EthHub Weekly #142
Eth2 phase 0 launch imminent, Loopring Wallet beta released, MCDEX heads to layer 2, GnosisDAO announced and much more!
Curated by Anthony Sassano (@sassal0x) and Eric Conner (@econoar)
[Sponsored] ZKSwap is the first zk-Rollups-based layer2 dex that is using an AMM model. The team recently closed a $1.7 million Angel Round and the code is being audited by CertiK.
Developed by L2lab, ZKSwap users zk-Rollup technology to move ETH and ERC20 tokens to layer-2. It uses zkSNARKs to verify the consistency between the Ethereum mainnet and layer-2. All swap transactions execute on layer-2 in real-time with zero gas fees, providing a smooth user experience like centralized exchanges while allowing users to have full custody over their funds.
ZKSwap has been live on the Ethereum Ropsten testnet since Nov 16th, 2020 and will launch on Ethereum mainnet in 1-2 weeks. To give back to the community, ZKSwap has launched several testnet incentive programs from November 27th, 2020. Please follow ZKSwap Twitter or discord to learn more.
🥩 Eth2 Cometh
Well, it’s finally here - the eth2 Beacon Chain genesis (phase 0) is set to happen in just a few hours. What an absolutely monumental occasion we’re about to witness - the culmination of 6 years worth of research and development to create a novel proof of stake consensus mechanism that is maximally decentralized. I gave some thoughts about it all in The Daily Gwei newsletter here. Oh and don’t forget to keep an eye on Twitter for a link to the EthHub x Bankless x DeFi Dad eth2 genesis livestream event - we’d love to see you there!
I had my monthly recap with Alex Saunders of Nugget’s News this week where we covered the last months worth of Ethereum updates - check that out here. I was also interviewed for a piece on DeFi for Stockhead which you can check out here.
Lastly, don’t forget to check out and subscribe to The Daily Gwei YouTube channel for recaps on everything that happened within the Ethereum ecosystem every week day.
Have a great week everyone!
News of the Week
⚖️ DAI Price Increase Leads to Mass Liquidations on Compound
A momentary price increase in the DAI stablecoin earlier this week led to massive liquidations at decentralized finance (DeFi) protocol Compound.
The protocol witnessed $88.4 million worth of liquidations, according to on-chain data analyzed by The Block. Data from tracker LoanScan, however, shows the liquidations at $103 million, which isn't accurate. Market conditions also led to liquidations at DeFi protocol dYdX, worth about $8 million, according to both on-chain data and LoanScan. Together, both the protocols liquidated more than $96 million worth of collateral.
How exactly did DAI's price increase lead to the liquidations? Compound allows users to borrow funds, including DAI. In all cases, a borrowed amount should always be lower than the collateral provided. In other words, all loans should be over-collateralized.
In this week’s case, the liquidations occurred because DAI's price momentarily increased by 30% on Coinbase Pro (source of Compound's price oracle), which led to under-collateralized loans on the protocol. In other words, the increased DAI price also increased the value of DAI borrowed on Compound, as compared to the collateral provided.
🤔 Facebook's Libra Could Launch its First Stablecoin in January
The Facebook-led Libra Association is reportedly targeting the launch of its first stablecoin in January of next year.
The Financial Times reported the news on Thursday, citing "three people involved in the initiative." According to one of the persons, the first stablecoin would be dollar-backed, while other planned single-currency and multi-currency stablecoins would be launched later.
The actual launch date of the dollar-pegged stablecoin would depend on when Libra gets a payment services license from the Swiss Financial Market Supervisory Authority, FINMA. The license could be granted as early as January, the three people said. Libra applied for the permit in April of this year.
Facebook's other subsidiary, Novi (formerly Calibra), is also preparing to launch its digital wallet for Libra stablecoins. The wallet is "ready from a product perspective," one person involved in Novi told FT, but initially, it would not be globally launched.
Eth2 Mainnet Clients Ready
All of the 4 major eth2 clients are now mainnet ready - you can follow Somer Esat’s guides here on how to set each of them up.
Eth2 Quick Update No. 21
Minimum ETH threshold hit; genesis on December 1st, 12pm UTC - get your nodes running and monitor updates through genesis.
Ecosystem Support Program Allocation Update: Q3 2020
A healthy update from the EF’s ecosystem support program this week going over all of the teams and individuals that they supported during Q3 of 2020.
Yam November 2020 Roadmap Update
Lots of updates from Yam this week covering the protocol, treasury, product, governance and more.
Loopring Wallet Beta Released
Loopring Wallet is the first Ethereum smart wallet with zkRollup scaling baked in. Android users can download the wallet app right now from https://loopring.io.
Flashbots is a research and development organization formed to mitigate the negative externalities and existential risks posed by miner-extractable value (MEV) to smart-contract blockchains.
GnosisDAO is a prediction market-driven collective, stewarding the Gnosis ecosystem through futarchy.
Hermez Introduces Layer 2 Interoperability Mechanism
Hermez announced the development of a new feature in the Hermez zk-rollup that improves inter-L2 communication for the whole rollup ecosystem.
CopperConnect is the first tool for institutions to tap into liquidity within DeFi on Ethereum.
TokenTerminal Gets a Refresh
A brand new website with lots of updated metrics for you to check out is now live on TokenTerminal.
ZKSwap Raises $1.7 Million
ZKSwap, a token swap protocol being built on Ethereum's layer-2 scaling technology ZK-rollups, has raised $1.7 million in an angel round.
Yearn & Cream v2 Merger
Yearn and Cream developers have teamed up to launch Cream v2. The v2 launch will be focused on core lending and leverage products.
MCDEX Launched on Arbitrum Rollup Testnet
The MCDEX perpetual swap platform platform is now able to be used on Arbitrum’s layer 2 rollup technology (testnet only for now).
Status V1.9 Released
V1.9 introduces status updates, link previews, local notifications on Android (beta), and more to brighten up your Status experience.
InsurAce Raises $1 Million
Decentralized insurance protocol InsurAce has raised $1 million in a seed funding round.
The firm said in an announcement Tuesday that the round was led by DeFiance Capital, a crypto fund that's focused on the decentralized finance space.
AMA w/ Monolith Co-Founder Mel Gelderman - Bankless
Meme of the Week
Looking for Work?
Top jobs listed on Cryptocurrency Jobs this week:
Marketing Intern - Gemini
Business Developer - Aave
Ecosystem Developer - 3Box
Partner Integrations Manager - Chainlink
+1000’s more on the Cryptocurrency Jobs website!