The DeFier Weekly Report | London hard fork completed, Ethereum inflation reduced to 2.6%, Chainlink summit summary
Dear DeFier,
Welcome to the Ethereum EIP-1559 London New Era! ETH has become Ultra Sound Money. To celebrate this feast, we are going to raffle off T-Shirts! This week's meme is related to the EIP-1559 reform, but where's the joke? Friends who don't understand the EIP-1559 burning mechanism won't get it! If you understand, please reply to let us know, and we will draw one winner from those who answer correctly to send out a DeFi-related T-shirt!
This week's headlines include: Ethereum completes "London" hard fork upgrade; EIP-1559 co-author: Ethereum's inflation rate reduced from 4.2% to 2.6%; Uniswap front-end review, how do Taiwanese cryptocurrency developers view it?; First case! SEC sues for DeFi lending fraud, governance tokens deemed unregistered securities; Chainlink Smart Contract Summit 7 Key Highlights, and more.
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This week's selected viewpoints include: How does Coinbase founder Brian Armstrong criticize the proposed U.S. crypto regulation amendments? Why does Yearn Finance founder Andre Cronje believe DeFi panic is on the way? And why does Soundwise founder Tascha say digital dollars will be the ultimate solution to the U.S. fiscal deficit and debt?
Table of Contents
โจ Top Stories of the Week
Ethereum Completes "London" Hard Fork Upgrade, EIP-1559 Goes Live
The Ethereum mainnet has completed the "London" hard fork upgrade at block height 12,965,000, which includes 5 core improvements: EIP-1559 (fee market reform), EIP-3198 (BASEFEE opcode), EIP-3529 (reducing Gas refunds to invalidate Gas Tokens, serving 1559), EIP-3541 (rejecting new contracts starting with 0xEF bytecode, serving EOF), and EIP-3554 (delaying the difficulty bomb to the first week of December).
EIP-1559 Co-author: EIP-1559 to Reduce Ethereum's Inflation Rate from 4.2% to 2.6%
Ethereum core developer and EIP-1559 co-author, Eric Conner, tweeted that EIP-1559 will reduce Ethereum's annual inflation rate from 4.2% to 2.6%. Conner stated that once the merge occurs in a few months and PoS is implemented, Ethereum will transition to deflationary.
Uniswap Frontend Review: How do Taiwanese Cryptocurrency Developers View It?
Leading exchange Binance announced its move away from being a tech startup towards becoming a "compliant financial institution," implementing various compliance policies in response to increasing regulatory pressures worldwide. Ethereum's largest AMM Uniswap, in response to compliance risks, may hide synthetic assets that may involve securities on its frontend, sparking significant discussions. Let's see the opinions of several Taiwanese developers such as Coinomo, DINNGO, Pelith, Perpetual Protocol, portto, Steaker on this matter.
Chainlink Smart Contract Summit Highlights
Leading oracle provider Chainlink held the Smart Contract Summit #1 this week, with over 200 developers from the blockchain industry participating. The summit discussed 7 key future blockchain development focuses, including the CCIP Cross Chain Interoperability Protocol, CeFi integrating DeFi trends, and international enterprises seeking on-chain integration.
Aave Explores Deployment on Solana and Avalanche
Decentralized lending protocol Aave's founder Stani Kulechov mentioned at the Chainlink Smart Contract Summit that his team is devising a multi-chain strategy, considering expanding its market beyond Ethereum and Polygon to platforms like Solana and Avalanche. Additionally, Kulechov revealed the team's plans to establish a decentralized "Ethereum Twitter" and launch a private pool for institutions through its Aave Pro product.
SEC Sues DeFi Lending Fraud, Governance Tokens as Unregistered Securities
The U.S. Securities and Exchange Commission (SEC) announced the first DeFi-related securities case on the 6th, targeting the DeFi protocol DeFi Money Market, accusing it of selling unregistered securities and misleading investors about the operation and profit mechanism of DeFi Money Market.
SEC Chairman Highlights: Cryptocurrency Trading, Lending, DeFi Platforms are Legislative Focus
SEC Chairman Gary Gensler of the Biden administration recently delivered a speech on cryptocurrency and national security at the Aspen Security Forum. He believes that DeFi platforms involving trading, lending, and more not only fall under securities laws but also involve commodity and banking laws. Many platforms claim to prohibit U.S. investors from accessing them, but many still trade through VPNs. Gensler stated that as long as these platforms offer securities, they fall under SEC jurisdiction.
๐ Insights from Leaders
Coinbase Founder Brian Armstrong: Smart contracts are not companies, this bill is completely unreasonable
Yearn Finance Founder Andre Cronje: I expect the DeFi world to panic for two years
Soundwise Founder Tascha: The ultimate solution to the U.S. fiscal deficit and debt - digital dollar
๐ On-Chain Data
DeFi: Comparison of DeFi Locked Value Rankings from a Year Ago
According to the Total Value Locked (TVL) changes on DeFi Pulse, to be among the top ten DeFi protocols in total locked value a year ago, a TVL of at least $100 million was required. Today, even a $100 million TVL is not enough to make it into the top 10.
NFT: Opensea NFT Platform Shows Outstanding Performance
Despite the cryptocurrency market fluctuations, NFT trading does not seem to be severely impacted. The well-known NFT trading platform Opensea has seen a continuous increase in trading volume in July.
Ethereum: Ethereum Becomes Ultra Sound Money
Less than a week after the launch of EIP-1559, nearly 20,000 ETH has been burned on the Ethereum network. The term "Ultra Sound Money" implies a sound monetary system, and in the Ethereum community, it signifies that ETH, with the burning mechanism in place, has elevated to being Ultra Sound money.
BTC: Continued Increase in Long-Term Hodlers Ratio
This week saw a simultaneous rise in Bitcoin and other coin prices, while the number of long-term hodlers on-chain continues to grow. The number of long-term hodlers can be seen as a confidence indicator among old users in Bitcoin. However, historically, an increase in long-term hodlers often coincides with a period of price decline.
Institutions: GBTC Premium Widens to Largest Negative at -11.84%
After reaching a recent historical low of -5.68% on July 28th, the secondary market premium of the Grayscale Bitcoin Trust (GBTC) has continued to expand, hitting a peak negative premium of -11.84% on August 3rd.
๐ฅ Nasduck Index: 3.25
Project Development 5, Institutional Attitude 3, Regulatory Attitude 2, On-Chain Data 3
Nasduck Index is a long-short indicator that we compile based on the weekly cryptocurrency news and data to provide a simple forecast for the upcoming cryptocurrency & DeFi market trends. A score of 1 indicates a bearish trend brewing, while 5 indicates a bullish outlook ahead. The Nasduck Index is averaged weekly based on project development, financial institution attitudes, regulatory bodies, and on-chain data analysis. (Note: Optimistic news is generally more prevalent, so the Nasduck Index is more suitable for comparison with the past and future rather than considering anything above 3 as a bullish outlook)
๐ถ Weekly Memes
โ finematics.eth (@finematics) August 3, 2021