Translator：@Chendashan_pat

What should we do if there is a next bull market?

Time flies, and it is the end of the year. Looking back, it has been a rough year for the crypto market. Not only has it been affected by macro markets, but there has been several black swan events internally.

The most recent event was that the FTX collapsed because SBF has a business network that spans half of the cryptocurrency world. In terms of the news, the systemic risk posed by this black swan event to the cryptocurrency community has not yet been fully released.

Earlier, in July-October, mainstream tokens such as ETH and BTC would follow the traditional market fluctuations, and the positive correlation in the market was very high. However, after the FTX collapse, this positive correlation plummeted, causing the cryptocurrency market to start going on its independent risk-absorbing market.

Most of the previous bull market return strategies and experiences may fail in this market situation. As an average retail investor who believes in decentralization, the most effective thing you can do during the bear market is not to chase highs or track hot spots but to look for opportunities to buy at the bottom. After all, those who choose the wrong tokens will most likely miss the bull market.

The "New Trends" section of the following weekly report will show some projects are noteworthy. Three pre-conditions should be stressed.

• decentralisation will gain mass adoption in the future, i.e., another crypto bull market will exist.

• The ability to endure a long and difficult bear market without significant adverse effects on your personal life.

• Do not blindly chase up when the reason is unknown;

TON: The Open Network

The Open Network (TON) is powered by the famous chat app Telegram, which tops the instant messaging category in several national app markets.

However, while it is the crypto community's most favoured instant messaging medium, compared to Twitter, it has neither the stock (which has been delisted since Musk's acquisition) nor the 'Web3' hype theme of token/NFT. Telegram, an APP that straddles the Web2 to Web3 community, has and only has a TON to be hyped.

TON has not been listed at centralized exchanges. (TON was listed in FTX before)

The history of TON

TON and the telegram have a very close relationship. However, due to the SEC, they are like Romeo and Juliet, maintaining contact very subtly.

But since FTX announced the launch of TON in November last year, the relationship between the two has become more public. Several actions of Telegram show the association - its official account constantly advertises TON in social chats; it uses TON to pay for Telegram's personalised domain names; uses TON to pay for Telegramme memberships (Premium) , etc.

As mentioned above, TON has only received attention after listing at FTX. The TON project started in 2017 already. I will try to explain the twists and turns that TON has undergone over this period based on the information from the Alpha Ton community.

In 2017, a team led by Durov, the owner of Telegram, decided to design their L1 as the L1 blockchain could not support Telegram's hundreds of millions of users at that time.

In January 2018, GRAM, a POS coin running on the Telegram Open Network, was launched. Relying on a 23-page white paper and a 132-page technical paper, it raised $1.7 billion for Blue Plane in a bidding process between February and March.

In January 2019, Blue Plane launched the TON test network.1 In October of the same year, Blue Plane sent a letter to investors containing a link to the TON key generator. However, the US SEC clamped down on the key generator, which provides access to Gram tokens, the week before the launch. SEC required them to delay sending the tokens, leading to a delay in the overall launch.

On 24 March 2020, the court ruled that Gram violated the Securities Act and granted the SEC's order "prohibiting the delivery of Grams to initial purchasers". In response, Telegram sought clarification that the court doesn’t prohibit initial foreign purchasers, but the court denied the request.

In May 2020, the Telegram team ceased developing TON and support for the test network, paying a settlement of $18.5 million and agreeing to return $1.2 billion in funds to investors.

The public doesn't know that the project is not dead but is slowly reborn with new blood.

After the verdict was announced, the enthusiasts forked TON. The development process of TON continues with developers around the world who are not affiliated with any commercial organisation and do not include any former or current Telegram employees.

In July 2021, the TON Foundation packaged the results of this period and sent a request to Telegrame for transfer.

On 2 August 2021, Telegram appreciated the work done by the TON Foundation and agreed to the transfer of all information.

Next, some community memebrs went from open source for CPU mining code, private GPU mining, and open source for GPU mining code and eventually entered the era of mining pools.

It is easy to see that a series of late operations by the TON Foundation was designed to comply, resulting in several ghost mines.

After a period of inactivity, exchanges such as FTX and OKEX have listed TON. Currently, the Pow Giver contract for distributing PoW rewards has dried up, meaning that TON has become the only POS coin that is both energy efficient and free.

Strategies

If you do not have a short-term need to trade Tokens purchased on CEX, you must bring them to the chain. The following is a method to store TON on-chain.

The official Telegram custody wallet is the bot @wallet. Once you have followed the prompts to create your wallet, the bot will send you a ton chain address. Fill in this address into the withdrawal field on the exchange, and you can withdraw your TON tokens to the bot wallet.

This method is very convenient. As an official channel, it can already support money transfers. In the future, the official will further improve its function. However, the security limit of this method is limited by the security of the user's Telegram account, and there is a risk of leaking Telegram login phone number. Also, third-party malware for account logins can threaten this method, so please ensure to get the APP from the official channel.

Domain Name and Username

Ton’s domain name is similar to ENS and can be used to transfer funds. At the same time, the holder will receive the domain name under the name xxx. ton.VIP. It is a bit pricey, though, and its pre-sale price at the time of its launch bid is as follows.

Domain name over five characters: 0,01TON

Four-character domain name: 49 TON

Three-character domain name: 249 TON

Two-character domain name: 999 TON

One-character domain name: 2999 TON

Ton's Username holders can have a simple sharing link like "xxx.t.me". This differentiates it from the default "t.me/xxx". In terms of perception, the former is superior to the default format and is aimed at a broad range of people who are famous or do formal businesses.

Moreover, both domain names and usernames are currently available at low prices on Getgems, the secondary NFT marketplace.

TON Roadmap

To be clear, the TON project is more than just the Ton Blockchain. It also has a unique network technology, the Ton Network.

The TON network protocol was created specifically for the TON blockchain to enable nodes to communicate with each other and exchange data. The TON network is a fully decentralised, secure, private computer network, similar to TOR or I2P (Invisible internet project).

Future updates to TON will also focus on network communication, which aims to create a peer-to-peer network without centralised servers. The nodes that go offline will have no impact on the functionality of the network and guarantee the anonymity of the user IPs.

On top of the TON network, the TON proxy, TON site and TON Storage will be created. In 2023, cross-chain systems for BTC and EVM will also be introduced. Thus, TON will not only connect different blockchains but will also innovatively revolutionise the existing Internet landscape.

Risks and Summary

You don't have to worry about TON going bankrupt. Unlike most cryptocurrency projects, TON is backed by hundreds of millions of daily Telegram users.

The experience of using this app surpasses that of all similar competitors, including those already on the market and have excessive market capitalisation. From this perspective, TON has taken centre stage in the industry.

Having combed through this, I'm already overwhelmed with the desire to go for TON. But we must calm down!

We must be clear that FTX was the most frequently traded place for TON spot before it collapsed. This will lead to huge selling pressure when the bankruptcy of FTX is settled.

In terms of price, the impact on TON prices after the FTX collapsed was insignificant. This is something to worry about because it indicates that many tokens are still held by whales and may not produce low-price opportunities until the next collapsing moment.

Finally, the original purpose of this series is not to let you buy impulsively but to let you pay more attention to the market and be aware of the existence of TON Token.

In the end, it requires your wisdom to decide whether to buy or not at the bottom.

Translator：@Chendashan_pat

Stablecoin battle sees the strongest competitor——crvUSD Curve has long been the most liquid decentralized exchange for stablecoins. However, while almost every stablecoin project was scrambling to get more liquidity support from Curve during the bull market (Curve War earlier in the year), Curve never issued its native stablecoin.

This week, the stablecoin market liquidity 'referee' stepped in as a 'player.’ Curve released the protocol-native stablecoin crvUSD whitepaper (first draft). The release of this whitepaper coincided with the shorting of crv on the chain by the big player @avi_eisen, so its overly crude wording was a shield for the project at this sensitive time. The team also said that this version of the stablecoin whitepaper is not the final version and that a more detailed version will be released later. The good thing is that although the white paper is not specific since the parameters and formulas have not yet been determined, we can still look through it to understand the general framework of crvUSD, the stablecoin market judge's native stablecoin. The main points of the Curve stablecoin are divided into four parts: firstly, the lending-liquidating AMM algorithm (LLAMMA), which is responsible for liquidating during ETH price fluctuations. Secondly, the Liquidity Band, which provides liquidity for liquidating. Thirdly, the PegKeeper (also called the Stable Pool), which is responsible for maintaining the crvUSD price anchored at 1 USD, and fourthly, the Curve Gauge, which has been the central Crv emission control module in the Curve ecosystem, and which is a module used to incentivize the growth of the crvUSD scale. LLAMMA

This feature will make Curve's stablecoin unique. The most impressive part of the cycle is LLAMMA, which converts collateral (e.g., ETH) and stablecoins. In simple terms, if ETH is stable, crvUSD has enough collateral to back it up. As the price of ETH falls, LPs can gradually sell some ETH in exchange for crvUSD. As the cost of ETH rises, LPs can sell crvUSD in exchange for ETH.

This function corresponds to the liquidation mechanism of previous lending platforms. When the price of collateralized tokens falls, the health rate of the collateralized position can deteriorate rapidly, and users who mint stablecoins may be immediately liquidated. The old liquidation model had some problems. For example, when retail investors were liquidated after an extremely down market and the market rebounded quickly, the liquidated users would have suffered a very high percentage of losses. It can be seen that if the LLAMMA mechanism had replaced the old mechanism, users would not have suffered such significant losses. This strategy works well to help collateralized users avoid permanent loss in volatile markets and allows for more passive position management. However, liquidation can still occur if volatility becomes too high. This is because liquidation exists wherever collateralization exists. In addition, each stablecoin-collateral pair forms a liquidity pair with the collateral. This means that not only can users lend ETH to crvUSD, but at the same time, the ETH pledged in can also use these as liquidity for trading pairs (ETH-crvUSD), therefore amplifying the capital efficiency.

Liqudity Band The concept is a bit like the Uni v3 manager for market making, but with the difference that Liquidity Band runs entirely on the chain and no longer needs to be manipulated by off-chain strategy bots. In this concept, the mortgagee's liquidation price is not a single price but sets the liquidation price in separate bands, i.e., increases the 'liquidation' liquidity within the set price range. A collateral borrower's borrowing behavior can be understood as depositing collateral at different liquidating prices and lending crvUSD. When the collateral price crosses a specific range, the collateral within this range will be liquidated. Conversely, if the price returns to this position, the user's collateral will be restored. According to some bloggers, this 'liquidation' liquidity must be increased to a minimum of 5 volatility ranges and up to 50. The larger the range, the slower your position will be liquidated, whereas a smaller range means the liquidating process can proceed faster. For example, in the case of a user who has received a loan of 1 ETH equivalent in the price range of 1100-1200, the clearing range could be set as follows： 1100-1110 0.1ETH； 1110-1120 0.1ETH； … 1190-1200 0.1ETH In this case, once the price of ETH falls to the 1190-1200 range, the user's position of 0.1 ETH will be liquidated, and the position will be reduced to 0.9 ETH and approximately $119 (liquidation of 0.1 ETH converted to 119 crvUSD). PegKeeper When crvUSD>1, PegKeeper contracts to mint uncollateralized stablecoins and deposit them unilaterally into LP (crvUSD), while when crvUSD<1, PegKeeper withdraws from LP and burns the stablecoins. These actions cause crvUSD to depreciate at >1 and appreciate at <1 rapidly. It is easy to see that at a price > 1, the minted stablecoin is uncollateralized. The whitepaper indicates that the liquidity in the stablecoin pool at this point can used as collateral for this excess issuance of tokens. Gauge Finally, back to the Curve protocol. As mentioned at the beginning of this article, Curve is the place to be for any stablecoin project, regardless of its market cap. From Usdt down to Usdd, all stablecoins are concerned about Curve's influence. Curve's impact is reflected through a mechanism called the Curve Gauge. veCRV (locked crv) holders can combine or "bribe" their way into the Gauge to vote for the crv emissions. Therefore, whoever holds more votes in Curve will have a stablecoin with deeper liquidity in Curve, and its popularity will be more significant. Now, Curve is starting the era of being both a 'referee' and a 'player' for stablecoins. Its future stablecoin market share is worth waiting for. However, Biteye also advises the following：

1. The LLAMA mechanism is too new. The first version of the white paper clarifies that its entire logic has not been mathematically rigorously proven and that there is still too much uncertainty in the mechanism. After all, any innovation in liquidating mechanisms needs to be rigorously tested and proven under extreme conditions to ensure that the system does not go bad. You can keep an eye on Biteye for the latest news.

2. Do not get carried away by the initial mining yields and rush to exchange directly for crvusd at a high premium on the secondary market. A high apr is bound to be reflected in the price on the secondary market, and it is common for stablecoins to be priced above 1. When you fomo, calculate whether it is worthwhile to use collateral to issue crvUSD directly or to buy tokens instantly from the secondary market.

3. A relatively stable and profitable strategy that can be thought of at the moment is to "farm initially and wait for depeg ” Because in a bear market, it is not recommended that any collateralized stablecoins be farmed in the long term.

Edit: Crush 、陈大山

*This article is about 2800 words. The estimated reading time is 5minutes.

01

New trend

FEVM = Smart Contract + Provable Storage

After two years of development, the Filecoin network has become an indispensable part of the web3 ecosystem, providing the Web3 community with services such as storing NFT images, public welfare datasets, and Metaverse assets. As we all know, many practitioners regard Filecoin as the default input/output layer of Web3.

According to Filecoin’s roadmap, the Filecoin network will introduce a major upgrade early next year called FEVM (Filecoin virtual machine, officially sometimes called FVM. It overlaps with Fantom’s FVM, so this article uses FEVM to distinguish it to avoid confusion).

It enables the Filecoin network to have the ability to program smart contracts, and layered-calculating based on storage and opens up a new situation for cross-chain interoperability and integration in a trustless manner, thus unlocking the ability to differ from other chains.

According to the official documentation, users can regard Filecoin’s original data storage and reading functions as Layer 0, and the soon-to-be-updated FEVM will be Layer 1. These two functions will be closely integrated into a whole and mutually support each other. The nativeness of access is far superior to the previous EVM chain access central storage solution.

Filecoin Virtual Machine Compatibility

FEVM supports EVM smart contracts. From the core point of view, the runtime of the FVM virtual machine is WASM. It emulates EVM bytecode and supports Solidity, Vyper, and Yul contracts.

Today the Ethereum community has built a large-scale repository of practical, audited, battle-tested smart contracts such as ERC-20s, NFTs, DAOs, flash loans, and more.

The Filecoin team chose the virtual machine to be compatible with EVM, hoping developers can directly reuse these contract codes. This feature makes it easier for Web3 developers to start with Filecoin smart contract development, bypassing the learning curve associated with specific languages.

Developers can continue using the familiar tools, Remix, Truffle, Hardhat, OpenZeppelin SDK, and more. Most dapps ported to Filecoin do not require changes and do not require auditing.

In addition to deploying existing smart contracts, developers can use Solidity to quickly write new role contracts, or upgrade native role contracts for performance optimization.

Potential innovative use cases for FEVM

When smart contracts work with native storage systems, many innovative use cases may emerge:

• Data-centric data DAOs: By pooling the resources of individuals and organizations, people will be able to incentivize the custody, collection, and processing of public datasets. Data DAOs use Tokens and NFTs as value units and can be used to differentiate access rights. This idea is somewhat similar to Ocean Protocol, but unlike the above idea, Ocean’s data and contract logic are separated.

• Automated bots: Incentives to ensure that data is replicated a sufficient number of times in the Filecoin network under user-defined policies.

• Financialized storage market: Develop the existing DeFi model and standardize storage and feeding as financial derivatives. This idea is similar to the actual carbon market.

• Computation by data: A big problem in large-scale computing is the movement of data, which adds cost and latency to each operation. Highly parallel tasks can be executed efficiently by offloading computing tasks to storage providers and rewarding nodes for scheduling tasks to be performed in Filecoin. The results are then stored back to the Filecoin network, allowing further computational tasks to become possible.

• Native NFT: The issuance, transaction, and storage of NFT will all occur in the same system of Filecoin.

In addition, with the support of smart contracts, Filecoin may also be able to take a share of the stock market of the existing Web2 world, such as content distribution networks (CDNs), general reputation systems, and payments.

FEVM Hackathon

From the 18th to the 20th of this month, the first Hack FEVM (Filecoin Virtual Machine Hackathon) will be held by Ethererum Global, and many creative projects will show at this event.

The main purpose of this event is to inspire innovative teams that combine centralized computing and storage. The registration will end on the 14th. Whether a developer or a user, there is still time to participate in or pay attention to the development of this emerging ecosystem.

In general, this narrative is full of topics, and the hackathon for FEVM led by Ethererum Global shows the expectations of the Ethereum community for FEVM.

As developers, we can look forward to the FEVM testnet that will be released in November. As ordinary users, what we can do is pay attention to the hackathon starting on the 18th, integrate into the project community early, and wait for the development of the “storage + smart contract” .

02

Risk warning

A few things you should pay attention to after the FTX thunderstorm

1. During a short trip, a user received a private message from a friend, suggesting he withdraw money from FTX as soon as possible, but since the user did not carry 2FA with him, he could not complete the withdrawal process.

This should be the most unfortunate case I have ever heard of. This user is aware of the danger, but he can do nothing.

Biteye’s suggestion: Even if you go out, you should carry related items that can manipulate your assets at any time, or transfer large amounts of funds to an unauthorized cold wallet before going out, and don’t be greedy for APR.

2. For Another user, the wallet address book did not remove the FTX deposit address. After the thunderstorm, he transferred the assets to FTX carelessly, causing irreparable losses. Biteye recommends that everyone immediately go to delete expired addresses such as FTX.

3. Don’t put eggs in one basket. This is a common problem of asset dispersion. Many friends were attracted by FTX’s early 5% APR, then put most of their funds in FTX, and they suffered unaffordable losses.

4. Pay attention to the chat information of the Biteye community on time. It is not enough to know the information from the blockchain media. Due to the compliance requirements of the media, it is difficult for the media to publish relevant reports in advance when FTX is only likely to have problems.

03

NFT

Secondary market operation ideas of KPR

KPR opened in this Thursday, and the overall quality of the pfp map is above average. Even the cheapest KPR is not ugly, and the rare ones are more outstanding and characteristic.

The price fluctuation during the chart opening period was normal, from 0.5x to 0.3x, and then the price quickly rose back to 0.5x. The price fell rapidly after opening, but if you look at the transaction, you can find that some NFTs that are not rare will be traded at a price higher than the floor, and there are many such transactions.

This is actually a manipulation technique. Some people will deliberately buy NFTs at a price higher than the floor price, creating the illusion that the floor price has not changed.

At the same time, by observing the transactions before the opening, you can know the average cost of everyone (last week’s weekly report introduced that the cost of KPR public sale is at least 0.4). By combining the above information, we can find out the price most people buy. I usually choose a medium range. The lower price is used as the entry point, and a limited-time offer is given.

The price movement here is best to use third-party tools such as nftnerd.

https://opensea.io/collection/kprverse

Art NFTs have performed well recently, focusing on artblock and Jeff Koons Moonphases

Now to summarize the projects that ab performed well last week:

1. Contractions by Loie Hollowell, 0.75E to 9E

2. QWERTY by Tara Donovan, 0.3E to 1.4E

3. Life in Our Minds, 0.25E to 1.4E

4. Friendship Bracelets by Alexis Andre, 0 to 0.2E (the project was mentioned in the weekly report last week)

There is no new artblock project this week, but there will be next week. You can see the announcement of ab on the Sansa website, and you can trade on it.

https://sansa.xyz

Another noteworthy is Jeff Koons Moonphases. The artist of this project is Pace Verso, with Twitter followers 23W. The previous work Rabbit 1986 sold for 91 million US dollars. There is very little information regrading project at present, but you can pay attention to it.

https://jeffkoonsmoonphases.com

Solana NFT project DeGods may migrate to Ethereum DeGods

As the leading project of Solana NFT, the recent FTX thunderstorm has caused the price of sol to drop rapidly and affected the stability of the Solana chain. Therefore, the community is discussing that the project will be migrated to Ethereum to reduce user losses.

Here you can consider buying DeGods or other Solana blue chips at a low price, but the risk remains.

https://twitter.com/DeGodsNFT

Risk warning: Investing in NFT has high risks. The above project information does not make investment advice, and Biteye has no commercial relationship with the above projects.

04

Homework this week

NuLink provides privacy solutions for the project. Investors include Binance Labs, Near, etc. According to the token economy, about 20% of the tokens will be allocated to community incentives. At present, the testnet has been launched, and it is divided into two stages. There are token rewards for each stage.

https://twitter.com/NuLink\_

Synquote, option protocol, currently deployed on polygon, whose mechanism and UI is very similar to Lyra on Optimism, European options, 280w financing. Recently, option projects have been on heat and we can pay some attention to them.

https://twitter.com/Synquote

Zkpay, Aztec’s cross-chain swap. Users can quickly withdraw from Aztec and support the swap. The app is currently under maintenance, and you can consider joining the Aztec interactive project.

https://twitter.com/ZK_Pay

Bracket Protocol is an option protocol, the Binance Lab season 5 incubation project. It has launched the testnet, and you can try to interact and give feedback to the test.

https://www.bracketx.fi/

The Harvest shooting game, dual-token mode, is also an incubation project of Binance Lab season 5. If you want to play the game, you need to buy NFT in the Binance NFT market and download the game from steam.

https://theharvestgame.com/

References

[1] https://filecoin.io/blog/posts/what-the-fvm-unlocks/

[2] https://filecoin.io/blog/posts/introducing-the-filecoin-virtual-machine/

about us

Biteye is an overseas Web3 learning and research community that generates content and tools in a community-driven way, and uses DAO to govern and motivate!

WeChat group: Add assistant @Biteye01 to the group

Twitter: @BiteyeCN

Discord: discord.gg/Biteye

*Disclaimer: The content shared in this article is only for learning and exchange, does not constitute any investment advice, and does not represent Biteye’s position. If you like our articles, click on the business card below to follow us!

Edit: Crush、陈大山

*This article is about 3250 words. The estimated reading time is 7 minutes.

01

New trend

On-Chain Game: The final form of GameFi, the savior of the new blockchain ecology

Before introducing On-Chain Game (full-chain game), it is necessary to explain that the current On-Chain game is regarded as a category of GameFi. After the performance of the public chain meets the requirements, we believe that the On-Chain game will be the final form of GameFi, and it will also change the inherent situation of the clichéd opening of the new public chain.

The fundamental difference between On-Chain games and common GameFi lies in the degree of decentralization. Traditional GameFi only converts game props to NFTs and uploads game assets to the chain.

To put it bluntly, the blockchain is only the book of accounts for this type of game, and the calculation and storage part is on the centralized server under the chain; that is to say, the number of rewards and who to pay is determined by the centralized game team.

The phenomenal GameFi that exploded before: StepN, Axie. Although they have achieved wonderful achievements, these projects still cannot meet the market’s expectations for GameFi because the project party still has the ability to dominate everything. They can change the game's rules (for example, cross-chain willfully issue additional tokens, and block users according to regions).

On-Chain games are not only about putting game assets on the chain but the logic of the entire game is also stored on the blockchain in the form of smart contracts. Any player can read the underlying code logic of the game. On-Chain Game is more in line with Web3’s base properties: decentralised, permissionless, and composable.

This means that the game project party cannot unilaterally change the game rules or secretly modify game parameters (such as artificially manipulating random numbers), and the game's initiative truly belongs to the players.

Currently, On-Chain can be mainly divided into two categories: a low-frequency, heavy-strategy NFT game running on the Ethereum main network; the other is a high-TPS public chain, or an appchain specially developed by game projects which runs a chain game with high interaction frequency, and rich gameplay, and is closer to traditional games.

NFT On-Chain Games on Ethereum

The representative works are Wolf Game and Art Gobblers, which are big hits this week. On average, these two games may require less than one interaction per day, which is the “low interaction frequency” mentioned earlier. As a result, every interaction is extremely important, for one wrong decision can lead to never keeping up with the growth rate of other players.

For example, the number of Goo holdings(Art Gobblers) is positively related to the speed of generating Goo. If a player chooses to “farm and sell” like a traditional liquidity mining project, the player’s Goo output speed will be close to 0 a few days later.

To participate in similar games, players must read the documentation in advance. If possible, it is better to go to the chain to check the specific parameters in the contract. Any information may become the key for players to make correct decisions.

For example, in the wolf and sheep game, there are 4 levels of wolves (A5-A8). The document only mentions that high-level wolves are more important. Only by reading the contract can you understand the distribution of specific weights, and then you can arbitrage according to market prices.

However, due to the characteristics of EVM and the limitation of high gas, the development of such NFT On-Chain games is limited, and the gameplay is relatively simple. The wolf and sheep game was once shut down due to the random number problem on the EVM.

But these shortcomings are also advantages to a certain extent. On-Chain NFT can directly attract high-net-worth NFT users on Ethereum and inherit the high valuation attributes of Ethereum. From the backtest, it can be clearly found that compared with ordinary GameFi blue chips, the market of such On-Chain game is relatively stable.

On-Chain games on Lisk or L2

At present, because such games have certain restrictions on the performance of the blockchain, the network performance is required to have high TPS and low gas. However, technologies such as StarkNet, Cosmos Appchain, and Op-stack that meet these requirements are still under development, so most of these games are currently in the development stage, and leading projects are only at the level of asset trading.

StarkNet will be the main battlefield of the On-Chain game. Many On-Chain Game projects are already waiting to be launched on the official version of StarkNet.

StarkNet has accumulated many ecological resources, such as MatchBoxDAO, which specializes in chain game incubation, and Isaac, a physics simulation game with a three-body theme. And GoL2, a live game on the chain. And Loot derivative game LootRealms, etc. It is foreseeable that StarkNet will have a new and innovative gameplay different from the past, which is very worth looking forward to.

Crowd Control is a card game chain based on Cosmos application chain technology. It can be regarded as an independent Layer 1 with complete public chain sovereignty. Any resolution requires on-chain voting to pass.

At present, Crowd Control is also in the testing stage. Players can add skills and create art to the game cards to get rewards. In the future, the community will vote on the creative cards submitted by players through on-chain governance to ensure the game's balance.

In addition, On-Chain Game will also be a major application scenario of Op-Stack. In the weekly report on October 22, the “Minecraft” OPCraft, which runs entirely on the chain, was mentioned in detail. Interested readers can read it.

In general, the current low-interaction frequency On-Chain Game on Ethereum has raised the valuation of the entire sector, laying the foundation for the development expectations of the On-Chain Game planned to be deployed on high-performance public chains.

With the development of On-Chain Game in the future, the opening of the new chain is no longer just a few sets without any innovation — Dex, lending, domain name registration, and Launchpad. Whether from the perspective of GameFi or the new blockchain, On-Chain Game will bring users an unprecedented new experience.

02

Risk warning

Recent common NFT scams

The social media accounts of the NFT scam project will publish several sets of beautifully made pictures, and say that the top XXX names will give Free Mint a chance. After a certain amount of attention on social media, the project team will suddenly announce Mint Live (start casting), and add relevant logos after the name to attract the attention of those who already follow.

Users can observe from the blockchain browser that the number of mint is much lower than the Free Mint ranking preset by the project party. The metamask pop-up window shows that 0.00x eth (about 1 USD) will be charged. Some players do not care about these charges and will still charge I feel that I have found Free Mint, so I will choose to participate in the interaction. As everyone knows, the purpose of the scammer is to make those few dollars.

The scammer would then tweet Mint Live for days in a row, and if he could get people to interact, he could make money. This kind of project will not be mint in the current market, and no one will trade in the secondary market.

03

NFT

Take Kprverse as an example to teach you to participate in Gas War

Kprverse Citizen mint sparked Gas War, many people failed, and some damage was done. The fee for KPR contract failure is twice the normal fee (25000 gas limit for normal mint failure, 45000 gas limit for KPR failure).

To successfully mint, you need to give more than 4000 gwei of gas. If it fails here, it needs to consume 4000*45000/ 10⁹ = 0.18 eth of gas to calculate by 4000 gwei, and the cost of failure is still very high.

If 4000 gwei is mint by luck, it also needs to consume 4000*130000 / 10⁹ = 0.52 eth (13w gas limit is the gas limit of 3 mint, and a maximum of 3 mint is required. The average cost under this amount is the lowest, each about 0.17eth).

The cost of 0.17eth plus Opensea’s handling fee is about 0.4eth, which is still profitable for a floor price of around 0.6. The above shows the calculation process for the gas fee. For ordinary users, when grabbing a project with relatively high popularity, you must formulate your strategy first, instead of blindly increasing your gas.

If the profit-loss ratio is small, it is not worth rushing. From the above calculation, it can be seen that the profit-loss ratio is about 3 when 4000 gwei is used. Personally speaking, I will stop investing if the profit-loss ratio is less than 2, especially for NFTs whose liquidity is not high

https://twitter.com/KPRVERSE

Art Gobbler's social experiment starts

The first 2000 Free Mints of this week’s hot Art Gobblers have been sold, and the follow-up Gobblers have also started mints. At present, the new Gobbler needs nearly 68 Goo.

At present, according to leaderboard data: Gobblers hold the most positions with 71, and the multiplier has reached 536. Although there are 73 Gobblers in the second place, the pledged Goo is less, and the multiplier is only 527, which means that only supporting NFT does not optimize the income. You must hold the corresponding proportion of tokens to obtain the most multipliers. This actually optimizes the problem of NFT pledges, mining, and selling in disguised form.

Gobblers is still early, and the floor price fluctuates greatly. You can wait for the system to be relatively stable before participating.

https://artgobblers.com/

https://artgobblers.dyor.fi/

Art Block Friendship Bracelets Surprise Benefit

In this project AB, as long as users who hold AB in their wallets can mint two for free. The total amount is 10w, and the mint will last until next year. The current floor price is 0.07, and the floor price is about 0.13. If it is rare, it can have a higher price. People who don’t have mint can participate.

https://www.artblocks.io/explorations/explorations/projects/0x942bc2d3e7a589fe5bd4a5c6ef9727dfd82f5c8a/0?section=details

Risk warning: Investing in NFT has high risks. The above project information does not make investment advice, and Biteye has no commercial relationship with the above projects.

04

• NiftyApes is a project for NFT mortgage lending, a P2P loan, an early project, and currently has a testnet. The team CEO is from Gitcoin, and the COO is from Little Fox.

  Investors include Robot ventures, Coinbase ventures, polygon, Flamingo dao, etc. Advisors are from MakerDAO, Opensea, Rarible, SuperRare, Superfluid, etc.

  To participate in the test network, you need to spend 0.035 ETH to purchase an NFT on the test network. This is limited. The team will list new ones from time to time. With this NFT, you can make mortgage loans or create loan offers.

  https://testnets.opensea.io/collection/bananananamananaman

  https://www.nifyapes.money/

• ProjectBRX is dedicated to improving physical and mental health, allowing users to learn to adjust breathing and meditation through NFT-based gamification. Brethonics, the product of web2, already has an ios app to improve users' physical and mental health through the above methods. The company behind it is actually silentmode, and the company behind it has plans to issue coins.

  https://reathonics.com/

• The Armada Finance project is to solve the problem of front-end centralization of current blockchain products. Currently, only Liquity is the only project that uses a decentralized front end.

  https://twitter.com/armada_infra

• Nibiru first tells a little story: Nibiru is an asteroid that existed in Sumerian civilization, known as the “catastrophic star”. It is predicted that it will hit the earth and cause the world's end. In the blockchain world, Nibiru is a blockchain based on the cosmos and designed for DeFi. Currently, the test network has been launched, and interaction can be realized by running test nodes or contract transactions (the name of the project party may want to imply that Nibiru will bring disruptive innovation to DeFi).

  https://twitter.com/NibiruChain

Risk warning: Biteye has no commercial relationship with the above-mentioned early projects, and investors need further due diligence.

END

About us

Biteye is an overseas Web3 learning and research community that generates content and tools in a community-driven way, and uses DAO to govern and motivate!

WeChat group: Add @Biteye01 to the group

Twitter: @BiteyeCN

Discord: discord.gg/Biteye

*Disclaimer: The content shared in this article is only for learning and exchange, does not constitute any investment advice, and does not represent Biteye’s position. If you like our articles, click on the business card below to follow us!

Edit: Crush

*This article is about 2700 words. The estimated reading time is 6 minutes.

01

New trend

Osmosis is more than DEX

Osmosis is an L1 chain that acts as a DEX in the Cosmos IBC ecosystem, which will be launched in June 2021. Osmosis has the deepest liquidity and the widest user base in Cosmos, and almost all newly launched appchains will provide tokens to the liquidity pool on Osmosis.

This Friday, the largest centralized exchange listed Osmo, injecting the highest level of liquidity into Osmosis. It greatly simplifies the cross-chain process and reduces the cost of capital friction for users, which undoubtedly consolidates Osmosis in the Cosmos ecosystem.

As a Layer 1 chain, Osmosis has complete sovereignty and a more free customized development environment. Therefore, unlike our common Dapp-type automated market maker (AMM), Osmosis is not limited to being an AMM.

Superfluid Staking

When it comes to “staking”, what everyone often hears should be Staking (ordinary staking) and Liquid Staking ( such as Lido of Ethereum, which allows users to stake any amount of ETH without worrying about lock-up issues, users can immediately swap the derivative asset stETH if need). Superfluid Staking is a staking scheme specially designed LPs.

To ensure stable liquidity in Dex, Osmosis has set a lock-up time for LPs, and this mechanism matches the need to maintain blockchain security, so LP (50%/50%) providers can use the superfluid staking mechanism, and half of the Osmo in the LP will be involved in Staking.

Hyper-liquidity not only strengthens the operational security of the Osmosis chain but also allows LP providers to enjoy LP mining rewards, staking rewards and airdrop rewards from other protocols.

Mesh Security

Mesh Security is a mechanism proposed by Osmosis for the Cosmos IBC ecosystem, which can provide security for the consumer chain and Cosmos Hub.

Mesh Security uses overlapping validators (Validators) in the Cosmos appchain ecosystems. For example, currently, about 75% of OSMO validators are also serving as validators of the JUNO network, while about 72% of JUNO validators are acting as OSMO validators, this overlap can lead to centralizatised issues.

The concept of “soft shared security” is introduced in mesh security, if a validator does something wrong on Osmosis or Juno, then code can be written to perform referendum slashing (slashing), also known as “Cross-Collateral”: Imagine a validator running on both Osmosis and Juno, this validator can choose to link his identity between Osmosis and Juno.

If this validator does something bad on Osmosis, he would be punished on both chains at the same time. The protocol can scale his reward to incentivize a validator for the associated identity. In this case, the safety of both Osmosis and Juno is improved.

At present, mesh security is still in the theoretical stage. Once realized, combined with the inter-chain security mechanism of the Cosmos Hub, it will push the security of the consumer chain to a new level.

CosmoWasm Smart Contract

Wasm (WebAssembly) is a portable compilation format that runs on virtual machines. The original intention of development is to deploy in browsers and improve the performance of web applications.

Like EVM, Wasm is just a bytecode encoding standard that enables a variety of virtual machines to run. Wasm’s success in the traditional internet space has proven its strengths.

In terms of performance, security, and developer friendliness, Wasm is far superior to EVM. Maybe virtual machines will be more suitable for smart contracts in the future, but at this stage, Wasm should be the best choice.

The prototype of CosmWasm came from a project at the Berlin Hackathon 2019, and the Interchain Foundation provided resources for the continued development of the commercial version of CosmWasm following the success of the hackathon. CosmosWasm is a module in the Cosmos SDK development tools.

As a young smart contract virtual machine compared to EVM, the security of the contract is the biggest selling point of CosmWasm. Learning from the vulnerabilities of EVM contracts, it provides native solutions for some of the most common vulnerabilities.

CosmWasm, which will be launched on Osmosis, will be licensed like Osmosis’s official website LP (the Osmosis Frontier page is permissionless), but with the help of Osmosis’s strongest liquidity resources and the highest IBC user drainage effect, I believe it will be listed on Osmosis in the future. There is a great opportunity for phenomenal products outside the DEX .

In general, Osmosis has the best development resources among the Cosmos appchains, and the team is aggressive and innovative. But Osmo also faces high emissions and some instability, such as a security breach in an upgrade in June this year, which eventually led to a chain shut down. Nowadays, more and more professional institutions are beginning to pay attention to Osmo, and they will improve the smooth operation of Osmosis.

02

zkSync vs Optimism vs Arbitrum

( https://dune.com/biteye/zksync-vs-optimism-vs-arbitrum-biteye )

This dashboard compares zkSync, Optimism and Arbitrum in the past n days (n is an arbitrary integer, click Apply after inputting in the upper left corner of the dashboard, the default is 30), daily and cumulative, the number of people who have deposited from the Ethereum main net to the second layer, the number of transactions, and the deposit amount.

zkSync, Optimism and Arbitrum are all layer 2 networks of Ethereum, aiming to alleviate the congestion and high fees of the main network by separating the execution layer.

Among them, Optimism and Arbitrum both adopt the Optimistic Rollup scheme, which is both EVM-compatible blockchain networks, which are friendly to the migration of mainnet applications.

The two projects have been online for more than a year, and Arbitrum is in a leading position in the Op-Rollup track. Not only is TVL leading, but also Arbitrum-native projects such as GMX are flourishing. According to L2Beat data, Optimism and Arbitrum have TVLs of $1.59B and $2.54B, respectively.

From this dashboard, we can also see that the number of people and transactions transferred from the mainnet to Arbitrum in the past thirty days is much higher than that of Optimism.

zkSync belongs to another rollup scheme ZK-Rollup. Due to the lack of smart contract support, the adoption rate of ZkSync 1.0 is not optimistic compared with other general L2s. Except for token transfer and exchange, the rollup has almost no practical functions.

The Matter Labs team launched alpha-stage zkSync2.0 zkEVM on its mainnet on October 28, making them the first to launch a ZK rollup, a general-purpose smart contract with EVM compatibility. According to this news, in anticipation of the airdrop, the transfer of the mainnet to zkSync has increased sharply in recent days, surpassing Arbitrum and much higher than Optimism.

Regarding the daily number of deposit addresses, it is not difficult to see that after the launch of Aptos, the zkSync and Arbitrum deposit addresses surged, which is a typical feature of witch attacks. In terms of single-day performance, the market’s airdrop expectations for zkSync are higher than Arbitrum.

Similarly, from the perspective of the number of daily transactions, it still conforms to the above judgment.

In general, since Aptos has raised expectations for airdrops, a large number of real users and Studio are focusing on interacting with Layer 2 protocols that have not yet launched tokens. Optimism, which has issued a token, expects a second wave of airdrops, but from the data point of view, it has not been valued by the market.

03

Risk warning

Exchange Security

Some users reported that the address of the exchange app installed on their mobile phones differed from that on the web page. When the deposit was performed on the mobile phone, the funds were transferred to the address tampered with by hackers on the mobile phone, resulting in the loss of all transferred assets. After verification by the exchange, the user accidentally clicked the fake Binance APP upgrade button, causing the original real app to be overwritten.

Biteye suggested that everyone must install and upgrade apps from regular channels. Due to the relatively closed ios ecosystem, the official monopolises the installation channel, so it is safer to download apps on iPhone.

In addition, it is best to store the deposit address of the exchange in a trusted wallet, so that after copying and pasting the address, the wallet will automatically identify whether the address is included in the address book, which can add a layer of insurance.

Another point that needs to be emphasized is that the small amount of test is useless under this scam. The scammer will identify the small amount transfer and let the small amount be successfully credited to the real address.

04

NFT

RTFKT & RIMOWA release vulnerability exploited by scientists

Project Description:

This is an NFT series jointly issued by RTFKT and high-end luggage production retailer RIMOWA. The project aims to promote the Metaverse's further development and the combination of online and offline. There are two NFTs in this series:

1. Working robot, total 2222, price 0.07 ETH

2. Meta Artisan suitcase, total 888, price 2 ETH, and the holder can claim the suitcase. The luggage is divided into 4 levels from low to high: confidence, exploration, vision and mimic

The sales method is the qualification lottery. Users must log in to the webpage to participate in the qualification lottery. The two NFTs have two independent lottery draws, and the winning rate of wallets holding Clone X will be higher. The selected users have five minutes mint. However, someone found a loophole during the mint. As long as the NFT of the mint is transferred away, the mint can continue to be mint. Scientists use this loophole to quickly mint a lot of NFTs and sell them in the market.

The current robot floor price is 0.3, and the luggage floor price is 2.3, 2.4, 3.38 and 28 by grade.

( https://rimowa.rtfkt.com )

Hot project Art Gobbler will be on sale at the end of the month

Art Gobbler will be launched on October 31st. Briefly introduce this project, including Gobblers, Blank page, and Goo tokens.

Gobblers are ERC-1155 NFTs with 10,000 and an initial 2,000 free mint. This includes 10 Legendary Gobblers, and for every 1000 Gobblers released, 1 Legendary will be auctioned, the first starting price is 69 Gobblers, and the subsequent Legendary starting price is twice the previous sale price.

Gobbler can be composited with Blank page paintings. Released in VRGDA mode (demand is greater than expected, the price rises, otherwise the price falls. Interested partners can learn more about it in the references at the end of the article).

Blank Page is an ERC-721 NFT with unlimited quantity, the material the artist needs to create. Released in VRGDA mode.

Goo token is an ecological currency with no upper limit. The issuance speed is getting faster and faster. Users can generate Goo by holding Gobblers and staking Goo. The total amount is t² (time squared). Goo can be used to buy artwork generated by Gobblers and Blank Pages.

Testnet result strategy recommendation:

1. Mint Gobblers early

2. Pledge the corresponding proportion of Goo

In addition to Art Gobbler, KPRverse also announced a whitelist (keeper) and a public sale list (citizen). The whitelist lasts 24 hours, and the public sale will be opened within 24 hours, but only those on the list can participate.

( https://artgobblers.com )

Risk warning: Investing in NFT has high risks. The above project information does not make investment advice, and Biteye has no commercial relationship with the above projects.

05

The liquidity of NFT projects has always been a pain point, and many new projects are currently working on solving this problem for NFTs.

• Gumball protocol

( https://www.gumball.fi )

The ERC721 and ERC20 of the same collection can be exchanged 1:1, and a part of the ETH obtained at the sale will form a pool with the corresponding ERC20 tokens to increase the liquidity of NFT.

• Granular

( https://twitter.com/GranularAMM )

Differentiated ratings (similar to rarity) for NFTs in the same collection, each collection will have a master pool, which will contain sub-pools, and each sub-pool represents a different rating. In this way, the specificity of NFTs (different prices) is exhibited.

Fluidity is also important for defi, from curve, convex, olympus, frax to solidity. They are constantly optimizing the guidance and control of liquidity.

• Thena

( https://twitter.com/ThenaFi_ )

The solidly optimized version of the BNB chain aims to create better liquidity guidance for the ecology of the BNB chain. It is a community-led project and has announced 7 partners, including DAO maker, Qi DAO and pStake. There will be NFTs and tokens like solidity, and airdrops will be given to long-term support users of partners.

• Monlith

Solidly on the Ethereum chain, an improved version, is currently very early, and the member part comes from 0xDAO.

( https://twitter.com/MonolithETH )

In addition to over-collateralization and under-collateralization, liquidity generation can also be borrowed through future cash flow. Let’s take a look at a new project related to this.

• Human finance

A project that provides a line of credit for wallets, built on superfluid and awarded this year’s Superfluid EthereumDenver. The project evaluates the wallet’s future income and then gives the wallet a certain amount of credit, allowing the wallet holder to spend with “future income”. Project investors include Folius Ventures, Circle (USDC parent company), Robot ventures, etc. The current project is very early, you can pay attention.

( https://twitter.com/humafinance )

Risk warning: Biteye has no commercial relationship with the above-mentioned early projects, and investors need to do further due diligence.

References:

[1] CosmWasm: Evolving Virtual Machines and Smart Contracts

( https://mirror.xyz/infinet.eth/iHNGFwTAEDGAUuuK4UPtyBt4XNIDFWX94Q68XpHw2yg )

[2] GDAs

( https://paradigm.xyz/2022/04/gda )

[3] VRGDA

( https://www.paradigm.xyz/2022/08/vrgda#logistic-issuance-schedule )

[4] Art Gobblers

( https://www.paradigm.xyz/2022/09/artgobblers )

END

About us

Biteye is an overseas Web3 learning and research community that generates content and tools in a community-driven way, and uses DAO to govern and motivate!

WeChat group: Add a little assistant @Biteye01, to the group

Twitter: @BiteyeCN

Discord: discord.gg/Biteye

*Disclaimer: The content shared in this article is only for learning and exchange, does not constitute any investment advice, and does not represent Biteye’s position. If you like our articles, follow us!

Edit: Crush

**This article is about 2500 words. The estimated reading time is 6 minutes.

01

New Trend

Op Stack: From Plasma to Modular Blockchain

The Ethereum Layer 2 protocol Optimism, formerly known as Plasma, originated from a 2017 article by Vitalik called “Plasma: Scalable Autonomous Smart Contracts”.

Plasma was launched on the testnet in 2019. In the early stages of testing, this cutting-edge technology showed excellent performance. But with the gradual emergence of various decentralized applications on the Ethereum mainnet, Plasma faced the problem of incompatibility with mainnet applications.

The Plasma technical team led by Ben has made many attempts but ultimately failed to solve this problem. The turning point was that Karl realized that the concept of Shadow blockchain proposed by Vitalik in 2014 could solve the compatibility problem of Plasma, which is the prototype of today’s Optimism Rollup.

The initial Optimistic Rollup was based on the idea of ​​Plasma, running an EVM-compatible virtual machine called OVM (Optimistic Virtual Machine), which enables Optimistic Rollup to run most applications on Ethereum.

With OVM, porting dApps to L2 is no longer a big architectural-level project, just a simplified deployment operation. However, the team still believes that the Proof System is too complicated, and the migration of individual Dapps is already very difficult so the Proof System will be separated from the client software, that is, the actions of block generation and execution will be separated.

In the fourth quarter of 2021, the EVM equivalence upgrade was released, which is the Optimism OVM V2 we use today. Compared with the original OVM, the latest version has 100 times less code, and the code base is the same as geth’s. Differences are optimized to less than 1000 lines.

Careful friends may have noticed that the idea of ​​”separating the proof system from the client software” coincides with the core idea of ​​the modular blockchain that became popular in the middle of this year. The Op team is one step ahead from numerous modular blockchain star projects.

At the Devcon held in Bogota last week, Karl energetically introduced Optimism’s official entry into the modular blockchain track and released a new product OP Stack, and said that Optimism’s vision is not only to build a blockchain but also It is to build a society formed by a digital blockchain.

OP Stack is a modular, open-source blueprint that is highly extensible and flexibly compatible with multiple types of blockchains.

The OP Stack is the codebase that powers Optimism’s next-generation architecture, ensuring a series of modules work together to form a coherent, reliable blockchain. Modular components developed by third-party development teams can be used at different layers in the blockchain architecture. The following figure shows the possible replacement of modular components:

It can be replaced by Multi-Client Fault Proof or Multi-Client ZK Proof on the Settlement Layer.

On the consensus layer, the original consensus can be replaced with ZK-Plasma. This means that as long as a team opens up new modules based on OP Stack, other OP Stack-based projects can seamlessly replace the corresponding modules and upgrade their projects.

The OP Stack is still in the early stages of a standalone product. The main goal of the Optimism team for the next few months is to focus on the Bedrock upgrade, which is the release of the OP Stack to Optimism’s mainnet.

If you are concerned about the specific demo of OP Stack, you might as well pay attention to an on-chain game called OPCraft. OPCraft uses the on-chain game engine MUD developed by the Latticexyz team based on OP Stack. It is a game similar to “Minecraft” that runs entirely on the chain. Every element exists on the chain in the game, from rivers to obsidian. From construction to crafting, every action also becomes an Ethereum transaction.

OPCraft runs on OP Stack’s custom Rollup, which can easily achieve greater throughput and shorter block times.

Players can try OPCraft on the Mud official website until Halloween, October 31st. At the end of the game, the team will freeze it, and any structures, art, and monuments created by test users will be immortal and remain on the chain forever.

02

Risk Warning

Aptos’s transactions points to be wary of

• There is no concept of approve in the Move language

• In the Move language, the interaction of tokens and NFTs with smart contracts does not require the prior authorization of tokens, and all operations can be completed with one interaction.

• Users must pay attention to the simulated transaction content displayed in the wallet pop-up window before each interaction. According to common sense, all asset transfers will be displayed in the pop-up window. However, according to @0xmetazen’s research, there may be exceptions. Bypass wallet to detect asset transfer status.

• In theory, this feature of Move can realize one-click clearing of wallets, so it is strongly recommended that you use the Aptos blockchain browser to view the history of transactions with the corresponding contracts while reviewing the wallet pop-up window.

• A page called Account Details in the Martian wallet displays the address, public key, and private key at the same time. Since the three groups of strings in Aptos all start with 0x and have the same length, it is easy to be confused when copying, resulting in the disclosure of the private key.

• There are bugs in the mnemonic created by Petra, and the mnemonic displayed on the page may be inaccurate. Petra said the bug had been fixed, but according to some community feedback, the problem still exists. Biteye’s suggestion: After creating a new wallet, log out of the wallet and enter the same mnemonic. After confirming and checking whether the wallet address is the same as the first creation, import the token.

03

NFT

Castaways release island

Our weekly report mentioned this project before, making an island sandbox survival game. The main concept is Free to Play. In the beginning, the raft was free mint. Recently, islands were airdropped to the raft holders, and other islands were also free mint (you can get it by playing games on the whitelist).

Currently the free mint project with the highest yield this week, with an island of at least 3 ETH. It is also worth noting that the island dropped by the raft holder is not the same as the normal island, and the value is at least 2.5–3 times that on the floor.

The later port gameplay is related to this special island. The port may be used to dock external projects, equivalent to a shovel. The island's name in the raft is similar to the domain name of Ethereum which is also unique, so those who have islands can think of a good name.

( https://twitter.com/castaways_gg )

Huang Yuxing’s Project Vault Wallet was Stolen

This week, artist Huang Yuxing’s NFT project treasury wallet was stolen, and the hacker smashed the floor price to 0.2 ETH. The initial mint price was 1.2 ETH. Later, the project urgently formulated a relevant compensation plan:

• Upgrade the contract and destroy the stolen NFT, fully compensate the user who purchased the stolen NFT

• For users who panic-sold at a price lower than a mint on the day of the theft, the project also compensates for the price difference

• Later, the project party purchased a part of NFT and put it into the treasury, which caused the floor price to rise rapidly. Market sentiment also quickly calmed down

( https://twitter.com/LiveArtX )

Risk warning: Investing in NFT has high risks. The above project information does not make investment advice, and Biteye has no commercial relationship with the above projects.

04

Early Project

After the airdrop was released on Aptos this week, everyone have done a lot of airdrop-related tasks. Let’s have a good rest on the weekend. We will not assign homework this week. Here are some early and noteworthy projects.

(Biteye does not have any business relationship with the following early projects, investors need to do further due diligence)

• Deformed Decentralized Google Forms, now you can apply for the waitlist.

• ( https://deformed.webflow.io/ )

• Elix Finance, AMM DEX on fuel, is characterized by automatic aggregation of liquidity, that is, it helps LPs adjust the price range (automatic version Uni V3).

• ( https://twitter.com/elixfinance )

• Thunder, the NFT marketplace on fuel.

• ( https://twitter.com/ThunderbyFuel )

• Tapical cross-chain lending based on layer 0 ominichain. What is special is that the project combines ve, POL, and option modes.

• ( https://twitter.com/tapioca_dao )

• n00dleswap NFT DEX can be compared to sudoswap. Now you can go to the official website to send an appointment tweet and participate in the test network on the 26th. And it will be deployed on the mainnet and Arbitrum on the 28th.

• ( https://twitter.com/n00dleSwap )

• Gumball protocol NFT liquidity solution.

• The specific method is that the protocol will generate a corresponding FT (ERC-20) for each NFT, and users can purchase FT through the AMM Bonding Curve. At this time, users can choose to pledge tokens to obtain handling fees or as loan collateral. Another option is Users can exchange FT for NFT (or back to the previous NFT).

• This solution is a bit like fragmentation, which can indeed bring liquidity to NFTs, but it also ignores the specificity of NFTs. Not all NFTs are floor prices. This protocol will be listed on Arbitrium and Berachain in the future.

• ( https://www.gumball.fi/ )

• LiquidCats is an Arbitrium NFT project that will be released on the Gumball protocol

• ( https://twitter.com/cats_liquid )

About us

Biteye is an overseas Web3 learning and research community that generates content and tools in a community-driven way, and uses DAO to govern and motivate!

WeChat group: Add a little assistant @Biteye01 to the group

Twitter: @BiteyeCN

Discord: discord.gg/Biteye

*Disclaimer: The content shared in this article is only for learning and exchange, does not constitute any investment advice, and does not represent Biteye’s position. If you like our articles, follow us!

Edit: Crush

**This article is about 3900 words. The estimated reading time is 8 minutes.

01

New Trend

Stablecoin Protocol from Cosmos

The Cosmos community is always looking forward to native stablecoins. Over half a year ago, UST was introduced into the largest Dex Osmosis in Cosmos. Everyone knows what happened next.

Due to the huge market value of UST, all LPs related to UST have been looted by arbitrageurs. After that, the Cosmos community has to clean up the battlefield while starting to work on the next native stablecoin.

After working for several months, multiple stablecoin protocols suddenly emerged together. Compared with Ethereum stablecoins, there may be 2–3 successful stablecoin protocols on Cosmos in the end.

However, due to the difference in the product design of Ethereum, Cosmos stablecoins are not issued by smart contract Dapps but through various appchains. The following will introduce several stablecoins from the perspective of each appchain of Cosmos:

Stablecoin leader: Circle USDC

The long-awaited native USDC by Cosmonauts (Cosmos enthusiasts) will use the inter-chain security features of the Cosmos Hub to deploy a consumer chain to issue native USDC in January 2023.

Circle does not use the traditional smart contract method to issue stablecoins, but uses the new features of Cosmos ICS to directly build the L1 chain, which shows it pays special attention to the Cosmos ecosystem.

Native USDC can be safely transferred to any application chain in the Cosmos ecosystem using IBC cross-chain technology, so that Circle can deploy native USDC to hundreds of Cosmos application chains in the future by issuing a consumer chain.

In addition, secure stablecoins will attract Dapps on other blockchains to Cosmos. If the market is stable, we can expect stablecoins to bring explosive development for Cosmos.

Can the Terra community return to its glory days? : Kujira $USK

Kujira was originally a DeFi project on the Terra chain, with a TVL of $3 billion at its peak. However, due to the major changes in the original Terra, the team decided to open the Kujira 2.0 era and transform it into the Cosmos appchain without issuing new tokens. The execution and responsibility of this team are very worthy of recognition.

After the transformation, the team launched a decentralized order book product in Cosmos, innovatively distributed transaction fees to Kuji’ stakers.

In August, the team announced that it would launch the native over-collateralized stablecoin USK, inspired by Maker Dao, USK will be written in the robust Rust language. At the same time, it will carefully avoid the risk of being censored by centralized stablecoins. Therefore, only Atom is currently supported as collateral.

Thanks to the Kujira team’s responsibility and strong execution after the collapse of Terra, the Kujira community has gathered a group of former Terra fans, and now USK, which inherits the UST naming method, can be further observed. At the time of writing, USK has a circulation of 235.07k.

DeFi Infrastructure Canto with zero fees: NOTE

Canto is an Evmos Fork chain on Cosmos, which inherits Evmos’ EVM. Slingshot founder Scott, one of the core early contributors to Canto, has been active in the community since its August release.

Canto’s early contributors created a complete set of DeFi infrastructure with zero fees at its creation, including Dex, lending platform, Gravity Bridge front-end, and over-collateralized stablecoin NOTE.

The ecosystem of Canto rewards Genesis users the Canto (Evmos’s single-currency staking rate is too high, and the interest rate of DeFi ecosystem cannot attract users). So from the perspective of the integrity of DeFi infrastructure, the development of the DeFi ecosystem at Canto is ahead of its predecessor, Evmos.

Canto’s native over-collateralization stablecoin NOTE originated from the native lending protocol. Since the protocol is still early, the collateral only supports the stablecoins issued by the Gravity Bridge cross-chain.

Due to the recovery of Canto recently, the stablecoin trading pair formed by NOTE has a 20% yield. Whether this gain can be sustained and the cross-chain security of the Gravity Bridge are worth observing.

Can the bear chain in the bear market be bullish? BeraChain: HONEY

The bear chain BeraChain is also an Evmos Fork chain on Cosmos, which is compatible with EVM.

Earlier, the BeraChain team made an internal presentation at OHM and Temple DAO. It is said that the team is composed of a group of DeFi2.0 members on Ethereum (anonymous team), from its (crazy) token model and The same propaganda method as a meme can also see some traces of DeFi 2.0.

There are three tokens in Berachain’s economic model:

BERA: staking rewards for nodes as gas;

BGT: Governance token, which can only be obtained by staking BERA, which is equivalent to a staking certificate;

HONEY: An over-collateralized stablecoin that acts as the ecosystem's base layer and a stable medium of exchange. BeraChain has not been launched yet, but it has created many testnet tutorials on social media. It is second only to Diem (Facebook) public chain. It is reported that BeraChain will be launched at the end of the year.

Innovative stablecoin written in Javascript: Inter protocol $IST

Inter Protocol is a stable currency protocol built on Agoric. Agroic is a chain in the Cosmos ecosystem that can use JS to develop smart contracts. The token is $BLD.

Speaking of Inter Protocol, its stablecoin is $IST, and there are currently 3 ways to mint $IST:

1. Parity Stability Module: You can deposit specified stablecoins such as DAI, USDT, USDC, and then mint IST (analogous to FTX’s USD).

2. Vaults: Use crypto assets as collateral to mint IST at different mortgage rates, which are set by DAO.

3. BLD boost: BLD is the governance token of Agroic so it can be staked to nodes. To improve the utilization rate, users who stake BLD can mint IST. Users who do so will not receive node staking rewards. These rewards will be used for Debt repayment (future cash flow loan), and this part of the debt has no liquidation risk.

IST stabilization mechanism:

1. liquidation mechanism

2. Adjust mortgage rate

3. Set a debt ceiling

4. The Reserve pool is used to urgently reduce the debt ratio

5. BLD issues additional debt repayment. (The stability mechanism is very similar to DAI) Inter Protocol is an innovative stablecoin project: stablecoin aggregation and interest-earning asset reuse.

In addition to the above five public chain-level stablecoins, there are also some stablecoins on Cosmos that are not very popular or migrated from other chains, such as Secret Network’s privacy stablecoin Silk, e-Money chain’s decentralized euro eEUR, eCHF, and the UXD protocol migrating from Solana to Cosmos.

It can be seen that the Cosmos stablecoin has become a track for many capital and projects to compete with each other, and as the track gradually becomes competitive, the risks also follow. Investors shall be aware of risks.

02

Risk Warning

Security incidents frequently occurred this week, and the three famous projects which are audited, Rabby, Mango, and TempleDAO, were attacked successively.

Fortunately, the team treasury of these three projects is enough to compensate for the loss of the attack, so the actual damage is not great.

Biteye’s suggestion: First of all, it is necessary to clarify a concept, passing the audit can only show that the project is more secure than the unaudited project, and cannot guarantee the project’s 100% security.

In addition, many people use it, and projects that have been used for a long time without incident are not necessarily safe. The hack of BSC’s native bridge last week is a good example: the attacked contract was created in the summer of 2020 and belongs to BSC. The Genesis Contract, after 2 years, still cannot escape the fate of being attacked.

Therefore, there is no 100% safe project. Before using the main wallet to interact with the project, you can check it. If the worst happens, does the project party have enough money and a pattern to compensate?

03

NFT

This Week’s Spotlight —— Yu-Gi-Yn

Game Garden Project Introduction:

Total: 8888 (of which only 4444 were sold)

Whitelist price: 0.0777 ETH, public sale: 0.0888 ETH

Background: Game Garden aims to build a virtual world. In a building called “Yu-Gi-Yn” in Shibuya City, players can experience games, manga, anime, fashion, and music. This virtual world has a total of 4 areas. (During the sales period, some whitelisted users could not mint due to website problems, and then the team decided to use part of the treasury to compensate these users.)

Introduction of the team:

TNZ NFT DAO: This organization provides planning, development, operation, and PR support for NFT projects. Headquartered in Tokyo, the companies behind TERRADA ART COMPLEX (the largest gallery in Japan) and Spicebox (the second largest advertising agency in Japan) )

Rock №6: Founder, responsible for the future operation of the project and the development of IP. He is currently the CEO of UNITY ZERO LIMITED and has planned many large-scale events.

Mesoism: Chief designer, previously participated in Ghost in the Shell, fly with me, and Bon Dance.

Arata: Art Director, from Margt, has served as a director and won the 2021 MTV Video Music Awards in Japan.

The project Game Garden has also received a lot of attention in the bear market. The team has a good background and is supported by Web2 company. It belongs to the 3D PFP type. Judging from the preview on the official website and discord, the quality of the work is very high.

Although there was a little accident during mint, the overall process was not bad, and the team later gave a solution in time. In general, it has blue-chip potential, but it is still necessary to observe the community's situation and the quality of the drawings.

( https://twitter.com/Yu_Gi_Yn )

Surprising mobile game project —— Tribo Games

Project Introduction:

Total: 2000

Price: Free, but only for whitelisted minting

Floor price: up to 0.5 ETH, currently 0.2 ETH

Backstory: Building an NFT-based multiplayer casual mobile game

Team Profile (all real names):

Mika Kuusisto: CEO & Co-founder, was the CEO of Kopla Games, a Finnish mobile game company.

Borja Guillan: Co-founder, has worked as a product designer for mobile games such as King, Flaregames, and PopCap Games.

Alexander Shestakov: CTO, has 10 years of game development experience and worked for Wooga, a German game company.

Tribo also recently announced funding, raising $1.17 million with participation from Play Ventures, Sisu Game Ventures, and Joakim Achrén.

The team has a background in mobile game production and development. The game's overall design and production time are almost 5 months, and it is estimated that the demo version will be available soon.

The income of NFT is good, and the follow-up depends on the project's development. At present, the secondary purchase is not recommended.

( https://twitter.com/PlayTriboGames )

Early project KPRVERSE

The project has been briefly introduced in the weekly report on October 1st. Currently, users can submit whitelist applications by answering questions at https://kpco.io/, and the deadline is October 19th at 1:00 am.

Art Gobblers

This month’s key projects, mentioned twice in the weekly report, will start mint on October 31st. You can get a whitelist by doing meme pictures; the deadline is October 18th.

( https://twitter.com/artgobblers/status/1579970100261634053 )

Risk warning: Investing in NFT has high risks. The above project information does not make investment advice, and Biteye has no commercial relationship with the above projects.

04

Potential Airdrop

• Fuel Network modular blockchain execution layer (modular blockchain will separate data consensus layer and transaction execution layer), Fuel Network plays the execution role here, three major features: executable concurrent transactions, virtual machine, and Sway language.

  The protocol recently raised 80m, and the testnet activities have been launched. (eth2.0 will also develop towards modularity, L1 will be the data and consensus layer, L2 will be the execution layer, and the upper L3 will be the dedicated application layer. Note: L3 does not strictly belong to the category of modularity)

  ( https://www.fuel.network/ )

• Nxyz Web3 data protocol, similar to project Colvelant, received a 40m investment from Paradigm. You can now apply to join the testnet waitlist.

  ( https://n.xyz/ )

• Yield aggregator on Yagi Finance Starknet, currently open for testnet.

  ( https://yagi.fi/ )

• Games on Redline Starknet, you can currently get NFT by doing quests.

  ( https://twitter.com/PlayRedline )

• Entangle provides cross-chain liquidity for different chains by synthesizing assets, and can currently apply for testnet qualifications.

  ( https://entangle.fi/ )

About us

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WeChat group: Add a little assistant @Biteye01 to the group

Twitter：@BiteyeCN

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*Disclaimer: The content shared in this article is only for learning and exchange, does not constitute any investment advice, and does not represent Biteye’s position. If you like our articles, click on the business card below to follow us!

Edit: Crush

**This article is about 2600 words. The estimated reading time is 6 minutes

01

New Trend

AppChain

AppChain is not a new concept. Many well-known projects can be seen as independent appchains. For example, Bitcoin can be considered an AppChain for storing value, and Arweave is an appchain that provides permanent storage services. , NYM is an appchain that provides privacy, and so on.

These appchain pioneers did not have many options due to the early technical constraints.

To meet the needs of their products, most project codes are written from the consensus layer to the settlement layer and the execution layer, which eventually leads to many projects facing a high degree of centralization. It is difficult for developers to improve the code and keep up with the development of the industry.

With the emergence of Cosmos inter-chain security, modular blockchain, subnets, etc. several pivotal projects in DeFi, Uniswap, dYdX, and USDC have announced that they will deploy their unique appchain. AppChains are gradually recognized by the mainstream.

To better understand the advantages and disadvantages of migrating to Lisk, let’s first sort out the development of technology:

Cosmos and Polkadot were conceptualized in 2016, but both fully launched their networks (IBC and parachain) in 2021.

At the same time, Ethereum chose to use Optimism rollup and zero-knowledge proofs as a scaling technology, and Polygon, Skale, zkSync (1.0), StarkWare (StarkEx), Optimism and Arbitrum are also launched in 2020 and 2021.

Other base layers ("L1s") first chose to prioritize support for the Dapp developer-friendly EVM (Ethereum Virtual Machine), as part of their business development efforts, Avalanche (C-Chain), NEAR (Aurora), Polkadot (Moonbeam) and Cosmos (Evmos) are developing EVM-compatible chains between 2020 and 2021.

After that, third-party projects use the technologies provided by the above basic layers to develop appchains with customized functions (such as Avax's subnet DefiKingdom, Cosmos' Juno, etc.).

In addition, in terms of the design of specific functions, Celestia proposed a novel modular design in 2019 that separates the execution, settlement, and data availability layer.

Therefore, for developing an appchain, there is no need to rebuild other parts of the stack, which greatly simplifies the development process. Celestia is still in the Devnet stage, which is worth looking forward to.

Consumer chain

With the launch of the inter-chain security function of Cosmos, a new form of application chain is invented - the consumption chain.

The consumption chain needs to continue to “consume” Cosmos technology, which can ensure its safety and reward the Cosmos ecology simultaneously, forming a positive cycle. Currently, two consumption chains can be developed based on the Inter-Chain Security (ICS) function:

Contract Consumer Chain:

The team directly creates an EVM and @CosmWasm to support smart contract blockchain without spending time dealing with low-level blockchain code that has nothing to do with business logic and uses contract language to develop its own business. The transaction fee on the chain is paid via ATOM and shared with Cosmos Hub.

Custom Consumer Chain:

The team fully customizes the bottom layer of the consumption chain to complete more complex functions and has customizable token economics. The Cosmos delegators will continue to receive the airdrop, which means that the early Cosmos Hub can enjoy the dividends of project development.

To sum up, the former is suitable for projects that have issued governance tokens on other EVM chains to quickly build their appchains (for example, the Appchain plan is suitable for UniSwap, but the details have not been announced), the latter is suitable for complex Web3 project that is hard to be completed by smart contract.

As Vitalik said, Web3 needs more non-financial applications, but due to the limitations of smart contracts, the performance of non-financial applications in smart contract L1 is not good. The appchains with a highly free and complete development environment may align with Vitalik’s vision more.

02

Risk Warning

This week's biggest security incident was the attack on the native BNB bridge of BSC. Because the BNB bridge simplifies the verification process and reduces the difficulty for attackers to forge the withdrawal proof through cryptographic means, 2 million BNBs were printed out of thin air.

However, it can be seen from the process of the escape of funds that the attackers do not seem to have a good understanding of the ecology of the chain. In addition, Binance shut down the BSC chain in time to avoid series damage.

In this attack, the lending platform Venus was the most severely affected. The attackers used BNB as collateral to lend out the stablecoin. The stablecoin of Venus was almost emptied, which means depositors of stablecoins in Venus will not be able to redeem their stablecoins.

There are currently three solutions:

1. The hacker pays back the money, and everything is restored as before

2. As the interest rate for lending stablecoins gradually rises, the hacker's BNB mortgage position will face liquidation. After the liquidation is completed, depositors can then withdraw funds.

3. The responsible party paid for the attack.

Biteye recommends:

The apr of the decentralized lending project is not attractive in the bear market. Once there is a problem with any of the collaterals on the lending platform, the principal deposited on the lending platform will be lost.

No one anticipated this attack, but fortunately, the price of BNB itself has not been greatly affected, and the BNB deposited by the attacker still has the real price.

As long as they wait patiently for liquidation, investors are only equivalent to forcibly locking up funds and losing part of the opportunity cost. If the price of the collateral tokens deposited by the attacker goes to zero (such as Luna as collateral), the collateral previously deposited by the depositor may never be withdrawn.

03

NFT

GardenLockdown —— Wolf and Sheep Game on PoS Chain

Basic Information:

Quantity: Initial G0: 5000, Subsequent G1: 5000, G2: 10000, G3: 5000

Price: Initial G0: Free for the first one, 0.01 ETH for each subsequent one, up to 5 per wallet. Follow-up: G1: 2w $Sun, G2: 4w $Sun, G3: 8w $Sun.

NFT types: plants and zombies, 90% are plants, 10% are zombies. Zombies are also divided into N, S, SR, SSR grades to stake for tokens: $Sun, total 2.5 billion, of which 1.2 billion is allocated to pledge award.

How to play: The initial G0 costs Ethereum, the subsequent NFT needs to consume $Sun, the staked plants get 1w tokens per day, and the harvested tokens need to pay 20% tax to the zombies.There is a 50% probability that all tokens will be lost if unstake.

Except for G0, the newly generated plants or zombies have a 10% probability of being stolen by the staked zombies (the level of the zombies will affect the success rate). NFTs are staked for at least 2 days, and the current return period is 2.5 days.

Summary: The game mode is optimized by avoiding the randomness problem of the wolf and sheep game.There is an upgrade mode and potential game.

( https://twitter.com/glnft_eth )

Twelve Anoynymous Tournaments —— Free-2-Play

Basic Information:

Total: 5555, 4500 whitelists, 555 as game rewards, 500 team holdings

Price: Free currently

Floor price: 0.06 ETH

Team: Founder Tomoya Kreation is also the head of the kreationdigital and houseofinsomnia projects, and previously worked for a game company. Jiro is a game designer, and screenwriter, and has participated in works including Pure Magical Girl, Dragon Gyas, New Sakura Wars, etc. Artist tatsuro was previously a character designer for Capcom.

Project progress: The NFT sale has been completed, and some background of stories have been announced. However, the game has not yet launched and its operational capabilities are a bit weak (based on activities at Twitter and discord). However, the quality of the work is not bad, and the team has a background in the game industry, so you can still follow it in the short term.

( https://twitter.com/tat_nftgame )

Risk Warning: Investing in NFT has high risks. The above project information is not an investment recommendation. Biteye has no business relationship with the above projects.

04

Interactive work

• Scroll: the zk-rollup scale plan of zkEVM, and is cooperating with the Ethereum Foundation on privacy scalability. The first phase of the test network has begun. The testnet consists of a self-built Ethernet fork L1 and Scroll L2 testnet. , now you can test the bridge and swap.

  ( https://twitter.com/Scroll_ZKP )

• Y2K Finance: The insurance protocol, mainly aimed at the price anchoring of assets such as stablecoins or stETH, wBTC, will be deployed on Arbitrium.

  ( https://twitter.com/Y2kfinance )

• Timeless Finance: Income market protocol, which can stabilize or amplify income, has been deployed on multiple chains. Amplifying returns are achieved through automatic reinvestment, and stable returns are hedged against the risk of yield fluctuations by holding NYT (negative yield token) (the price of NYT is inversely proportional to the apy).

  ( https://twitter.com/Timeless_Fi )

• Aveo: The on-chain options trading market is similar to the decentralized Derbit, which has partnered with Ribborn.

  ( https://twitter.com/aevoxyz/status/1575029805904384001 )

END

About us

Biteye is an Web3 learning and research community that generates content and tools by community, and uses DAO to govern and motivate!

WeChat group: Add a little assistant @Biteye01 into the group

Twitter：@BiteyeHQ

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*Disclaimer: The content shared in this article is only for learning and exchange, does not constitute any investment advice, and does not represent Biteye's position. If you like our articles, click on the business card below to follow us!