DODO Megascope (En) 7.25-7.31
0x7056
August 2nd, 2022

Dr.DODO brings you our newly launched weekly brief - DODO Megascope, which covers the following sectors:

  • Crypto Headline
  • Governance Updates
  • Sector Delivery
  • Data check
  • CT Insights

👀 |Crypto Headline|

  • OnOn July 28th, Ethereum Deploys Its Tenth 'Shadow Fork' in Buildup to Merge。
  • Solana DeFi Protocol Nirvana Drained of Liquidity After Flash Loan Exploit.
  • The Arbitrum Rinkeby testnet is now scheduled to undergo migration to Nitro this Thursday, July 28th.

🗣️ |Governance Updates|

  • Optimism proposed to allocate 1m OP token across Curve’s sUSD, sETH, and sBTC pool.
  • On July 27th, Lido proposed Treasury Diversification part2 and modified the proposal based on DegenSpartan,Adam Cohran, and Monetsupply’s discussion. The proposal added that Dragonfly needs a 1-year lock up vesting period.
  • Balancer DAO proposed to whitelist the Laguna Game's multisig, enabling it to lock veBAL and participate in governance and gauge voting activities.

🍀 |Sector Delivery|

DeFi

  • Bancor TVL drops 30% after suspending protection from Impermanent Loss.
  • Crypto staking firm Figment says it will support MEV on Ethereum 2.0: Prioritize fair MEV withdrawals.
  • Decentralized exchange Velodrome, deployed on Optimism, saw volume at $15 million for the first time in three consecutive days, with TVL hitting an all-time high of $76.2 million on July 20. Its transaction fee incentives are a growth driver.

GameFi&NFT

  • NFT projects lost $22M to largely the same hackers on Discord.
  • Play-to-earn Bitcoin firm ZEBEDEE and blockchain game developer Viker are teaming up to reintroduce three classic games with a crypto twist.
  • NFT marketplace Mint Square is about to launch on StarkNet.

Infra

  • The cross-chainmessaging protocol Synapse announced a low-cost, high-security chain for asset swaps based on optimistic rollups.
  • Aztec launched coding language Huff, the most gas-optimized smart contract language to ever touch the EVM.
  • Lido DAO has voted to add 5 new node operator to join the Lido on Solana - 01node, Allnodes, Kiln, Stakewithus & Stakin

VC

  • On July. 27, Apotos Lab announced $150m Series A funding round led by FTX Ventures and Jump Crypto, including new investments from Apollo, Griffin Gaming Partners, Franklin Templeton, Circle Ventures etc.
  • reNFT Closes $1.5M Strategic Round Led by Animoca Brands, Lattice Capital, playVentures etc.
  • Blockchain Security Firm Halborn Raises $90M Series A Led by Summit Partners.

✨ |Data check|

FlashLoan allows users to borrow any available amount of assets without providing any collateral and return it to the protocol in the same transaction. FlashLoan is mainly used for arbitrage trading, but there are also some hackers using protocol loopholes to carry out flash loan attacks. After entering a bear market cycle in 2022, how will Aave FlashLoan perform?

By analyzing the loan situation and wallet interaction behavior of Aave FlashLoan since 2022, the FlashLoan user profiles can be summarized as follows:

  • As of July 28, Aave FlashLoan's total borrowing in 2022 has reached about $2.4B. The average daily total borrowing is about $1M, and the two abnormally large loans on April 17 and June 16 this year are all attributable to flash loan attacks. From the point of view of the number of daily active users, the number of users is positively correlated with the loan amount. On the other hand, combined with the daily transaction data of Ethereum, it is found that the active number of FlashLoan users has a strong positive correlation with the transaction volume of Ethereum. Given the arbitrage nature of FlashLoan, it is not difficult to draw this conclusion.

    From the comparison of the number of loans and the loan amount, the average loan amount of new users is larger than that of Existing Users and Veteran Users. Most users have only made a few loans, but the total amount is large. While there are also a few users, who made hundreds of small loans totaling millions.

  • Judging from the addresses that have interacted, the proportion of short-term active users is very small, and the proportion of active users in the past 30 days is only 11.7%. Monday is the most active day of the week, and this very regular interaction may indicate that a large number of these addresses are controlled by bots.

    About 35.7% of these addresses have only interacted with Aave, and most of these addresses can be considered FlashLoan bots. Among other addresses interacting across protocols, ENS and Augur interacted the most, accounting for 17.2% and 16%, respectively.

  • The perspective of the types of borrowed coins, USDC, DAI, and WETH are the mainstream. Since FlashLoan is easily used for protocol attacks, and these attacks usually bring a large transaction volume, the transaction amount will fluctuate greatly, and the amount of a certain currency may exceed the mainstream currency in a single day.

Summary: By analyzing the above interaction data of Aave FlashLoan, it can be found that FlashLoan is not a tool used by most DeFi users, due to its high threshold for use. Compared with arbitrageurs, hackers contribute a large part of the transaction volume, which makes people reflect on the meaning of FlashLoan's existence. At the same time, it also reminds us to read the audit report before using the DeFi protocol!

🎵 |CT Insights|

Subscribe to Dr. DODO is Researching
Receive new entries directly to your inbox.
Collectors
View
#1
#2
#3
View collectors
This entry has been permanently stored on-chain and signed by its creator.