Avalanche saga, growth of Compound Finance and the technology fear❗

Ethereum & PoS..

Welcome to the #25th edition of DeFi Fridays!

Access all the previous editions here.

101 today:

• Major happenings in the ecosystem — Compound Finance launches Compound v3, The Avalanche saga, and more dApps on Solana with Fireblocks

• A topic we explain: What is the Proof-of-Stake method, and how would it be applied to Ethereum?

• This week's good reads: Blockchain Oracles, Fear of New Technology, and Minimum Extractable Value

A Topic we explain:

What is the proof-of-stake method, and how would it be applied to Ethereum?

The Ethereum merge is scheduled to happen around 15th-16th September. The merge will transition the Ethereum blockchain from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS) chain.

Find out what PoS is all about:

PoS is a consensus mechanism for generating new blocks and verifying transactions on a blockchain. In this system, validators (minimum requirement: 32 eth) are chosen randomly by the smart contracts.

PoW uses difficult cryptographical puzzles to validate a new block. This mechanism consumes high energy and computational power.

How would Ethereum achieve it?

Ethereum has two blockchains running parallel to each right now. The mainnet runs with PoW, while the Beacon Chain uses PoS. After the merge completes, both blockchains will merge. The beacon chain will become the new consensus layer. And since Beacon uses PoS, its consensus method will apply to the whole blockchain.

The current mainnet will simply stay there and become the execution layer of the combined blockchain. An ingenious system!

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Major News in the Ecosystem:

🔰DeFi protocol Compound Finance launched Compound III

Compound Labs @compoundfinance

Today, following a successful COMP Governance proposal, Compound III is live 📈3⃣ Compound III is a streamlined version of the protocol, with an emphasis on security, capital efficiency, and user experience. For borrowers, it's a game-changing upgrade. medium.com/compound-finan…

medium.comCompound III is LiveTransparent, fair, autonomous interest rate markets for all

⚠Avalanche is in the limelight for suing their competition and trying to con the SEC according to a leaked video

Crypto Leaks @CryptoLeaksInfo

Kyle Roche @ Roche Freedman, the secret #Avalanche law firm RF litigates against Ava Labs competitors, to draw the SEC & CFTC to them, and away from Ava Labs Roche ensures there's "no such thing as regulation for what they [Ava Labs] want to do"👀 See cryptoleaks.info/case-no-3

🔰Fireblocks, a digital asset creation and distribution platform, will now support dApps on Solana

Fireblocks @FireblocksHQ

We’re proud to announce that Fireblocks now supports #DeFi on @solana! Fireblocks users can now connect to Solana #dApps like mSOL, MNGO, and Volt #1, directly through Fireblocks’ #Web3 Engine. Read on → bit.ly/3wHWEaW

💎 Wait for Brew Findouts💎

In this edition - we’ve found a few not-so-hidden gem for our readers. 💎

Investrly

Let’s be honest, markets make a lot of noise. And the web3 market is no less. Scrolling away on #cryptotwitter will make sure you know that. And so, we have brought you a source that separates insights from the noise. 

Investrly is a newsletter publication on substack that empowers its readers to invest early in Web3 and learn & earn through their newsletter & podcast.

Find their recent edition here.

More Good Reads:

✍️An in-depth read on blockchain oracles

Blockchain Oracles

✍️Sisyphean cycle of technology panics and how to break them

Future @future

The Sisyphean cycle of technology panics (and how to break it). In his new book, @heyfeifer writes about @OrbenAmy’s four-step theory for what keeps happening when a new technology takes hold, especially with young people.

✍️Maximum Extractable Value (MEV) on the Ethereum blockchain

The TIE @TheTIEIO

Ethereum’s nature to forever grow increasingly complex is also its curse- novel systems bring novel risks. Maximal/Miner Extractable Value (MEV), is one such result. What is MEV? How will it change post-merge? All this and more is answered, below.

research.thetie.ioMEV: An Intro to Value Extraction - The TIE ResearchNovel systems bring novel risks. Maximal/Miner Extractable Value (MEV), is the total amount of Ether miners can extract from manipulation of transactions.

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That’s it for today, folks. See ya next Friday. 🧢

Disclaimer: Nothing included in DeFi Fridays should be taken as financial advice.