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Decentralized Capital Markets Research & Articles: www.shoal.gg Twitter: https://twitter.com/Shoalresearch TG link: https://t.me/shoalresearch Website: Shoalresearch.xyz
Decentralised Co: EigenLayer and AI
Today, most AI processes run on the cloud, from hyperscalers like AWS to specialised cloud providers like Lambda and Coreweave
> These services facilitate both training models and inference, which makes EigenLayer as the web3 cloud, a natural fit for web3 AI applications.
> This piece explore the intersection between EigenLayer & AI, and some projects building on this
Source: https://x.com/Decentralisedco/status/1817917365373350336
July 28th~ Rollup
🐚 Research and Ideation 💡
- 100y.eth: Using Solana as a Sequencing Layer –Rome Protocol
- Kairos Research: Does Solana Need Restaking?
- Sonya Kim: Quick Look @ the Historical MEV on Solana vs. Ethereum
- Nothing Research: Technical Comparison: FHE vs ZK vs MPC
- Eda: EigenLayer AVS Ecosystem
🐚 Project Updates 🔔
- Compound’s Proposal to Transfer 499K COMP to a TrustSetup Controlled by Goldenboys Has Passed
- BlonkFi Has Closed its Pre-Seed Fundraising, Led by UOB Venture Mgt & Signum Capital
Nothing Research: Technical Comparison: FHE vs ZK vs MPC
While they are all advanced encryption technologies designed to protect data privacy and security, they differ in application scenarios and technical complexity:
> ZK emphasizes “proof.”, MPC emphasizes “computation.” , and FHE emphasizes “encryption.
> ZK requires deep mathematical & programming skills to design zk proofs protocol
> MPC require high coordination & computational cost to address communication efficiency issues
> FHE due to its complex encryption algorithms, faces high computational complexity and time costs
Source: Nothing_Research/technical-comparison-fhe-vs-zk-vs-mpc-b876c7266c14" rel="nofollow">https://medium.com/@Nothing_Research/technical-comparison-fhe-vs-zk-vs-mpc-b876c7266c14
Sonya Kim: Quick Look @ the Historical MEV on Solana vs. Ethereum
> It's common belief that Solana should have lower MEV than Ethereum due to its shorter block times.
> This has been the case, with Ethereum averaging 11bps of DEX volumes to Solana's 2-3bps
> In March, Solana's MEV spiked to 15-20bps of DEX volumes, exceeding Ethereum's
> MEV, like transaction fees, will be subject to deflationary pressures.👇
Source: https://x.com/sonyasunkim/status/1817683426910056894?s=52&t=txFAbiSPTdLLDlAYj9X_AA
Compound Finance’s Proposal to Transfer 499K COMP (~$24M) to a Multisig TrustSetup Controlled by Goldenboys Has Passed
compound.finance/governance/proposals/289
Source: https://x.com/asxn_r/status/1817665076247093557?s=52&t=txFAbiSPTdLLDlAYj9X_AA
July 27th~ Rollup
🐚 Research and Ideation 💡
- Helius: Zero-Knowledge Proofs: An Introduction to the Fundamentals
- Umbra Research: A Sandwich-Resistant AMM
- Decentralised Co: Revisiting Aggregation Theory (2023)
- Suhail Kakar: Flash Loans ELI5
- Viktor DeFi: Crypto AI Series: FHE
Suhail Kakar: Flash Loans ELI5
Source: https://x.com/SuhailKakar/status/1817213170601144326
Umbra Research: A Sandwich-Resistant AMM
AMMs expose swappers to sandwich attacks. Sandwich attacks occur when a victim trader places an order on an AMM with a high slippage tolerance (say 99%).
> This piece introduces a sandwich-resistant AMM
> An AMM that prevents atomic sandwich attacks at the application layer.
> The aim is to help protect users who suffer from frontrunning attacks on AMMs
Source: https://www.umbraresearch.xyz/writings/sandwich-resistant-amm
July 26th~ Rollup
🐚 Research and Ideation 💡
- Pavel Paramonov: Solana's Transaction Flow
- KyleSamani: Thoughts on predictions markets (PM)
- 0xelonmoney: All You Need to Know About Goldfinch
- Tom Wan: AAVE New Staking Mechanism, Fee Switch, and Restaking for Safety Module
🐚 Project Updates 🔔
- Drift Set to Launch Prediction Markets on Solana
- EigenLayer Set to Launch AVS Rewards & EIGEN Programmatic Incentives
- Ledger Introduces Ledger Flex
- Dinero Introduces Institutional pxETH (ipxETH)
All You Need to Know About Goldfinch
Goldfinch is a DeFi and RWA protocol that aims to democratize access to capital by enabling crypto lending without requiring crypto collateral
> Its community-driven governance, innovative financial products, and robust risk management strategies make it a promising platform for both borrowers and lenders.
Source: https://x.com/0xelonmoney/status/1816810570328289636?s=52&t=txFAbiSPTdLLDlAYj9X_AA
Ledger Introduces Ledger Flex
This marks the new standard for Ledger devices
> It features a secure E Ink touchscreen, NFC, and new Security Key app that allow you go from painful logins to passwordless ease
Source: https://x.com/Ledger/status/1816855104353427753
KyleSamani: Thoughts on predictions markets (PM)
TLDR - what matters is regularity
> Most are focused on market structure mechanics (eg scalar markets, CLOBs, other derivs structures)
> What matters most is finding a set of *regular* markets that people can bet on that are currently underserved
Source: https://x.com/KyleSamani/status/1816712513817350425
Pavel Paramonov: Solana's Transaction Flow
Some points to consider while studying the picture:
> “User + Wallet” defines that a user signs a transaction through a wallet app.
> The wallet sends the transaction to an RPC server, which can be run by any validator👇
Source: https://x.com/paramonoww/status/1816747431553544354
Ceteris: Returns From Eth Etf Announcement
sol/eth basically flat, most of the rest down bigly
> Entire eth move was also in a single candle, if you rotated after the announcement you're down a lot
Source: https://x.com/ceterispar1bus/status/1816803996968849746
Moonshot is Now Live on Android
Source: https://x.com/usemoonshot/status/1817932631163412627
Eda: EigenLayer AVS Ecosystem
Actively Validated Services (AVS) are infrastructure built by EigenLayer, which helps them in redefining bootstrapping for Proof of Stake (PoS) networks.
This piece categorize AVS into:
> RollUp Services
> Decentralized Networks
> Privacy
> Developer & Operator Tools
Source: https://mirror.xyz/edatweets.eth/Pbl2PTxEDzqRTp2TsOZryw7qNrJR1t9V-Y-QvUf_ZVU
BlonkFi Closes its Pre-Seed Fundraising, Led by UOB Venture Management and Signum Capital
BlonkFi is a core liquidity infrastructure protocol aiming to address the issue of illiquidity for volatile long-tail mid-market capitalization assets
> Example is memecoins, BlonkFi addresses this by enabling such assets to be collaterised for liquidity
Source: https://x.com/blonkfi/status/1817759306596720756?s=52&t=txFAbiSPTdLLDlAYj9X_AA
Kairos Research: Does Solana Need Restaking?
A brief analysis on Jito's latest product
> The recently announced Jito restaking platform will have vault program, much like Symbiotic
> One difference is that instead of outsourcing LRT creation and leaking value to exogenous protocols,
> Jito will have an LRT module, allowing others to create and operate LRTs through the Jito protocol itself.
> Jito will also allow the creation of liquid staked AVS tokens that can then be productively used in DeFi.
Source: https://x.com/kairos_res/status/1817632480318685666?s=52&t=txFAbiSPTdLLDlAYj9X_AA
100y.eth: Using Solana as a Sequencing Layer –Rome Protocol
Rome protocol modularized solana, enabling L2 to use Solana as their shared sequencer.
> It offers Rhea-Hercules which enables rollups to use Solana shared sequencer👇
Source: https://x.com/100y_eth/status/1817475584207040612?s=52&t=txFAbiSPTdLLDlAYj9X_AA
Viktor DeFi: Crypto AI Series: FHE
“Imagine a world where sensitive info remains secure throughout processing, whether it's in the cloud, on a blockchain, or in transit”
> FHE is the ability to perform computations on encrypted data without ever decrypting it.
> This piece discuss Fully Homomorphic Encryption (FHE), its benefits, and projects frontrunning it👇
Source: https://viktordefi.com/p/crypto-ai-series-fhe?r=aaog1&utm_medium=ios&triedRedirect=true
Live: Trump Speaking at The Bitcoin Conference
Source: https://www.youtube.com/live/Kk3La9zQOuA
Decentralised Co: Revisiting Aggregation Theory (2023)
Aggregation theory has been all the rage in Web3 for over a year, but products with tokens have been slowly eating into the business model.
This piece covers:
> Moats in web3
> Weaponising tokens
> How products evolve from providing novelty to convenience.
Source: https://www.decentralised.co/p/revisiting-aggregation-theory
Helius: Zero-Knowledge Proofs: An Introduction to the Fundamentals
ZK Proofs can prove facts or knowledge of certain information in a variety of contexts in a way that is privacy-preserving and precise in its correctness.
> Any problem we can reduce to a series of true and false questions can be proved efficiently with zero-knowledge proofs.
> This article explored the underlying theory, mathematics & cryptography that powers zk proofs
Source: https://www.helius.dev/blog/zero-knowledge-proofs-an-introduction-to-the-fundamentals
AAVE New Staking Mechanism, Fee Switch, and Restaking for Safety Module
AAVEnomics Proposal Key Takeaways:
> The current stage is still at temperature check
> Even if the proposal has passed, the fee switch will not be turned on immediately
> AAVE Staking module will be slashing free
> There will still be a lockup period of 20 days
> AAVE staking will no longer cover bad debt
Source: https://x.com/tomwanhh/status/1816790396883628322?s=46&t=ywALktyM5ZCyt-zigN5Big
Dinero Introduces Institutional pxETH (ipxETH)
in collaboration with Galaxy & Laser Digital
> It’s designed to meet the needs of institutional investors seeking enhanced ETH staking yield and to mitigate the perceived risks and complexities typically associated with DeFi and ETH staking.
Source: https://x.com/dinero_xyz/status/1816847815047266620
EigenLayer Introduces AVS Rewards & EIGEN Programmatic Incentives (Coming Soon)
AVSs will gain ability to reward stakers & operators
> At least 4% of EIGEN's total supply will be distributed to stakers and operators via upcoming programmatic incentives.
Source: https://x.com/eigenlayer/status/1816867158032548136
Drift Set to Launch Prediction Markets on Solana
Source: https://x.com/DriftProtocol/status/1816851169354063972?t=02X_J761Mat6bi7pGv-HnQ&s=19
July 25th~ Rollup
🐚 Research and Ideation 💡
- Arjun: Quick Notes From the 'The Solver Games' Panel
- Nansen: Track ETF Flows on Nansen
- Lagrange: ZK Coprocessor 101 - The Basics
- Decentralised Co: The Power of Aggregation
- NodeOps: Understanding Actively Validated Services (AVS) & its Impact on Decentralization
- 0xNairolf: Zama Explained in Simple Terms
- Yh: Chain Abstraction and MPC Protocols
- Flashbots: Report on Privacy Tech for Building a Dark Pool in DeFi
- The Rollup: How Caldera is Becoming The Distribution Channel for Modular Infra
- 2077 Research: The State Of Rollup Interoperability Solutions In 2024
- ON–254: Zoomed-in on Layer3
- Jim: Relayer Extractable Value (REV)
- DiogenesCasares: Review of Ethereum's Order Flow Landscape
- Ceteris: Returns From Eth Etf Announcement
🐚 Project Updates 🔔
- Jito Announces Jito Restaking
- Marginfi Introduces ‘The Arena’ – Long/Short Any Token on Solana with Leverage
- OpenAI is Testing SearchGPT, AI Powered Search Engine
- LI.Fi is Live on Solana!
- Berachain: First Liquid EVM, Powered by PoL
- BlockFi Estate Plans to Return 100% of Eligible Claims
🐚 Raises 💰
- aPriori Announces $10M Total Fundraise Led by Pantera
Jim: Relayer Extractable Value (REV)
REV, defined as “the maximum value that a relayer can extract from being a privileged actor in the cross-chain transaction flow”
> Relayers have the privileged role of being a “transaction initiator” on the destination chain.
> They shift from being “dumb” entities that naively move messages to an intelligent combined relayer-searcher entity.
Source: https://twoblocks.substack.com/p/relayer-extractable-value-rev