The Ethereum ecosystem is growing rapidly, especially Ethereum as important areas start to emerge. Ethereum Panorama is a weekly series that will keep you updated on the Ethereum ecosystem and provide useful insights to find investment opportunities.
Important update in Ethereum last week
- Boba Network starts up.
- Aave V3 - cross-chain interoperability and increased capital efficiency in Aave.
- Gnosis proposes to acquire xDAI Chain.
Analyze each piece of the puzzle on Ethereum
Ethereum Layer 2
Last weekend recorded Total TVL on Layer 2 exceeded $5B. In which, the top four L2s that account for more than 90% of the market shares are Arbitrum - $2.82B, dYdX - $968M, Optimism - $488M, Loopring - $489M.
In addition to the familiar L2s above, last week Boba Network conducted a Snapshot to airdrop to OMG holders at a ratio of 1:1, BOBA tokens will be distributed to users and can be traded around November 19. Not long after that, the gas fee on Boba Network will switch from ETH to Boba network's native token, BOBA.
In terms of the ecosystem, the two native developers on the Boba network have both made moves to prepare the bootstrapping network. It is this that has pushed Boba's TVL to increase markedly:
- Oolongswap will conduct liquidity mining on the evening of November 15 with the following trading pairs, USDC/ETH, WBTC/ETH, OMG/ETH, USDT/ETH, DAI/USDC.
- Senpaiswap has also announced that it will airdrop to users providing liquidity to their platform.
Network network
Loopring is the most impressive L2 growth in the past few weeks, it is a Zk Rollup for payment & exchange.
Although Zk Rollup is recognized as a more long-term extension solution for L2, at the moment Zk Rollup is still at a fairly early stage, their applications are limited to applications for especially for simple transactions & money transfers such as Perpetual trading, Spot trading, NFTs Trading,... For more complex applications, Zk Rollup has not yet met.
With the hint that the next development step will focus on zkEVM, Loopring shows its ambition in competing to become the leading L2 in the market, competing with other Zk Rollup platforms such as Starkware's Starknet , zkEVM's zkSync. I believe that this news is the main reason to push the price of Loopring to increase sharply in the past time.
Curve Finance Emergency Knife
Over the past week, Curve Finance has been subjected to a sophisticated governance attack by a protocol called Mochi Inu.
Curve Finance is a decentralized exchange protocol designed specifically for pegged 1:1 Pegged Stablecoins or Crypto Assets (eg sBTC,renBTC,wBTC…), allowing users to trade stablecoin exchange with slippage, low transaction fees. As of now, Curve is the protocol with the most TVL in DeFi.
Mochi Inu is a brand new project, it is described on Twitter as “Next-Gen Decentralized Digital Currency Backed By Long-Tail Crypto assets”, with a unique and novel concept, Mochi Inu quickly attracted nearly 100M liquidity, this allows the project to earn a sizable amount of about $40M from the project's native stablecoin USDM.
Mochi then swapped USDM into DAI to buy Convex, which can be used to influence Curve governance, this way Mochi can influence CRV reward allocation in favor of his project.
People in the Curve community were quick to warn against the move. Not long after that, Curve Finance activated the "Emergency DAO" which deactivated Mochi's rewards.
Overview of Mochi Inu's Curve FInance attack process:
- Mochi is a debt protocol with a native token of MOCHI, which collateralizes MOCHI to mint USDM (Mochi's native stablecoin).
- Mochi creates USDM-3pool on Curve.
- Bootstrapping liquidity by MOCHI liquididty mining.
- Token supply & Price feed is controlled by Mochi so the project is easy to manipulate & rotate to generate lots of USDM.
- Sell DAI output USDM batch on Curve Pool.
- Get DAI to buy CVX to get Curve administration rights, vote for USDM-3pool pool to get more CRVs.
- The newly harvested MOCHI will be collateralized to mint new USDM, then Mochi sells them and receives about $30 M DAI.
The parties affected by this attack person:
- Users hold tokens that are almost worthless.
- 3pool LP lost more than $30M.
- Curve hole CRV rewards.
After this attack, the Curve Finance community is coming together to redesign the rules related to veCRV manipulation more clearly, avoiding similar exploits.
Aave V3
Last week, Aave introduced the next step for Aave, Aave v3, in general, the proposed features of V3 towards cross-chain interoperability and increased capital efficiency in Aave, including 2 features. which I think is the most unique.
If you are interested in Aave V3, you can read the full proposal here .
In my opinion, the most important feature in V3 is “ Portal ”, by combining with cross-chain products such as Hop Protocol, Connext and others, this feature allows lenders to move their capital across banks. blockchain. This will increase capital efficiency, then users can easily move assets to where there is the highest demand and return.
The next interesting feature of Aave v3 is eMode, which will classify assets based on four parameters: loan to value, liquidation threshold, liquidation bonus, optional custom price oracle. When enabled, eMode will allow users who offer properties in a certain category to borrow properties in the same category with a higher collateral ratio (meaning they can borrow more) and a lower payout penalty. lower reason.
Gnosis proposes to buy back xDAI Chain
While many other sidechain and L1 EVMs have experienced significant growth in price and ecosystem, xDAI & Gnosis is quite lagging behind its competitors.
Proposal to buyback xDAI chain has the potential to stimulate both Gnosis & xDAI to grow, but it also brings many governance risks. Besides, the community of xDAI is not too supportive of this proposal.
Overall, this deal is relatively similar to a traditional financial auction, specifically, STAKE holders receive a portion of Gnosis tokens based on a % discount from the average price before the deal was announced. .
Although it is quite big news, it seems that the market reaction is not too big when the prices of GNO & STAKE have not changed much. You can review the full proposal here .
Conclusion
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