OKLink annual information: 2021 Public Chain Development Essentials, Embrace DeFi

The construction industry, the public channels, show people the expectations of the blockchain, the heart of the Web3 network. Last year ETHereum received an update in London and extended to ETH2.0. The new channel benefits DeFi to rapidly improve ecosystem connectivity and becomes a big winner in the crypto world in 2021. We compare and identify hotspots between public channels and DeFi in recent years across the news channel, and explore the importance of public channels and DeFi Protocol.

As the leader of the public chain, Ethereum remains a major battleground and the cradle of new developments in the field. Several metrics for Ethereum were completed with ETH Flip BTC last year.

After the application of Eip-1559, the volatility of Ethereum oil prices decreased and the miners yield curve began to move closer to the staking pattern.

Phase 2 is starting to get a lot of attention, with Arbitrum leading the way and zk-Rollup ready to move forward. How to overcome the asset capital layer in Layer 2 is the key to improvement.

New public channels are adapting to the rapid growth of DeFi and multi-channel transmission has become the choice of many regulators, but indiscriminate use of multiple channels is not a reasonable choice.

The launch of Uniswap V3 was a big event on the DeFi site last year, providing the platform for many investors to enter the market as investments increase. With the advent of Convex, Curve users may receive more rewards, but it also creates problems for the management of the community.

Security concerns have become a hot topic in DeFi over the past year and the importance of mobile data and tracking has started to emerge. About crisis management.

1. Ethereum and public channel

1. Ethereum vs. Bitcoin

In 2021, Ethereum had a market cap of $ 562.491 billion in 2021, an increase of 568% since the start of the year, and the ETH / BTC exchange rate exceeded $ 0.08, breaking the record. Over the past three years, it has increased by more than 350% compared to the start of the year.

File source: OKLink

Since the start of 2018, the ETH / BTC exchange rate started to drop 0.1 and once fell below 0.02. ETH holders cried last year as they watched Ethereum travel from Constantinople to London. With the implementation of EIP-1559 in the London Revision, Ethereum paved the way for ETH2.0. However, the number of powers in the Ethereum network has continued to increase over the past year. At the time of writing, the computing power of the entire Ethereum network is 866TH / s, up 208% since the start of the year, while the computing power of Bitcoin is up 17. 62% over the same period.

File source: OKLink

Many Ethereum applications offer high exchange rates.

The cost of Ethereum has been consumed by OpenSea's NFT business alone over 130,000 ETH, and the functioning of the chains of various DeFi and NFT has brought Ethereum together the vital role of demand and payment of money, and profitable for Ethereum miners as well. . . to bring.

Ethereum miners earned more than $ 17.7 billion as of December 22, while Bitcoin miners earned $ 16.2 billion during the same period. As of May of this year, Ethereum miners earn more monthly than Bitcoin miners.

Data source: Ouke Cloud Chain Master

Miners are responsible for counting the power of the network, and the correlation of costs is the "financial security" of the network. In this regard, Ethereum secured more transactions than Bitcoin last year. Of course, this is because ETH has increased over the years.

On the other hand, we can use FRM, for example “total miners income / detention income” to identify the impact of production costs on the miners income chain and network security. Blocking gifts will be deleted.

Data source: Ouke Cloud Chain Master

Last year, Bitcoin's average FRM was 39.74 and Ethereum's was 6.2, with user fees accounting for over 15% of the annual earnings of Ethereum miners, while Bitcoin's share was only 6.2. 2.5%.

We also compared the differences between new and active Bitcoin and Ethereum addresses.

Data source: Ouke Cloud Chain Master

As of December 31, the average number of new and active addresses per day for Ethereum was 161,700 and 615,000, respectively, and for Bitcoin, 445,800 and 979,900, respectively. It should be noted that Bitcoin and Ethereum have a vague understanding of the mathematical location. As Bitcoin operations have declined several times, the number of locations on Ethereum has increased. It is not yet clear what caused this phenomenon, but given the performance of both markets, it seems reasonable to assume that Ethereum received funding after the Bitcoin peak.

In addition to measuring the chain, we have clearly seen that revenues from design and operations companies are not only flowing into Bitcoin, but have also started investing in Ethereum and many other types of cryptocurrency.

Data source: Ouke Cloud Chain Master

As of December 22, Ethereum-based securities were valued at nearly $ 5.8 billion, while products like Bitcoin reached $ 10.5 billion during the same period.

About Bitcoin Ethereum

Ethereum's performance over the past year has been so good that ETH FLIP BTC applications have resurfaced in human vision, but we still believe that vision is difficult to achieve in the technical cycle of this business.

Bitcoin continues to improve its position as digital gold, at the same time it will become the legal entity of El Salvador in 2021 and is the first choice for most traders entering the cryptocurrency market.

Ethereum, representing blockchain 2.0, has yet to be tested and challenged by several parties. Progress in network expansion and improvement and management issues after the move to consensus POS are all issues that need to be addressed.

2.EIP-1559: Free yourself from uncertainty

On August 5, Ethereum hit its planned block height [London Upgrade] and 5 project EIP deals were opened, of which the EIP-1559 deal broke the starting price of chain trading, bringing new token products at ETH. . .

Data source: Ouke Cloud Chain Master

As of December 23, the sales volume of TANFATES has reached 12.4844 million, and the functions of the EIP-1559 will fall by IP. . -159.

Additionally, OpenSea, Uniswap, and Tether have gone “historic” in the Ethereum disaster, with 130,700, 111,400, and 66,500 ETH-based disasters to date.

Data source: Ouke Cloud Chain Master

DeFi, coin stability and NFT related activities have now become major applications for the Ethereum network and continue to be an important area for other public channels to develop their ecosystems.

On the other hand, changes in miners' incomes and exchange rates after the London renovation have become a concern for us.

As for the miners 'income, for a total of 139 days from the opening of the EIP from August 5 to December 22, the Ethereum miners' income was 2,118,500 ETH, of which 241,600 ETH accounted for 11.4% of the value. During the same period last year, Ethereum miners earned 2,996,600 ETH and commissions were 1,099,700 ETH, or 36.69%.

Assuming they went through DeFi Summer around the same time last year, from March 19 to August 4 of this year, the same 139-day Ethereum earnings were combined, totaling 2,841,100 ETH and 976,200. ETH in costs, for a total of 34.33. %. .

Data source: Ouke Cloud Chain Master

From this, we can conclude that the standard miners ETH earnings are demand driven and were reduced after the implementation of EIP-1559. At the same time, however, the overall price uncertainty has also been lower compared to the past, and the daily income of Ethereum employees has not changed much as much as before, but within a narrow range close to the point of sale capabilities. The results have been positive.

At the beginning of the work of eth2.0, the current electric chain and thorns have been done, and increase in action will fall again. POS pays for the contractor will be the only thing of act.

If 30% of Ethereum joins the contract, the annual increase would be around 1.75 million ETH. Currently, Ethereum's annual damage is expected to be 3.2 million ETH, and Ethereum will go from inflation to deflation, with a deflation rate of over 1.2%. On the other hand, the activation of Ethereum EIP-1559 reduces the high price of oil in the current weather situation, but still can not solve the important problem according to the high price of Ethereum oil, especially the ETH rate, increase the correlation rate is also high.

Data source: Ouke Cloud Chain Master

In December, Ethereum hit $ 5,000 and the daily average was $ 61.86. Despite the recent cold snap, the average daily price per trade on Ethereum remains above $ 20. developed by Ethereum.

Data source: Ouke Cloud Chain Master

Since August of this year, new contracts added daily to Ethereum have fallen sharply. At the same time, more and more new chains are starting to go up, and industry prices and environmental improvements enter a period of rapid growth. The high cost of Ethereum integration has scared users off, and it will be some time before ETH2.0 is released. A new channel for the public has seized this opportunity and is starting to harness its power.

3. Open Chain Wars: don't cheat the data

How to decide the public pricing is still a problem that does not solve, compare the game files to support and try to get some decisions.

Data source: Ouke Cloud Chain Master

The number of trades is the first indicator that comes to mind. Due to the combination of POH approval, Solana has the advantage of this indicator. As of December 25, the total turnover of the Solana network in 2021 exceeded 5.3 billion, which is more than the total turnover of the public channel included in these statistics BSC, HECO and ETH.

ADA and DOT, on the other hand, have lower costs. ADA's Alonzo redesign to support smart contracts began in late September of this year, and the DeFi ecosystem, including Dex and Loans, is still in its infancy. Time.

Data source: Ouke Cloud Chain Master

Address count is another metric we use to determine business in the community, and it basically identifies the actual users in the channel.

The number of locations on Ethereum is in a stable. For most of 2021, the number of modern colonies on Ethereum will remain above 500,000. This means that the use of the Ethereum network can now be extended to its restricted mobility and should be measured to accommodate more users. .

At the same time, the number of locations in Ethereum shows that there is a close relationship with the industry, including the location of Ethereum peaking in the gold market in April and May.

In addition to Ethereum, since May the number of BSC addresses has overtaken ETH, and from October to November has seen significant growth with the help of hotspots such as GameFi. It is also the only public channel to transmit ETH to daily addresses, reaching 2,271,000.

DOT first hit the $ 50 mark in May, setting a new monthly location record in DOT counties. As the market returns in October, the number of addresses on the DOT chain continues to increase.

Avax has been active in the first half of the year and has developed several TVL apps worth over $ 1 billion, but there is still a big difference in the number of users and the public channel like ETH.

Overall, the location and changes in other public channels are tied to the reputation of the industry and the schedule of the public channel itself. The market value of the public channel has clearly benefited from the performance of the chain, and the more consumers and markets it has, the greater its adoption and market share. For public channels, no metric is more important than adoption.

4. Layer 2: Ethereum Counterattack

Rising stars like Solana and Avalanche appeared in public races last year, and public exchange channels like the BSC entered the fray, but Ethereum is still denied to be the developer of the channel arena. public. Whether it's DeFi, GameFi, or Dao, most of the content and design comes from the Ethereum ecosystem and community. Public outcry "thinks Ethereum is crossing the river" with lower transaction costs and faster confirmation times.

Faced with this phenomenon, the Ethereum community chose Layer-2 as a measurement tool before the release of ETH2.0. Arbitrum and Optimism are based on Optimistic Rollups technology, while Zksync and Loopring use zkRollup as zero proof, while Polygon and Xdai use similar solutions as extensions.

By value as an example, the value of layer 2 is now significantly lower than that of the Ethereum mainnet.

Source Info: l2beat.com

Loopring's current exchange rate for ETH exchanges is around 3% of the Ethereum mainnet, while Zksync and Polygon make up 4% of the Ethereum mainnet. Arbitrum and Optimistic have slightly higher rates, around 30% and 35% respectively.

It's more accurate if you compare Swap in chains. The exchange rate for DEX trading on Ethereum is usually over $ 25, while Zksync and Loopring are only $ 0.56 and $ 1, respectively, and Optimistic and Arbitrum are only 2-3. United States. In terms of price, the Loopring and ZKsync based zkRollup seem more prominent.

However, given that Optimistic and Arbitrum have yet to announce their own tokens and are still in the early stages of development, their user base is small and their value is high as they also use ETH as their rate. exchange. and

V God also mentioned the competition between zk-Rollup and Optimistic-Rollup.V God said that with the relationship with EVM, Optimistic-Rollup will keep the business in the early stages of Phase 2 improvement, but ZK and in combination with -SNARK maturing technology output, zk-Rollup will move on to more applications in the intermediate and advanced stages.

Meanwhile, TVL on phase 2 has now reached $ 5.6 billion, and the amount of precipitation on other phases 2 is not the same.

Source Info: l2beat.com

Arbitrum represents almost half of the Layer-2 budget with $ 2.5 billion in TVL. Starkware-based Dydx and zkRollup-based Loopring placed second and third with $ 960 million and $ 580 million, respectively.

Data source: Ouke Cloud Chain Master

The first-mover advantage and easy delivery of Optmistic Rollups have made Arbitrum the fastest growing Layer-2 ecosystem. The main CEX platform will also gradually support Arbitrum's deposit and withdrawal of assets, bringing benefits for growth. of the Arbitrum ecosystem. Users don't have to suffer from Layer 2 dropout latency to the mainnet, and the ease is pretty good. However, due to zkRollup development issues, current application critical scenarios still seem to focus on payments, and it takes time to review several difficult to use applications in zkRollup's Set-2.

5.ETH2.0: slow is fast

Phase 2 has become a middle ground for scaling Ethereum, and ETH2.0 is the end of the Ethereum roadmap. To achieve this goal, the Beacon Chain will be launched by the end of 2020 and the End User Promise will be unveiled, paving the way for Ethereum 2.0.

Once the Beacon Channel goes live, users can join 32 ETH to join the ETH2.0 ecosystem. Last year, the Ethereum 2.0 deposit contract moved to the address with the highest ETH parity, with over 8.87 million ETH moved to smart contracts, valued at over $ 3 billion. . up to 7.5%.

Data source: Ouke Cloud Chain Master

However, Ethereum's current sliding liability of 7.5% is still less than 50% or more on other public channels. The main reason could be that the ETH 2.0 release date has yet to be decided. Now, joining the contract means locking in ETH until ETH 2.0 is released. The risk that the price will change over time will not be acceptable to most investors.

Data source: stakingrewards

The ratio of Solana and Cardano up to 70% compared to other public channels. Avaxlanche and Polkadot account for over 50%, while Algorand and Terra also account for 46% and 37% respectively.

Addresses currently share Ethereum 2.0 protocols in the media, including centralized exchanges and POS service providers, protocols like Lido and the Ethereum behemoths.

Source : Beaconcha

As a result of the removal of the contract address, more than 59,500 locations were pledged to over 32 ETH in the chain, and the number of lines in the current tag chain exceeded 270,000, meaning that all the workplaces are more average. Above 4 nodes the promised ETH value is at least 128 ETH.

Data source: Ouke Cloud Chain Master

In addition to the 7.5% ETH committed under the Ethereum 2.0 depository deal, Wrapped ETH also has over 7.5 million, or over 6.3%.

The value of ETH in centralized exchange wallets has continued to decline since the DeFi boom of 2020, falling to 14 million ETH in December.

Data source: Ouke Cloud Chain Master

All commodity types ETFs and grayscale ETH trusts hold 1.45 million ETH and 3.11 million ETH respectively, of which ETFs will rise in 2021.

In addition, the bridge over the cable connection of the two-tier network also received significant ETH value, while the bridge crossings between Polygon and Arbitrum retained 510,000 and 35 ETH respectively. There is plenty of room for growth.

Ethereum's point-of-sale approval change plan came along very early on, but once completed the upgrade seemed slow throughout. The reason may be that, on the one hand, the balance of needs and interests of all parties, including miners, communities and industries, must be determined. , and secondly, how to carry out the agreed exchange of the network. Don't reduce Ethereum's current decentralized nature.

2. DeFi: years of teaching and momentum

1. DeFi Multichain Blooming: what's the difference?

Over the past year, the new channel has received DeFi, attracting more users and more money. The approach to financial management of DEX secured loans has become a design goal for the audience on the new DeFi chain ecosystem. Additionally, some core DeFi processes will publish multiple referral strings and provide user support. However, the stage of development of the various public connections in the DeFi arena is clearly different, and this is particularly evident in the cost of the chain's Locks (TVL).

Data source: Ouke Cloud Chain Master

Currently, the TVL total of several public channels has exceeded $ 200 billion. Among them, Ethereum's TVL has grossed over $ 150 billion and remains the main battle for DeFi.

Avalanche, BSC and Solana maintained rapid growth with TVLs reaching tens of thousands of dollars last year, while TVLs of Polygon, Fantom and Arbitrum reached thousands of dollars.

In a horizontal process comparison, of TVL's top 10 processes, 5 accounts include Curve and Aave are sent to multiple chains, while 5 accounts include Creator and Convex focused on the Ethereum ecosystem. Curve has become the current leader in closed volume DeFi protocol with over $ 20 billion in TVL.

Data source: Ouke Cloud Chain Master

Beyond Ethereum, we see improving our own DeFi ecological protocol as an important step in the growth of the new chain.

Avalanche's eco-lending protocol includes Benqi, Dex Swap, including Trade Joe and Pangolin, and Wealth and Agriculture Management, including Wonderland's final year. At BSC, Pancake's packaging business has long been at the forefront of the entire Dex network, with Venus and Tranchess TVL for over $ 1 billion in second and third places.

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Information was: Ouko cloud chain chain

However, even the export of multiple channels must be done at a DeFi protocol level depending on their own operation.

Data source: Ouke Cloud Chain Master

Currently, DeFi's total closures are around $ 250 billion and Ethereum's TVL is over $ 150 billion, or more than 60%. If DeFi function refers to more than one channel, it looks like TVL on the other public channel can be compared to TVL compared to the public channel in the above figure to determine the distribution of the goods in order to achieve financial satisfaction. .

Taking Aave as an example, Aave's TVL currently exceeds $ 14 billion and is distributed to three public channels: Ethereum, Avalanche and Polygon, accounting for 61%, 22% and 17% respectively. The Avalanche and Polygon TVLs are: Almost 40% of the capital is invested in the Aave Belt.

Data source: Ouke Cloud Chain Master

Another classic example of a multi-chain export chain is the multi-chain (formerly Anyswap), an integrated chain.

Data source: Ouke Cloud Chain Master

Currently, Multichain, a leader in crosslinking, owns more than $ 5 billion in TVL, and its multi-channel export channel continues to meet the needs of cross-platform commerce, helping to reach users of various public channels. And enjoy it.

For comparison, Sushiswap also used the public channel of several chains, but it does not seem as effective compared to the previous two.

Data source: Ouke Cloud Chain Master

Sushiswap now stands at $ 5.3 billion, of which $ 4.2 billion is owned by Ethereum, or over 80%. In many networks, such as Polygone and Avalanche, the TVL rate is less than 10%.

The reason why DEX is such an important application in the DeFi ecosystem and community chains are often willing to develop their own Dex protocol. Uniswap also focuses on the Ethereum ecosystem, such as Quickswap from Polygon and Trade Joe from Avalanche.

At the same time, most DEX startups have to rely on the form of LP Farms, and too many export chains can impact the distribution of the project itself. invest too much money.

Overall, over the past few years, many DeFi streaming channels have become the way to reach more users. alone. However, at the stage of a DeFi protocol, multiple transmission chains are not a panacea, and whether to use multiple transmission chains has to be decided in its own way.

2. New DeFi gameplay: Uniswap V3 and Convex

Last year, the DEX market in volume topped $ 1 trillion, up 762% from the previous month. Uniswap is also the leader of the Dex track and launched Uniswap V3 in early May, making it one of DeFi's latest developments this year.

Data source: Ouke Cloud Chain Master

The packaging business of Uniswap V3 has grown steadily since its launch in May. From May to the end of the year, the market volume was estimated at USD 340 billion and the 8-month trading volume was 34% of the total market volume. by Dex. all year.

Data source: Ouke Cloud Chain Master

High investment is the key to Uniswap V3.

Compared to Uniswap V2, the V3 investment performance has been excellent. Uniswap V2 and V3 December Volume Comparison and TVL Influences: Average V3 TVL volume in December fluctuated between $ 4 billion and $ 4.4 billion, including monthly market volume of 69.74 billion dollars and the investment of more than 50%. At the same time, the usage of Uniswap V2 is around 7.5%.

Data source: Ouke Cloud Chain Master

Comparing trading partner ETH-USDC, Uniwap V3's 7-day average exchange rate was $ 3.59 billion, 7-day TVL average revenue was $ 282 million, and investment was high. at 181%. The image for Uniswap V2 is 8.65%. In a horizontal comparison, Dex's current investment in Ethereum changes by around 10%.

Data source: Ouke Cloud Chain Master

The deployment of Uniswap V3 on Polygon and open source support could enhance Dex's investment and further develop Uniswap's business.

Another big factor that will be of interest to people is probably the start of Convex. With the advent of Convex, a protocol to improve user and Curve user feedback, Curve's LP Farmer not only easily achieves the maximum reward, but also the convenience of a heavy Crv staking process and known flows. guaranteed tools. Create sex cvxCrv.

Data source: Ouke Cloud Chain Master

Curve and Convex TVLs now exceed $ 20 billion and hold the top two TVLs for DeFi protocol.

Data source: Ouke Cloud Chain Master

After the Convex announcement in May, Ethereum Curve's TVL and Convex's TVL started to rise, accelerate, and the Crv token price continued to rise over the same period.

Of course, the growth of both TVLs also relies on reducing token circulation by providing support to entrepreneurs, in a less familiar way. At the same time, the community voting and governance issues caused by the Crv crash in Convex are also hard to ignore. Violators can purchase CVX and run Convex's veCrv recorder to vote on the job, thus increasing APY's compatibility with the Curve fund pool, attracting users to provide LPs and starting the Rug Pull on their own.

3. Management, security and surveillance

As mentioned above, as DeFi continues to measure (over $ 200 billion in TVL), community governance issues are starting to emerge. At the same time, the issue of mobile security has also been a hot topic in the past year, and hacking cases costing tens or hundreds of millions of dollars have led the industry and investments in industry. The tips include smart contract verification and fundraising.

Source de la photo : Ouke Cloud Chain Master

Over $ 600 million was stolen in the poly network security incident, making it the largest security related incident in a year.

At the end of September, the Compound loan process experienced some bugs after the update, which allowed some users to benefit from additional Comp management tokens. Since the protocol update requires 7 voting days, more than $ 140 million is at risk.

In November, USDM's Mochi Protocol of Decentralized Stability encouraged users to buy CVX to set up Stabilitécoin LP mining, increasing the value of USDM's liquid pool to a curve and depleting more than 40 million dollars of money in the lake. .

After hacking incidents, centralized platforms often stop the flow of money through data and chain tracking, blocking the idea that hackers are attempting to withdraw money from centralized platforms. Some parties to the project may choose to exchange contracts to recoup their losses and exchange stolen tokens for new contracts. The Tether stablecoin issuer is still over $ 33 million USDT strong in the poly network.

Source : Twitter

It's a great combination of meeting with hackers and having security issues, as well as everyone meeting and working to resolve issues together. However, in the global 'rights are rights' blockchain, how to protect user safety and satisfaction of the innovation base will become a must for DeFi before it can enter the world.

During the review, Gary Gensler, President of the US SEC, reiterated that DeFi "must be respected".

As of mid-July, Uniswap Labs listed a total of 129 electronics and related devices on the first page of the Uniswap official site's business page, regarding "Changes Controls the Environment."

At the same time, UNIswap funds the “DeFi Education Fund” for one year to oversee law enforcement and other activities. The deal was last voted on by the community in June and received 1 million UNIs, including legitimate leaders of large institutions such as Aave and Comopound.

In addition, Andre Cronje, founder of the YFI Property Management Protocol, also announced $ 1 million in funding for DeFi Legal Advisory Group LeXpunK_DAO, and the Curve and SushiSwap communities also participated in the event.

Aave announced Aave Pro for commercial devices in July. These models provide liquid solutions for Bitcoin, Ethereum, USDC, and AAVE. Although it is not accessible to the public, it is only available to eligible users through the KYC and free registration procedures. Institutional investors and money laundering and fraud.

Source : Twitter

Current regulations have become a major issue that DeFi must resolve before it can enter the wider market. Custom heads like Uniswap and Ave are also planned accordingly. At the same time, while executives have been criticized by the community for their lack of clarity and clear standards, they seem to agree that DeFi can be innovative. He believes that in the new year DeFi can bring in more money and consumer goods, if the rules are followed.

Third, the details

The public chain, the most basic infrastructure in the blockchain, reflects the industry's demand for decentralization. In 2021, the new chain will lead to Ethereum value ripple management, allowing more users to learn about technologies like DeFi and NFT in the process. In the new year, we hope to see more new channels continue to explore and explore areas not affiliated with Ethereum.

On the other hand, we can see the channel data entering the vision of many users in 2021. Whether it is focusing on DeFi smart money or the hack related to fundraising, many people started using channel data as a basis for judgment. . With the expansion of the data volume, the importance of data analysis activities has started to emerge, and data tracking services in the field of blockchain will also be more attractive.