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Golden Observation | V God: UNI should become a prophecy token.



One of the most important elements for a successful DeFi ecosystem is to have a highly secure price oracle. Algorithmic stablecoins, such as DAI, RAI, LQTY, etc., all rely on such oracles, synthetic assets and collateralized loans of any kind require price oracles, as do many other types of projects. As far as ERC-20 tokens are concerned, Uniswap does provide an "oracle" for exchange-traded prices, but this is not an oracle in the true sense because it does not provide prices for any non-cryptosphere assets. This will create a problem, that is, if the algorithmic stablecoin is to function normally, it needs an oracle machine for the price of ETH/USD, especially an oracle machine for the off-chain USD legal currency, rather than an on-chain USD instance. Likewise, synthetic assets require oracles, in order to track the price of the asset denominated in ETH.

I suggest that Uniswap and UNI tokens can provide such an oracle mechanism, such as imitating the design of Augur or UMA, which specializes in providing reliable price data, and manipulating data and attacks requires extremely high costs.

Jinse Finance Market Report丨 BTC fell sharply yesterday, and the market has a strong wait-and-see mood: According to the Huobi market, BTC fell sharply yesterday, crossing the MA5 and MA10 consecutively, and the lowest hit 8150USDT, and then rebounded slightly in the early morning of this morning, and the price hovered around 8700USDT . A small double-bottom pattern was built in 1 hour, and the bulls were able to take a breather. MA30 formed a partial pressure. However, the decline of the bears before this constituted a deterrent, and the market was in a strong wait-and-see mood. As of 10:00, the specific performance of mainstream currencies is as follows: [2020/5/11]

Main points of this article:

1. Stablecoins require ETH/USD price oracles (see above)

2. Tracking ETH/USDC price is not a perfect method

3. Chainlink is really good, but there are simple, high-value, high-latency resistant use cases

4. UNI is very suitable as an ETH/USD price oracle

Countdown to BTC Halving | Golden Finance Mining Earnings Report: According to Jinse Finance, according to data from the OKEx mining pool, the next BTC halving date is expected to be May 14, 2020, and there are 33 days before today. The current block height of BTC is 625059, and the block height of the next halving is 630000.

Today, the computing power of the entire network is about 107.26EH/s, the difficulty of the entire network is about 14.72T, and the next difficulty is predicted to be 15.39T (4.58%). There are still 12 days left before the adjustment. Today’s BTC income: 0.00001709BTC/T/day. [2020/4/10]

5. At the macro level, Ethereum Layer 1 needs to maintain a minimum governance, but Layer 2 should have bolder moves, and UNI can become a part of Layer 2

Tracking ETH/USDC price is not a perfect method

The goal of algorithmic stablecoins is to get rid of the dependence on fiat currency, resist censorship to the maximum extent, and maintain robustness. If this goal is not important to stablecoin holders, then they can use USDC directly to avoid the technical risk of algorithmic stablecoins. If this goal is important for token holders, avoid not only direct dependence on fiat markets, but also indirect dependence. Using ETH/USDC instead of ETH/USD price does not achieve this goal, because such a system still ultimately depends on USDC to exist and trade freely.

Golden Salon | Huang Tianwei: The subdivision of the financial sector is gradually changing from retail-dominated to institutional-led: In the Golden Salon held today, Huang Tianwei, the founder of BitTimes, said that there are now many derivatives and leveraged options in the blockchain industry. futures contracts and more. Now, there are no swap contracts and forward contracts like those in the traditional financial field, and they haven't appeared yet. The development of the blockchain industry, or any subdivision of the financial field, its development trend is actually gradual, from retail-dominated to institutional-led, retail investors are different from institutions, retail investors are more chasing the largest profit and less consideration when facing risks. Institutions are relatively safe, because they have capital costs and pressure from them, so the requirements of institutions are very safe. Therefore, when a market becomes more and more mature, there are more and more participants, and when the needs become more and more diverse, many different derivatives tools will be born in the whole market to meet the needs of institutions. [2020/2/26]

Taking the median of multiple ETH/stablecoin prices, such as USDC, GUSD, and USDT is a small improvement at best, as the traditional financial system is well coordinated and can easily become hostile to all asset-backed stablecoins . Therefore, if we want to have a raison d'être for algorithmic stablecoins, we need a USD/ETH price oracle.

On-site | Jinse Finance presented the "2019 Best Mining Machine for Profitability" award. A total of 10 companies won the award: On December 27, 2019, the "Creation with Time" awards ceremony hosted by Jinse Finance was held in Beijing. Jinse Finance "Created with Time" selected the best mining machines for 2019 yield. After the selection by the judges, the Avalon mining machine A1166, the ant mining machine S17, the Shenma mining machine M20s, the hummingbird mining machine H7 Pro, and the ant mining machine Ten enterprise districts including Machine S17 Pro, Ebitminer E12, Antminer S17e, Whatsminer M21S, Whatsminer M30S, and Innosigma A9++ won the "2019 Best Mining Machine" award.

This event invited more than 100 well-known blockchain companies at home and abroad, more than 300 industry leaders, representatives of many industry upstream and downstream service agencies and other industry celebrities to witness the awards ceremony. Jinse Finance's "Co-creation with Time" activity invited more than 40 senior industry experts as a professional selection team to conduct a comprehensive review in combination with online voting. Through different awards, each company's efforts to realize empowering entity innovation and lead the future development of the industry were evaluated. Commendation, realize the joint exploration of blockchain with the times, and create a beautiful blueprint for the industry. [2019/12/27]

Chainlink is great, but there are simpler, dedicated high-value, high-latency use cases

Currently, most “governance-minimized stablecoins” use Chainlink as an oracle. Chainlink is very valuable for many oracle use cases, and more importantly, it is a complex system with many functions. Incentives are not as transparent as Augur. Chainlink in particular does not have an automatic mechanism to punish participants for providing incorrect data.

Just like we hope to supplement MakerDAO with other stablecoins such as RAI, the main feature of these stablecoins is that governance is minimized, allowing the ecosystem to have many ways to achieve greater resilience. We also need to choose an oracle machine as a supplement to Chainlink. In terms of governance minimization, this oracle will be more aggressive, and has a mechanism for optimizing incentives to maximize attack costs. A robust oracle should target the above properties, even if it suffers from long resolution times and is limited to a specific type of data, such as a highly liquid asset price index.

UNI is very suitable as an ETH/USD price oracle

Decentralized price oracles, if you want to avoid dependence on the identity layer, you need tokens to resist Sybil attacks. Token holders demand price information and introduce an economic mechanism that rewards answers that agree with the majority and penalizes the opposite.

If the majority of token holders are evil, they can successfully provide a wrong answer, at which point it will be up to the minority of token holders to create a fork of the system in which attacker tokens are zeroed out, allowing the community to Forks continue to produce blocks. Therefore, the cost of the attack is half of the market value of the token, and some extreme emergencies must also be considered, such as token holders not acting and not participating in voting, which may also cause losses.

Therefore, for DeFi projects, if a token-based decentralized oracle machine is to be robust, it must have a huge market value. The efficiency of the oracle is not important, because the efficiency can be enhanced by a mechanism. On the other hand, the cost of attack needs to be maximized, so the market value is the key. The two Ethereum project tokens with the highest market capitalization are LINK and UNI.

Supporting oracles is not only a selfless act of Uniswap; in fact, Uniswap would greatly benefit from a stronger stablecoin ecosystem. Uniswap v3 is heavily optimized for ultra-high capital efficiency of stablecoin-to-stablecoin transactions, and is likely to generate very high fee income from these transactions. If there are a large number of stable synthetic assets on the chain, then this will be even more beneficial to Uniswap.

At the macro level, Ethereum Layer 1 needs to maintain a minimum governance, but Layer 2 should have bolder moves, and UNI can become a part of Layer 2

Compared with previous blockchain platforms, the Ethereum ecosystem aims to be a base layer that can accommodate a wider range of applications in terms of coverage. The goal is not only to support the holding and transfer of basic assets, but also to build a DeFi ecosystem as well as a decentralized governance DeGov ecosystem. Utility sponsorships in the Ethereum ecosystem are also in high demand.

To realize this broader vision, more than blockchain technology needs to be deployed. It can be said that the Ethereum ecosystem needs to move towards an encrypted country, and the services provided by the blockchain ecosystem will not only be security, but also extend to oracle machines, dispute resolution, public utility sponsorship, identification, etc. But in order for Ethereum to be a stable platform, the underlying layer of the blockchain needs to uphold governance. This will give users confidence that the applications they care about will not be subject to human interference, and that the base layer will not be split by adding controversial features that would cause governance conflicts.

Therefore, these services need to be provided at Layer 2 to some extent. In rollups, Optimism conducts miner extractable value auctions that sponsor utility for the entire system. As the core DEX of the Ethereum ecosystem, Uniswap also assumes more responsibilities, including providing price oracles, which is a natural next step towards the development of the crypto kingdom.


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