The cryptocurrency fund ArkStream Capital has invested in nearly 20 projects in the second quarter of 2021. We will start with project introduction and track analysis to explain why we invest in these projects.
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Handle.Fi
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Handle.Fi is built on Ethereum and provides an exchange protocol for stablecoins anchored to multi-national fiat currencies. The first stablecoins to be issued are fxTokens anchored to the Australian dollar (fxAUD), Japanese yen (fxJPY), Korean won (fxKRW), Chinese yuan (fxCNY) and Singapore dollar (fxSGD).
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With the development of DeFi, the demand for stablecoin staking has surged. As of the end of June, the market value of stablecoins exceeded 100 billion US dollars, with an average daily trading volume of 500 million US dollars. The development of the stablecoin market has also led to the rise of the entire DeFi market. This mutual promotion relationship has prompted the market to meet the needs of participants Stablecoins for hedging, speculation, and payment to support the income ratio of DeFi mining.
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(As of July 5, 2021, stablecoin data source: CoinMarketCap)Ampleforth (AMPL), Empty Set Dollar (ESD), Frax (FXS) and other algorithmic stablecoins that do not require asset collateral,
Stablecoins that are over-collateralized by asset pools such as MakerDAO and Handle.Fi maintain stable prices through the issuance of digital assets fully collateralized and guaranteed. This method solves the stability problem to a certain extent. However, the dollar-anchored stablecoins headed by USDT still face many problems. For example, the depreciation caused by the continuous over-issuance of the US dollar affects the price fluctuation of stablecoins; under the centralization, they have to face the fact that the USDT is constantly over-issued. The top 5 stablecoins by market value are all anchored by the U.S. dollar. The U.S. dollar occupies an absolute position in the stablecoin market. A single anchored U.S. dollar cannot resist foreign exchange risks.
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-Why invest in Handle.Fi?
The multi-currency stablecoin exchange provided by Handle.Fi can settle transactions in local currency, reducing conversion costs and foreign currency risks; efficient conversion between multi-currency stablecoins; introducing Layer 2 solutions and leveraged products can speculate on foreign exchange trends, The value imagination space of the traditional foreign exchange market is broader.
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DeepDAO
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DeepDAO explores, ranks and analyzes all DAOs in terms of market value, transaction data, number of members, number of proposals, voter status, track classification, etc., and provides neutral and objective information to the community to help DAO members make decisions. Its included projects includeDAOstack、 Moloch DAOsandThe LAODAOs created on such platforms.
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-Explore DAOs
In previous investment reports, we mentioned that DAOs related to DeFi governance began to gain favor from the market. But not all DAOs are related to asset management. The current DAO categories include: Governance DAO, Application DAO, Yield DAO, CreatorMedia; DAO, DAO Adapter, Guild, Asset Management DAO, Aggregator, etc.According to the data on DeepDAO, the total assets on DAO reached 837.1 million US dollars, and the number of DAO members and token holders has reached 190.6k (as of July 5, 2021).
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(As of July 5, 2021, the data displayed on DeepDAO)It can be seen from the data that DAO is expanding in size and volume.When developers and entrepreneurs put more energy on product iteration, the mechanism of DAO will continue to be explored.
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-Why invest in DeepDAO?Eyal EithcowichDeepDAO has always kept its original intention in line with the essence of DAO, and has grown to have more than 2,000 DAO organizations and thousands of community members. Founder of DeepDAO, has worked in Apple and several Fortune 500 companies. In cross-field, he is still a、film producerandandactivist
. The entire team implements the DAO model, and the exploration of DAO requires these experienced members.first level title
Evanesco Network
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Evanesco (EVA for short) is a unique financial protocol platform in the Web3 ecosystem that combines Layer0 network infrastructure and privacy computing framework.
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-Privacy Solutions
In the past few years, many privacy-focused blockchain projects have exploded. Most existing privacy protocols are designed based on the UTXO model, which cannot execute complex logic and has poor programmability. Likewise, account model blockchains are difficult to maintain privacy because the balance in the account will show an update every time the related transaction is confirmed on the blockchain.Projects such as Zecrey, MantaNetwork, and Evanesco that focus on privacy solutions in the Polkadot ecosystem are established through their respective underlying frameworks (for example: ZK-Rollup, TEE, Layer0) in asset privacy protection, information transmission privacy protection, and user account information processing. corresponding solution.
Evanescos Layer0 privacy network has started to protect the privacy of block transaction data from the application layers bastion pool, bastion wallet, P-DEX, P-NFT, P-Token and other products. Middleware products mainly include bastion account, bastion protocol, and bastion privacy pool P-Pool. At the same time, EVA middleware products will support multi-chain ecology, including Polkadot, Ethereum, Solana, BSC, etc., and provide cross-chain privacy assets at the intermediate protocol layer flow.
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-Why invest in Evanesco Network?
The complete EVA privacy financial protocol will cover the underlying infrastructure layer and the heterogeneous multi-chain intermediate layer. EVA not only provides a decentralized, elastic, and secure network infrastructure for the encryption ecosystem, but also provides an easy-to-use And the unified security fortress privacy protocol layer middleware product, completes the scalable, high-efficiency, heterogeneous cross-chain privacy asset protocol under the multi-chain ecology.
GPoW two-layer consensus mechanism developed based on computing power proof mining algorithm and Polkadots GRANDPA algorithm. The consensus consists of PoW miners and PoS validators. PoS validators confirm transactions and share profits. PoW miners mint tokens and elect PoS validators. They cooperate with each other to eliminate the potential risk of centralization to a certain extent.Evanesco integrates asset issuance, management, transfer, and cross-chain interoperability, while providing privacy liquidity for wallets, exchanges, and aggregated transaction services.The markets demand for privacy has always existed, not just from the perspective of transactions. The value that a complete privacy protocol framework can create is more reflected in the ecological value.
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Pontem Network
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Pontem Network aims to build a bridge between the encrypted world and Diem, so that value can be exchanged between the two, helping Diem users access most of the use cases in the encrypted world. The DApp framework based on Polkadot is used to establish interoperability between DApps built on public chains such as Ethereum and Polkadot and Diem.
-Libra & Diem
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Libra has been under regulatory pressure, losing the support of major partners such as PayPal, eBay, Mastercard and Stripe. However, Facebook did not give up on its footsteps in the field of digital currency. It renamed Libra Diem as a stable currency and decided to cooperate with the Swiss Financial Market Supervisory Authority (FINMA) to obtain a payment service license. According to Facebooks plan, by the end of 2021 A stablecoin Diem pilot will be launched.
Facebook has nearly 3 billion monthly active users, giving Diem the greatest potential gain in blockchain projects.Diem may be integrated into transactions on Facebook, Instagram, Messenger, and Whatsapp, such as: shopping, paying for ads, sending money to friends, etc.
However, Diem also needs to face strong regulatory measures, which makes it difficult for anonymous lending financial DeFi to be realized on it. Moreover, the centralized management method continues a series of problems such as information inequality, permission to operate nodes, and user KYC verification.
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-Why invest in Pontem Network?
Polkadot provides developers with a scalable and fully decentralized ecological environment, which is exactly what Diem will lose. Pontem Network links Polkadot with Diem, writes smart contracts in Move, compiles them with Move VP, and Deploy off-the-shelf products on Polkadot parathreads.Pontem serves as a bridge that enables applications on Polkadot, such as DeFi and Diems NFTs, to benefit from each other.
With the support of more than 30 investment institutions at home and abroad, including Web3 Foundation, Mechanism Capital, and Kenetic Capital, Diem provides KOL with a direct interactive NFT platform through Diems 2.8 billion Facebook user resources.
Although Pontem is a connector, the potential it can connect is huge.
Unbound Finance
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Unbound is building an AMM derivatives layer using an innovative, debt-free liquidity provisioning system to unlock liquidity from the AMM pool. It does not charge any interest and is free to liquidate. Currently, its smart contracts support Uniswap, Balancer, Mooniswap, Bancor, Curve.Fi, etc.
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The transaction volume of the entire DEX market in the Q2 quarter (April-June) of 2021 will reach a peak of nearly 12.4 billion US dollars per day, and the average transaction volume will be about 2.5 billion US dollars per day. How to maximize the value of LP is a question currently being considered by synthetic assets.
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(DEX trading volume in Q2 2021, data source: TokenInsight)Traditional synthetic asset projects such as Synthetix and Mirror, which re-borrow mortgages on mortgage assets, have not tapped the undiscovered value in DeFi, and there are risks of liquidation and runs.
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-Why invest in Unbound Finance?Unbound is one of the first projects on Uniswap V3 to launch aggregator contracts and strategies to provide centralized liquidity.
Unbound captures the composability and permissionless features of DeFi, and utilizes the LP value locked in the DEX market, which is potentially unlockable liquidity.
Unbounds flexible combination method and the stock LP brought by the DEX market provide a huge room for imagination in terms of composable features.
ArkStream Capital is BlockArks primary market cryptocurrency fund, dedicated to promoting the growth of Web3.0 unicorns. Investment projects include Efinity, Calaxy, Pocket, HOPR, Xend, Litentry, Dora Factory, etc. The team members are from Accenture, Tencent, Google, etc. Advisors include Dr. He Jia, former director of Shenzhen Stock Exchange Research Institute, and Dr. Andy Liu, former vice president of Goldman Sachs Asia Risk Department.
Website：BlockArk.io
Medium: https://arkstreamcapital.medium.com/
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