Weekly Editors Picks is a functional column of Odaily. In addition to covering a large amount of real-time information every week, it also publishes a lot of high-quality in-depth analysis content, but they may be hidden in the information flow and hot news and pass you by.
Therefore, our editorial department will select some high-quality articles worth spending time to read and collect from the content published in the past 7 days every Saturday. From the perspectives of data analysis, industry judgment, opinion output, etc., we will provide those in the encryption world with You bring new inspiration.
Next, come and read with us:
Investment and Entrepreneurship
The Fed adjusts interest rates by at least 25 basis points each time, and the adjustment decision is announced through the Federal Open Market Committee (FOMC) meeting. The motivations for raising interest rates include the need to prevent economic overheating, reduce inflation, and adjust monetary policy.
The Federal Reserves most recent complete interest rate hike cycle was from December 2015 to December 2018. This round of interest rate hikes has come to an end. However, the end of interest rate hikes does not mean an immediate reduction in interest rates. The most likely scenario is to maintain high interest rates for a period of time, and then the Fed will make adjustments based on macroeconomic data such as CPI, PCE, and non-agriculture.
The growth of the bull market in the crypto market relies on the spillover effect of funds. The release of water was first reflected in the US stock market. Funds flowed into the US stock market, causing the US stock market to start a bull market. Too much funds in the US stock market spilled into the currency circle, and the currency circle was also affected and entered a bull market. . We can have an intuitive understanding of the strength of the U.S. dollar through the U.S. dollar index, and thus determine whether funds are flowing into the U.S. dollar market from the risk market.
The way in which incremental funds enter the market is to use legal currency to purchase centralized stablecoins. Stablecoin issuers issue additional stablecoins on the chain, and the market value of stablecoins increases. Since the funding information of centralized stablecoins is not transparent, stablecoin issuers are likely to over-issuance, and there are certain limitations in looking at the market capitalization of stablecoins. In fact, the big market does not necessarily require the inflow of incremental funds. The bear market is a game of existing funds. When stablecoins continue to have a net inflow into CEX, it indicates that capital activity is high and traders have strong bullish sentiment.
DeFi
Foresight Ventures: The Holy Grail of Stablecoins, Ponzi, Leverage, and Liquidity
Heterogeneous chains combined with stable currency protocols can easily produce Ponzi magic;
MakerDAO’s bull-bear strategy switching is achieved by switching the source of income from on-chain to off-chain;
AAVE’s next strategy is to increase GHO yields through Aura;
In the future, the ecology based on curve and convex will continue to produce a large number of crvUSD cannon fodder;
Abracadabra points a definite direction for the development of stablecoin protocols during bull cycles;
Maintaining yields in bear markets and increasing leverage in bull markets may be the right path for stablecoin protocols.
A brief analysis of the 6 decision-making models of DeFi lending agreement interest rates
Pricing is the mechanism for calculating how much interest rate borrowers and lenders will pay each other. The article introduces:
Order book pricing: most flexible and market-driven, but needs to be weighed against user experience;
Utilization-based pricing: This model finds product-market fit in DeFi, but is not 100% efficient and underperforms in extreme cases;
Auction: Good pricing and high loan efficiency, but requires users to plan in advance, the secondary market is fragmented, and there are other small frictions;
Ajna utilization model: a modification of the classic utilization model, suitable for use in oracle-less protocols;
Tazz perpetual loan financing model: a new p2pool lending primitive that allows the market to price interest rates, making collateral fully modular;
Manual Pricing: Governance-led pricing.
An article explaining the Restaking protocol proposed by EigenLayer
In essence, Restaking is a shared security mechanism that allows the same assets to be pledged to multiple decentralized applications/blockchains at the same time to provide them with security.
NEAR ecological leading infrastructure project Octopus Network announced the follow-up Restaking service. Octopus Network allows holders of $NEAR to restake for the application chain while staking the NEAR public chain, providing security to obtain the staking rewards provided by the application chain.
In various shared security solutions, there are three key stakeholders, namely decentralized applications/blockchains, blockchains that provide shared security and pledgers. The Restaking mechanism not only realizes the three maximize the interests of all parties and completely unify the interests of the three parties.
NFT, GameFi and the Metaverse
GameFi Summer is here again? Sector rotation or improving fundamentals?
Since September this year, several higher-quality GameFi projects such as Matr1x Fire and Mahjong have appeared on the market again, and they have received excellent response from the community. Established chain game projects are making great efforts, chain game masterpieces are being launched intensively, and the Base chain is starting a GameFi carnival. The current token price is still at the bottom stage where the price has returned to value after the bubble burst and has stabilized. From a financing perspective, funds are still choosing to enter the chain gaming sector. At the same time, playability is also inseparable from the follow-up of infrastructure.
Web 3.0 and AI
Technology is truly amazing, and delaying its development can be extremely costly. Environment and willingness to coordinate are important.
Artificial intelligence is fundamentally different from other technologies and requires special care. It is a new type of thinking that is rapidly improving the level of intelligence, and it has a serious chance of surpassing human intellectual capabilities and becoming a new top species on Earth. A future of super-intelligent artificial intelligence is probably not the world we want to live in. In the age of artificial intelligence, the complete disappearance of natural limits to government existence could have dire consequences. The war became a purely technological contest.
OpenAIs governance structure appears to be a well-intentioned effort to balance the need to be profitable in order to satisfy the investors who provided the initial capital, while at the same time creating a system of checks and balances to resist moves that could allow OpenAI to destroy the world.
d/acc (decentralized acceleration) - defensive (or decentralized, or differential) accelerationism - a defensive world conducive to healthy and democratic governance thriving, including macro-physical defense, micro-physical defense (also known as biodefense), cyber Defense, information defense, etc. As superintelligent AI acts independently of humans, the situation becomes even more precarious. The most powerful AI may quickly get ahead due to recursive self-improvement, and once an AI becomes more powerful than humans, there will be no power to rebalance things.
A Path to Happiness: Merging with Artificial Intelligence. We need to build and accelerate.
Ethereum and Scaling
Comprehensive data comparison: Who is the future star of the L2 track?
Chaos Blast’s data and layout before entering
The mature Layer 2 and supporting cross-chain infrastructure can already meet the demand for smooth migration of funds and can pursue good applications. In the future, it may gradually move from thin applications to fat applications.
For Layer 2, the need to capture users, retain users and keep funds active cannot rely on airdropped PUA. What really makes a Layer 2 stand out is narrative.
Footprint Analytics: Is Layer 2 Really Scaling Ethereum?
Currently, there are three main types of Layer 2: Rollups, State channels (such as Raiden Network) and Plasma (such as OMG Network).
There are two main types of Rollups: Optimistic Rollups that use fraud proofs to ensure the validity of off-chain transactions (such as Arbitrum One, OP Mainnet and Base) and Zero-knowledge Rollups that use zero-knowledge proofs to enhance privacy and security (such as zkSync Era , Starknet, Linea and Polygon zkEVM).
Representatives of Layer 2 innovations include: Superchain proposed by the Optimism ecosystem, Hyperchains launched by zkSync, and Arbitrum Stylus launched by Arbitrum.
The narrative of Layer 2 includes full-chain games, modular blockchain, zero gas fees, Layer 3, etc.
Key challenges faced by Layer 2 are proving the security and decentralization of the system, decentralization of the sequencer, cross-Layer 2 wallets, data availability, ecosystem and applications.
Foresight Ventures: Nitrogen Accelerates! How ZK coprocessor breaks smart contract data barriers
The CPU can complete most tasks, but once you encounter a specific task, you need the help of a graphics card because the CPU has insufficient computing power. The CPU is the processor and the graphics card is the co-processor. Mapping to the blockchain, the smart contract is the CPU and the ZK coprocessor is the GPU.
Coprocessors can easily and asynchronously handle specific tasks that are too high-barrier and cumbersome for the central processor to handle on its own. One of the biggest bottlenecks facing smart contract developers remains the high costs associated with on-chain computation. Blockchain virtual machines (such as EVM) themselves are not suitable for handling large amounts of data and intensive computing tasks, such as the above-mentioned decompression work. The design focus of EVM is to execute smart contract code while ensuring security and decentralization, rather than processing large-scale data or performing complex computing tasks. Therefore, the ZK coprocessor came into being. ZK rollups are actually the earliest ZK coprocessors.
ZK coprocessor has a wide range of applications. ZK coprocessor can theoretically cover all application scenarios that Dapp can cover. Representative projects in this field include Axiom, Risc Zero, Brevis, Langrange, Herodotus, HyperOracle, Pado, etc.
In the two processes of data capture and calculation, ZK ensures efficiency and privacy at the same time. ZK coprocessors will become powerful middleware, reducing costs and increasing efficiency for data capture, calculation, and verification of smart contracts while ensuring security, privacy, and trustlessness, liberating the data network, and opening up more possibilities. , becoming the infrastructure for real purpose application implementation and on-chain AI Agent.
New ecology and cross-chain
Starknet’s new roadmap is released, which DeFi protocols are worth focusing on?
Starknet has identified 5 major issues, namely network stability improvement, V3 transactions, transaction fee market, using EIP-4844 to reduce L1 fees, and reducing transaction costs through Volition mode. STRK will be used as a pledge token, governance token to participate in the Starknet consensus mechanism, and to pay transaction fees.
The author also selected some DeFi protocols worthy of focused interaction and gave a brief introduction: JediSwap, Ekubo, mySwap, SithSwap, AVNU, zkLend, Nostra.
Hot Topics of the Week
In the past week,U.S. SEC seeks public feedback on Franklin Templeton and Hashdex Bitcoin ETFs, Franklin has updated its application documents，U.S. SEC confirms receipt of Fidelity Ethereum spot ETF application proposal submitted by CBOE，Grayscale plans to adjust GBTC fee structure and asset custody methods to prepare for the listing of spot Bitcoin ETF，DCG reaches $200 million repayment deal with Genesis, ending litigation over approximately $620 million in loans，U.S. judge approves Voyager Digitals $1.65 billion settlement with FTC，CZ resigns as Chairman of Binance.US Board of Directors，Montenegro court approves extradition of Do Kwon to South Korea or US, Hong Kong police:The amount involved in the HOUNAX fraud case is about 120 million yuan, and it may be jointly investigated with overseas institutions；
In addition, in terms of policy and macro market,Charlie Munger dies，OpenAI announces Sam Altman’s official return as CEO and the establishment of a new board of directors；
In terms of opinions and voices,Coinbase CEO Says Binance and DOJ Settlement Will End Era of ‘Bad Actors’ in Cryptocurrency Industry,JPMorgan:Binance’s settlement with the U.S. government removes uncertainty and will help Binance regain market share, Binance’s new CEO:Binance is undergoing a transformation from a tech startup to a traditional financial company, TRON spokesperson:It is a completely wrong conclusion to think that Tron can control the users entity，Mark Cuban：New American urban housing plans can be delivered with the help of L2 smart contracts and NFTs，Paradigm GP：Disagree with some of Blasts designs and are communicating related concerns with the team，BanklessDAO：Applying for ARB funding has nothing to do with Bankless. We plan to modify the proposal and shorten the activity cycle in the future.；
In terms of institutions, large companies and leading projects, BC Technology:Its subsidiary OSL cooperates with Victory Securities to provide BTC and ETH trading services to Hong Kong retail customers，DOGE-funded and named SpaceX Doge-1 satellite receives regulatory approval，Internal governance conflicts in the Cosmos community rise，；
NFT and GameFi areas,Gas Hero has officially launched community testing（experience）；
In terms of security incidents, Justin Sun:HTX and Poloniex will soon open deposits and withdrawals, and airdrops will be launched for users with assets on the two platforms，Blast：An incorrect parameter configuration caused a user to receive less than 100,000 DAI after making a deposit. The problem has now been resolved.，ANTPOOL：A previous user’s 83 BTC transaction fee will be refunded, and the user’s identity will be verified before refunding.，The KyberSwap attacker proposed settlement conditions such as obtaining complete control of the Kyber company and handing over all property...Well, it’s been another week of ups and downs.
Attached is the Weekly Editors Picks seriesportal。
See you next time~
