DeFi Snap Moment? FUD just got real.
Elon Sued for Dogecoin Pyramid Scheme, Celsius, 3AC, Scream or get blocked...
DeFi’s Snap Moment
(Remember that he didn’t have all the stones & was fooled)
Bankless published a newsletter with the title ‘Is DeFi Ded?’ and ended it with the words:
“Yes, DeFi may be down bad.
But it is certainly not ded.
In fact, DeFi is doing just fine.”
It is a detailed analysis on the current state of DeFi by @BenGiove. Give it a read.
Twitter Spaces Episode #9 with @Cov_duk
Join in on our next episode of #DeFiwithBrew to discuss the current markets and actionable insights on DeFi with @Cov_duk.
Oh, and he also recently launched his newsletter Crypto Voyager - check his work out!
101 today:
Major happenings in the ecosystem —
Celsius suspends withdrawals, 3AC rumored to be insolvent, D3M disabled on Maker Dao, Merit Circle DAO voted an investor out, and more.
A topic we explain —
Continuing our ELI5 explanation of Ethereum L2 scaling Solution - Optimistic & zkrollups Rollups.
Goldmine —
How people are joining in on Milk Road’s Telegram Channel to… “Scream.”
Major News:
1️⃣ Celsius has stopped all withdrawals, Swaps, and transfers between accounts.
@JackNiewold on what is happening:
THE CELSIUS BLOWUP, EXPLAINED. Huge sectors of crypto are imploding, and crypto unicorns might be coming down with it. Luna was first, but now $10b giant Celsius is facing insolvency and even bankruptcy. Let's dive in:@SmallCapScience on how it started & what fueled it:
Researching several topics today for our new episode of @MarketCapping and one is sticking out to me as a major concern. $stETH / $ETH peg is in rough shape and running out of liquidity fast. Compiling my thoughts to get more eyes on this... 🧵
Say #YourKeysYourCrypto and try Brew Money.
Brew is non-custodial.
There’s no lock-in period.
You can withdraw anytime.
Check us out here: Brew Money
2️⃣ One of the largest Crypto Venture Capital firms is rumored to be close to becoming insolvent.
@thedefiedge gives a timeline:
One of the LARGEST Crypto Venture Capital firms: Three Arrows Capital. They're becoming insolvent. With potentially $18b under management, this could be catastrophic for Crypto. Here's a timeline of what's going on and the possible consequences: ↓↓↓Timelines from an insider:
3️⃣ Maker DAO has voted to temporarily disable D3M (Dai Direct Deposit Module.) The vote will be executed today.
The Maker Governance has voted to temporarily disable the @AaveAave DAI Direct Deposit Module (D3M). This change is available for execution on June 17 2022 21:03 UTC. 🗳 vote.makerdao.com/executive/temp…4️⃣ El Salvador’s bitcoin reserves lose almost $20 million in six weeks amid market sell-off.
Check out the story here.
5️⃣ Merit Circle DAO voted an investor out.
Here’s the full detail by @itstimconnors
Uhh… a massive DAO just voted to “refund” one of their investors who was owed a 30x return ($5M+) This is an insane story that impacts all builders in web3 and as a founder I need to speak out Merit Circle DAO vs YGG 🧵6️⃣ This just in: Elon Musk & companies sued for over $258b by an investor who claims he was defrauded by the Dogecoin pyramid scheme.
NEW: Elon Musk, Tesla and SpaceX sued for $258 billion over alleged Dogecoin pyramid scheme - ReutersOne Topic:
Ethereum’s L2 scaling Solutions - Rollups
In our last edition, we had talked about why blockchain scaling solutions are required, and ELI5’d you the meaning of L1 & L2 scaling solutions, state channels & Rollups.
Today, we will ELI5 you the meaning of zkREollups & Optimistic Rollups.
Rollups help increase transaction numbers without overall increasing the no. of transactions a block can handle. How?
A transaction can simply be a piece of data on a block.
What if there’s a way to add 10 transactions in one piece of data? (The block will take it as 1 transaction, but the 1 piece of data has 10 transactions rolled up.)
In layman’s terms, rollups perform multiple transactions outside Ethereum L1, ‘rolls up’ the transactions into a single piece of data, and posts it back on L1. This helps increase the transaction throughput.
Now, what are Optimistic Rollups?
Optimistic rollups assume that transactions are valid by default. The network performs fraud proofs only in case of a challenge. When a transaction takes place on an optimistic rollup network, the actual transaction, i.e, the real transfer of funds takes place on the network itself. The transaction data is then published on the L1 layer.
Arbitrium and Optimism are examples of L2 protocols that use optimistic rollup to scale Ethereum.
Read: A detailed explanation of Optimistic Rollups
Also Read: More on Rollups.
zk Rollups or Zero-Knowledge Rollups (validity-proofs)
A zk Rollup smart contract performs transactions off the L1, bundles or ‘rolls-them-up’ into a single transaction, and sends back validity proofs to the mainnet. The zero-knowledge validity proof lets user 1 (the prover) prove to the other, user 2 (the verifier) that a statement is true without revealing any information related to the said statement.
In layman’s terms, you can prove to me that you have done something without telling me what it is that you have done.
😇Wait for Brew findouts:
😱Fancy a Scream?
Welcome: A Scream only Telegram group by MilkRoad. Quite needed tbh.
🦋Find yourself transforming from a beginner in DeFi to an intermediate? 🪄
We found you the best starting point. Heathen’s newsletter. They write detailed topics on DeFi & crypto as a whole - and the research work is 🤌 *chef’s kiss*.
Their Twitter is also full of gems -
Give them a follow🥳
That’s it for today folks. 🎩
See ya next Friday.