply means that when LP detects that there is a large transaction swap, it injects a large amount of liquidity instantaneously and withdraws it after the swap ends. According to data analysis, JIT liquidity has been less than 1M most of the time in history, and compared with the overall Uni liquidity, it accounts for less than 1%. From the perspective of the handling fee earned by LP through JIT, the proportion is lower.

b. JIT liquidity has actually become the counterparty of a large amount of swap, providing it with sufficient liquidity, which makes the trader's price optimal. These analyzes are easily done on Dune.

4.Q&A link< /h4>

Q1: Considering that the large amount of swap will lead to a large profit in the price difference, the JIT ratio may be small, and the actual ratio may be higher?

A: LP is rational, and the price difference caused by large swap will have many opportunities to make money. LP will choose the optimal trading strategy. In many cases, JIT Not optimal. The JIT that has occurred should be the optimal choice for LP after evaluation.

Q2: You have demonstrated in your blog that JIT is not a problem to worry about, so what areas will you focus on next, and what actions will you take on the product? ?

A: We continue to pay attention to how to improve the market efficiency of Uniswap. I am sorry that we cannot share more details about the products under development, but we have done a lot of economic analysis and simulations, follow us to see more progress in the next few months.

Topic 4: Evolution of DeFi user base—Danning Sui , 0xLabs

1. Diversification of DeFi application tracks

Competition Tao can be roughly divided into the following categories:

- Lending: currency holders, borrowers, lenders, liquidators; – Derivatives: options, futures, synthetic assets ;

- NFT (mainly order book-based): trading users, matching/relay;

- cross-chain bridge: users, LP;

By the way, let's take a look at the evolution history of DEX transactions:

– 2016-17: order book style;

– 2018-19: AMM (stablecoin/yield aggregation innovation);

– 2020-21: Institutional entry, Dex aggregator (comparison of arbitrage and RFQ, 0x labs made a prediction model);

– 2022: Retail entry, anti-mev function embedding;

Aggregators account for about 20% of the transaction volume, which does not sound reasonable.

The following figure shows the Ethereum DEX 7-day transactions. A single color means trading only on a certain dex, such as pink and blue. Yellow indicates transactions between different dexes, red indicates large degen transactions or MEV.

Metamaskswap mainly uses 0x api.

Second, transaction role:

– Novice users

– Active mid-level users

– Smart money/big players – Institutions

– Sophisticated MEV users (including smart money and institutions)

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There are several types of DEX transaction stakeholders:

– LP: active management tools, MEV tools, mining;< /p>

- Trading users: retail investors, arbitrage robots, institutions, peer-to-peer;

- Pending order takers: market makers, institutions, arbitrage robots;

The share of professional RFQ market makers is growing, and it is also more market-making than AMM efficient.

Uniswap is provided by 5 addresses 50% of the transaction volume, while the transaction volume via 0x api is different:

1. There are many bots on DEX;

2. Aggregation better.

Three .Multi-chain vs. Solana account registrations shows that the number of users has increased, but this is not equal to the number of wallets.

Comparison of the number of multi-chain DEX trading wallets As can be seen below, there are many more users on Ethereum.

Topic 5: Using Dune and others Data from a macro perspective to see Crypto tracks—Tomasz Tunguz, Redpoint Ventures

1) At present, the daily active users (DAU) of each public chain is a measure of the ecological The important indicators of the network are about 2.5 M (the current Internet users are 5B), mainly concentrated in BSC, Solana and Ethereum:

2) CEX has about 90M active users, among which  http://Crypto.com  is the highest. In the past, large investors generally traded on DEX, while retail investors generally concentrated on CEX. As institutions enter CEX, the user distribution of the two begins to converge.

3) DEX: hosting ETH wallet The daily active addresses (analogous to CEX's DAU) of 2000 decreased slightly. But single DEX buyers are up 5.5% per quarter. Since June, DEX trading volume has dropped by 90% overall. Compared with CEX, DEX trading volume fell faster.

4) NFT trading volume has dropped by nearly 97% since the summer. OpenSea’s market share continues to rise, with 40% of NFT buyers buying NFTs on Solana. Due to the small volume of NFTs on Solana, Ethereum NFTs still account for 90% of the total merchandise transactions.

5 ) Ethereum & L2: The transaction volume on L2 accounts for 30-40% of the ETH transaction volume. But the transaction fee on L2 only accounts for 2% of the total transaction fee. In addition, about 250M assets are flooded into L2 every month.

6) MEV: past year The number of unique MEV bots has risen about 30% since then. Primarily targeting wETH (53%) and USDC (36%) for value extraction. It can be seen that the profit margin of MEV is getting smaller and smaller, which is a good thing for the entire ecological space.

7) Developers: There are 27M developers worldwide, and Web 3 developers Only 16K. It seems that there is still a long way to go to encourage developers to join Web 3. The number of weekly active developers is relatively stable at about 6K contract deployments per week.

8) Valuation: You can see The P/S ratio of NFT and e-Bay (3.4) is very close, and the P/S ratio of DEX and traditional trading platforms is also similar, reflecting that investors will treat these two markets equally when investing, which is of great significance.

Topic 6: Round table: Paths & ; Careers & Sparking Joy in Web3 Data Science – Florian Barth, Hildebert Mouli, Kofi Kufuor, Chuxin Huang , Elias Simos

Hildebert Mouli from 1confrimation, Optimism Chuxin Huang, Hildebert Mouli from Dragonfly, and Florian Barth from Dune talked about how and why they entered Web3 and their thoughts and feelings about working in Web3.

Rated's co-founder Elias Simos tells his story with Dune. It took him 6-8 months to get started with SQL, and finally successfully built the first wbtc supply dashboard on Dune.

Initially, there was no creator attribution item on the Dune panel, and the creators spent a lot of time. When he gave feedback with the Wizard community, Dune responded quickly, adding features such as signatures and star rates to creators in credit.

He used three words to sum up the characteristics and advantages of Dune well: a community, proof of work and conduit of truth.

Topic 7: Interpreting the governance status of Gitcoin DAO through the Dune Kanban— @ivanmolto  and Fred Hjalmarsson, Gitcoin DAO

First, Ivan interpreted the GitcoinDAO: Governor Alpha & Timelock panel, explaining the meaning of each indicator one by one.

https://dune.com/ivanmolto/GitcoinDAO:-The-case-for-Governor-Alpha

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The panel data includes:

– The total number of historical proposals, ongoing/failed/passed proposals;

– The total/independent number of voters;

– The number of votes;

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– GitcoinDAO current proposal;

– Proposal voting and distribution of voters;

– Initiator address and the number of proposals initiated;

– Voter address and its total number of votes;

– Governor Alpha: queue/execute caller, GTC from Treasury to Timelock.

Governor Alpha is the protocol governance module that allows addresses over 1,000,000 GTC (proposal threshold) to propose changes to the protocol.

Proposals via the getpriorvotes function call initially have voting weight addresses that can submit votes during the 40320 Ethereum block voting period.

If the proposal gets a majority with at least 2,500,000 votes (quorum), it will be queued in a Timelock for execution after 2 days.

Ivan believes that with the increase of DAO operation time, GitcoinDAO has gradually matured and shown a trend of becoming more and more decentralized. This means a more reliable community, more participation in governance, and more transparent governance.

Fred explained the GitcoinDAO: Governance & Financial overview panel.

https://dune.com/ivanmolto/Gitcoin-DAO

This panel is from Different dimensions interpret the distribution of Governance Token GTC. Including: the number of GTC Token holders, the number of agents, the number of agent supervisors, etc. It shows that the number of agents is gradually increasing, and the distribution of agent supervisors tends to be even. The data shows that when the number of proxy managers exceeds 9, the voting power exceeds 50%.

On the other hand, the panel also includes an analysis of treasury stablecoin assets. With the maturity of DAO and the advent of the bear market, more Workstreams are configured with stablecoins to diversify treasury assets.

Finally, Ivan added the relevant addresses listed in the panel: treasury addresses, workstream addresses, and donation addresses can all be found on this panel.

Fred introduced the upcoming new product Steward Health Card & Workstream Card. Steward Health Card will focus more on off-chain data related to governance members to assess their participation. Workstream Card can track the relevant data of each workstream in real time through Dune's API.

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