1/ With the rollouts of Fraxswap and Fraxlend, @fraxfinance has become the first DeFi protocol to offer stablecoin, liquidity, and lending services under one umbrella on #Ethereum.
Let's see how Frax is leveraging full-stack control to support the $FRAX stablecoin. 🧵
2/ $FRAX is a partially collateralized algorithmic stablecoin backed by $USDC and $FXS, the protocol’s native governance token.
While the minting and redemption value is held constant, the proportion of $USDC to $FXS backing $FRAX depends on its dynamic collateral ratio.
3/ Frax V1 solidified the idea of an Algorithmic Market Operations (AMOs) controller that could serve as the protocol’s base stability mechanism.
Building on this, Frax V2 introduced a set of generalized AMOs to carry out arbitrary $FRAX monetary policy on the open market.
4/ @fraxfinance's AMOs have allowed the protocol to adapt to its surrounding market conditions.
However, Frax’s reliance on other DeFi protocols limited its ability to have full autonomy over its monetary policy.
As such, Frax created Fraxswap and Fraxlend.
5/ Fraxswap is the first live implementation of a TWAMM.
This AMM functions the same as a standard AMM, allowing anyone to permissionlessly trade against it or provide liquidity, while also allowing traders to process long-term orders in a cost-effective manner.
6/ Leveraging Fraxswap gives @fraxfinance more granular control over its monetary policy.
Fraxswap enables Frax to conduct ongoing monetary policy and forward guidance like the U.S. Federal Reserve but in an automated and transparent manner.
7/ Fraxlend allows users to create a borrowing market between any pair of ERC-20 tokens that have a @chainlink data feed.
This approach contains risk to individual asset pairs without impacting the safety of other pools.
8/ DeFi protocols like @fraxfinance are beginning to recognize their need for control over stablecoin issuance, liquidity systems, and lending markets.
1/ The crypto space's evolution has necessitated stronger server infrastructure to meet the increasing performance requirements of blockchains and their applications.
@Old_Samster dives into why advanced physical infrastructure is crucial.👇🧵
@Old_Samster @Filecoin @sphere_labs @akashnet_ 2/ Newer chains like @avax and @Solana demand significantly higher processing power compared to @Ethereum.
This has driven validators towards being hosted in data centers, given their increased demand for processing power, low latency, and high uptime.
3/ Decentralized storage networks (DSNs) and compute networks face similar challenges.
Ordinary people contributing idle storage space isn't enough for commercializing DSNs. Data centers become indispensable for low latency and exceptional uptime.
1/ Scalability is a key factor in the crypto space, with the modular approach gaining popularity. However, @Solana has taken a contrarian stance.
@kelxyz_ explains how @jump_firedancer, a validator client developed by @jump_ aims to enhance Solana's monolithic approach.🧵
2/ @jump_firedancer's first milestone, "fd_quic," demonstrated impressive transaction propagation throughput of 1M transactions per second (TPS) in initial performance tests.
But there's more work to be done to achieve the full potential of Firedancer.
3/ If successful, @jump_firedancer could unlock blue ocean markets for the @Solana ecosystem by offering unprecedented throughput, composability, and low costs.
However, challenges in execution, timing, and competition pose risks to its adoption and success.
+Dynamic Energy Model resulted in revenue up 65.5%
+Circulating Mcap of $TRX increased by 18.1%
+Prominent protocols #justlend & #juststables saw TVL increase at 26% and 21% respectively
1/ In a bear market, it's crucial to focus on long-term market developments and product announcements to understand what may support or drive new waves of app development.
2/ Aligned, a high-performance compute provider, predicts the zero-knowledge proofs (ZKPs) market to reach $10B by 2030.
ZKPs verify computations and ensure privacy in transactions. #Ethereum is expected to capture 66% of the market.
3/ @LensProtocol, a decentralized social graph protocol, introduced Momoka to decrease transaction costs and improve stability.
Lens has seen a 75% decrease in transaction costs, making consumer applications more viable. Momoka is a game-changer for building foundational layers.
2/ The crypto market rebounded in Q1'23, with the market cap of featured Layer-1 (L1) smart-contract platforms increasing by an average of 83% QoQ, but still down 58% YoY.
@ethereum had the highest market cap, over 2x the other networks combined.
2/ @ethereum generated the highest revenue in Q1, driven by its high usage and gas fees. Its revenue was $457M, almost 2.8x the combined revenue of all other featured L1s.
@hedera had the most significant revenue growth, with a 489% increase QoQ, driven by its Consensus Service.