New Ethereum layer-2s are set to enter the space, as Ethereum restaking protocol EigenLayer launches the second stage of its testnet. Read on to find out more in our DeFi roundup!
Welcome to Alpha Central
- An opt-in, bottom-up approach to token distribution, known as progressive ownership should be adopted by applications
- Instead of using tokens to bootstrap networks and users, tokens should be used to deepen loyalty
- This creates a more targeted strategy for protocols, creating a more committed and loyal community
Crypto Koryo covers some key takeaways from observing the narratives that have taken hold of the markets for 2023 and things to keep in mind when chasing trends.
- New narratives generally don’t maintain their top position for more than a month and will usually be the worst performing narrative in the subsequent months
- Sophisticated narratives such as options and privacy are rarely ever top narratives
- The strongest performer in a narrative tends to continue performing even after the narrative, as a whole, fades away
Ethereum: LayerZero’s ColorTrace and EigenLayer’s Testnet Phase 2
Other Product Launches and Updates
- The Verified USD Foundation introduces USDV, a new stablecoin backed by short term treasuries and repos, built on Layer Zero’s latest ColorTrace technology, which allows protocols and ecosystems to be rewarded for contributing to USDV’s distribution.
- Perpetuals decentralized exchange (DEX), dYdX, suffers a $9 million loss from their insurance fund after a suspected manipulated move of the Yearn Finance token, YFI, resulting in liquidation gaps on the platform.
- Privacy-focused protocol, Nocturne, goes live on the Ethereum mainnet, introducing private accounts to users. Users can deposit, swap, stake and transfer funds anonymously via their Nocturne private accounts.
- OmniBot introduces OmniBotX, a tool to enable the use of any DeFi tool, from the Telegram app across any Ethereum Virtual Machine (EVM) chain, be it swaps, bridging, staking or token sniping.
L2s: Layer-2s Wars
Launched by Pacman, founder of NFT marketplace Blur, and backed by Paradigm and Standard Crypto, Blast is the newest, hottest L2 in town. In just 24 hours, over $81 million have been bridged, as speculators bet on the airdrop from Blast Points, similar to Blur's season rewards. Blast is an optimistic roll-up that claims to be the "first L2 with native yield," with ETH on Blast natively staked. Funds bridged to Blast are locked until mainnet launch sometime in February 2024.
Other Product Launches and Updates
- Real-world asset (RWA) protocol, Ondo Finance, introduces the Ondo Bridge, the latest tool from the protocol to bridge Ondo RWA assets between Ethereum and the Mantle L2 layer. The bridge is powered by cross-chain interoperability protocol, Axelar.
- Options protocol, Dopex, unveils their Concentrated Liquidity Automated Market Maker (CLAMM), as part of the Dopex V2 overhaul, giving users optimized yields and American-style options for traders.
- Arbitrum-based gamified DEX, SpartaDEX, goes multi-chain, integrating five new chains. Additionally, they are introducing no-risk initial DEX offerings (IDOs), which gives users up to a week to decide if they wish to withdraw funds deposited for IDO as long as they do not claim their tokens earlier.
- DeFi suite, Trader Joe, suffered frontend attack, resulting in swaps being redirected to a malicious address. The frontend has since been secured and affected users are advised to open a support ticket on the Trader Joe Discord server.
Solana: Real Estate Perps and JLP Collateral
Avalanche: JPM x Avalanche
Another Week, Another Airdrop
Tweet of the Week
Factorydoge reminding us that the Ethereum pump is cursed, as the market fails to break higher again with price continuing to trend sideways.