Binance’s venture capital arm is announcing an investment into a new cross-chain decentralized exchange (DEX) and bridging aggregator. In a new blog post, the world’s largest crypto exchange by volume says that it is investing an unspecified amount of money into interoperability DEX Rango. Rango is a cross-chain exchange that aggregates sources and connects traders […]
The post Binance Labs Announces Investment in New Cross-Chain DEX and Bridging Aggregator appeared first on The Daily Hodl.
Polygon has allocated an estimated $1 billion on zero-knowledge technology underpinning its Ethereum scaling layer 2 solutions.
Polygon co-founder Sandeep Nailwal believes the layer 2 blockchain firm is reaping the benefits of allocating $1 billion to develop zero-knowledge proof (ZK-proof) powered scaling solutions for the Ethereum ecosystem.
Speaking at a keynote address during the latest edition of the Token2049 conference in Singapore, Nailwal touched on the development of 'Polygon 2.0' scaling efforts and the promise of recursive ZK-proof technology to create a seamless interoperable blockchain ecosystem.
Nailwal highlighted how Web2 and Web3 are similar in form and function, with the former serving as the internet of information with “practically unlimited scalability” as well as the ability to transfer or convey information in various forms seamlessly across the world at great speeds.
Related: Polygon’s ‘holy grail’ Ethereum-scaling zkEVM beta hits mainnet
Web3 meanwhile represents the “internet of value”, which according to Nailwal will require two capabilities to become ubiquitous.
“Firstly, infinite, unlimited unbounded scalability and unified liquidity for value to be transferred. There cannot be 100 chains with the value distributed across and they cannot interoperate.”
In order to tap into the characteristics that have made Web2 able to become the internet of information, Nailwal pointed to the importance of an aggregator or interoperability layer to amalgamate ZK-proofs of different chains to a common layer.
“The moment those two proofs are submitted on Ethereum layer, we have a mechanism where we have a global state route on Ethereum and then any kind of liquidity can move across the chain without coming to Ethereum.”
Recursive ZK-proving technology holds the key to this aggregator layer which Nailwal expects to be deployed in the coming months. The technology will allow different blockchains to submit ZK-proofs of their network state to the aggregator, which then submits a proof of these combined attestations to the Ethereum network.
“Our goal is that this proving will eventually go down to like probably two seconds. So every chain is submitting a proof of whatever has happened on their ecosystem or on their chain every two seconds to this aggregator layer.”
The Polygon co-founder believes that cross chain transactions could be executed in 4 to 5 seconds, one third of an Ethereum block time, which will begin to feel “like one single big block space.”
Nailwal highlights the potential benefit of having high liquidity chains like it's zkEVM and proof-of-stake chain to share value to applications, while noting that larger layer 1 blockchain platforms have expressed interest in tapping into an interoperable layer.
“Anybody can join this layer and it's a mutual win-win because everybody benefits from each other's liquidity.”
Polygon zkEVM's beta hit mainnet in March 2023, allowing developers to deploy smart contracts and decentralized applications that benefit from faster throughput and lower costs than Ethereum's layer 1.
The company also recently launched its Chain Development Kit, which allows developers to build, customize and deploy layer 2 chains connected to the wider Ethereum ecosystem.
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Magazine: Recursive inscriptions: Bitcoin ‘supercomputer’ and BTC DeFi coming soon
The new bridge aggregator allows cross-chain DAOs to only accept votes confirmed by more than one bridge.
Multichain bridging protocol LiFi has launched a multi-message aggregator for decentralized autonomous organization (DAO) governance, according to an Aug. 17 announcement from LiFi research lead Arjun Chand. If implemented by decentralized exchanges, lending apps, and other Web3 protocols, the new aggregator should help prevent governance attacks that originate from cross-chain bridges, according to the aggregator’s documentation.
The announcement comes after a vigorous debate over bridge security on the Uniswap forums in late January and early February, concluding that no single bridge has all the security features necessary for secure governance.
For months, @lifiprotocol has worked closely with @UniswapFND to develop Multi-Message Aggregation (MMA), an additive security module for cross-chain messaging.
— Arjun | LI.FI (@arjunnchand) August 17, 2023
Here's why we believe MMA could be a future-proof solution for different cross-chain messaging needs! pic.twitter.com/w34g3ZUNfi
Crypto exchange Uniswap is governed by a decentralized autonomous organization called UniswapDAO. In January, this DAO began discussing deploying a second copy of Uniswap to BNB Chain. This opened the question of how Uniswap would be governed on more than one chain since, previously, all votes were taken on the Ethereum network. On Jan. 24, the DAO voted to deploy a second copy of Uniswap to BNB Chain and to use bridging protocol Celer to send messages from BNB to Ethereum.
Although this proposal passed, controversy erupted almost immediately over the choice of Celer bridge as the means of sending messages. Some DAO participants feared that Celer was not secure enough to prevent cross-chain governance attacks. Instead, they recommended Wormhole, LayerZero, or DeBridge be used. Other participants defended Celer as the correct choice.
On Jan. 31, the DAO held a second vote on which bridge should be used for governance. Wormhole won the vote and was chosen as the official bridge for governance.
Despite this win for Wormhole, the referendum was contentious. Only 62% of UNI tokens were used to cast “yes” votes. By contrast, many UniswapDAO proposals received nearly unanimous votes for or against.
In the debate leading up to the vote, many participants concluded that Uniswap should use multiple bridges instead of just one. This way, if one bridge became hacked, the other bridges would reject the malicious messages sent by it, and the attack would be prevented. However, no multi-bridge solution was available at the time. Hence, the proposal's supporters argued that Wormhole should be used until a multi-bridge solution could be created.
Related: Token hoarders defeat the purpose of most DAOs: Study
In the Aug. 18 announcement from LiFi, Chand said the team’s new bridge aggregator would provide “a future-proof solution for different cross-chain messaging needs,” preventing protocols in the future from needing to rely on a single bridge for governance messages.
According to the aggregator’s documents, protocols can use LiFi to require that votes be confirmed on two out of three bridges to be valid. For example, if one bridge says that a DAO token holder voted “yes,” but the two other bridges say that they voted “no,” the “yes” vote will be confirmed. The aggregator can also be configured to use three out of five bridges or any other ratio the DAO wants.
LiFI isn’t the only team to create a multi-bridge aggregator for DAO governance. Gnosis released a similar protocol called “Hashi” in March.
In June, a UniswapDAO committee claimed that Hashi was “not yet production-ready,” had pending audits and did not have a bug bounty. Therefore, the committee concluded that it was unsuitable to handle DAO governance.
The LiFi aggregator has also not been audited. Chand claimed in his announcement that “soon, we'll expand its testing and submit it for an audit by Trail of Bits.”
SushiSwap’s roadmap for the coming year includes the development of a DEX aggregator, a decentralized incubator, and "several stealth projects."
Just a month after warning of a "significant deficit" in its treasury, the CEO of decentralized exchange (DEX) SushiSwap has shared several planned updates to the platform which it says is intended to "10x" its market share in 2023.
Sushi CEO Jared Grey laid out the plans for the decentralized finance (DeFi) platform in a Jan. 16 Medium post saying it will focus on its product stack in line with prior plans to make Sushi more sustainable.
"Sushi commands ~2% of the AMM market & 0% of the aggregation market. By executing our vision, we intend to 10x our market share in 2023."
Newly announced plans include a DEX aggregator set for launch in Q1 and a “decentralized incubator” on the cards for 2023.
Grey said the upcoming DEX aggregator — a tool giving users access to various DeFi protocols — was built in “stealth mode” throughout last year, and is part of its plans to drive scalability and sustainability of its business.
Read how we're revitalizing @SushiSwap in 2023!https://t.co/KTnNgtUMaw
— Jared Grey (@jaredgrey) January 16, 2023
Grey also laid out the vision for Sushi Studios, a so-called decentralized incubator where Sushi will help launch self-funded projects “to support ecosystem growth without burdening the DAO treasury.”
He added “several stealth products” are currently in development along with its long-awaited nonfungible token (NFT) marketplace Shoyu expected for a first-quarter launch and a perpetual DEX platform.
The push for more offerings comes after a Dec. 6 governance proposal put forward by Grey revealed Sushi’s treasury only had one and a half years of runway left that “threatens Sushi’s operational viability.”
On Dec. 11, Grey said the DEX lost $30 million over the prior 12 months on incentives for liquidity providers (LPs).
Later that month he put forward a proposal to redesign the tokenomics of the SushiSwap (SUSHI) token to try to strengthen Sushi’s treasury reserves.
Grey confirmed in his latest post that "we took measures to secure our runway for multi-year operations."
Related: As DEXs struggle, new approaches kindle hope
As for Sushi’s other 2023 plans, the platform is also building a governance dashboard and focusing on user experience.
The dashboard showcases Sushi's budget, crypto wallets for each project and Treasury expenditure audit results.
“Ultimately, we will provide deep liquidity, optimal pricing, sustainable tokenomics, & an easy-to-use platform, placing you first in everything we build,” Grey said.
More and more traders are turning to DEX aggregators to seek out the best rates for token swaps.
Trading volumes on popular decentralized exchange (DEX) aggregators have surged to new highs over the past few weeks.
Decentralized exchange aggregators provide a way for token traders and swappers to scan several DEX platforms to get the best swap rates at the time.
According to Dune analytics, popular DEX aggregators such as 1inch, 0x, and Paraswap have seen volumes surging over the past month. The combined volume for those three hit a cumulative weekly all-time high of $6 billion last week, increasing by around 50% since the beginning of November.
DEX aggregator weekly volumes - dune.xyz
1inch has a minor lead in terms of the current market share at 53%, but 0x is rapidly catching up with 42% recorded for December so far. Last week, 1inch announced a Series B funding round led by Amber Group that raised $175 million.
On Dec. 5, 0x actually surpassed 1inch in terms of daily volume share with 49% compared to 43.7% according to Dune. According to 0xTracker, the DEX aggregator has processed $3 billion in volume over the past 7 days.
0x provides an application programming interface (API) that can be used by DeFi developers to integrate token swaps sourced from leading DEXes directly into smart contracts.
The 0x protocol also has a native DEX called Matcha which has processed $4.7 billion in trade volume over the past 30 days as reported by its dashboard.
Related: DeFi aggregator growth 'set to dwarf 2020’s volume'
Dune’s DEX analytics reports that there has been $4 billion in trading volume on decentralized exchanges over the past 24 hours and $33 billion for the past week. The aggregator share of that volume is currently 20%.
Uniswap is the current DEX market leader by a long way with a 79% share according to Dune. It has processed $26.2 billion in trading volume over the past week. SushiSwap, which was originally cloned from Uniswap, ranks in second place with a 9.8% share of the DEX market.
Another batch of Russian online crypto exchanges in Russia face closure following a recent decision by a regional court. Information published on their websites has been deemed illegal meaning the country’s telecom watchdog can block access to their platforms. Roskomnadzor May Take Down Blacklisted Crypto Exchanges A number of websites providing options to exchange, cash […]
Orion Protocol has rallied 730% since February to hit a $500 million market cap, but what’s really behind the recent gains?
As the decentralized finance (DeFi) industry grows, new exchanges and liquidity pools constantly emerge. For the average investor, keeping track of all of them and finding the best yield opportunities has become increasingly complicated.
The situation becomes even worse as centralized exchanges also offer staking opportunities. Therefore, the need for a liquidity aggregator that connects to several decentralized and centralized exchanges has become quite clear. Orion Protocol aims to provide access from a single platform for users to trade and swap pools.
Instead of competing with exchanges, the service aggregates order books and liquidity into one decentralized platform. When in place, Orion Terminal will offer Binance and KuCoin trading without the need for any accounts or Know Your Customer (KYC) verification. Moreover, it will provide connectivity to both Ethereum and Binance Smart Chain.
The Orion Terminal aims to go live on March 31, and since February, Orion Protocol's ORN token has rallied by 730%.
According to the Orion Protocol blog, users will trade and stake without giving up their private keys, using MetaMask, Fortmatic and Coinbase wallets. By depositing funds into the smart contract, users will be able to trade across exchanges with no need for multiple accounts.
As for the staking and liquidity pool aggregation services, final testing and a mainnet are expected for mid-2021. The project also has amassed over 40 partners, bringing additional volume to the protocol and boosting potential staking rewards.
Expansion plans include derivatives, leveraged exchange-traded funds (ETFs), nonfungible tokens (NFTs), lending, margin trading and staking for many digital assets.
This all sounds very enticing, but promises of Bloomberg-like crypto trading terminals have been coming and going since 2017, and none of those have lived up to expectations. Furthermore, in October 2020, MetaMask launched its own decentralized exchange aggregation service.
Furthermore, the number of non-KYC centralized exchanges is declining every year, leaving little room for Orion Protocol to expand its service.
In short, DEX aggregation is an extremely competitive sector with little to no entry barriers. Therefore, the ORN token might have priced in some market share that may never come to fruition.
As a comparison, the Balancer Protocol Governance Token (BAL) has a $1.7 billion total value locked (TVL) and $50 million in daily average volume. Meanwhile, BAL’s market capitalization stands at $743 million, 28% above Orion Protocol’s yet-to-launch product.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
