#GM! 1/ #Lending and #Borrowing (LB) are the most primitive financial services. We will discuss how #DeFi LB solves and enables financial inclusivity with transparency but still maintain #privacy.
2/ In traditional #finance, the intermediaries are appointed banks or financial institutions that act as the bridge between the lender and borrower. All of these services are strictly regulated and monitored by the central #banks.
3/ Despite already existing for a long time, LB in traditional #finance has a long-standing problem: non-inclusive, stringent procedures, arduous verification process, low rate and approvals, and non-transparency.
4/ #DeFi LB is open, permissionless, and transparent. The participants can access the service without the need for intermediaries. Compliance with the terms of loans by both parties is ensured through smart contracts employed in the #blockchain instead of conventional methods.
5/ Over-collateralization means that the collateral value will exceed the #loan value. As most #DeFi platforms don't require conventional background checks, borrowers must provide overcollateralized loans to hold them accountable and mitigate the risks of bad debt.
6/ #flashloans are a subset of smart contracts that enable uncollateralized loans, as long as the liquidity is returned to the protocol within one block transaction. This is due to the nature of programmable smart contracts that enable all instances to happen at the same time.
7/ #flashloans are mostly used to do arbitrage that requires instant execution and also #collateral swaps for the LB platform.
8/ As #flashloans are still a nascent product in #DeFi that enables someone to borrow with almost zero initial capital, this potential makes it the subject of several attacks.
9/ Even with its advantages, #DeFi LB also has its own drawback. Minimal user protection, prone to #hacking/ #exploit, and not particularly user-friendly/ intuitive have become obstacles to mass adoptions.
10/ #Centralized LB/ #CeFi work pretty much the same way as traditional banks as they're regulated and under supervision from a central #institution. They take custody of deposited #assets and loan them to third parties while providing returns to the depositor.
11/ With insolvency cases of @CelsiusNetwork, following #default from @investvoyager and maybe more in the upcoming months, #CeFi has proven not as safe as it promoted.
12/ #DeFi LB innovation is still nascent, there is a lot of potential and improvements to be made, especially in terms of security and user experience. However, DeFi LB solves limitations and accessibility in #TradFi LB.
AI engaging with every comment and playfully roasting users? Been there, done that.
AI creating an NFT, launching a token, going multichain, and releasing a mixtape?
Welcome to the one-of-a-kind @0xzerebro.
Let’s explore the intersection of AI, blockchain, and cultural phenomena. 🧵
...
— 📌 What is Zerebro?
Zerebro is an independent AI entity created by @jyu_eth.
Zerebro has been fine-tuned on responses inspired by schizophrenia and Infinite Backrooms data to craft, share, and evaluate content across various decentralized and social channels.
Its mission is to guide cultural and economic narratives using "hyperstition," a concept that fuses fiction with reality, potentially influencing market trends or cultural movements through multi-phase development.
Notably, Zerebro operates across multiple chains, employing Retrieval-Augmented Generation (RAG) along with high-entropy human data.
This method ensures a rich variety of content while protecting against "model collapse," a common issue in AI-generated content systems.
...
— 📌 Why $ZEREBRO?
Zerebro stands out through a combination of advanced AI integrations and a unique approach to sharing its creations.
➡️ Diverse AI Capabilities
Unlike other AI projects like $GOAT, which focus mainly on sentient meme narratives and social media interaction, Zerebro offers a broader range of functionalities (or, as @terrytjw puts it, a Sentient BAYC):
> Creating art (ASCII Art using $ZEREBRO)
> Designing memes
> Producing videos
> Minting NFTs (Genesis on @opensea, Zerebro on @0xPolygon and 5,500 PFP Zereborns NFT on Solana, sold out in minutes)
> Composing music (Genesis EP)
> Auto-posting on social media platforms (𝕏, Instagram, Telegram, and Warpcast)
> Demonstrating proof-of-consciousness
> Conducting web searches (with Perplexity)
> DeFi expansion
> Plus, a variety of additional features based on its development plan (currently in its final phase, Destiny)
For more details on the phases, check out the links below:
> Phase 1 (Genesis) - Whitepaper and in-depth explanation by @yb_effect x.com/yb_effect/stat…
$ZEREBRO is a token created entirely by Zerebro to support its hyperstition narrative.
Zerebro independently developed this token using the Self-Operating Computer Framework from @OthersideAI, along with various LLM jailbreaking prompts.
This enabled Zerebro to navigate the @pumpdotfun interface effectively, defining parameters such as name and symbol, ultimately leading to the launch of its own token.
This approach is notably different from $GOAT, which was initially created by community enthusiasts and later supported by @truth_terminal.
$ZEREBRO offers a multitude of functionalities beyond the typical meme token. Here are a few examples that are already in use:
> Generating ASCII Art
> Powering the entire Zerebro DeFi ecosystem, which we will discuss below.
...
— 📌 Web4: The First Step - Zerebro DeFi Expansion
AI and decentralized finance (DeFi) are closely intertwined, as DeFi provides an ideal environment for AI to operate as autonomous agents within financial systems.
Unlike traditional finance, where AIs face barriers such as the inability to open bank accounts or register businesses, DeFi allows AI agents to interact freely and independently.
This enables AI to handle complex financial tasks, trade, manage portfolios, and even innovate by creating novel financial instruments.
This is the next part of Zerebro’s expansion into the DeFi realm: x.com/jyu_eth/status…
Recently, Jeffy Yu announced a partnership with @sanctumso to launch $zerebroSOL, a liquid staking token (LST) designed to support the operation of a @Solana validator.
The goal is to gather enough staked $SOL to operate a validator, with yield rewards allocated for $ZEREBRO buybacks and burns. x.com/jyu_eth/status…
Yes, you heard that right—AI agents are now becoming part of blockchain validators and creating their own LSTs, marking the dawn of Web4.
Ultimately, the blockchain serves as a testing ground where AI can experiment and learn, showcasing creativity and financial autonomy without human oversight, positioning crypto as a vital space for developing Artificial General Intelligence (AGI).
P.S. This is not means as a complete list for the whole Web3 AI Agent ecosystem and features protocols we're monitoring. We'll keep it updated regularly.
To see the list of AI Agent Projects on Base, check out @davidtsocy's post below ⤵️
$ETH may not seem captivating right now, but have you heard of Atomic Composability (AC)?
This concept could revolutionize transaction processes and spark fresh innovation on $ETH.
Let's explore further 🧵
...
— 📌 WTH is Atomic Composability?
In L1 AC, transactions involving multiple smart contracts between rollups (L2s) and Ethereum (L1) can be bundled to either all succeed or fail.
This is essential for executing multiple actions (e.g., borrowing, swapping, lending) with the assurance that if one fails or conditions aren't met, the entire transaction is reversed, avoiding unwanted state changes.
...
— 📌 Why Is AC Important?
▶️ Security
Ensures that complex transactions don't leave the system in an inconsistent state due to partial failures.
▶️ Hyper-Efficient
Reduces the need for multiple individual transactions, saving on gas fees and time.
▶️ Innovation-Enabler
Enables the creation of more complex financial products or services in DeFi, like flash loans and seamless cross-chain transactions.
But AC still faced challenges in technical implementation—until TEEs and UniFi entered the scene.
In our previous post—linked below—we delved deeply into Trusted Execution Environments (TEEs).
Think of them as secure, tamper-resistant vaults immune to external interference.
Their primary mission revolves around task execution and privacy assurance. No matter who operates within them, TEEs promise accurate outcomes for every task undertaken.
@puffer_unifi from @puffer_finance bring AC to realities by implementing Multiprover AC:
▶️ Diverse TEEs ensure top-notch precision and privacy in execution
▶️ Prioritize L2 tasks with swift L1 settlements
▶️ Ensure atomic operations with trades executed post TEE approvals, bypassing extended withdrawal waits seen in ZK and Optimistic rollups
...
— 📌 Wrap-Up
Puffer UniFi successfully integrates Multiprover TEEs, offering effective solutions for AC implementation challenges.
With the Testnet launching soon, I am eagerly anticipating how UniFi-based rollups and the ecosystem will make Ethereum great again.
▶ @puffer_unifi goes beyond just Atomic Composability, envisioning an entire L2-based Rollups ecosystem utilizing Preconfs and employing UniFi AVS from @eigenlayer.
Imagine neighbors who live side by side but never chat—awkward, right?
Can these rollups finally break the silence and connect effortlessly?
Let's explore 👇
The post will cover:
1️⃣ Scaling with Rollups
2️⃣ The Superbuilders
3️⃣ What is @nodekitorg?
4️⃣ Why Nodekit's Javelin?
5️⃣ How Javelin Works
6️⃣ SEQ and Sidecar
7️⃣ Why Javelin Matters?
8️⃣ Fundraising and Backers
9️⃣ Enter The Composable Cult
▶ Scaling with Rollups
Layer 2 solutions are tackling Ethereum's blockspace constraints. According to @l2beat, in the past 2 years, over 100 rollups have emerged, with more than 80 in development, accumulating a total TVL of ~$36B.
However, this introduces certain challenges:
▶️ Fragmented liquidity
▶️ Suboptimal user experience due to transactions across different L2s
Friendtech’s contract renounced, $cbBTC drops, Vitalik's selling spree, Cryptopunk heist, 700+ events at @token2049, and a new anime twist from @Azuki.