The slogan of bedrock upgrade for optimism is:"Bedrock is the cheapest, fastest, and most advanced rollup architecture.Ever."
How bedrock achieve to be “cheapest, fastest, and most advanced rollup".
Let’s find out 🧵
1/ Rollups is,currently,the major technology for Layer2 solution. Both @arbitrum and @optimismFND use optimistic rollups and took up over 70% of Layer2 marketshare.
More protocols choose to build on the top of Layer 2 seems Let crypto native think rollups is flawless.
3/ While, Rollups still has it own limitation.
🔴Gas fee still unfriendly if considering more users will step into crypto world in the future.
A example: During #ArbitrumOdyssey event, without Arbitrum Nitro upgrade. Gas fee is more expensive than Ethereum Mainnet.
4/
How to reduce the fee?
One choice is simply the solidity code.
5/ In bedrock architecture. @optimismFND introduces Ethereum equivalent to simplify code.
It will turn ethereum code into Rollup code.the difference between a geth client running on Ethereum and one running on Optimism will be less than 500 lines of code
6/ While another choice is:
Minimize costs and improve efficiency at Layer 2 transaction process.
7/ The fee is majority costing in data availability (DA) fee for occupy the Layer 1 block space
In currently optimism rollups architecture.Execution layer uploads relevant proofs to Layer 1 in the form of a calldata,to a certain extent,occupy the block space of ethereum mainnet.
8/
In Bedrock architecture. A high efficient compression algorithm will introduce to reduce Layer 1 security fee and reduce 20% of cost in submitting transaction data to Ethereum
9/ But how to guarantee security and decentralization?
That is another problem of rollups solution
10/ The core problem of rollup architecture is the security of chain is depend on upgrade keys. The future rollup have to set a proof mechanism without upgrade keys.
A new fault proof mechanism introduced by @optimismFND and build on the top of bedrock is CANNON
11/ Cannon is optimism’s next-gen fault proof and will become the foundation of optimism in the future.
12/ Besides security, what about decentralization?
Currently. Sequencers of most Rollup solutions are run by the project itself or a single operator, which has serious centralization problems.
13/ In bedrock, proof diversity and client diversity is key to solve centralization problem.
Bedrock will build up a multi-client ecosystem and client diversity will heavily reduce single sequencer risk and achieve the goal of decentralization.
13/ Next month, Optimism’s goerli testnet will migrate to bedrock. The final step before mainnet upgrades.
It follows the same logic of @NexusMutual with some important differences‼️
**Pricing**🤑
In Nexus, cover pricing heavily relies on the value staked as coverage.
Insurace thinks that this approach fails to properly assess a protocol's actual risks.
It leads cover providers to significantly over-charge users for covers when less funds are staked in their protocol.
Insurace implements a different, two steps approach:
Exploits and hacks are a real threat to DeFi adoption.
Almost $6 billions were hacked in DeFi history, with record highs in 2022.
Can we protect our funds?
How decentralize insurance protocols work or could work?
A thread🧵
(1) In TradFi, a person buying an insurance has as counterparty big specialized corporations, using complex models to price risks.
DeFi insurance wouldn’t honor its name if it didn’t happen in a decentralized way. In DeFi you would buy coverage from other DeFi users.
(2) We could design a mechanism where anybody can act as a coverage provider.
You could do that by locking up capital in a pool, similarly to what liquidity providers do in liquidity pools.
As a coverage provider, you choose for which events or protocols to provide coverage.
Grayscale Bitcoin Trust (GBTC) reached record 50% discount relative to Bitcoin.
Why is it so, and why does it matter?
Let's dive in 👇
(1) First of all, GBTC was born in 2015 to give the opportunities to investors (mostly institutions) to have exposure to Bitcoin, without holding it in their wallet.
The fund is publicly traded onthe OTCQX.
(2) Now the tricky part.
GBTC shares can be created but not reemed, meaning that if hold the shares, you can't go to Grayscale and have your portion of Bitcoin in exchange for the shares.
I think that this will bring many new users to the chain.
Are you ready to explore this ecosystem?
Let's take a look in this🧵👇
(1) The peculiarity of this chain is that there are 3 protocols offering liquid staking for #NEAR:
1⃣ @meta_pool has the biggest TVL, $12 millions. It offers a 9.7% APY and allows the user to withdraw funds immediately, paying a small 0.3% penalty.
(2) 2⃣ @LinearProtocol has $4 millions in TVL, offers a 10.18% APY, and also has an instant withdraw feature.
The penalty fee is not fixed but ranges in 0.3%-3%, depending on the TVL.