BDP opened high and went low, the bubble of "on-chain digital exchange" burst quickly
Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: Kyle, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
Honeycomb Finance News (ID: fengchao-caijing)
, Author: Kyle, reproduced by Odaily with authorization.
Ethereum, which was recently robbed of the limelight by the exchange public chain, finally gave birth to another phenomenal application. Big Data Protocol, which is in the liquidity mining stage, is under the support of market funds, forming a scene where governance tokens and "data tokens" generated by the protocol are simultaneously rising.
According to the official description, Big Data Protocol is similar to an on-chain data exchange. BDP is the governance token of the protocol, and the protocol will also generate various "data tokens". In addition to the value of community governance, the former can also be used to submit and access data sets; the latter allows users to exchange various commercial data. At present, the bALPHA data token has been produced.
In the real world, there have already been such scenarios as big data exchanges. However, the existing data trading market still has problems such as low data value, data islands, poor liquidity, and insufficient external demand. It is not a new concept to use the blockchain to solve the pain points of data transactions. For Big Data Protocol, whether the concept can be truly implemented is the core of whether the application has real value.
At present, the BDP data trading market has not yet officially opened, and two tokens that have no practical scenarios are also experiencing highs and lows, with a drop of more than 80% to 90% respectively. The locked value of the agreement has also dropped rapidly within a week, from More than $6 billion fell to $190 million. BDP, an on-chain digital exchange, quickly experienced the stage of bursting the bubble.
secondary title
Topped the TVL list in two days and became a hit
The most popular sector of encrypted asset application is firmly occupied by DeFi. After Ethereum, the Binance Smart Chain and the Huobi Ecological Chain have succeeded one after another, pushing the flame of DeFi up. However, due to the high ETH Gas fee, the birthplace of DeFi, which was the most prosperous before, was once robbed of the limelight by the exchange public chain with low transaction fee rate, and the phenomenon of lock-up value loss occurred.
At the same time, after phenomenal applications such as Compound (loan), Uniswap (transaction), YFI (aggregated mining), Basis Cash (algorithmic stable currency), there have been no explosions on Ethereum for a long time.
The recent limelight of Big Data Protocol (BDP) has injected some new changes into the slightly silent ecology of Ethereum. From the official introduction, BDP, as a big data protocol, can obtain commercially valuable data. By tokenizing various data and making it liquid, users can pay Token at any time on the chain to purchase various types of data. business data.
BDP started liquidity mining in the early morning of March 7, Beijing time, and began to distribute two tokens, BDP and bALPHA. Users can pledge WETH, WBTC, USDT, USDC, UNI and other 12 assets to obtain BDP. At the same time, by providing liquidity for BDP/ETH and bALPHA/ETH on Uniswap and pledging LP token, they can mine bALPHA, a data token.
The mining of BDP governance tokens lasts for 6 days and has been discontinued at present. Participating users can share 100% of the initial circulating supply of BDP, which accounts for 30% of the total supply of BDP. The mining of bALPHA will last for 3 months, and users who participate in mining can obtain 100% of the total supply of bALPHA.
The total locked value (TVL) of BDP has risen rapidly in the short term. On the morning of March 7, the TVL of BDP exceeded 1 billion US dollars. At that time, the annualized rate of return of pledged USDT to obtain BDP reached 400%, and the annualized rate of return of pledged LP Token to mine bALPHA was about 6000%. BDP soared to US$10, and the price of bALPHA exceeded US$30,000.
BDP instantly became a hot item in the DeFi circle. According to the data of Okey Cloud Chain on March 8, the TVL of BDP exceeded 6.6 billion US dollars. In less than two days, this protocol surpassed established DeFi applications such as WBTC, Maker, Compound, and Uniswap, and reached the top of the list of DeFi locked positions.
As of 3 pm on March 12, it still had a TVL of $6.53 billion, ranking third among all Ethereum DeFi projects. But by the evening of March 14, that figure had dropped to $119 million.
image description
On March 14, the TVL of the BDP agreement fell to $119 million
The popularity of BDP surpassed last year's Yam Finance (sweet potato). Its appearance also pushed the TVL on the Ethereum chain to a record high of $60 billion. So, is BDP a castle in the air or is it really valuable?
secondary title
Open high and walk low for a week, fall to the altar
After BDP became popular, MXC, AEX, BKEX, HOO and other exchanges listed BDP tokens on their own websites, attracting a wave of investors to buy.
However, in the past few days of liquidity mining, the prices of BDP and bALPHA have experienced highs and lows.
According to CoinGecko's data, BDP reached a high of $14.1 at 8:00 p.m. on March 7, and then fell all the way down, falling to a minimum of around $2.5 on March 11, a drop of 82.2%. The trend of bALPHA is similar. After reaching a high of $37,870 on March 7, it fell to a minimum of $2,430 on March 12, a drop of 93% within 5 days.
On March 14, due to the end of the first round of BDP’s 6-day mining, the token price rose to around $4; while bALPHA was still hovering at a low of $2,800.
Like most DeFi assets, BDP has not been able to avoid going out of the K-line of "going online is the peak". Project participant Luna believes that the sharp drop of tokens is almost predictable, because it is only in the liquid mining stage at present, and there are no actual scenarios for the two coins other than mining. , it’s no wonder it doesn’t fall.”
However, in Luna's view, although BDP and bALPHA have fallen a lot, it does not mean that this project is empty. After all, popular DeFi assets such as UNI and YFI also experienced a sharp drop in the early stage. Later, because of the value of the application, the currency price It rose again.
So, how is the value of BDP and bALPHA reflected, and are they really "useful"?
From the public description of the BDP team, big data is a very valuable but poorly liquid asset, and they hope to improve liquidity with the help of blockchain and DEX.
BDP seems to want to use the blockchain to tokenize these commercially valuable data to make it liquid, and users can also "earn data" by providing liquidity for data tokens on Uniswap.
According to the official website, the main application scenario of BDP tokens is to submit and purchase data sets on the chain. Users must hold a certain amount of BDP to access data sets and qualify for airdrops. At the same time, the BDP spent by users during use will be destroyed. The purpose of bALPHA is to purchase data sets of corresponding categories. After purchasing the data sets, bALPHA will also be destroyed.
From the introduction, if big data is positioned as a valuable asset, then BDP and bALPHA are the means of payment for obtaining this asset. However, these scenarios have not yet been officially implemented, and the token value of BDP and bALPHA is still to be verified. This is also the core reason why BDP opened high and went low, and quickly fell to the altar of TVL.
secondary title
The demand for data transactions on the chain is still to be discovered
According to the roadmap published on the official website of BDP, the BDP data market will be launched in April this year. At that time, the agreement will encourage users to publish high-quality data assets, allow private data to be bought and sold, and even support the use of data tokens such as BDP and bALPHA as collateral to issue stable coins. .
image description
BDP Data Market Demo Page
As can be seen from the roadmap, BDP is more like a decentralized on-chain data trading center. Ideally, users can not only purchase commercial data provided by professional data companies, but also publish or purchase data released by other users for peer-to-peer data transactions.
A data trading platform similar to BDP has precedents in reality.
Taking the Chinese market as an example, in April 2015, the first big data exchange——Guiyang Big Data Exchange was officially listed, and market participants such as Tencent, Guangdong Digital Research Institute, JD Cloud, and CICC Data System completed the The first batch of data transactions. Then, “digital exchanges” such as Wuhan East Lake Big Data Trading Center, East China Jiangsu Big Data Trading Center, and Shanghai Data Trading Center were established one after another.
These big data exchanges carry out data futures, data financing, data mortgage and other businesses for data vendors, and the types of data include big data such as medical care, finance, e-commerce, education, and social networking.
However, although there are many "data exchanges", the scale of the data trading market is always relatively limited. Analysts believe that there are several pain points in the current data trading market, including low data value and lack of professional data mining tools; most enterprise customers have low sensitivity to data commercial use; external data cannot be connected to form data islands.
So, can BDP solve these problems with the help of blockchain?
On BDP's official Medium, it lists two directions for solving big data problems, mainly around data quality and liquidity.
BDP believes that data is only as valuable as the insights that can be derived from it. In order for data to be of commercial value, it must be carefully acquired from professional data providers, reviewed, combed, processed and analyzed. In this regard, the agreement's network of 14,141 professional data providers can provide and organize data to ensure that all data sets are of commercial value.
With the help of DEX such as Uniswap, the liquidity problem can be solved. At the same time, users can submit data to connect the data in the blockchain network to break the island situation.
