🐶 ShibaSwap Is Dragging Ethereum By the Tail
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📺 Video: Wagging the Tail | WTF is buying this $#*% and will they be buying it in 2024?
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TLDR For any Defiers wondering why gas prices on Ethereum have been so high over the past few days, you can blame it on the dog — $SHIB, that is.
REVIVAL The meme coin’s revival through a new swap protocol has driven traffic, and gas costs, through the roof. While most meme tokens that moonshot and then crash stay dead and buried, $SHIB has just kept digging. And now, once again, $SHIB is back in the spotlight with a new Uniswap clone for meme coin lovers — ShibaSwap.
SUPPLY Shiba Token, or $SHIB, is best known as the “Doge-killer” meme token that soared over 30,000% during the hype in early May. It was created with a “safety mechanism” wherein 50% of the total supply had been sent to Ethereum founder Vitalik Buterin’s wallet for safe-keeping.
TLDR Crypto prices have taken a hit in the past 24 hours with open finance’s leading index DeFi Pulse Index down 8.14% at the time of writing and Ether down 8.9% in that same span. Bitcoin too is down 6.1%.
NEWS The selloff comes with the backdrop of a slump in the general equities market — the S&P 500, a capitalization-weighted index which tracks the stock prices of 500 of America’s largest companies, is down 1% on the day, a significant drop for the index. Meanwhile, the dollar is up.
MACRO DeFi investor ceterispar1bus, as they go by on Twitter, told The Defiant that they “thinks it’s [the selloff] just macro related, lot of stuff selling off today.”
TLDR The upgrade, called London after Ethereum’s Devcon 1 location, includes the famous improvement proposal. EIP-1559, as the upgrade is labeled, will go live at block number 12,965,000. The launch date is expected to be August 4.
SO WHAT EIP-1559 will change Ethereum’s fee model so that each block will have a set “BASEFEE,” which users will pay as part of a transaction cost called gas, to perform an action on the blockchain. Actions range from simple transfers, to deposits in a lending platform. The fee change contrasts with the current model where users must outbid each other in what is called a first-price auction.
VALUE The proposal has high expectations. Eric Conner, a co-author of EIP-1559, anticipates that it will save 90% of transaction costs, improve the UX by automating the bidding system, and enshrine the economic value of ETH at the protocol level.
TLDR First it was the art auction houses, then professional sports leagues, followed by media stalwarts such as the Associated Press. Now the president of Israel is the latest denizen of the mainstream world to embrace that most exotic creation of the crypto space — the NFT.
OATH Or more precisely, to be awarded one. On Wednesday, Isaac Herzog, the newly sworn president of the Middle East nation, was given a tokenized version of the oath taken by his late father, Chaim Herzog, when he became president in 1983. It is believed this marks the first time a nation’s legislature has utilized NFT technology in an official capacity to commemorate a historic event.
TLDR Sygnum has become the world’s first bank to offer Ethereum 2.0 staking. The digital asset bank based out of Switzerland will allow clients to securely stake Ethereum through its banking platform. Currently, Ethereum staked through Sygnum can generate yields of up to 7% per annum.
MINING Ethereum 2.0 is an upgrade to the Ethereum network, which shifts the network’s consensus from proof-of-work to proof-of-stake. Staking is the process of participating in transaction validation by depositing the network’s cryptocurrency.
TLDR SushiSwap will likely add an NFT platform soon. The decentralized exchange for swapping Ethereum-based tokens has been branching out into a one-stop shop for DeFi, with spin-off protocols for lending (Kashi), dapp usage (BentoBox), and yield farming (Onsen).
NEWS Now with Shoyu, NFTs are being added to the mix. The platform was proposed to the Sushi community by former SushiSwap core developer LevX, who plans to be the new project’s lead developer as well. The Sushi community largely embraced the Shoyu proposal, with 98% of voters in a poll saying they wanted to hire LevX as the product manager/lead dev of Shoyu for one year.
“We are thrilled to announce the launch of stable pools on Balancer V2. Following the recent launch of Element.fi pools, stable pools make Balancer Protocol the first Automated Market Maker with at least three different types of pools: weighted, Element, and now stable pools. This highly anticipated launch takes full advantage of the Vault architecture of Balancer V2 through the use of batch swaps and internal balances.”
“ETH Summer is a virtual "learning month" for technical undergraduates who are interested in learning and building on Ethereum. During the program, you'll experiment with crypto systems and ship a project of your choice with the help of mentors from the Ethereum ecosystem. This program is brought to you by ETH University and made possible by the support of Ethereum Foundation.”
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🧑💻 ✍️ Stories in this newsletter were written by Owen Fernau, Dan Kahan and yyctrader and edited by Edward Robinson, Bailey Reutzel and Camila Russo. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was led by Camila, edited by Alp.
The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access, while free signups get only part of the content. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button above ($15/mo, $150/yr).