【will bitcoin drop】

Similar to Chainlink, The Graph can provide exposure twill bitcoin dropo a wide range of L2 networks and excellent Dapps without betting on specific L2 networks or applications.

The POW chain still maintains good network security and decentralizationeos coin marketFor the early POW chains, their decentralization is still relatively high, such as Bitcoin, Litecoin, and Ethereum. The degree of decentralization of the network mainly depends on the decentralization of the true owners of computing power. Many people mistakenly believe that the current Bitcoin mining pools account for a large percentage of the computing power of the mining pool. If the mining pool is attacked, it is equivalent to the block producer being attacked, which will affect the network security. To a certain extent, this view is still partially flawed.

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The computing power we are talking about is mainly based on the actual autonomous distribution rights of users, rather than the operating status of the block node. For example, most mining pools are actually running in professional computer rooms. The computing power of mining pools is high. To a certain extent, it will lead to centralization, but the mining power of an individual can change at any time. That is to say, the mining rights of the mining pool are the result of the choice made by the miners, and this choice can be changed instantly. For example, cutting off computing power is also a matter of minutes. Non-POW nodes have to undergo a series of processes such as reselection and voting, which also delays a certain amount of time. Therefore, POW is relatively advantageous.For example, in the POW chain, when mining pool A is attacked or there is a problem with the node, in theory, the block generation speed on the chain will be greatly reduced at this time. A block in the previous 10 minutes may now take 15 minutes on average, unless it is time to adjust the difficulty. , But for miners, they can cut their own computing power to other mining pools, which completes the redistribution process of computing power. The mining pool's computing power is reshuffled without affecting the efficiency of the overall network, and blocks are generated. The time will soon return to the previous 10 minutes, which completes the adaptive adjustment of the network.Therefore, the impact of attacking a certain mining pool node of Bitcoin and Ethereum on the network is relatively small, so why does the POW network not improve the efficiency of the chain?In fact, this is mainly because the POW chain requires a large number of calculations to determine the hash value, which increases the difficulty of tampering and forks to a certain extent, thereby ensuring security, although the current block generation speed of some POW chains is also Increase, but we can clearly compare the problem that may exist when the speed increases, that is, the problem of easy bifurcation.Bitcoin is a block in 10 minutes, and it is not easy to fork

Ethereum has a block in about 13 seconds, and sometimes an uncle block is needed to ensure that the transaction does not forkA public chain with a higher block generation rate has a block every two seconds. Except for the uncle block, there is a certain rejection rate when mining to ensure that there is no fork.Like mainstream lending agreements, Euler requires users to ensure over-collateralization, that is, the value of assets is greater than the value of liabilities. When the value of liabilities exceeds a certain ratio of the collateral, it will allow the liquidator to liquidate the mortgagor's assets and repay the debt. But in the calculation of debt value, Euler also introduced the concept of borrowing factor. The liquidation threshold of each borrower is tailored to the specific risk profile associated with the assets they borrow and use as collateral. In other words, when the value of the borrower's risk-adjusted liabilities exceeds the value of the collateral, it may be liquidated. Specifically, compared to the original lending mechanism, Euler's mechanism also adds a multi-dimensional risk assessment of liabilities, which further improves the safety margin of liquidation.

At present, the main liquidation incentive model adopted by mainstream lending agreements such as Compound is: the liquidator can purchase the mortgagor's assets with a fixed percentage discount. Under this mechanism, all liquidators face the same liquidation opportunity, and their potential profit percentages are the same, so they can only compete for liquidation opportunities by increasing Gas, where the high MEV value (Gas cost) becomes the liquidator’s The additional cost also increases the risk of the system. On the other hand, for mortgagors, the fixed asset discount auction ratio also allows them to lose the opportunity to lose a lower liquidation penalty.In response to this problem, Euler’s plan is to use Dutch auctions in liquidation, which can ease the joint bid of liquidators and may also obtain lower asset liquidation losses for mortgagors. At the same time, Euler also provides a discount acceleration mechanism for the collateral provider, so that he is eligible to conduct self-liquidation before the liquidator conducts the Dutch auction and reduce the mortgagor's loss. The above two measures are to restrict miners from grabbing excessive MEV fees in the liquidation, so as to improve the overall security of the system in the liquidation storm.In order to further reduce the transaction cost of liquidators in liquidation, Euler also borrowed the stable pool model pioneered by the Liquity protocol and expanded it into a multi-collateral stable pool form, allowing lenders to provide liquidity to the stable pool of each loan market. Support liquidation.Liquidity providers in the stable pool earn liquidation collateral rewards by depositing eToken (a deposit certificate of the Euler protocol, similar to Compound's cToken). When the liquidation is in progress, the liquidator directly uses the liquidity from the stable pool to repay the debts of the borrower, and will proportionally reward the liquidation collateral obtained to the stable pool, that is, the lender can eventually replace it during the liquidation period. Passive exchange of currency into liquidation mortgage assets.

For example: Euler provides a stable pool for the USDT that lends assets. The lender who is willing to participate in the stable pool can deposit their own USDT deposit certificate eUSDT into the stable pool as the counterparty of the liquidator, so that the liquidator is auctioning After obtaining the mortgaged assets, the mortgaged assets are exchanged to the deposit users of the stable pool at a discounted price (after deducting their own income), which is equivalent to that the users of the stable pool purchase the collateral at a discounted price.Compared with Liquity which only supports the LUSD stable pool, Euler's multi-token stable pool contains specific types of tokens that have not been disclosed, but it is believed that it will still be based on stable currencies or mainstream currencies.

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The advantage of adopting this mechanism is that the agreement believes that when the borrower reaches the liquidation threshold, the liquidator can use the internal liquidity source to immediately liquidate, without the need to exchange assets from a third-party trading platform, which greatly eases the liquidator When the market fluctuates sharply, the internal clearing price is inconsistent with the external platform price, and the high transaction slippage causes the liquidator to lose or fail.In addition, Euler does not intend to use an external oracle, but uses the time-weighted average price (TWAP) of assets on Uni V3 and WETH to measure the ratio of assets to liabilities.In the information that Euler has released, it has not disclosed the total amount of its governance token Euler, the distribution method, and the unlocking time. But it has made a preliminary outline of the functions and scenarios of its tokens. Euler will follow Compound's governance paradigm, and its governance functions include the ability to determine the level of assets, important parameters of the agreement, and the framework of governance itself. In addition, Euler also has a Vault mechanism, which can ensure the security of the agreement through staking.Since the product has not yet been launched, the risk parameters of project assets and other information have not yet been disclosed. In terms of contracts, Euler has officially disclosed three contract security partners, including Certora, Halborn, Solidified, and ZK Labs (the two collaborated to issue reports), and they have obtained two contract audit reports. Since Euler has introduced more innovative mechanisms, the amount of native code is also large. The issue of contract security is the top priority, and the team still attaches great importance to it.

Euler is committed to becoming a Uniswap in the lending field, providing lending liquidity and composability for more long-tail assets, and has a strong investor background. The agreement has introduced many innovative mechanisms to address the shortcomings of the current lending agreement, but since the agreement has not yet been launched, the practical effects of these innovations remain to be seen. There is still no clear timetable for the launch of the project, but the administrator of the Chinese community Chris (Mr. the well-known encrypted KOL block) said that more news may be disclosed in September.Product launch time: August 17, 2021Beta Finance is a decentralized permissionless lending platform incubated by Alpha Finance. Its feature is that users can spontaneously establish currency asset pools, focus on the long-tail asset market, and focus on scenarios where assets are short-selling.Beta Finance received a strategic investment in July this year. Investors include Spartan Group, ParaFi Capital, Multicoin Capital, DeFiance Capital and Delphi Digital. Generally speaking, the investors have a pretty good background.

1. Unlicensed money marketLike Euler, Beta Finance also pays attention to the long-tail lending market outside of mainstream assets and regards it as the main target market. Users can freely create asset classes that Beta Finance does not currently have to lend out their own crypto assets, but this feature has not yet been opened.

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2. Provide a convenient asset shorting experienceThrough Beta Finance, users can short an asset with one click by borrowing. Although users can also lend assets short on other lending platforms, they currently face two problems:

The operation is relatively cumbersome, requiring mortgage assets, lending short assets, and selling short assets to DEX. The cost of time and contract costs are relatively high.Mainstream lending platforms only support mainstream assets, the range of options is small, and the price fluctuations of mainstream assets are small, and the potential for short-selling is insufficientBeta Finance fits the needs of users on these two points.First of all, it provides a one-click short-selling interface for short sellers. Users can quickly select their short-selling collateral and short-selling objects. Beta will automatically borrow the corresponding short assets through its own currency market and sell short on the selected DEX. , And then the assets obtained from the sale will continue to be included in the collateral to reduce risk. In this process, users do not need to interact with multiple protocols, thus saving high gas fees and avoiding rushing in the face of sudden market opportunities.In addition to the improvement of the short-selling experience and the reduction of costs, Beta Finance's permissionless features and product positioning focusing on long-tail assets also mean that there will be more non-mainstream assets available for short-sellers on Beta Finance in the future. These non-mainstream assets often have more extensive short-selling or hedging needs.We have seen that despite the short launch time of the product, the TVL of the project has risen rapidly. On the one hand, Alpha endorsed the project. On the other hand, the official also publicly stated that subsequent airdrops will be carried out for deposit and borrowing and short-selling users. The project brought in a lot of funds. However, the utilization rate of Beta Finance funds is currently low.

Among all the listed assets, USDC ranks first in deposit volume and capital utilization rate.We found that because Beta is in the first stage of its launch, 16 of the assets are all certified assets (Verified Markets) that are officially reviewed and rated. Among them, the only asset of Risky Markets is Feisty Doge NFT's fragmented token NFD. , NFD is an ERC-20 ownership token after the Feisty Doge NFT (Dogecoin prototype NFT) is split on the NFT fragmentation protocol Fractional. It is a typical long-tail asset and it is also the main asset type that Beta Finance wants to support in the future. .

Beta Finance's product functional interface style is simple, the layout is reasonable, the interactive design also conforms to the user's intuition, and it is easy to use. On each business function page, the data display is also quite detailed, which is reassuring.At present, the project has not issued any tokens, nor has any information related to the total amount of tokens and distribution methods found on the official website, nor has it described the usage and scenarios of the tokens.

It is expected that the detailed token model will not be disclosed until the tokens start to be distributed.risk control

Beta Finance will classify certified assets (Verified Markets), with the highest level being S level (three stable coins), followed by ETH and WBTC being AA level. Different levels of collateral correspond to different lending rates (LTV) and liquidation line parameters, but currently only ETH and three stable coins are supported as collateral.Beta Finance's certified asset level and corresponding risk parameters, source: Beta Finance documentIt is worth mentioning that Beta Finance also disclosed the classification logic and model of certified assets. The evaluation dimensions include smart contracts of assets, counterparties and transactions of assets, which are very detailed.In terms of smart contracts, Beta Finance has obtained reports from Peckshield and OpenZeppelin, two audit institutions, and has launched a Bug bounty program in cooperation with Immunefi.

On the whole, Beta Finance's security preparations are relatively complete.Summarize

Beta Finance has accurate product positioning and business scenarios, focusing on long-tail asset lending and short-selling services, which is a distinct difference from the existing large-scale lending platforms. Its product concept is concise, and the functional combination of long tail assets + one-click shorting also has a large market growth space. In addition, Beta Finance's investor background is quite good. Although the project has not officially started the token distribution and has not announced the token model, it deserves long-term attention.Project Status

Product launch time: August 19, 2021Benqi is the first native lending agreement on Avalanche, led by Ascensive Assets, with participation from Dragonfly Capital, Spartan Group, Ava Labs, GBV Capital and other institutions. Benqi's current products are similar to most mainstream lending platforms, adopting the borrowing model of a pool of funds, and all product mechanisms are quite satisfactory, without much innovation.

Project FeaturesAs mentioned above, Benqi itself does not have much innovation in mechanism. Its TVL soaring comes from first-mover advantage on the one hand, and from the 3 million US dollar liquidity mining jointly launched by Benqi and the Avax Foundation on the other hand. In addition to mining subsidies, Benqi itself will also distribute project tokens QI to the users of the agreement as a reward. The total monthly subsidy amount exceeds 10 million U.S. dollars.Business conditionsBenqi is the largest project in the avalanche protocol ecology. According to data from DeFi Llama, its TVL has accounted for 47% of the total TVL of the avalanche protocol.

We can find that Benqi's high total funds and capital utilization rate are largely due to the higher token subsidies at the current stage.Product UI/UX

Benqi's product interface is relatively simple and quite satisfactory. Compared with Qubit and Beta Finance, it displays less data and still has room for improvement.Last week, I became a consultant for Sushi.com. In the past year, we have gone through a crazy journey, from launching the income farm to migrating more than one billion US dollars from Uniswap to Sushiswap in "Vampire Attack".

When Chef Nomi decided to cash in on the road, he was experimenting with human greed. Many community members not only believed in the initial value from the first day of the project, but also decided to continue to invest in construction desperately. They fell into the abyss and then stood up again.We now have more than 20 core contributors, able to integrate all UI into one, and launch another two protocols Kashi and Miso, which are deployed on more than 10 EVM compatible chains (Polygon, Arbitrum, Fantom, Harmony, xDai, Avalanche, Moonriver and many more). We are trying a new NFT project. Trident has opened the source code a few days ago. I feel confident that the current team can pursue and develop this without me. project.

Both Sides of the Table

Perspectives of a 2x entrepreneur turned VC at @UpfrontVC#

Mark Suster

Written by

2x entrepreneur. Sold both companies (last to salesforce.com). Turned VC looking to invest in passionate entrepreneurs 〞 I*m on Twitter at @msuster

Both Sides of the Table

Perspectives of a 2x entrepreneur turned VC at @UpfrontVC, the largest and most active early-stage fund in Southern California. Snapchat: msuster

Mark Suster

Written by

2x entrepreneur. Sold both companies (last to salesforce.com). Turned VC looking to invest in passionate entrepreneurs 〞 I*m on Twitter at @msuster

Both Sides of the Table

Perspectives of a 2x entrepreneur turned VC at @UpfrontVC, the largest and most active early-stage fund in Southern California. Snapchat: msuster