Inventory of DeFi projects with significant progress in February: Aave & Genesis Vision

Regardless of bulls and bears, there is no shortage of topical hotspots in the currency circle. This month's hotspot is BSV. BSV surged from $ 92 at the beginning of the month to $ 455, an increase of nearly five times. Whether Satoshi Amoto is really Satoshi Nakamoto has once again caused heated debate. There are many hot spots in the market that have attracted everyone's attention, but few people have paid attention to the teams doing things silently. After the upsurge, calm down. Let's go back and look at the major progress made by the first-class warehouse in January . What is the situation now?

Highlights of projects delivered in January as scheduled include Aave and Genesis Vision, both of which belong to the financial sector. The Aave project focuses on decentralized lending, and Genesis Vision is committed to building a private investment management platform with a trust-free mechanism.

Defi lends rookie Aave

The Aave agreement was officially released on January 9th, which solved the inefficiency of peer-to-peer matching between borrowers and lenders, and introduced a decentralized lending pool DLP. Depositors deposit cryptocurrency into a decentralized lending pool and earn interest on the deposit. The borrower mortgages the cryptocurrency, borrows assets from the loan pool, pays interest in block time, and repays it on loan. The Aave agreement allows the needs of both borrowers and lenders to be met in a timely manner, increasing product use efficiency.

There are currently 16 collaterals supported, including BAT, DAI, ETH, KNC, LEND, LINK, MANA, MKR, REP, TUSD, USDC, USDT, WBTC, ZRX, SUSD, and SNX, of which 5 are stablecoins.

The first-class warehouse compiled statistics on the usage data after the product went online. As of January 20, the asset size reached US $ 3.92 million, the loaned funds reached US $ 940,000, and the asset utilization rate reached 24%.

When the user mortgages the loan, in addition to paying the loan interest, he also needs to pay a handling fee. The handling fee is 0.25% of the loan amount, of which 80% of the handling fee will be used for repurchase LEND destruction. As of January 21, the accumulative fees for this part of the repo destruction amounted to USD 1,785. The remaining 20% ​​will be used for referral rewards and rewards to recommenders who apply for loans, which is equivalent to distributing the promotion costs directly to users, which can play a certain effect in word-of-mouth marketing.

Aave's best reference product is Compound. The principle of the product is similar, except that Compound does not involve tokens, which is a non-token token agreement. On September 27, 2018, the Compound product was launched. Five months later, by March 2019, Compound's capital pool reached 24 million U.S. dollars, and Compound's current asset size exceeds 100 million U.S. dollars. The eight cryptocurrencies supported are BTC and BAT , DAI, SAI, ETH, REP, USDC, and ZRX, of which 3 are stablecoins.

In the future, we will focus on when Aave's product scale will reach 30 million U.S. dollars. After reaching 30 million U.S. dollars, there may be a possibility of competing with Compound for stock funds.

In addition to launching a decentralized lending pool, Aave also launched a new product, Flash Loan, which can realize unsecured speedy lending. This is the first unsecured lending product in the blockchain world, with pioneering innovation.

The principle of Lightning Loan is that Aave adds a FlashLoan () function to the smart contract, and the funds are temporarily transferred to the smart contract to execute the transaction operation designed by the developer. If the funds and expenses are confirmed to be returned to the loan fund pool, the execution operation is successful; if less than the loan funds are returned, the loan funds are returned to the loan fund pool and the transaction is restored.

The entire process is guaranteed to be performed by the FlashLoan () function. The loan repayment operation of Lightning Loan must be completed in the same Ethereum block. At present, the block production time of Ethereum is about 13 seconds, that is, the borrowing time of Lightning Loan must not exceed 13 seconds.

On January 18, the first arbitrage transaction of Lightning Loan was completed. The transaction was an arbitrage operation between Dai and Sai designed by ArbitrageDAO.

ArbitrageDAO borrowed 3,112.94 DAI to realize an arbitrage of 8.95 DAI, minus 0.02 ETH (about 3.5 DAI) for gas expenditure, a profit of 5.45 DAI, and a profit margin of 0.175%. In addition, Lightning Loan needs to pay a fee of 0.35%, of which 90% of the fee will be deposited in the loan fund pool, and all borrowers share the revenue. The remaining 10% still follow the 28 principle, 80% is used for LEND repo destruction and 20% is used for promotion and reward.

In addition, what other application scenarios does Lightning Loan have? According to the founder Stani Kulechov, Lightning Loan can be used for currency price arbitrage between decentralized exchanges, interest rate differential arbitrage between Ethereum's Defi products, and Maker CDP, which is about to touch the liquidation line, and reduce borrowing by 13%. Clearance penalty payment.

As we all know, the interest rate of Defi loan products on Ethereum is determined by the autonomous voting of each project community, while the decentralized exchange DEX on Ethereum has poor liquidity and no depth. The emergence of Lightning Loan can effectively break this barrier, use market mechanisms to make price discovery, and use arbitrage to smooth out the previous price differences of various products, promote market efficiency and reasonable pricing.

Decentralized "Contract Emperor" Genesis Vision

Genesis Vision released the latest GV 2.0 version, the core function of the product is online, namely the GV Follow function. This function helps investors achieve direct documentary operations. By loading the API key, traders can easily transfer their trading records on the exchange to the GV platform without logging in to the GV account. Investors on the GV platform can check the trader's trading situation in the watchlist, and can follow their trading strategies to follow orders.

Traders will earn GVT from subscribers' commissions. Commissions are divided into two types: transaction fees and profit.

For example, a trader sets a 10% transaction fee on his external Binance Follow account. If the Binance transaction commission is 0.1%, the trader will receive a 0.01% gain from each subscriber's copy transaction. Earnings commission is a fee for profits earned by following the exchange. No profit means no fees.

The project party has fully considered GVT tokens in product design, and all fees are charged in GVT from the platform wallet. In addition, the fees charged by the platform will also be used for the secondary market repurchase of GVT. According to the fourth quarter of 2019 report, the platform's profit commission fee was $ 2,514, and 30% of this money was used to buy GVT from the market and destroy it.

Genesis Vision releases annual report, publicizing operating data for 2019: 20,314 users registered, traders executed 13,846 investment strategies, completed 163,049 transactions, and the total transaction amount is USD 700 million , $ 656 million), with a total investment of about $ 1.19 million (576,747 GVT, 52 BTC, 304 ETH, 181,392 USDT, priced at January 14).

Genesis Vision's product positioning is similar to the trading competition held by the exchange, which shows the trading level of traders truly and credibly, and taps the potential folk trading masters. Good traders will be sought after by the market and earn income through valet management.

After talking about the major progress of the highlights of the previous period, briefly review the other projects of the previous period. Grin and Beam successfully completed the hard fork, Grin changed the mining algorithm, Beam launched the atomic swap, and the token reward was halved. The remaining projects have extensions. One type is when the project announced the specific time after the extension. This part will be introduced in the major progress in February below. One is that the project has not released a subsequent update date, so I won't go into too much detail here.

Not much nonsense, which projects in the first-rate warehouse continue to pay attention to, what are the upcoming events? In this issue, there are 10 projects sorted out by First Class Warehouse, which will usher in significant progress in February. Details are as follows:

* The project progress is sorted by ranking order, and the data on Coinmarketcap website January 21, 2020 is selected.

Tezos (XTZ), Rank # 14

Tezos, founded in June 2018, is a low-level blockchain project with Turing complete smart contracts. As early as 2014, the project proposed a solution for on-chain autonomy. This on-chain autonomous system can vote for tokens on system upgrade routes and transaction development priorities, which will help resolve disputes and prevent network hard forks.

On January 19th, the Tezos mainnet Carthage V2.0 version vote has passed and it is now in the testing phase. As of February 11, the mainnet Carthage V2.0 version will end the testing phase, and the community will vote to decide whether to officially upgrade the mainnet based on the test results. If the test results are approved by the community, it is expected that the Tezos mainnet will be officially upgraded by the end of February.

The main contents of the Tezos Carthage 2.0 proposal are: 1. Increase the upper limit of gas consumption by 30% from the original basis, that is, the gas per transfer operation is increased from 800,000 to 1.04 million, and the transfer fee per block will be from 800 Million increased to 10.4 million. Such adjustments will enable the Tezos network to execute more complex smart contracts. 2. Improved the formula for calculating baking, making the calculation result more accurate.

Cosmos (ATOM), # 19

Cosmos was established in 2016 to build a heterogeneous network that supports cross-chain interactions. It consists of many independent parallel blockchains and uses the Tendermint consensus algorithm to allow a large number of independently developed blockchains to expand and interact with each other. Cosmos focuses on asset transfer between chains, which is a relatively simple type of cross-chain.

One of the core protocols of Comos cross-chain interaction is the inter-chain communication protocol IBC (full name Inter-Blockchain Communication). Projects based on the Tendermint consensus mechanism can interoperate through the IBC protocol, which uses encryption to prove that messages are sent from one area to another.

The Cosmos team plans to launch the IBC test contest Game of Zone by the end of January 2020, with a prize pool of 100,000 ATOMs. The purpose of the test competition is to test the performance of IBC and prepare for the launch of the IBC mainnet.

Augur (REP), # 39

Augur builds a decentralized prediction platform based on Ethereum. The prediction market is mainly based on US political events. Users create Augur prediction markets based on real-world events, betting on future results of the event, and finally settling based on the prediction results.

The Augur V2 version was originally planned to be released in January 2020, and is currently in the state of release. The official Twitter of the project repeatedly emphasized that V2 will be launched soon, and it is expected to be launched in early February.

The Augur V2 version has greatly improved and improved product functions. In addition to more detailed optimization of the operation process of the forecast market, it will also integrate the technology of the decentralized exchange 0x to achieve order creation, modification and cancellation. The V2 version will support the stable coin Dai to participate in the prediction market bet for final settlement payment.

Ravencoin (RVN), # 42

Ravencoin was created in January 2018 and is an asset issuance platform. It is based on the Bitcoin code, and on this basis, it adds functions such as issuing assets, rewards, and communication voting.

The Ravencoin team updated version on January 10th. The features added in this version include: 1. Restricted assets, that is, assets with added tagging capabilities. Tags can add KYC and other marks to assets on the Raven chain, indicating that they meet regulatory requirements. 2. SMS communication, that is, information transfer between assets. 3. Dividends / rewards, that is, asset issuers distribute asset income to holders. This upgrade is an important step for Ravencoin to achieve asset issuance on the chain.

At present, the community is voting on the version upgrade. The round of activation voting is 1.5 days and requires 85% support to activate this version. Now the community has conducted 6 rounds of voting with a support rate of about 78%. According to the follow-up status of the first class warehouse, it is expected that the activation of this version will be completed in February.

Decentraland (MANA), # 94

Decentraland is a VR platform for distributed shared virtual reality. Users can create and experience the virtual world and participate in the development of platform content to earn revenue. Land in the MANA system is the underlying resource of the project and is used for the construction of all virtual scenes. It has a unique and transferable digital asset in the Ethereum ecosystem, referred to as the non-homogeneous token NFT.

MANA announced that it will release an official version on February 20th, which will be open to all users to increase the number of users. For more information, see First Class Report "Decentraland will be open to the public at 2.20! ". During the release of the version, the project party will host the "In-Word" treasure hunt game. Users can find NFT gifts set by the project party in the scene, and these NFT gifts can be traded on Opensea. At the same time, MANA will also use the DAO function of Aragon, and the community participates in the determination of the MANA economic model, such as the land auction rules in the system.

Status (SNT), # 96

Status product positioning is to be the entrance of Ethereum ecological traffic, similar to "WeChat". The Status app has a built-in wallet for social communication. Also developed DApp Discovery, which is equivalent to the decentralized dapp application store of Ethereum.

Image source: Status official blog

The original plan was in September 2019, and Status will launch the V1 version to achieve decentralized social communication. The latest work report released by the team states that Status V1 will be postponed to February 2020.

Aragon (ANT), # 159

Founded in May 2017, Aragon is a DAO underlying platform built on Ethereum, allowing anyone to use the platform to create and manage their own DAO organizations, such as companies, open source projects, NGOs, foundations, hedge funds, etc. .

On February 10, 2020, the project will activate the jury role of Aragon Court, which also means that the function of Aragon Court is officially launched. Aragon Court is a place to settle disputes between parties in the process of DAO organization autonomy, and the mission of jurors is to draft litigation and vote on litigation cases through voting token ANJ. Jury drafting of litigation and voting of the winning party can obtain Dai's benefits In addition, jurors who draft lawsuits can earn 10 DAI.

To become a juror, community members need to lock at least 10,000 ANJs before February 10th, and the acquisition of ANJs needs to be exchanged at a ratio of 1: 100 through pledged ANTs. As of February 10, ANJ was converted at a fixed ratio of 1: 100. After that, ANJ will determine the conversion ratio according to the exchange rate of the automatic market maker. ANT and ANJ are freely convertible.

Aragon has supported Dai as a cryptocurrency for fundraising, and Aragon Court, a functional module for dispute arbitration, will also be launched later. It can be seen that if Aragon is used to initiate fundraising, the financial situation of the project will be open and transparent, and it can be monitored by the community. Once there is a problem with the project party, the community can decide whether to issue further funds, which can effectively prevent the air project and the project party's inaction, and promote the development of the blockchain industry.

Particl (PART), # 371

Particl was created in July 2017.It added a privacy protocol based on the bitcoin code to build an anonymous e-commerce platform that allows customers and merchants to access the network directly. Users can buy or sell anything, the platform is similar to Amazon. All transaction data, payment records and conversations on this platform are transmitted through an autonomous distributed network, without the need for a central server.

The official mainnet release of Particl's Open Marketplace was released on August 12, 2019. The product is continuously iteratively updated, and is currently updated to V2.3.2. The functions that have been implemented are: bulk product listing, product reviews and feedback responses, order cancellation, Particl The wallet supports bitcoin exchange, development SDKs for robot development, and reduction of product listing fees.

At the beginning of February, the team will release a new version of the Particl roadmap, emphasizing that the project will enter a new stage. The original product-oriented development is basically completed. The next stage will focus on the commercial promotion and application of the product to improve product usage and user experience. .

Bluzelle (BLZ), # 496

Established in January 2018, Bluzelle is the first database service to provide applications with decentralized collaboration and pay-as-you-go. Bluzelle's database service tasks can be automatically distributed, sharding is used to achieve secure data storage, distributed clusters and node networks are infinitely expanded, and performance such as dynamically adjusting node request times is achieved.

The project plans to release the database function of Multi-Farmer Trusted in the CURIE version of the main network on February 6. This function can support community members to set up network nodes under the rules formulated by the system, and freely enter and leave the Bluzelle network. Prior to this, network nodes were officially established and no network data was announced to the community, raising community members' concerns about project centralization. , And then have doubts about the project.

In addition, we need to wait for the official announcement of the economic model of BLZ tokens and the use of the network. These can not only increase community participation, but also have some understanding of the application of the project, which is worth looking forward to.

Dero (DERO), # 540

Dero is a project focusing on anonymous smart contracts. The anonymous protocol is based on the Monroe framework and combines BlockDAG technology to build smart contracts to achieve contract anonymity. The important milestone of the project is the Stargate version.

The team has 2 core developers, and the development progress is slow, which has led to the release of the Stargate version of the testnet, which has been postponed from the fourth quarter of 2019 to the first quarter of 2020. According to the latest disclosure, the project party announced that this version will be postponed to the second quarter of 2020.

Image source: Dero official blog

The above are the major project progress in February. Maybe some projects will gradually return to zero as the progress is postponed. However, there are also some projects that are working hard to really use blockchain technology to solve real needs. In this treasure hunt in a bear market, First Class expects to walk with Jun!

Here, First Class congratulations to all of you, Happy Chinese New Year and Happy Family!