Daily Bullets 💊: Enough Horsing Around - zkEVM Rollup Race Heating Up

💊Daily Bullets 💊 Tuesday, October 11th

Oct 11, 2022

Yesterday we finally found out the news that broke the horse’s back :3 Markets have been looking shitty ever since with Bitcoin looking like it wants to lose the battle at $19k going into Thursday’s CPI print. Something to keep an eye on is the Polygon and Matter Labs ongoing race to market on zkEVM rollups - one of the few narratives/catalysts left out there to look forward to. Also, a curious little update - when you search for an Ethereum address on Google, it’ll show you the wallet’s ETH balance - neat. Also several hacks and exploits today - when it rains, it pours, eh?

Sharing is caring and knowledge is power! Do you find this newsletter helpful? Then be a Chad or Chadette and share this newsletter with your friends and colleagues

⛓ Crypto News:

BSC will perform a hard fork as a fix for the exploit on Oct. 6 that drained an estimated $100M from the platform

Bank of New York Mellon, the oldest bank in America, is enabling customers to custody bitcoin and ether alongside traditional investments on the same platform

Portugal's 2023 budget proposal includes a 28% income tax on cryptocurrencies held for less than a year

Google selects Coinbase to take cloud payments with cryptocurrencies and will use its custody tool

New CEO of DEX SushiSwap, Jared Gray was accused of a series of crypto fraud and once sexually assaulting a horse

Polygon and Matter Labs competition on zkEVM rollups. Polygon announces its zkEVM’s public testnet is live; Matter Labs zkSync mainnet is expected within weeks

LayerZero, a cross-chain application platform, will be integrating with Aptos when it goes live

A group of Bitcoin companies including Spiral and Braiins is taking action to promote the adoption of Stratum V2, which would be an upgrade on the current protocol miners use to communicate with pools

Coinbase gets license in Singapore and plans to expand in Asia, focusing on serving institutions

Large and complex Bitcoin transaction briefly took down bulk of Lightning Network

Crypto Fight Night - Nov 12 2022

HUSD loses dollar peg after Huobi's delisting of 21 trading pairs

U.S. Treasury fines crypto exchange Bittrex $29M over years-long sanctions violations

The inflation rate of OP token was mistakenly set at 20% instead of 2% and will be fixed without issue

Wirex, a leading payments platform, announced the launch of USDC on the Stellar blockchain within the Wirex app

Native smart-contract platform Soroban has launched on the Stellar network with the support of a $100M fund

The MetisDAO Foundation has released Smart L2, a new Optimistic rollup technology that tackles Ethereum’s scalability issues with business users in mind

Temple DAO, DeFi protocol that offers users yields on deposits, has been hit by a $2.3M exploit

Layer 1 blockchain QANplatform, which claims to be resistant to attacks aided by quantum computing power, suffered a bridge hack of 1.4 billion QANX tokens worth over $1M

Mangata X was targeted by a governance attack which resulted in attackers gaining voting rights on the on-chain Council - 11700 KSM stolen

Exploit on Rabby Swap smart contract

The regenesis of zkSync 2.0 testnet is now complete, and the documentation has been updated

Upgraded version of the Scroll Pre-Alpha Testnet after 3 months of building

EthSign TokenTable is coming - an automated one-stop, on-chain investment tool for VCs, angels, and DAOs to invest in private token sales of crypto projects

Launch of Supermodular - a venture studio that builds regen web3 projects, often on top of & adjacent to gitcoin's protocols

12 ETHBogota finalists

Beamer Bridge is live on Mainnet - important step toward breaking down rollup silos and enabling free exploration across rollups

What’s your take on today’s news? Anything interesting that you have to say about these stories? Did we miss anything that should’ve been included?

📊 Data:

TL;DR: Money on the daily flowing into WBTC and stables USDT and DAI and out of WETH, USDC. Weekly shows a flow into stables - USDC, USDT, DAI as well as WBTC and some xSushi and outflow from APE, Aave derivatives and WETH. Low NFT volume - Dreamworks Trolls VOX Box highest volume of the day.

Nansen Smart Money Holdings Token Inflow and Outflows: Tracking what the whales are up to...

- Inflow (1D): WBTC ($5.4M), USDT ($4.3M), DAI ($3M), LUSD ($322k), BP ($293k)

- Outflow (1D): WETH ($6.2M), USDC ($3.9M), aDAI ($3.3M), aLINK ($723k), cbETH ($224k)

Weekly:

- Inflow (7D): USDC ($15.9M), USDT ($8M), DAI ($6.4M), WBTC ($5M), xSUSHI ($2.1M)

- Outflow (7D): APE ($6.5M), aSTETH ($4.4M), aDAI ($3.3M), WETH ($2.3M), aLINK ($1.4M)

Nansen NFT Hot Contracts:

DreamWorks Trolls VOX Box: 419 ETH
Art Blocks x Pace: 275 ETH
Azuki: 238 ETH
CloneX: 229 ETH
Pixelmon - Generation 1: 213 ETH

What is the Data telling you? See anything that sticks out to you?

🎓 Research:

Messari - State of Avalanche Q3 2022 - source

a16z - building in web2 vs web3; hot topics in NFTs, art, AI; more - source

Lyn Alden - October 2022 Newsletter: Energy vs Sovereign Bond Markets - source

XEN doomed to failure and why benefits to Ethereum - source

Have NFTs Become More Than Just Another Crypto Fad? - source

2022 State of DeFi: Price Performance, TVL, Trading Volume, Development Activity - source

Why Does Arbitrum's Odyssey Evolve Into Rat Race? - source

OpSec via @ officer_cia - source

Consensus at the Threshold - Quick Look at Miners and Validators Crossing The Merge - source

Have you seen our institutional-quality research?

M6 Research

🖼 NFTs/Metaverse News:

OpenSea launches on Avalanche

Solana NFT project DeGods has switched to a 0% royalty model in ongoing debate over royalties

CNN pulls plug on Web3, NFT project Vault, which commemorated major news events - had promised utilities for the future and offering holders partial refunds

Race-car league Formula One files 'F1' trademarks covering crypto, NFTs and Metaverse

Artificial intelligence ecosystem Multiverse Labs has launched a new metaverse city in the United Arab Emirates called Sharjahverse

Axie Infinity creators Sky Mavis will stake the 11,475,000 AXS tokens on its balance sheet to reinforce its long-term commitment to the Axie Infinity ecosystem

Introducing Sujiko Protocol - a next-generation decentralized NFT trading platform that allows shorting any NFT collection

Logan Paul’s $600K NFT falls to $10

Introducing Seaport Order Attributions - on-chain identifier "tags" that attribute Seaport orders to the domains where they were created and fulfilled

🌍 Crypto Twitterverse:

slimditty🍌 @StackedBundles

🚨 Let me boil down this entire ROYALTY debate 👇 (1) ROYALTYS help scale a project thru incentivizing growth. This means continuous building. This leads to more innovation (2) ROYALTYS attract other creatives. More creatives = more adoption. This benefits the macro outlook 👇

KEMOSABE【Ø】 @KEMOS4BE

Without royalties NFTs lose 50% or more of their value proposition. A thread 🧵👇

ARK Invest @ARKInvest

ARK extends an open letter to the Fed.

arkinv.stARK Extends An Open Letter To The FedCould it be that the unprecedented 13-fold increase in interest rates during the last six months has raised the risks of a deflationary bust?

6529 @punk6529

1/ On Is Money Just A Game? tl;dr For most people, it is a huge struggle, but the people who make the most money tend to think of it as a game. Can we thread the needle and figure out why both people are right? We will try! Off we go.

Cumberland @CumberlandSays

The end of 2% inflation and what it means for crypto: 🧵👇

Messari @MessariCrypto

1/ Realizing the positive correlation between stablecoin supply and ecosystem stability, protocols have created a new trend: protocol-native stablecoins. Do new entrants have a chance at cutting into $USDT and $USDC's dominance?

📈 Fundraises:

a16z led a $14M funding round for Rye, a new e-commerce API from Twitch Co-Founder that lets merchants, stores and customers transact openly and with minimal fees on the Solana blockchain

Crypto app store Magic Square has raised $4M at a $75M valuation from investors such as Crypto.com

Crypto lending platform Moon Mortgage has raised a $3.5M seed round to finance Moon’s mortgage lending product, CryptoMortgage

Elyzio $2M pre-seed round for building a gaming multiverse on blockchain

Flowstate Games has raised $2M and announced its first Web3 arcade game, a car combat game dubbed Smash Stars: Thunderdome.

Tribo has raised $1.17M for a new game studio that is making multiplayer games with Web3 technology

Did we miss anything or is there anything you want to discuss? We’d Love to hear your feedback and engage with the community! Feel free to leave a comment and let us know your thoughts on the Crypto market!