This edition of the newsletter dives into some ecosystem updates from Sonic Labs, a rebrand from Fantom, and their current bounty program - Sonic Boom. We'll also share some interesting articles, portfolio updates and market highlights.
1. Research Articles
a) The State Of Fraud Proofs In Ethereum L2s
• This article aims analyse the fraud proof and challenge mechanisms of optimistic rollups and how each is working toward achieving Stage 2.
• Additionally, it explores the future of optimistic rollups and fraud proof systems.
The State Of Fraud Proofs In Ethereum L2s
A comprehensive analysis of fraud proof systems in Ethereum rollups. Featuring Arbitrum, Optimism, Cartesi, & Kroma
b) Eliminating Bridging: Particle Network's Vision for Chain Abstraction
• The usability of blockchain services remains a critical issue, with fragmentation being a major barrier for new users. Chain abstraction aims to address this by simplifying the user experience across multiple blockchains.
• The success of Particle Network's mainnet launch could significantly impact the future development of chain abstraction and the overall usability of blockchain technology.
Eliminating Manual Bridging: Particle Network's Vision for Chain Abstraction
Explore how Particle Network is revolutionizing blockchain technology through chain abstraction. Learn about Universal Accounts, Universal Liquidity, and Universal Gas, and how these innovations are simplifying the user experience across multiple blockchains. Discover the potential impact of Particle Network's upcoming mainnet launch on the future of blockchain usability and adoption.
c) What is NOT Chain Abstraction?
• Chain abstraction aims to simplify the user and developer experience in crypto by abstracting away multi-chain complexities.
• It is not a panacea for all on-chain complexities and does not eradicate chains. While it offers significant benefits, it may not be the final frontier of crypto.
What is NOT Chain Abstraction?
A detailed guide on how to not think about Chain Abstraction
2. Portfolio Updates
a) Arrakis Finance
• The CVMM problem in DeFi is hindering retail users' profits. Arrakis aims to solve this by building a DVMM, which uses Liquidity Animation and Marketplace Coordination to recapture MEV for LPs and support longtail assets.
• Arrakis will roll out in three phases, starting with HOT, to eventually become a fully-fledged DVMM.
Introducing the Arrakis DVMM: DeFi's First MEV-Aware Onchain Mar...
TL:DR CVMMs are profiting from retail DeFi users across the MEV supply chain. Arrakis is building the first decentralized alternative to address this problem, using cutting-edge mechanisms to recapture MEV, empower LPs, and hyperscale global onchain liquidity through a trustless framework.
b) Particle Network
• The fragmentation of crypto hinders dApps adoption by creating a complex user experience and limiting liquidity. Chain abstraction offers a potential solution to these issues by providing a unified ecosystem for dApps to build on.
• However, dApps must also focus on creating compelling value propositions to truly succeed in the market.
Beyond UX: dApps On The Need For Chain Abstraction
We've highlighted this over and over again: Fragmentation is the single largest issue standing between Web3 and consumer adoption. Usually, we focus on the ecosystem-wide imbalances that fragmentation creates: By altering the incentives of different Web3's participants, it makes users' experience more difficult-and, by extension, stops new
c) Thala Labs
• Thala Labs undergoes a complete overhaul of their interface and will revamp their liquidity mining mechanism, with gated access to emissions being deprecated immediately.
It's time for a refresh.
Change is in the air, and Thala is getting a brand new look, with updated interfaces, branding, and more
Change is in the air, and Thala is getting a brand new look, with updated interfaces, branding, and more
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d) SQD
• FuelVM is taking a different approach to scaling Ethereum - it utilizes UTXO model and a new programming language Sway to achieve parallelization, reduce state bloat and enable native assets.
Why SQD is excited about Fuel
The year is 2050. No individual uses the Ethereum mainnet anymore. All the economic activity happens elsewhere. This could well be the future. Already, the thesis for a lot of the Layer-2 activity has been that Ethereum's mainnet is only for those that need very high security guarantees and
e) Derivio
• Derivio's Turbo VM is a new type of virtual machine designed for blockchain finance. It offers faster transaction speeds, stronger security, and more flexibility for developers compared to existing VMs like Ethereum's EVM.
• This makes it a promising option for both users and developers in the DeFi space.
Part 3: Unpacking Turbo VM
Virtual Machines (VMs) are the backbone of blockchain technology, enabling the execution of smart contracts and decentralized applications (dApps) by providing a secure and isolated environment. However, many existing VMs, such as Ethereum Virtual Machine (EVM) and Solana's Berkeley Packet Filter (BPF), encounter limitations in terms of scalability, performance, and security.
f) Glacier Network
• The article discusses the recent developments in AI, including the rise of AI agents, AIGC, LLMs, and RAG. These advancements are transforming the way we interact with technology and shaping the future of AI.
Medium
You can find (just about) anything on Medium - apparently even a page that doesn't exist. Maybe these stories will take you somewhere new?
g) Automata Network
• Automata is excited to announce its new OP Stack Chain, a machine attestation layer built on the Superchain. The team is grateful for the support from Optimism, EigenLayer, and AltLayer and is thrilled to finally bring their vision of a machine attestation layer with TEE Coprocessors to life.
• To encourage free attestations on the network, Automata is also introducing Automata Gasdrop for verified machines.
Automata joins the Superchain ecosystem, launching on Optimism's OP Stack
We are grateful to Optimism, EigenLayer, and AltLayer for their support, and are thrilled to finally bring our vision of a machine attestation layer with TEE Coprocessors to life. To encourage free...
h) Pendle
• The Pendle Print highlights latest developments on the Pendle platform, including the addition of new BTC pools and the upcoming Babylon cap raise.
• It also provides an update on the Bedrock uniBTC exploit and discusses recent trading activity on the platform.
The Pendle Print #37
BTCfi strips naked on Pendle
3. Sonic Labs - Ecosystem Coverage and Highlights
Roses are red. Sonic is blue. If you want 10k TPS, Sonic is for you! In view of Sonic’s imminent mainnet upgrade, we’re here to look into what this upgrade brings to Fantom - from a technical and ecosystem-focused perspective.
A blast from the past
Anyone who was in the DeFi space in 2022 would know Fantom as a booming hub for crypto degens. Fantom was one of the top performing ecosystems, together with other chains in the “FOAN ($FTM, $ONE, $ATOM, $NEAR) trade”. Fantom hit a peak of US$8b in Total Value Locked (TVL) in March 2022. Much of Fantom’s success is owed to Andre Cronje, who is widely regarded as the Godfather of DeFi due to his contributions. However, in March 2022, Cronje and his partner, Anton Nell, announced that they “are closing the chapter of contributing to DeFi/crypto.” This was one of the unfortunate events that triggered a decline in the Fantom ecosystem. However, just as hope seemed lost, Cronje returned to the fray as the Chief Technology Officer of Sonic Labs.
Sonic Upgrade
The Sonic upgrade introduces significant improvements to Fantom, which was already providing high throughput. Sonic is expected to handle over ~2,000 Transactions Per Second (TPS) at ~1-second finality, which is a drastic improvement from before. ERC-20 token transfers are also possible at a whopping ~10,000 TPS. This leap in performance is achieved through techniques like super instructions and caching, which allow for more efficient execution of smart contracts. Another critical component of the upgrade is the Carmen database. It features live pruning, which allows validators to discard outdated data without going offline, cutting storage requirements by up to 90%.
These technical improvements serve to scale Sonic’s network, opening up possibilities for the hosting of high-frequency decentralised applications (dApps) as well as the lowering of transaction costs.
Sonic Boom - Sonic Bounty Program
To bootstrap and breathe new life into the Sonic ecosystem, Sonic has introduced SONIC BOOM, a bounty program, featuring Sonic Gems for the 190,500,000 $S airdrop. Sonic Gems are airdrop points that can be earned by users, with 37.5% of the total airdrop allocated to holders of Gems.
More critically, SONIC BOOM is offering 30 winning projects a bounty of Gems for developing and on Sonic. These Gems can be utilised by project teams as incentives to onboard users onto their dApps. Particularly, the SONIC BOOM developer bounty is applicable to projects of several verticals.
Additionally, SONIC BOOM has allocated additional rewards to projects who also incorporate the following, namely by participating in Sonic’s Gas Monetization program, using SAFE’s tools, or by exclusively deploying on Sonic. Devs should refer to Sonic’s announcement for the full set of details, including the application process as well as the application deadlines.
What's cooking in Sonic right now?
Leading the charge towards Sonic’s comeback are the Fantom OGs such as Beethoven and Spookyswap. However, SONIC BOOM hopes to onboard new devs, users and communities for everyone to enjoy the speedy new chain together.
We think that SONIC BOOM presents a great opportunity for developers and users alike. Time will tell if Fantom’s comeback (this time as Sonic) will become a reality. To keep updated with the Sonic ecosystem, feel free to refer to our Sonic Ecosystem twitter list.
Disclaimer: This report is for meant informational purposes only and is not legal, business or investment advice. DYOR
