# L1 AVAX Avalanche By [moonduck15](https://paragraph.com/@moonduck15) · 2022-02-04 --- A cheat sheet to illustrate details on [Investors checklist for Blockchains](https://themoonduck-15.medium.com/investors-checklist-for-blockchain-47c14569c263) . Data or stats are not authoritative and picked from scans of tweets, discord , telegram reddit etc 2021 Q4 and some references are provided. In case of any misses do let me know and I will update. _These notes are more on under-the-hood engineering look. A separate article will cover the business development viewpoint_ _I use the trading ticker rather then name and for example for Axie Infinity blockchain game $AXS implies the coin or token and AXS implies the foundation/DAO/founders as appropriate_ **Status : DRAFT** * Basics * Price Action * Stats and Links * Highlight Pro and Con * Technology * Apps Ecosystem * Funds and Promotions * Readings BASICS ------ Founded in 2018 by computer science professor Emin Gün Sirer while a professor at Cornell University and built by blockchain development firm Ava Labs and  launched in September 2020. Claims 4,500 tps and sub 3 seconds finality. AVAX saw [62 Million Transaction](https://twitter.com/mast__balak/status/1481667712430780416?s=20) in 2021 and can scale much more. 800K MAU and 18K+ smart contracts deployed and peak  800 TPS+ [observed](https://stats.avax.network/dashboard/c-chain-activity) ### Price action 14X Return from 2021 low to high and 3.16 USD ( Jan 1) - 109.978 USD (Dec 31) for 3,379.55% return in 2021 ![Snapshot 19 Jan 2022](https://storage.googleapis.com/papyrus_images/bdefc87d0d936c6e57d860e7b1e2e939c0eaad223336e5ce6c9f9ae5512bdc20.png) Snapshot 19 Jan 2022 ### Stats and Links [Community Stats](https://www.coingecko.com/en/coins/avalanche#social) 32K+  Reddit 530K+ Twitter 45K+ Telegram , 12K+ Developers, [Website](https://www.avax.network/) [Explorer](https://explorer.avax.network/) [EVM C Chain explorer](https://avascan.info/)  [Telegram](https://t.me/avalancheavax)  [Discord](https://chat.avalabs.org/)   [Github](https://github.com/ava-labs)  [Twitte](https://twitter.com/avalancheavax)r  [Reddit](https://www.reddit.com/r/avax/)  [Youtube](https://www.youtube.com/c/AvalancheAVAX)   [Linkedin](https://www.linkedin.com/company/avalancheavax/) ### Highlights Pro and Con * Modular with ability of a separate ‘app’ specific sub net or L2 chain * EVM compatibility option * Fast DAG ( Directed Acyclic Graph) selection for chain validation * Rich DeFi apps ecosystem * Sub net can support ability for [_Permissioned Initiators for FATF travel rule_](https://investors%20checklist%20for%20blockchain/) * DeFi yields are not as competitive as on other chains * Centralization of sers. with [37% of $AVAX in 30 wallets](https://twitter.com/avaxholic/status/1430879184964911105?s=20) may not be a concern if CEX like Binance and Coinbase are holding them Technology ---------- AVAX uses a **modular approach** where primary network supports  3 separate sub nets or block-chains and more can be added. Default contract execution is a different Exchange chain (X-Chain) from the consensus protocol on the Platform  P-chain and an (optional )  Ethereum compatible EVM on Contract C-chain.  The  Avalanche primary network or block chain coordinates across these 3 and optional more subnets or block chains (L2 ). This is a variation of modular architecture used by Polkadot, Cosmos and L2 Rollup of Ethereum ( Polygon, Arbitum, Optimism , Skale etc..) ![The modular architecture with data contract and consensus separated out](https://storage.googleapis.com/papyrus_images/b68fd8236819e128dad921bba1fee2d127185cc92e590854d1b49cf7e627ac4c.png) The modular architecture with data contract and consensus separated out The X-Chain is used to mint assets on Avalanche. The P-Chain makes it possible to create customizable blockchains called subnets ( like parachains in Polkadot), which leverage Avalanche’s existing validators.  Validators need 2000 $AVAX to stake  are required to be a member of the Primary Network; all other subnets are optional. Each subnet can have multiple blockchains, just like the primary network, and each blockchain can have its virtual machine. So you can copy the Ethereum virtual machine just like the direct chain did with the C-chain or [develop your own and leverage Avalanche as the base laye](https://twitter.com/jayks17/status/1481417673858637826?s=20)r as intended. ![](https://storage.googleapis.com/papyrus_images/7af454d665cdb302e72e56fafd0a01dda880e4672b83cd0df51b6e438f58ffb9.png) _The subnet can be permissioned and require KYC/AML identity for an enterprise or government use case and may have their own tokens._ _An snapshot of the Avalanche Explorer on subnets in play via_  [_Avax Explorer_](https://explorer.avax.network/blockchains)_._ ![Snapshot from Avax Explorer](https://storage.googleapis.com/papyrus_images/f6b3e489cb9b6bb6f6d4e42cc5a51bedc90cfb7b33e5f9bbf60d3e34370ce209.png) Snapshot from Avax Explorer **Consensus** Avalanche is a POS block chain with 1,000+ validators and uses Classical and Nakamoto consensus borrowing from from a white paper ["Snowflake to Avalanche: A Novel Metastable Consensus Protocol Family for Cryptocurrencies"](https://ipfs.io/ipfs/QmUy4jh5mGNZvLkjies1RWM4YuvJh5o2FYopNPVYwrRVGV) developed by a pseudonymous group named Team Rocket in May 2018. AVAX uses DAG (Directed Acyclic Graph) and nodes execute random patterns many times over and over and periodically update their state until a consensus is reached. ![https://miro.medium.com/max/2000/1\*2AG6HrNErZYiw304a3IONw.png](https://storage.googleapis.com/papyrus_images/85303f018ab17bb8f61736c1cbbcb055a84aaa1d312b0cf7c997ed7946a6b1bc.png) https://miro.medium.com/max/2000/1\\\*2AG6HrNErZYiw304a3IONw.png AVAX provides **on-chain governance** for critical network parameters where participants can vote on changes to the network and settle network upgrade decisions democratically Avalanche has a fixed capped supply of 720 million of $AVAX and a stake and burn mechanism .At launch, 360 million AVAX were minted and sold through private and public sales. The remaining 360 million AVAX are for staking rewards distributed over the following decades. Of the minted tokens, there are various vesting periods from one year to 10 years. App Ecosystem ------------- Pangolin was first DeFi app on AVAX and Trader Joe is popular DEX ( swap). BenQi is lending borrow like AAVE . The [frog nation DeF](https://cryptonews.net/en/news/defi/2217011/)i are present. AAVE, SUSHI,TIME,SPELL, RBN , AUTO . Yetiswap is the app for minting NFT on C-chain . There are over 400+ projects on the [tracker](https://www.avax-projects.com/) and progress may stall with intense paucity of developers in the crypto space AVAX has active bridge to Ethereum and u can transfer ERC-20 tokens from Ethereum to Avalanche and back . It costs some fees and may take 10 minutes of confirmations. There is a lot of work underway in cross chain transactions and DeFi apps like [MULTI](https://defillama.com/protocol/multichain) ( ex Anyswap $ANY) are pioneering . ( ToDo: a separate note in future) . See [Defillama list](https://defillama.com/chain/Avalanche). There are the category tracked on [Avaxholic website](https://avaxholic.com/avalanche-ecosystem-overview/) ![Axaxholic website](https://storage.googleapis.com/papyrus_images/9960955b566b1c1b8e05fe6b2d093901a05fefb21f77f140e79ca0c85241563d.png) Axaxholic website and [Coin98 has a large infographic](https://twitter.com/Coin98Analytics/status/1468979931749093377?s=20) ![Coin98 AVAX landscape infographic](https://storage.googleapis.com/papyrus_images/5a833b90919a12d201ce4258b12da282db6d24455de621b7a5b897aadc8ddcc8.jpg) Coin98 AVAX landscape infographic Sentiments ---------- 720 Mill tokens total supply . 50% staking rewards, 17% team & contributors ,9.26% Foundation, 11% Private sale & strategic partners, ~12% Public sale and airdrops etc **Funding** AVAX raised $18 million  2020 and [230 Million with Polychain and Three Arrows Capital](https://techcrunch.com/2021/09/16/avalanche-raises-230-million-from-private-sale-of-avax-tokens/) and others in 2021 and $42 million from their public AVAX token sale in July 2020. Ava Labs President John Wu will also lead Blizzard  with sees [200 Million](https://www.coindesk.com/tech/2021/11/01/avalanche-developers-and-investors-form-200m-blizzard-investment-fund/) for developing the ecosystem with investors including participation from the Avalanche Foundation, Ava Labs, Polychain Capital, Three Arrows Capital, Dragonfly Capital and CMS Holdings, among [others](https://www.lydia.finance/). Avalanche Rush was 180 million DeFi [liquidity mining incentive program](https://www.altcoinbuzz.io/?s=liquidity+mining+incentive+program) launched Aug 2021.  [Avalaunch](https://avalaunch.app/)  is a launchpad for Avalanche projects and [Lydia Finance](https://www.lydia.finance/) a clone of BSC Pancakeswap AMM is a good place to see new projects in Initial Farm Offerings or IFOs. [Colonylab](https://medium.com/colony-lab) , a community-drive accelerator. **Readings** [The Ultimate Beginner’s Guide to Avalanche](https://lostworldsnfts.medium.com/the-ultimate-beginners-guide-to-avalanche-9b533551bd0d) [Avalanche 🔺 Foundation 'Multiverse', a $290m incentive program](https://twitter.com/luigidemeo/status/1501216538665312258?s=20&t=ARW2f7N7JgyBVMxxIlfjtg) _Mar 8, 2022_ [_@DefiKingdoms_](https://twitter.com/DefiKingdoms) _will be receiving $7.5M in_ [_$AVAX_](https://twitter.com/search?q=%24AVAX&src=cashtag_click) _incentives for Crystalvale subnet_ [State of Avalanche Q2 2022: Messari](https://messari.io/article/state-of-avalanche-q2-2022) ![2022 Q2 Status ](https://storage.googleapis.com/papyrus_images/e971e5b537b09e691097f46a979c929e0810416f4cf47307f06c470bcf31dda7.jpg) 2022 Q2 Status --- *Originally published on [moonduck15](https://paragraph.com/@moonduck15/l1-avax-avalanche)*