A Brief Understanding of the Current Situation of CyberConnect

CyberConnect's current situation is briefly explained.

Recently, Binance announced the launch of CyberConnect governance token CYBER on Launchpool. CyberConnect, as a decentralized social protocol, aims to provide users with higher privacy, data ownership, and more diverse content economic models. Since its creation, the CyberConnect protocol has been continuously iterated. This article will outline the development history and current situation of CyberConnect.

1. CyberConnect Development Dynamics

The CyberConnect project was created in 2021 with the goal of building a decentralized social graph. The infrastructure of CyberConnect emphasizes data sovereignty, and it achieves a user-centric data flow system based on Ceramic and IPFS storage.

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In 2022, CyberConnect launched version 2, which deployed a hybrid expansion architecture (EVM+Arweave) for social applications. Through this hybrid solution, dApps can store more user social data on the blockchain. In addition, version 2 adopts a similar SBT scheme, binding a series of social data to W3ST (non-transferable and using the ERC-721 standard) to restore users’ Web 3 identities. The representative product using CyberConnect v2 is Link3.

On July 14, 2023, it announced its v3 version and will complete the deployment of 6 EVM-compatible networks in the next 2 months. The core of v3 is to build CyberConnect into a full-chain social protocol, with core components including the identity infrastructure Cyber Account compatible with ERC-4337, the censorship-resistant database Cyber Graph that records user content and social relationships, and the multi-chain solution Cyber Network.

Cyber Account is a set of smart contracts, and its related components can greatly realize web2 user habits, reduce user migration thresholds, including: 1) identity verification and authorization, including the ability to recover accounts through email, phone, etc. in case of identity/private key loss, and the team will improve privacy in the coming months; 2) compatible with the ERC-4337 standard, achieving account abstraction, allowing CyberConnect protocol, underlying networks, or any specified web3 dApp to represent users in paying transaction fees, seamlessly switching between different ecosystem wallets, etc., with CyberWallet as the product layer; 3) CyberID; 4) organizational accounts.

Cyber Graph emphasizes the link between user identity and user social data, and it will record social data on multiple EVM-compatible blockchains. The data link is also an important foundation in the creator economy of CyberConnect. In contrast, the v3 version will further emphasize the creator economy. In the v2 version, the ERC-721 standard token W3ST has been transformed into the ERC-1155 standard token, further reducing gas fees.

The team did not provide detailed information about Cyber Network, but both compatibility with ERC-4337 and Cyber Graph are better foundations for a multi-chain user experience. The team stated that additional upgrades will be introduced in the next few months to reduce the cost of social interaction.

2. Protocol Data

The surge in CyberConnect user data occurred in late March, June, and late July 2023, corresponding to the following events:

1) CyberConnect has reduced the threshold for profile forging. During the CyberConnect and BNB Chain hackathon, users are supported to register usernames (handles) with a length of 12 characters or more for free, and the invitation mode for registration has been cancelled. In addition, on March 16th, Arbitrum announced an airdrop of ARB tokens, stimulating users to interact with undiscovered top projects in search of wealth creation.

2) The token sale on Coinlist has ended.

3) Binance Launchpool announced the launch of CYBER.

Currently, the total number of CyberConnect profiles is 1.258 million, with approximately 11,000 daily active users. The weekly active users are 82,000, a decrease of 45% compared to last week. After Binance announced the token launch on Launchpool, users engaged in short-term on-chain interactions in anticipation of the airdrop, followed by a continuous decrease in the number of active users. Historically, starting from March 2023, the number of long-term daily active users has been approximately 40,000. After completing the snapshot for the airdrop through Coinlist, which confirmed the early adopters’ participation, the number of long-term active daily users decreased to 30,000. As there are still reserves for community rewards in token distribution, the on-chain activity has shown intermittent growth. Currently, the number of continuously active on-chain users has further decreased to 10,000-20,000, which is closer to the actual number of users.

III. Financing Situation

Fundraising: A total of $30.4 million was raised.

In the third quarter of 2021, $10 million seed round financing was completed, led by Multicoin and Sky9 Capital, with participation from Animoca Brands, Draper Dragon, Hashed, Zoo Capital, Smrti Lab, and Mask Network.

In the first quarter of 2022, $15 million Series A financing was completed, led by Animoca Brand and Sky9 Capital, with participation from Delphi Digital, Protocol Labs, IOSG Ventures, Tribe Capital, GGV Capital, Sliang Guairtan Group, Amber Group, Polygon Studios, and SevenX Ventures.

In 2023, $5.4 million was raised through public sale on Coinlist, with a public sale price of $1.8. 25% of the tokens were unlocked at TGE. To participate in the public sale, users need to achieve a price of $7.2 at TGE to recoup their costs in one go.

IV. Economic Model

The total supply of CYBER is 100,000,000.

Token Distribution:

Details of ecosystem allocation:

Token Use Cases:

1) As a payment method for gas fees for all transactions across EVM-compatible chains within CyberWallet, applicable to Ethereum, Optimism, Arbitrum, BNB Chain, Base, and Polygon networks.

2) Community governance voting;

3) Payment for CyberProfile minting.

V. Roadmap

Third quarter of 2023: Release v3 version and deploy it to more EVM-compatible chains; release CyberWallet beta version compatible with ERC-4337 and CyberGraph models; upgrade [.cyber] to omni-chain domain.

Fourth quarter of 2023: Implement web 2 login/recovery for CyberWallet and other functions; release CyberConnect Grant; achieve over 120 ecosystem projects and 1.5 million profiles.

VI. Competition

The core competitive product of CyberConnect is Lens protocol.

The core content of Lens Protocol V2 is a composable social network that supports external smart contract access to Lens protocol; it implements a more open economic model, enabling value sharing among users, algorithms, applications, and other roles on the platform; it introduces the ERC-6551 token standard, allowing value to be linked to personal Profile NFTs instead of the owner’s address.

Compared to Lens Protocol, CyberConnect v3 focuses on user operation experience and the construction of a multi-chain universal identity network.

In terms of data, the number of Lens Protocol users is 360,000, which is one-third of CyberConnect’s user base. However, the active user activity style is consistent with CyberConnect, and the explosive growth is usually not sustainable, only lasting for about a week. Currently, the number of daily active users is approximately 20,000.

Summary

CyberConnect is a project worth paying attention to in the decentralized social track. It aims to gradually graft the user habits of web 2 social applications onto web 3 applications through iterations of various versions, while further reducing the barriers to entry for decentralized social applications by reducing interaction costs, among other methods.

However, from the data perspective, the current active users of decentralized social protocols are more driven by token airdrops. In addition, user habits and social relationships also contribute to the high stickiness and difficulty of migration in traditional social applications, posing significant challenges to the development of decentralized social protocols.

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