We have published the internal discussion notes of the editorial department of Lianwen on the 2020 year-end summary and 2021 expectations, mainly for readers’ criticism and ridicule-if it can bring you even a little bit of inspiration, that would be great.
Author: Chain smell editorial department
After interviewing more than a dozen of the most active core participants in the Chinese encryption world, the Lianwen team also asked two questions for itself. What are the 2020 figures and products of the year in our eyes? What should we focus on in 2021?
Is it Bitcoin? It should be far more than that.
In the annual survey , we found that only one person mentioned “ Bitcoin ”. It seems that everyone’s biggest and only expectation is “ out of the circle ”. Even the upcoming Schnorr signature and Taproot will bring 3 to Bitcoin. No one has ever mentioned the technological upgrades with far-reaching impact in the past five years.
The most significant significance of Bitcoin is to subvert traditional finance. It was originally a large-scale experiment in technology plus finance promoted by idealized tech geeks, but everyone is concerned about whether it can be sold to Wall Street faster.
Fortunately, there is another group of people trying to build a more complete financial system based on native cryptocurrency. All assets and business logic are based on blockchain technology, which means that it does not require permission, decentralization, and Trust-free, just like Bitcoin.
So this is a topic that is more important than Bitcoin in 2020: Decentralized Finance (DeFi) , which is also an area that the Chainwen team is paying attention to.
DeFi has driven the rapid development of many new concepts, such as AMM (decentralized market maker), DEX (decentralized exchange), lending agreements, etc., as well as the rapid growth of leading projects such as Aave , Compound , and Uniswap .
DeFi has also driven the rapid iteration of many peripheral upstream and downstream small components, such as governance modules (Snapshot, YFI), token distribution methods (retroactive airdrops), liquidity mining (Compound), data services (API3, Dune Analytics), etc. Wait.
And in this wave of DeFi trend, a controversial annual KOL- Andre Cronje was born. In fact, Lianwen discovered the stablecoin swap protocol Curve promoted by Andre Cronje as early as March of this year, and introduced the principle of Curve to Chinese readers in detail and the AC who couldn’t stand the suspicion of the community and clamored to leave the circle. Extended reading
Looking forward to 2021, Lianwen will continue to focus on the simplification and complexity of DeFi applications, and continue to focus on rapid and disruptive innovations in this field.
On-chain index funds and asset management can help investors participate in the secondary market more conveniently. On- chain derivatives such as futures, options, insurance, and synthetic assets are the boundaries of exploring composability and complexity.
Looking at the bottom layer of DeFi, there are new public chains , Layer 2 technology , Bitcoin and Lightning Network, etc.; looking at the upper layer of DeFi, there are DAO , liquid mining , data tools, etc.
Even the centralized world is quickly embracing DeFi, and many exchanges have begun to cultivate their own public chain ecology and focus on DeFi application scenarios.
Perhaps this is the first time they have felt the pressure from the decentralized financial world: Uniswap is a decentralized exchange that only uses hundreds of thousands of lines of code, and its trading volume has even begun to break through Coinbase Pro .
As for other interesting topics and directions, please see below.
In 2020, what phenomena do you think on the market, what products, and who impress you the most, and why?
👾 Pan Zhixiong:
The rapid growth of financial applications on Ethereum this year has highlighted the potential of open source distributed ledger technology and smart contract technology, and the composability of various applications has gradually emerged. Before the expansion is achieved, the applications of the Ethereum network may all focus on high-value application scenarios. Other applications may only use side chains or go to other blockchain networks with better performance. As time goes by, the security of these time-tested financial smart contracts will continue to be recognized by more people and is expected to continue to achieve faster growth.
The governance of the agreement has also undergone a more direct and comprehensive roll-out experiment this year, and more projects have chosen the DAO model to iterate and maintain various parameters of the agreement. Prior to this, there may be only a few well-known such as MakerDAO , and this year all types of DeFi projects have chosen DAO. In addition to the most common transactions and loans, there are index funds (PieDAO) and arbitrage agreements ( YFI, KeeperDAO), cross-chain protocol (BoringDAO), asset management (dHEDGE), etc.
The native token issuance model on the chain, such as: issuing through Uniswap (UMA), issuing by providing liquidity (Compound), airdropping for early seed users (1inch), etc. Since the launch of the ICO boom in 2017, the tokens of many projects have been fundraising in the form of drawing pie, but this year is essentially different. Many projects are striving to capture real users and issue agreement governance codes for these users. There are various methods of currency, but they are all carried out in a native way on the chain. But the current mechanism is not perfect, because some people only regard this as “mining” and choosing places with higher annualized returns may make it easier for whale users to draw profits. But in general, at least these methods are open and transparent, and the data on the chain is fully verifiable, so each team is also choosing a solution that is more suitable for them.
🐕7:
At present, traditional financial market institutions and bigwigs are basically only buying and not selling the hoarding stage, so this entry is not helpful to the maturity of the market, but will lead to a decline in real circulation, which intensifies the volatility of currency prices. There is a high probability that more voices of doubt will appear, so there is no reason to take the entry of so-called institutions as a reason for market maturity. In addition, the current Bitcoin trading volume on the top exchanges, whether it is spot or futures, has not significantly increased compared with the beginning of the year. The currency-based trading volume has significantly decreased compared to before and after 3.12, so this round of new highs is for the market. It has very limited meaning in terms of development and out of the circle, it looks like it is digesting the inflation of the dollar in a closed pool ;
DeFi can be regarded as bringing finance into the crypto world in a real sense, but the four essential meanings of the financial market “financing, regulation, hedging, and signaling” do not seem to be really valued by DeFi participants, so DeFi can be added The big concept is regarded as Bitcoin at the end of 2017. The market hasn’t figured out what this thing is doing. Just because of the wealth effect, it rushed in. There are reasons to believe that the current DeFi bubble ratio is much higher than that of Bitcoin , and when the next bear market cycle comes, Tugou will be on guard;
Spot and options trading on DEX is reasonable and feasible, but using DEX for futures is a very stupid choice (at least so far), even if high-frequency trading is not considered, even manual futures operations are correct. There is a high pursuit of liquidity and speed, and the DEX for futures before Layer 2 really opens the performance bottleneck is dregs .
🐾 Eliven:
Liquid mining: It can be said that this year’s DeFi explosion fuse. I thought about a question, if there is no liquidity for mining, what will happen to DeFi? The answer is that DeFi will still be the focus of the entire blockchain industry, and another token issuance mechanism (such as lock-up airdrops) may have a similar effect. The reason is that DeFi already has a relatively complete infrastructure and generates cash flow. In the experimental stage of cryptocurrency with concept speculation as the mainstay, there is only one opportunity for the DeFi outbreak. But is liquidity mining just a button for the DeFi explosion? It’s not. It also supplies blood for the DeFi protocol and promotes the internal circulation of the DeFi ecosystem. In my opinion, the liquid mining mechanism has become the heart of the current DeFi system .
Aave: If you want to ask who is the brightest rising star in the DeFi field? Then, it is YFI. However, the capital market “has never heard the newcomers laugh, but where the old ones cry”. Therefore, from the collapse of the currency price to a hundredfold increase during the year, Aave’s phenomenon of dead trees and springs can be said to be rare, because 99% of the projects will die. I am curious, why can Aave be the remaining 1%? The answer is obviously not as simple as lucky.
Distributed storage: Since the Filecoin ICO in 2017, I have been paying attention to this field and participated in Filecoin mining. It’s a pity that the ICO that was invested at that time was later retired because of the “September Fourth Movement” and lost 10 times the return. Until this year before the Filecoin mainnet went live, I chatted with friends who had been “sucked in mud” on Filecoin mining for two years. I still regretted this matter and realized that Filecoin mining may be a big pit. The simplest logic is how Filecoin will carry the mining market of nearly 10 billion U.S. dollars within a year of 3 billion U.S. dollars (assuming the currency price remains unchanged). This means that miners may take three years to pay back their costs. The fact is that, in addition to low revenue expectations, the network mechanism is the nightmare that lingers on the minds of miners. My experience is: early investment in star projects is something that has a relatively high risk of return, rather than safe mining.
🐦 LeftOfCenter:
API3: Introduce the data provider directly into the blockchain system to feed the price, and provide convenient operation and easy installation of the encapsulated API gateway gateway Airnode, so that the third-party node role in the original so-called oracle system can be removed. Reduce the cost of the oracle machine (removal of the middleman). On the other hand, the data provider itself has its own business and credit endorsement, and does not need to participate in economic games, which can increase the utilization rate of funds. These data providers may not be users of the blockchain in the first place. Once they are successfully introduced, they will also bring an incremental market to the blockchain. Of course, the most important thing is that the introduction of more professional data providers can improve the efficiency and accuracy of the oracle itself. Imagine if you want to develop an Internet product, independent developers will obviously understand products and users better than outsourcing teams. , Of course, will also be concerned, and in the oracle track in the blockchain industry linked to money, the accuracy and security of data are obviously much more important than a simple Internet product. Of course, it ultimately depends on the team’s ability to execute, and whether more offline entities can be involved. I believe that the founders of the team who moved from Chainlink to work alone in Turkey, which is in dire straits, have enough motivation to do these things.
88mph: 88mph is a DeFi protocol that aims to provide fixed interest rates for various encrypted assets. Although there are many DeFi fixed interest rate products, the feature of 88mph is to package it into a wealth management product and use the data stored on the chain as a The key indicators of the token model, specifically, users who deposit token assets in the agreement can get the fixed interest deposited in the asset standard, and they can also get MPH token rewards. MPH is a native token of 88mph. There is no upper limit on the total supply. That is to say, the total issuance of MPH tokens will increase with each new deposit on the chain. The total amount of locks on the chain is currently $2,427,940. However, under default conditions, 90% of the MPH token rewards received by deposit users must be returned to the governance treasury upon expiry, and the treasury will allocate token spending and expenses based on specific circumstances. Of course, the system can adjust this 90% parameter at any time according to the actual situation. If you want to stimulate the growth of the deposit data of a certain asset, you can lower the repayment rate, similar to adjusting the speed of a car. 88mph conducts the initial distribution of tokens through liquid mining, providing 88,000 MPH tokens for the initial distribution of liquid mining, that is, providing MPH token rewards for LPs who provide ETH/MPH trading pairs on UNISWAP, and 14 days later The second round of liquidity mining was started, and the reward tokens were reduced by 10 times to 8,800 MPH tokens. It has now progressed to the third round of liquidity mining, and the reward tokens have been reduced to half of the previous round, which is 4406 MPH tokens. currency. Except for the first round of 88,000 MPH tokens, the token rewards for all subsequent rounds of liquidity mining come from the governance vault, that is, from the MPH tokens returned by users when the deposit expires. In the future, the team will gradually transition to decentralized governance, and various parameters will be determined by community voting, such as whether MPH mining rewards will be reissued or provided by the governance vault. In other words, it will be very interesting to see how MPH holders decide on their own how to stimulate the growth of the total lock-up volume, and how to create more income for MPH stakeholders without diluting the interest of early adopters.
🐨 Lou Yue:
Staking, liquidity mining: Chasing higher returns and capital utilization. Staking in the PoS consensus has allowed the market to see the way to pledge income, and once became a hot spot for various projects, but the early lock-in of assets affected the utilization of funds. With the popularity of DeFi, various types of pledged interest-bearing tokens derived synthetic assets The greater liquidity of assets is released, and users can use such pledged synthetic tokens to continue participating in applications such as DeFi lending and obtain higher returns.
For example, after Ethereum 2.0 turned to PoS, we saw that locked assets continued to grow in an accelerated manner. Synthetic assets provided by various third-party pledge resolution protocols could go to Uniswap and other protocols to provide liquidity. In turn, after Ethereum was locked, it was formed A certain deflationary effect has promoted the growth of the value of tokens, and the capital utilization rate has continued to rise, which can form a positive cycle. By the middle of the year, the ultra-high return rate brought by liquidity mining as a catalyst for DeFi attracted the rapid flow of funds and thoroughly stimulated the potential of DeFi for a long time. Various Swap concept projects can accumulate a large amount of funds in a short time with a little bit of heat. Although there are risks, as long as the funds run fast enough and keep up with the hot projects, they can get good returns. It shows that there is a large amount of funds in the market. Seeking to pursue higher returns and capital utilization.
However, many users in this wave of enthusiasm are just going for revenue. Many projects have not accumulated effective users, hot spots have retreated, and projects have stalled . This is also a problem that many projects are thinking and paying attention to.
The major public chains and projects are based on the “auxiliary chain” of Ethereum . At present, there are few public chain projects that come out under the banner of “Ethereum Killer” in the market. Major public chains and projects have begun to transform their positioning into “Ethereum’s auxiliary tools.” DeFi, like ICO, has pushed Ethereum to a new climax. Project financing used ETH, and the project issued the ERC 20 protocol. Some of the underlying things of Ethereum have also been adopted by many projects, and some applications have already taken shape. Going to cross-chain and transfer requires certain cost, technology, and time, and may also face some security issues. In view of the fact that Ethereum is still relatively stable at the bottom of decentralized finance, and the developer ecology is better, it has spawned Many auxiliary projects of Ethereum.
For example, assisting various assets to cross-chain to Ethereum (wrapped BTC, etc.), Ethereum’s second-layer expansion, compatibility side chain, and subdivided projects that focus on better development with a certain Ethereum ecological application can also gain market attention degree.
Macro, institutional
I have to admit that the interest of institutions has increased this year, and there are more and more actions that can be captured by the market, such as gray scale, large funds, and listed companies. The entry of large funds can not only help Bitcoin go out of the circle to expand its influence and In addition to the entry of financial funds, from a more macro perspective, which countries or regulators take further action, the crypto market may usher in a new change. The XRP incident at the end of the year is also a good example of supervision and macro intervention.
🐬Zhang Gaijuan:
Liquidity mining and DEX such as Uniswap usher in explosive development; Grayscale and PayPal and other institutions have helped Bitcoin prices hit historical highs.
The most impressive individual: Andre Cronje-Cargo King, AC Effect . The person of the year in the DeFi field in 2020 is Andre Cronje. But looking at Andre Cronje, the projects it has built or hand-picked, and even most DeFi projects are still in the speculative stage, and there is still some distance from the value investment stage. Building new projects and doing mergers are by no means simply making quick money. Value discovery and safety are often more important than storytelling.
Yearn, the revenue aggregator project launched by Andre Cronje, created a myth in the currency circle. The launch of the governance token YFI once stole the limelight of Bitcoin. The price rose to 44,000 US dollars, which was over 300% higher than the price of Bitcoin at that time. , The current price is also maintained at more than 20,000 US dollars.
Then, Andre Cronje took advantage of the opportunity to try to develop new projects in multiple DeFi fields, such as EMN, token LBI used to eliminate arbitrage losses and transaction costs, insurance agreement yinsure, task agreement Keep3r, which combines the advantages of DeFi AMM and lending agreement StableCredit. However, some of these projects experienced “rollover accidents” after their launch. For example, EMN suffered a lightning loan attack and stolen US$15 million, and LBI plummeted by 99% overnight. As a result, Andre Cronje stepped into a whirlpool of controversy.
After that, Andre Cronje’s merger picture slowly opened, focusing on “building a DeFi empire” and “merging” or cooperating with Pickle, Cream, Cover, SushiSwap and other agreements at lightning speed, and announced After the “merger” or cooperation, the tokens of these projects have achieved a rise of more than 20% on the same day, and Andre Cronje has become the well-deserved “DeFi king of goods.” From the perspective of merger projects, these merged or cooperative projects are distributed in various fields of DeFi such as revenue aggregation, mortgage lending, insurance, and decentralized exchanges (DEX). This is evident in Andre Cronje’s ambition to build a DeFi empire.
However, as the end of 2020 is approaching, the insurance rookie Cover appointed by Andre Cronje has been hacked twice, and the token price has dropped from the lowest near $800 to single digits. The incident not only raised doubts about Cover, whose original intention was to reduce risk and loss for other projects, but also pushed Andre Cronje to the forefront of public opinion again.
And with Andre Cronje’s projects created or hand-picked, there have been many “rollover incidents.” The protagonist’s halo over Andre Cronje’s head has been greatly reduced. From his “deification” to the gradual return to calmness, after the crazy hype, this may be It is a critical moment for the DeFi market to gradually return to rationality.
🕊 Ade:
Dune Analytics : I believe that after the outbreak of DeFi, many users are already familiar with various data software, such as Dune Analytics, Debank, DeFiprime, Defipulse, Dapptotal, etc. Dune Analytics is a tool that can instantly create and share data about Ethereum smart contracts. It integrates query, visualization, sharing and exploration to make smart contract data readable. Dune Analytics can not only directly view the data templates created by research institutions such as the official or Messari, but also directly analyze the data through SQL or copy and export. From the perspective of frequently exporting and analyzing data, Dune Analytics is easier to obtain than DeBank and other data platforms and can find more angles and brainstorm.
The rise of MEME : It is similar to Dogecoin but has taken a different path. I did not expect that there will be more possibilities for the combination of community tokens and NFT.
🤡Excited:
Bitcoin is out of the circle again. Bitcoin is out of the circle again. Even most of the practitioners did not expect Bitcoin to recover so quickly, or even hit a new high. After all, Bitcoin would not be able to survive the black swan in March, and it did not take long for it to recover. Will 2021 continue to be “the best year in the next decade”? Unpredictable, Bitcoin may be an option against uncertainty. The world is sinking, Bitcoin is carnival.
Supervision and review accelerate the process of decentralization. Traditional centralized exchanges and stablecoins may still dominate the mainstream for a long time, but the helicopter-like DeFi protocol may be a precursor to the decentralization of the cryptocurrency industry.
Andre Cronje . Well-deserved DeFi internet celebrities, lightning acquisition of several agreements, amazing iteration speed.
In 2021, which fields/directions/topics do you most look forward to or feel most worthy of attention or most interested in?
🐕7:
Pan-index products (which will also indirectly drive synthetic assets) : From a purely decentralized perspective, pan-index products (indexes, low-threshold funds) are of great help in enriching asset allocation and realizing risk control. From the perspective of hedging In other words, this type of product is much easier to understand than options and has a natural advantage in popularity. At present, this kind of product seems to be one of the few value manifestations of synthetic assets on the chain. The step of putting the assets on the chain on the chain will become more useful in the future and attract more assets;
For large DeFi, the real value point should be found from the four meanings mentioned above. Borrowing (constant interest rate lending, risk-graded synthetic assets), Bitcoin cross-chain, insurance (options) and prediction market (futures) are considered At a glance, the leaders of these tracks have the highest probability of surviving in the next round of Bitcoin’s bear market. In other words, if the asset allocation of the native dog is used, the leaders of these four dimensions are relatively low-risk choices;
Head centralized exchange : The head centralized exchange went astray in the second half of this year. Following the trend to engage in new currency mining and so on is simply the wool of basic traffic. In this regard, the centralized platform has no essential advantages at all. In fact, the average daily trading volume of cryptocurrency futures derivatives (after leverage) is not much different from that of spot products. The space for a single futures track is very large. If several major companies can figure out how to put the point of competition on On the futures contracts of popular assets (the forward contract lists new asset trading pairs and even the deposit is saved. At the end of 2017, traditional brokers such as eToro have proved how big the CFD contract market for cryptocurrencies is. Since it is already a gray area Now, it might as well be more presumptuous, but this also puts forward higher requirements for the investor education of the exchange), then the happiness of the market will be super doubled. Ecology can be regarded as a face project, but the principle of the casino should be to provide gamblers with a good enough participation experience;
Bitcoin + Lightning Network : Although it looks like a salty fish, from the perspective of the general environment, the adoption rate of Bitcoin is expected to exceed the real explosion threshold of 2.5% next year. There is a high probability that it will usher in accelerated popularity, regardless of the currency price. It has nothing to do with junk coins (there is even a chance to complete a new round of thorough shuffling through blood sucking). In addition, some basic decentralized “exchange” applications on the Lightning Network will usher in a larger market due to the further popularity of Bitcoin.
👾Pan Zhixiong:
How to build a Layer 2 ecosystem is worthy of attention, especially in combination with finance. This will not only bring performance improvements, but also new experiences and innovative product trials that were completely unimaginable on Layer 1. In addition, many applications can also completely solve the previous experience and compatibility issues caused by the old protocol standards when grafting Layer 1 (for example, authorization is required before ERC-20 token transactions). For example, the Layer 2 expansion technology ZK Rollup has changed the paradigm of the Ethereum protocol itself, and transformed the relationship between “computing” and “storage”. Through the large-scale off-chain computing power with reasonable data compression techniques, it is expected to be the Ethereum network Provide a hundredfold expansion solution with almost no security loss, and even this solution may continue to play a role in other blockchain networks in the future. Possible tipping point: When the applications with a large number of users on Layer 1 are actually migrated to Layer 2, more users will quickly influx, such as Uniswap and Synthetix, which are working hard in this direction.
Asset management on the chain is the best bridge to lower user thresholds and match professional investment users with ordinary users. When DeFi starts to become more complicated, retail investors also need a way to facilitate investment. Asset management institutions under the chain cannot guarantee the security of custody, but smart contracts can solve such trust problems. Therefore, passively managed index funds (PieDAO, Set Protocol) or actively managed funds (dHEDGE, Enzyme) may be more convenient products for ordinary users. Possible tipping point: When these asset management agreements can invite very well-known investors to open an asset management fund, it may lead to a rapid influx of users to follow up.
How to layout the new public chain ecology. Ethereum is currently the first and only self-growing blockchain network, and countless public chain protocols are competing for the second position. For example, the current ecological development of Polkadot is very rapid, but the quality will take some time to be clear. In addition, Oasis and PlatON (Alaya), such as the NEAR sharding solution and the privacy computing direction, have their own characteristics. Possible tipping point: whether the experience and cost of the cross-chain bridge with Ethereum assets are advantageous; explore application scenarios other than finance; when real-use applications are launched, or from the developers of the Ethereum ecosystem While introducing high-quality applications.
🐾 Eliven
Expecting or looking forward to this topic is always inseparable from basic cognition. I think that although the industry has made significant progress relative to three years ago, it is still in the experimental stage of concept speculation. As a result, the focus of the cryptocurrency industry is born in the place closest to money. This is true for ICOs, and so is DeFi. This is the reality.
However, I also want to talk about the ideal side. I believe that the value of any technology or model lies in solving human needs. We all know the convenience and efficiency brought by the free circulation of information on the Internet. But what about blockchain? Imagine that the Internet of Things, traceability, and cross-border transfers, these convenient and efficient scenarios for the blockchain are actually quite far away. I think that removing new models like DeFi is also the direction the industry has to work hard for in the long term.
Based on the principle of both “pull your head down” and “look up at the road”, I think what we can look forward to in 2021 is:
DeFi derivatives : Just like CeFi derivatives, there is finally time to spread their wings
Distributed storage : an inaccessible part of DApp, but also an out-of-circle exploration
Industrial blockchain : whether there are coins or not, it doesn’t matter
🐦 LeftOfCenter
If you want to choose one of the most interesting phenomena in the cryptocurrency industry in 2020, I will choose the retroactive token airdrop opened by Uniswap . Uniswap, which has long become a unicorn in the crypto world, initiates initial token distribution through airdrops. As long as users who have ever traded on the platform can get an airdrop of 400 UNI (worth $1,400), and those who have participated in liquidity provision and holders Users of SOCKS tokens give greater reward weight. This retrospective method can not only start more fairly, not through purchase but airdrop to users, more importantly, this method is conducive to the distribution of tokens to truly valuable long-term users, that is, these users are not for short-term pursuit Profit comes to receive the free lunch, and there is a high probability that you will be a true DeFi early practice trader. This is a very effective token distribution mechanism, which is conducive to the distribution of value to the real users of the community, and is conducive to fostering an organic decentralized community, which has been imitated by other DeFi protocols, such as 1inch.exchange and BadgerDAO.
The initial distribution of Badger DAO is to reward a series of DeFi operations with Badger tokens. Unlike Uniswap’s reward mechanism, Badger DAO pays more attention to rewarding heavy DeFi users, such as Meta Cartel and The Lao members, participating in 1HiveOrg, Gitcoin donations However, since this is a project that aims to provide an anchor price for Bitcoin on Ethereum, many of the airdrop reward mechanisms are operations related to BTC anchor coins, such as minting sBTC, supplying/borrowing on Aave Operations such as wBTC can be rewarded with Badger tokens. Such a result can obviously include more Ethereum users who pay attention to Bitcoin into the community. In addition, Badger DAO has also added a time-weighted reward multiplier mechanism to the system. That is, the longer the user pledges, the higher the reward they receive, which can effectively enhance the decentralization of the community. It can be predicted that as more high-quality projects adopt this fair retrospective distribution mechanism, everyone is forced to become a qualified DeFier, as long as the reward is sufficient.
Another thing worth mentioning is that Web3 tools on Ethereum began to bloom everywhere . This can be seen from the ETHOnline online hackathon held in November this year. Compared with the previous two hackathons, this ETHOnline hackathon Great progress has been made, and the quality of submitted projects has become better and better. Some of these products and tools focus on solving practical problems, such as the “Stoploss Protocol” that allows liquidity providers to set stop-loss orders to reduce the risk of impermanent losses. “Liquid L2”, which attempts to solve the problem of withdrawal delays in the second-tier expansion plan of Ethereum by integrating the Aave credit delegation mechanism, and Unite.community, a community token automatic distribution tool, helps Leek get rid of the FOMO emotional impulse trading portfolio management platform “Mindful “, and the decentralized insurance solution “Protekt Protocol” that does not require permission. In addition, some of these tools were quickly used for practical purposes. For example, the Web3 community project Friends With Benefits (FWB) has adopted Unite.community, an automatic community token distribution tool, to distribute FWB tokens. Community users only need to share posts. You can automatically receive 5FWB.
Community tokens or personal tokens may become one of the incremental markets with the most potential to connect with the real world . Unlike ICOs, which are widely criticized for issuing coins out of thin air, community tokens are issued based on a certain value support. They are the profitability, popularity/popularity or prestige of the creators, and open and permissionless encryption economic primitives can promote To form a fan-oriented value discovery market, this kind of value native to the Internet community is easier to capture than physical objects. With a series of easy-to-use token infrastructure, various Web3.0 tools, and, most importantly, the benefits and use cases of popular science community tokens to creators of non-encrypted natives, and help them spread across the Internet The community value on the platform is extracted and returned to the main body of value creation-community promoters and their community members. And this is exactly what platforms such as Rally, Roll, and Fyooz are currently trying hard. Before the realization of the real asset chain plan, I think that community tokens may become one of the incremental markets with the most potential to connect with the real world.
🕊 Ade:
What changes will be brought about by the development of mining overseas, especially in North America, institutionalized mining and most domestic small workshop-style mining? Mining logic is undergoing great changes, and many new opportunities in the industry can no longer be considered from the original perspective.
At present, Chinese practitioners in the Bitcoin mining industry are facing numerous problems: 1. How do Chinese miners improve and adjust their business; 2. Affected by the epidemic and other factors, the production capacity of new machines is not high, and their costs are also high. However, the old mining machines headed by S9 are gradually shutting down; 3. China’s direct power supply policy for mining is relatively unstable. How to obtain compliant, low-cost and stable power resources has become a top priority; 4. With the new development trend, the regulatory attitudes of North American countries are becoming more and more active, and the mining companies to which they belong will seize the mining market share by virtue of a more specialized, financial and systematic operation model. Overseas resources and global resources have become a trend. The oligopoly of Chinese miners may experience a greater test, and the rise of mining in North America may become inevitable.
The development of DCEP : Digital RMB is now only digital legal currency. How to apply programmability, and will it be possible for central bank digital currencies in other countries to access the industry;
The development of digital asset derivatives : options transactions include whether there are other possibilities and arbitrage opportunities for DeFi options.
🐬Zhang Gaijuan:
Bitcoin, Ethereum, Polkadot, DeFi and NFT .
🐨Lou Yue:
Short-term predictable airdrop incentive models : The airdrop models brought by Uniswap, 1inch, Tokenlon, etc. have created a wave of rich stories. In the short term, this early user airdrop reward will stimulate the use of many users, such as dydx, The number of DEX users who have not issued coins such as macha has increased sharply. At the same time, this method also makes the distribution of tokens more fair, enhances the sense of participation of community users, and promotes the progress of decentralized communities.
However, in order to curb some pure wool parties, many projects may further raise the threshold and methods of airdrops in order to retain more effective and long-term users, such as adding further airdrops or incentives to stimulate demand after airdrops accumulate cold starts, or Project joint airdrop, or extension of time, etc. Maybe after users participate in governance, vote, initiate proposals and opinions, etc., they can get certain project airdrops, which can then promote community participation and promote project development. (I feel that this method is also very friendly to some blockchain content and media platforms. You can learn Pinduoduo to get new users to issue tokens, or swipe short videos to receive token red envelopes)
Security (DeFi insurance) : DeFi security is still a problem that cannot be ignored. This year, various attacks are common and have become a major pain point in the development of the industry. The security issue of DeFi is still a major responsibility. One form of reducing security risks is insurance. However, the founder of Nexus Mutual’s own wallet was stolen and Cover was attacked. The two hottest DeFi insurance projects have happened one after another, making the market think about more scalable forms of insurance. In addition, insurance, as a landing scene of traditional finance, has made considerable progress for a long time. In the field of decentralized finance, there are not only hard needs of different groups such as project parties, users, and miners, but also differentiated services, types, different groups, There are possibilities to explore in terms of liquidity and cost. (For example, Maker introduces real insurance mortgage assets and explores the form of insurance integration with CeFi)
Stepping out of finance : Referring to some examples of traditional markets, in addition to decentralized financial services, some other fields may also develop well. Guess wildly: encrypted social applications, entertainment (games, music, videos, forums, gambling), betting, predictions, including but not limited to the fan (consensus) economy triggered by celebrity effects in the crypto industry.
🤡Excited:
STO / security tokens / physical assets on the chain. It is not a new concept, but we can see that this year, whether it is Fusang, which is trying to cooperate with China Construction Bank, or Centrifuge and Securitize in the West, are exploring.
Web 3.0 protocols, middleware, and tools for cross-chain ecology. Public chain stars Polkadot, Dfinity, NEAR, etc. have all made significant progress this year. The ecosystem of the first-level protocol urgently needs to be built and enriched. Therefore, the Web 3.0 protocol that spans different public chain ecosystems is likely to usher in an opportunity for vigorous development.
DAO / decentralized governance / cooperative model. The rapid development of DeFi is a popular test field for exploring DAO. In 2021, on-chain governance will continue to evolve in the field of decentralized finance, but it is worth looking forward to finding new mechanisms for human social collaboration and governance in a broader field.
