Speed ​​reading | Coin making money or making more money in Defi; Nick Szabo talking about Cypherpunks and Bitcoin

Today's content includes:

1. Is it more profitable to make money by putting coins in the Defi project?

2, Uniswap's entrepreneurial story: the birth of Uniswap

3. Optimistic vs. ZK Rollup: In-depth study

4. How to become the verifier of the new Ethereum 2.0 PoS system

5, Nick Szabo talks about Cypherpunks and Bitcoin

Is it more profitable to make money by putting coins in the Defi project?

Currently, more than 3 million ETH assets worth more than $500 million are locked in various DeFi applications. Authors from Zerion, which tracks multiple DeFi applications in real time, allows investors to track and manage their portfolios through multiple protocols.

Key points of the article: – DeFi applications have brought significant risk-reward improvements to investors over the past year – TokenSet's ETH 20-day MACO outperforms ETH's buy-and-hold gains while significantly increasing lock-in – Compound and Uniswap provide attractive income opportunities for investors holding stable currencies

Compound Revenue From December 2018 to the end of October 2019, the compound yield was 7.1%. Most notably, as steadiness fees for MakerDAO increase, interest rates have increased since March 2019. The lower interest rates of other mortgage lending agreements have attracted users to shift positions to take advantage of more favorable interest rates.

Uniswap Pool Benefits Applicable to investors who provided assets on December 4, 2018 and stayed in the pool until October 31, 2019. Due to the different ETH / DAI prices, investors who provide liquidity at different times will have different returns. During this time, the Uniswap DAI-ETH pool received a return of 18.15%.

Tokenset: ETH 20-Day and 50-Day Moving Average Crossover Strategies Both are simple momentum strategies designed to generate returns from ongoing trends and exchange cash back when the trend reverses. TokenSets released its trend trading strategy in July 2019, but we used the daily price data since October 2018 to estimate the return on the strategy. It should be noted that our analysis does not consider costs and slippage, which may affect the actual effectiveness of the strategy.

As a result, the 20-day MACO strategy generated a return of 78.7%, which was better than the ETH buy-and-hold strategy, but the 50-day strategy did not perform well, with a return rate of 22.5%.

The ETH 20-day strategy is definitely superior to other proposed DeFi strategies and ETH purchase and holding strategies. This is because the strategy avoids most of ETH's losses and generates returns during the uptrend. The 50-day strategy similarly captures the rising trend of ETH from March and rebalanced to stable currency in July, but experienced a sharp retracement in September, which greatly reduced the final return of the strategy. If the strategy is rebalanced faster (ie, at cross-prices), the 50-day strategy will return more than 50%, while the 20-day strategy will return more than 130%.

We also noticed the difference in volatility and decline in earnings. Most notably, the 20-day strategy fell only 1.77% lower than the original value, while the 50-day strategy fell -26.5%, ETH bought and held a decrease of -22.48%, and borrowed stable coins. Compared to Compound, holding ETH, BTC or TokenSet will bring higher risks due to price fluctuations. Similarly, Uniswap's DAI-ETH pool liquidity provider keeps half of its investment in stable currencies, which also reduces the volatility of its portfolio.

Full text link: https://blog.zerion.io/returns-of-holding-vs-defi-ing-c6f050e89c8e

Uniswap's entrepreneurial story: the birth of Uniswap

Uniswap, Compound and MakerDAO are all phenomenal ecological projects of Defi in Ethereum. They also contribute a lot to the compatibility of Ethereum. The popularity of Uniswap is that it takes hundreds of thousands of dollars. I made something that was taken hundreds of billions of Bancor (perhaps better). This article is a bit of a review of the entrepreneurial story of Uniswap's founder. This is the birth story of the trilogy (born, one year, and later). For many entrepreneurs who want to understand the Defi project and Defi, they can look for entrepreneurial experience and inspiration.

The birth of Uniswap On July 6, 2017, my first job from college was dismissed and I worked as a mechanical engineer at Siemens. I was frustrated and directionless. I told my friend Karl Floersch, who was working on the Casper FFG at the Ethereum Foundation.

At Karl's suggestion, I decided to implement an automated market maker. At the time, EtherDelta was the only attractive decentralized exchange, but UX seemed messy and unintuitive. I started to think that we should pay attention to the user experience. I was unemployed for five months, and I was lucky enough to make a living in the cryptocurrency I bought in the early 17th.

I am completely attracted to the infinite potential of Ethereum, however, what I feel in Ethereum. The central point of the failure, the applicable application and the overly complex architecture. Most DAPP designs are based entirely on the idea of ​​providing tokens for use cases that clearly do not require use cases. I started thinking about using Uniswap as my own learning tool.

By April 2018, I was unemployed for 10 months. The cryptocurrency on which I live depends on more than 75%. I went to Seoul, South Korea, personal travel, Deconomy 2018 coincided with the time, where Karl pulled me aside and introduced Vitalik to me. Vitalik saw my Github and said to me, "Have you considered writing it with Vyper? In addition, you should also apply for funding from the Ethereum Foundation."

Two weeks later, in May, I flew to Toronto to attend Edcon2018 and gave a speech. They seem to understand and share the values ​​that I hope to follow. I realized that the Ethereum community is far beyond ICO. Some people really care about its vision of a decentralized financial system.

Subsequent work at the Balance and Maker offices provided me with a steady stream of interesting people, and my smart contracts have been optimized to my best. Finally, at the end of July, I received an email. Uniswap will receive funding from the Ethereum Foundation!

Full text link https://medium.com/@hayden_41532/uniswap-birthday-blog-v0-7a91f3f6a1ba

Optimistic vs. ZK Rollup: In-depth study

Rollup, the Layer 2 solution, has been in a gradual trend this year, and it may have been pushed to a small climax recently. The routes of the Optimistic Rollup and ZK Rollup in the Ethereum community are also discussed. The author is working on ZK-Rollup's Matter Labs, so it may be biased (biased to ZK Rollup), but this article is also a good article on Rollup/Optimistic Rollup/ZK Rollup. The length of the article is still a bit long, and the author has a selection of abstracts as follows:

What is Rollup? Rollup is a layer 2 scalability solution similar to Plasma: a single main chain contract holds all the funds and is simple for a larger "sidechain" state (usually the account, balance and state of the Merkle tree) Encrypted promise. The sidechain state is maintained offline by users and carriers without relying on the first layer of storage (this is the source of maximum scalability).

What is ZK Rollup (ZKR)? In ZK Rollup, the operator must generate a concise zero-knowledge proof (SNARK) for each state transition and be verified by the Rollup contract on the main chain.

What is Optimistic Rollup (OR)? In the Optimistic Rollup, the operator will post a new status root without having to check it each time by the Rollup Smart Contract.

Optimistic Rollup is a technology that promises to expand the general intelligence contract on Ethereum in the short term. If the build speed is relatively fast, it can provide an easy way to migrate existing dapps and services with a reasonable compromise of security/scalability. This will enable ETH 1.0 to meet growing demand.

ZK Rollup is a more complex technology. Today it can be used for token transfers and special applications. However, implementing a generic smart contract will take longer and requires more research to effectively package the EVM in a zero-knowledge proof. However, once ZK Rollup is fully developed, all existing Ethereum dapps and services will be easily migrated to it.

ZK Rollup will address several issues with Optimistic Rollup: – Eliminate the risk of nasty tail: steal funds from Optimistic Rollup through complex but viable attack vectors; – Reduce exit time from 1-2 weeks to a few minutes; – Enable fast send confirmation And exit with an unlimited number; – Privacy is introduced by default.

The development of Optimistic Rollup is good for ZK Rollup. The transition to Layer 2 extensions requires major changes to wallets, oracles, dapps, and user habits. Optimistic Rollup can help prepare the ecosystem and bring scale to dapps that are not currently built on ZK Rollup. But this will give ZK Rollup time to mature and make it completely seamless.

Full text link: https://medium.com/matter-labs/optimistic-vs-zk-rollup-deep-dive-ea141e71e075

How to become the certifier of the new Ethereum 2.0 PoS system

How to become the certifier of the new Ethereum 2.0 PoS system

This article describes how it will become a verifier in Ethereum 2.0. It is still quite good for the development status of ETH2.0. Even if you are not planning to do a node, you can look at the development status of Ethereum 2.0.

What is the current status of Ethereum 2.0 development? Currently active Eth2 clients include: Lodestar, Nimbus, Lighthouse, Prysm, Trinity and Harmony + Artemis. They all have their own test network, but they all gathered together in an interoperability incident in September and created a multi-client test network.

How much can you earn as a certifier? The reward depends on the entire state of the network, ie how many certifiers are online. The economics of doing so are still under study and will be tested. The latest estimate is that the verifier can expect an annual reward of 4.6% – 10.3%. However, the specification is still being updated. The goal is to encourage people to be verifiers and have as many people as possible to protect the network. Therefore, the entire PoS system is a collective reward program, in which the more people online, the more money each person earns. Vice versa, the fewer people online, the less people earn.

How to become a verifier? – Basically, to become a certifier, you need to perform the following steps: – Install one of the Eth2 clients listed previously. – Get Ethereum. In the case of testnet, this is GörliETH. We know this is not an easy task, so we will provide you with a tap that will allow you to get this ETH and fully submit your deposit transaction. – Generate a certifier public and private key pair (used to sign your claim as a certifier). – Start the verifier client with the beacon chain. You can use beacon chain nodes or some existing public servers. – Deposit the ETH (mortgage) to Eth1. – Waiting is assigned as a certifier. Once the verifier client is up and running, you just have to wait for it to activate. This takes a few minutes (or a few hours if it's the main network) because new deposits are added to the run chain from other certifiers during the poll. – Watch the certifier create, vote and prove blocks and get rewards!

Conclusion This is the 0th stage of Ethereum 2.0 (security), which includes the initiation of a beacon chain that manages the Casper Equity Certification Agreement for itself and all of the segmentation chains. As the 0th stage, we will not have all the new features of Ethereum 2.0.

After phase 0 is completed, there will be two active Ethereum chains – Eth1 chain (current) and Eth2 chain (beacon chain). They will also run in parallel in the first and second phases.

Full-text link https://www.nodefactory.io/blog/how-to-become-a-validator-in-the-new-ethereum-2-proof-of-stake-system/

Nick Szabo on Cypherpunks and Bitcoin

This is the latest issue of Whatbitcoindid, a podcast pioneer, Nick Szabo. Nick Szabo has always given me the impression that it is very serious academic. In this interview, he feels that he is very relaxed and grounded.

The content covers the history of money, BitGold (Nick Szabo proposed in 2005), cyberpunk, central bank and fiat currency, liberal and anarchic capitalism, privacy and Austrian economics.

"When Satoshi released the Bitcoin white paper, not a revolution, Bitcoin was the evolution of everything before it. Bitcoin is the most trusted, most resistant, and highest-achieving currency." Nick expresses his recognition of Bitcoin without hesitation.

“Every time someone is censored, Boom… they will all become supporters of Bitcoin” – Nick Szabo

Full text link https://www.whatbitcoindid.com/podcast/nick-szabo-on-cypherpunks-money-and-bitcoin