But there may be two consensus systems in this process, both of which are specific token systems. For example, tokens such as USDT or USDC have instances on severabitcoin buy in sri lankal different chains and are completely interchangeable. It should be possible to destroy such tokens on one chain and mint corresponding tokens on another supported chain. In XCM, it can be called teleport, because the transfer of assets is actually achieved by destroying it on one side and creating a clone on the other side.
So far, we have not constructed the optimal bridge. There are several interesting research directions for all bridging types:ethereum etf launchReducing the cost of block header verification: The cost of block header verification for light clients is very high. If this problem can be solved, it will bring us closer to achieving fully universal and trustless interoperability. An interesting design is to bridge to L2 to reduce these costs. For example, implement the Tendermint light client on zkSync.
Shift from a trust-based model to a mortgage model: Although the capital efficiency of mortgage verifiers is much lower, the security of "social contracts" is not enough to protect billions of dollars in user funds. In addition, the fancy threshold signature mechanism does not reduce trust; this group of signers still belongs to a trusted third party. Without collateral, users actually hand over their assets to an external custodian.Change from a mortgage model to an insurance model: Loss of assets is the last thing users want to encounter. Although verifiers and repeaters of mortgage assets can prevent malicious behavior to a certain extent, the agreement should go further and directly use the confiscated funds to compensate users.Expanding the liquidity of the liquidity network: The "liquidity network" can be said to be the fastest bridge for asset transfer, and there are some interesting design trade-offs between trust and liquidity. For example, the liquidity network may be able to use the mortgage verifier model to outsource capital supply, where routing may also be a threshold multi-signature with mortgage liquidity.Bridge aggregation: Although the use of bridges may follow the law of exponential for a specific asset, an aggregator like Li Finance can improve the experience of developers and end users.Nowadays, many GameFi projects continue to emerge, and provide a variety of participation methods and play-to-earn and pledge functions. So, how to judge which projects can be held for a long time and can add value? How to find potential NFT agreements?
The calculation of agreement income is the focus of value investment.First of all, let's take a look at what is the agreement income? What is the difference with income?YGG also proposed the Axie scholarship. Because getting started with Axie Infinity requires three Axies, YGG assigns them 3 Axies as a team. This group of players has almost no early sunk costs when entering the game. The borrowed Axie is used as the initial production tool in the game and earns in the game. SLP Token.
Many Dapps built on Ethereum suffer from network congestion problems. But few applications will build their own test chain, and usually choose Layer 2 expansion solutions (such as Polygon and Optimism). Even Uniswap launched the Uniswap V3 version on the Ethereum mainnet and Optimism instead of building its own expansion plan.But this is not the case with Axie. As early as June 2020, Axie Infinity began to build its own side chain. After a one-year period, Axie moved to Ronin in early May this year. After the migration, everything in the Axie universe happened on the Ronin sidechain and bridged to Ethereum when needed. Currently, SLP tokens and AXS tokens are mainly bridged to Ethereum; and ERC-721 assets in Axie (including Axie NFTs, Land NFTs, and Items NFTs) cannot yet be transferred through this bridge.The explosion of Axie Infinity was largely Ronin's contribution because it solved the congestion problem of Ethereum. As a reference, Ronin's deposit assets exceeded 500 million U.S. dollars, and Ronin wallet downloads exceeded 1 million times.Axie currently has more than 600,000 daily active players; its Discord server is the core of the community, with more than 540,000 members. When the community becomes huge, competitors of the same type will become difficult to replicate. The game can be copied, but it is difficult for players to copy. Due to user conversion costs and network effects (network efficiency is reflected in the number of users and the amount of funds), large-scale communities have become the moat of Axie Infinity.
Play-to-earn modeLet me talk about several game modes, namely Free-to-Play and Play-to-Earn. Most traditional games are Free-to-Play. The game provides players with complete game content for free, and makes money by selling virtual game items such as skins and emoticons. The mobile game "Glory of the King" is the representative of Free-to-Play.
Play-to-earn is a new model that rewards players for the time and energy spent playing games and developing the game ecosystem. Axie Infinity is a game between players. The economy is 100% owned by players. Compared with selling skins and props, the team pays more attention to the development of the economy between players. The following is written in Axie Infinity's white paper:Axies are created by players using in-game resources (SLP and AXS tokens) and selling them to new players/other players. Holders of AXS tokens are like governments that receive tax revenue. Game resources and props are tokenized, which means that these tokens can be sold to anyone on the open market.Simply put, players can get SLP token rewards through PvP and PvE battles and completing daily tasks. Users can use SLP and AXS to breed new Axies or sell Axie, SLP and AXS tokens in exchange for real-world income.According to reports from Axies, top PvP players can earn up to 600 SLP per day; but for ordinary players, they can earn up to 200 SLP. For Filipino players, this is a work to improve their lives.
Economic modelAxie Infinity is a dual Token mechanism, and AXS, as a governance Token, clarifies the profit of the agreement. And the project party needs to increase prices in the secondary market through AXS, return part of the profits to the game and raise the SLP to extend the life of the game. SLP is a reward earned by players through the game and a core consumable for breeding Axie. And Axie infinity did not invest in marketing, but allowed players to retain most of their value, giving the game more opportunities for expansion.Good news for investors & partnersIn late June 2021, Mark Cuban and Alexis Ohanian participated in a US$7.5 million Series A financing. Sky Mavis is also supported by major game publisher Ubisoft, and Axie Infinity has joined the Entrepreneurs Lab incubator project initiated by Ubisoft.
Case: OpenseaOpensea's agreement income calculation is relatively simple, and it charges a 2.5% handling fee. On September 12, Opensea’s agreement revenue reached $1.2 million.
Aave is a DeFi protocol that uses a liquidity pool to provide lending services, stable interest rates and lightning loans.In Aave v1, the borrower pays the lender the borrowing interest rate. When users borrow assets, they need to pay 0.00001% of the loan amount as the interest rate, which is the agreement service fee. 20% of this fee will be used to provide financial support for Aave's referral program, and the remaining 80% will be transferred to the agreement. In addition, when borrowers apply for flash loans, they also need to pay 0.09% of the loan amount as expenses. 70% of this money is used by the lender, and the remaining 30% will be allocated between the recommender and Aave based on the "28%" ratio.
Uniswap's main operating income is transaction fees. In Uniswap V1, users will be charged 0.3% of the transaction value (GMV) each time they exchange tokens. Starting from Uniswap V2, the agreement splits the transaction fee of the above-mentioned "0.3% of the transaction volume", in which the liquidity provider will receive 0.25% of the transaction volume income, and the remaining 0.05% will go to UNI token holders. Someone. For V3, when adding liquidity, there are 3 levels of fee rate to choose from: 0.05%, 0.3% and 1%.Uniswap's agreement income needs to be added to V2 and V3, because the agreement fee structure of v2 and v3 is different. The income generated by Uniswap is transferred to retained earnings to maintain Uniswap's ecology and operations, or passed to UNI holders through a destruction mechanism similar to MarkerDao.Through this article, we have a deeper understanding of how agreements work and the value they generate. Next, let's talk about the role of agreement income in project analysis. Generally, agreement income can be used for asset evaluation, in a comparable analysis to assist investors in judging which projects are undervalued or overvalued. It mainly adopts three indicators: market-to-sales ratio P/S (market value to income ratio), price-to-earnings ratio P/E (market value to earnings ratio), etc. Although these indicators are not the absolute best judgment criteria, they are very helpful in comparing NFT projects of the same type.In traditional finance, the P/E ratio is the ratio of the stock price to the company’s earnings. As a measure of how many years it takes for a company to obtain its market value, the P/E ratio reflects to a certain extent investors’ expectations of a company’s future profitability. In the blockchain world, the P/E ratio is the ratio of market value to earnings. It can reflect the expectation of future income and cash flow, one of the tools to measure the efficiency of assets, and it can also be used as an indicator when comparing projects.About #click to browse
This research report belongs to Mint Ventures' # series scanning series. Compared with the #深研报 series which conducts comprehensive analysis of individual projects, the focus of #Scan series articles is to focus on the development trend of the search, and the horizontal comparison of the growing projects. From the above, we can see the unique dynamics and potential projects in the business.Focus
About #click to browseThis issue# focuses on topics of concern, especially the new public chain camp and the Ethereum camp to report on the development and game trends of the project.
The story project is one of the most important in the history of the Defi field, with a long history of a large number of white horse-level projects, such as the early days of Aave and Compound MakerDAO. With the rapid development of the new public chain, a large number of introduction projects scattered in the new public chain and multiple chains have emerged.In addition to the differentiation of the deployment of public chains, the business types of lending projects have evolved from basic lending and stable currency lending to new businesses such as leveraged mining lending with targeted scenarios. In addition, credit lending mainly for institutional-level customers, risk grading agreements derived from existing lending agreements, and interest rate derivatives are also gradually growing.
Although many loan projects have mature business models and abundant cash flow income, there is still huge room for innovation in this industry, and it is still possible to give birth to new giants such as Aave. It is precisely because of this that lending projects are still one of the key directions of the DeFi entrepreneurial team.After scanning the newly born projects in the past 2 months, we selected 4 more representative loan projects for key analysis. They either broke out rapidly in business or had unique mechanism innovations. Through this research Report, we try to answer the following questions:What is the actual business situation of these projects?What are their product positioning, mechanism or token design innovations?
For those fast-growing projects, what are the sources of growth and how sustainable are they?The track value of the loan business
Like the trading platform, the lending project is also the basic liquidity layer of the crypto world. It plays the role of a bank in the crypto world. Its essence is to coordinate the supply and demand of funds from multiple parties and match liquidity across periods. The business ceiling of this track will expand simultaneously with the expansion of the scale of the encryption business.On the other hand, the demand for matching funds is long-term, and there is no doubt about the sustainability of this track. Although the current funding needs for encrypted lending mainly come from investment leverage, arbitrage, and short-term capital turnover, with the progress of compliance, the channel between the traditional world and encrypted finance will eventually be opened, and the real-world collateral ( The introduction of lending platforms such as real estate and corporate credits, and issuing loans to non-crypto players through stablecoins are all things that are gradually happening, which will bring more room for development to the industry.
Whether as entrepreneurs, investors or ordinary users in this industry, the track of crypto lending is far from the final form. There are still a large number of new products and rich investment opportunities worth looking forward to.As of September 16, 2021, Defi's total TVL has hit a new high since May, reaching 180 billion U.S. dollars. Although the proportion of borrowed TVL has declined, it still occupies the bulk, with a TVL of approximately US$50 billion.
In terms of business volume, the established projects Aave, Compound and MakerDAO still firmly occupy the top three positions, and their TVL accounts for more than 70% of the entire lending market.However, the rise of emerging lending projects is also amazing. The top ten projects in TVL include Anchor ($3.12 billion) on Terra, Benqi ($1.23 billion) on the avalanche agreement, and Qubit ($400 million) on BSC. Unlike the big three lending giants that originated in Ethereum, these fast-growing lending forces all come from Ethereum’s competitors, which is the hottest narrative at the moment-the new public chain.What is even more surprising is that in addition to the earlier launch time of Anchor (in March this year), the official launch time of the other two projects is only less than one month.In terms of the type of lending business, whether it is the number of projects or the amount of funds, basic lending projects account for a higher proportion, followed by leveraged mining lending projects, and other relatively new ones such as risk-graded interest rate products. The business volume is currently relatively small.
Project StatusProduct launch time: August 24, 2021
Qubit is a decentralized currency market that uses a mainstream borrowing capital pool model. Qubit's development and operation team is the team behind Pancakebunny-Mound, which was first deployed on BSC, and there are plans for multi-chain expansion in the future.Project Features
The main features of Qubit compared to other basic lending projects are:Its token QBT can increase the rate of return of deposit users after lock-up, which is called "Boost" function