GM Digest #302 — TON L2
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Introducing ParaTon
• @Paratonorg is the first EVM-compatible Layer 2 solution on the TON blockchain, notable for its parallel execution and sub-second latency
• This means it can process multiple transactions simultaneously, resulting in very fast response times
• It operates with a clustered network where requests are quickly broadcast within a small node cluster and results are shared with all full nodes periodically
• Additionally, ParaTon is fully compatible with the EVM, allowing developers to easily deploy Ethereum dApps on the TON blockchain without major adjustments
• $TON has been holding its price quite well during the past few choppy weeks. The team is working to streamline the TON experience & improving adoption — recently we’ve seen Tether partners with Oobit & TON to allow people to pay for food, coffee, and anything with $USDT on TON (See Here)
Particle's Universal Accounts
• @ParticleNtwrk introduces Universal Accounts to simplify user experience across blockchains
• These accounts offer a single address and balance, allowing users to interact seamlessly with different blockchains as if they were one
• Technically, they are Smart Contract Wallets that aggregate token balances and execute cross-chain transactions automatically. Users can create Universal Accounts by connecting their wallet and depositing assets
• Universal Accounts utilize Particle Network's Universal Liquidity, which relies on Bundler nodes to execute operations across chains. This enables users to maintain a single token balance across all chains and interact with new chains without holding tokens on them
• For transactions on chains where the user lacks funds, Universal Liquidity automatically pulls funds from other chains where the user has assets. This system also enables Universal Gas. All transactions are settled through Particle Network's modular L1
Chainflip Tokenomics Update
• The @Chainflip $FLIP emissions budget is being adjusted based on real-world data. Authority Rewards will decrease from 7% to 4%, while Backup Validators' maximum reward will decrease from 1% to 0.5%
• These changes reflect the nature of $FLIP economics and were always a possibility. With several months of data, adjustments aim to ensure economic security while considering potential risks
• The argument for reducing emission budgets in Chainflip focuses on Validators' rewards. Recent data suggests that typical staking rewards have decreased significantly, with rates now ranging from 3% to 10%. Chainflip's current reward rate of around 19% exceeds this standard. The current rate is deemed more than sufficient to sustain staking activity, making a reduction in emissions feasible
• Additionally, the current level of economic security in Chainflip is robust, with approximately 10 times the necessary collateral in place. Even if the $FLIP price were to decrease significantly, the protocol would likely remain secure due to its overcollateralization and the buy-and-burn mechanism
• The emissions rate change will be processed by the governance council on Wednesday, May 22
AIT Protocol Tokenomics Revamp
• @AITProtocol announced updates to $AIT’s tokenomics to enhance sustainability and value of their ecosystem
• The team reduced inflation over the next 6 months, updated the token’s max supply and added new cliff vestings for early contributors and investors
• The team also added a new weekly buyback and burn where $200k worth of $AIT is bought back and burned
Introducing Linea Surge
• @LineaBuild introduces Linea Surge which aims to supercharge the ecosystem by bringing more TVL onto the Linea network
• Linea Surge is a points driven program that provides users with LXP-L tokens for holding assets and utilising DeFi protocols. LXP-L distribution will decrease after the first month so users who want to maximise LXP-L earnings should bridge to Linea in time for Volt 1. Early adopters with at least 0.1 ETH in any position will receive an early adopter modifier
• The program will run for 6 Volts (6 months) or until Linea reaches $3b in TVL
zkSync v24 Upgrade
• @zksync announced in a post on Friday, firmly standby its commitment to decentralized
• “Since rolling out support for EIP4844 in March, this has been the sole focus. The upcoming release of v24 is the final planned protocol upgrade needed before handing over network governance to the community. The remaining missing pieces are expected to be in place by the end of June.”
• The announcement fueled rumor of the speculation that the airdrop is going to be coming in June (Heard stories that zkSync was gonna airdrop since April already but the market has been shit, could be time to get ready for June when market recovers)
Maker’s Lockstake Engine
• @MakerDAO announced that the Lockstake Engine will be introduced in the future following the launch of the NewGovToken as part of the Endgame Plan
• The Lockstake Engine will allow NewGovToken and MKR holders to lock their tokens and earn NewStable and SubDAO tokens. This mechanism aims to foster long-term engagement and provide increased risk/reward exposure to the protocol's success
• Users who have lockstaked their MKR or NewGovToken will be able to yield farm NewStable and the upcoming SubDAO tokens, including the SPK token from the Spark SubDAO. 30% of the Maker Protocol's surplus income is distributed as NewStable rewards to LSE users who opt for this yield source while another 30% of SPK tokens allocated for yield farming will be distributed proportionally to LSE users who choose SPK as their reward
• There will also be a 15% exit fee will be applied when unlocking tokens from the LSE. This fee will be burned by the protocol, deducted from the originally lockstaked principal, and will not impact yield farming rewards
Misc News
• @Backpack introduced the Mad Lads VIP program where Mad Lads NFT holders are eligible for VIP Tier 1 trading fees
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*