DODO #Megascope brings you this week’s Highlights:

1. zkSync mainnet zkSync Era launch

2. 0xAcid analysis

3. Data Check: Significant increase in DODO trading volume

👀 Weekly Digest

DeFi

zkSync Mainnet Launch

Scalability has always been one of the main challenges hindering the mass adoption of public chains, especially the Ethereum ecosystem. L2 Rollup technology has gradually become the mainstream scaling solution. With the launch of Arbitrum last week, the entire L2 space has become more active, especially projects following the ZK Rollups path. zkSync announced the launch of its mainnet, zkSync Era, on March 24th. According to zkSync's official blog, we've summarized some key features and advantages of zkSync.

Native Account Abstraction Improves User Experience

• Simplifying user operations: In traditional Ethereum transactions, users need to set gas prices, gas limits, and other parameters for each transaction. This may increase the complexity of operations for regular users. Native account abstraction allows smart contracts to handle gas fees themselves, eliminating the need for users to set these parameters and significantly simplifying transaction operations.

• Improving fee payment experience: Ethereum mainnet only allows paying gas fees in ETH, while zkSync enables paying gas fees with any token, delegating third-party gas payments, and batch processing transactions through native account abstraction. This not only reduces transaction fees but also provides more composability.

LLVM Boosts Development Efficiency

• ZK performance-oriented: Era's design philosophy prioritizes performance, which means its internal virtual machine is optimized for enhancing zk prover performance. The main bottleneck for zkEVM performance lies in the cost of proof generation and verification. Era focuses on improving ZK-proof efficiency rather than pursuing full EVM equivalence, which is crucial for breaking performance bottlenecks.

• High EVM compatibility: Era's LLVM compiler is compatible with EVM languages (such as Solidity, Vyper, and Yul), meaning developers don't need to use new programming languages or tools. This makes it easier for existing Ethereum applications and smart contracts to migrate to the Era platform, without requiring developers to rewrite code for migration. This reduces developers' learning costs and minimizes potential issues during the migration process.

• Powerful LLVM compiler: LLVM is one of the most mature compiler technology stacks globally, bringing significant performance improvements and a better developer experience. On Era, developers can take advantage of the LLVM compiler for efficient smart contract compilation and execution.

Data Compression Reduces Costs

zkEVM needs to lower its mainnet costs through data compression, such as the Batch for packaging transactions. Polygon zkEVM's Zero adopts this technology route, while zkSync uses state diffs. Currently, no other projects follow the same technology route, which is said to compress data more efficiently and reduce costs.

• State diffs: Era addresses data availability issues by publishing state differences (state diffs) instead of traditional transaction inputs. This gives Era a unique advantage over existing zkEVM projects.

• Data compression: By publishing state diffs, Era achieves more efficient data compression. Data compression reduces storage and data transmission costs, lowering overall transaction fees.

• More frequent oracle updates: Due to data compression, Era enables more frequent Oracle updates. This improves the system's real-time responsiveness, crucial for asset pricing, among other things.

• Low-cost privacy protection: Era's data availability solution also helps achieve low-cost privacy protection. Users can enjoy better privacy protection while ensuring transaction security.

• Seamless off-chain storage expansion: Era's data compression feature allows it to integrate seamlessly with off-chain storage expansion solutions (such as zkPorter). This further reduces storage and data transmission costs, enhancing system scalability and availability.

Hyperscalability Supports Ecosystem Expansion

• Comprehensive: Super-scalability is achieved through multiple key features (such as native account abstraction, powerful LLVM compiler, data compression, etc.) and a decentralized roadmap. These features and plans together create a comprehensive and scalable solution.

• Infinite scaling capability: The core goal of super-scalability is to achieve infinite scaling capabilities to meet the demands of mass adoption of cryptocurrencies. Super-scalability represents a long-term vision of building a ZK-driven superchain on Ethereum, enabling infinite expansion and mass adoption of cryptocurrencies.

• Supporting decentralization: Super-scalability is combined with a decentralized roadmap, ensuring that high performance is maintained while preserving the system's decentralized nature. This helps enhance network security and resistance to censorship.

0xAcid Analysis

0xAcid aims to provide higher returns for LSD assets (such as stETH, rETH, frxETH, etc.).

• Project Ecosystem: The operations supported by the 0xAcid project include the following components:

  • Staking lockup: Users can lock up $ACID to earn rewards from operating ETH nodes. The longer the lockup period, the higher the returns. The treasury manages a large number of LSD assets, earning Ethereum staking rewards. The treasury also earns additional returns through DeFi strategies, with 90% of funds invested in low-risk projects and 10% in high-risk projects.

  • Bonds: Users can purchase bonds using Ethereum (ETH) to obtain $ACID at a certain discount and unlock it within 36 hours. Bond discounts range between 5% and 12%, allowing users to buy $ACID at lower prices.

  • Mining: Users can participate in ACID-ETH liquidity mining in the CamelotDEX pool, enjoying up to 500% annual returns.

  • esACID rewards: $ACID stakers can receive esACID rewards. Users need to stake 200% of the $ACID amount first, and then esACID tokens will linearly unlock to $ACID within 30 days.

• Source of high returns: The 0xAcid project can provide high returns due to its innovative mechanisms, including profit distribution, lockup time, and proportional rewards. Specifically, all profits generated by the 0xAcid protocol are distributed in the form of $wstETH to locked $ACID holders. When the total value locked (TVL) of $ACID is lower than the treasury value, users will consistently receive higher staking rewards. Moreover, $ACID returns are proportional to the lockup period (up to 1 year) and lockup ratio, with higher lockup ratios yielding higher returns.

• Risks and challenges: Although the 0xAcid project offers high returns, its Ponzi-like mechanism exposes it to market risks. Due to the high issuance rate, up to 500% annual returns, and lockup discounts, the price of $ACID may decline with token inflation but will not drop to zero. Furthermore, the project needs to introduce governance features to ensure its long-term stable development.

Datacheck

Since the depeg of USDC on March 11th, USDT has consistently been trading above $1 to USDC, causing the USDT-USDC pool in most DEXes to deviate from the most effective pricing range. After a liquidity repeg adjustment on DODO last week, the pricing range became more effective, resulting in a significant increase in trading volume. In the past 24 hours, DODO’s trading volume has surpassed Curve and ranked No.2 to Uniswap.

1/ Trading Volume

• 24h Trading volume: DODO ranked second on Ethereum, reaching $145 million, surpassing Curve; total trading volume also maintained 2nd across all deployed networks;

• In the past week, DODO's trading volume on Ethereum increased by 520%, while total trading volume increased by 107%, the highest growth rate among top 10 DEXes;

• Volume/TVL of DODO on Ethereum is 7.68, and total Volume/total TVL is 4.06, a much higher capital efficiency than mainstream DEXs like Uniswap and Curve.

2/ USDT-USDC Trading Volume Share on Ethereum

• The trading volume share of USDT-USDC currently stands at 55% for DODO, 22.9% for Uniswap, and 20.9% for Curve.

3/ USDT-USDC TVL on DODO

• TVL experienced a one-third decrease since March 11th. Currently, the repeg adjustment has not pose a significant impact on trading volume on DODO;

• Currently, DODO’s single-token liquidity mining yield is 9.28% for USDT, and for USDC, it is 7.32%.

4/ About DODO Data

Currently, data-driven users can easily query trading data of different versions of DODO pools and DODO aggregator across different chains using the Dune Spellbook. Please refer to the documentation for more information: https://docs.dodoex.io/english/developers/contract-data/duneanalytics

🚄 Bullet News

Infrastructure

• Polygon zkEVM Mainnet is set to launch, providing scalability and privacy for Ethereum. Many well-known projects have announced their support and plans to deploy on Polygon zkEVM, including Aave, MakerDAO, and Curve. The launch of the Polygon zkEVM Mainnet will open up more possibilities for the Layer 2 ecosystem, stimulating innovation and the development of new projects.

• Avalanche has released a new network upgrade called Cortina on its Fuji testnet, aiming to improve performance, security, and scalability. The Cortina upgrade features an enhanced consensus algorithm for faster transaction confirmation and higher throughput. It also optimizes smart contracts and cross-chain interoperability, enhancing the performance and user experience of dApps.

Regulation

The U.S. Commodity Futures Trading Commission (CFTC) has officially filed charges against Binance founder and CEO CZ. The lawsuit accuses CZ and Binance of providing unauthorized derivatives trading services within the U.S., in violation of relevant regulations. The CFTC is asking the court to order Binance to stop its illegal activities in the U.S. and pay corresponding civil penalties. Binance has issued a statement saying it will fully cooperate with the CFTC's investigation and work to resolve the lawsuit. The market experienced brief fluctuations following the news of the CFTC's charges against CZ, with some investors expressing concern about the future performance of the cryptocurrency market. BNB experienced a decline after the news was announced but has since gradually recovered.