ETH Exchange ETH Exchange
Ctrl+D ETH Exchange
Home > Bitcoin > Info

Can cross-chain mining aggregator Farmland participate in liquidity mining?



Since Compound launched the liquidity mining of COMP tokens on June 15, DeFi liquidity mining has become a key means for early projects to guide liquidity. After Compound, Balancer, Curve, etc. also started liquidity mining. Today, the liquidity of Balancer and Curve exceeds 360 million US dollars and 1 billion US dollars respectively. YFI's liquidity mining aggregation leads mining to a higher income level, while YAM and SUSHI's liquidity mining has accumulated hundreds of millions of dollars within a few days, of which YAM has accumulated about 800 million dollars at its peak, At its peak, SUSHI accumulated more than 1 billion US dollars, and its liquidity even exceeded 70% of Uniswap's overall liquidity at its peak. The biggest reason for attracting so many funds to participate is the high annualized return. When mining was first started, some annualized returns even exceeded 10,000%. Even considering its extremely high risk, this is a very crazy return. In the long run, these will gradually drop to less than 100%, even so, it is still a very high return. These are just part of liquidity mining, and there are still many liquidity mining going on, or on the way. However, liquidity mining has gradually become a game for large players or institutions. One of the biggest reasons is the high handling fee of mining, which can easily cost more than a hundred dollars to complete a mining operation. If it is not for a large amount of funds, the mining income may not be high, and considering the impermanent losses that may be generated by mining, currency Due to factors such as price fluctuations, it is not cost-effective for ordinary users to participate in liquidity mining. In addition, liquidity mining has some potential security concerns, such as the risk of centralization and the risk of loopholes in smart contracts, which are what users are worried about. With such high income from liquidity mining, do ordinary users have the opportunity to participate? All of this will become possible with the perfection of Lego bricks throughout the crypto space. In order to solve the problem of ordinary users participating in mining, Farmland proposed a solution for cross-chain mining. The clues of cross-chain DeFi The international fund settlement system SWIFT and Chainlink Labs cooperate to develop a cross-chain interoperability protocol: September 29 news, Chainlink co-founder Sergey Nazarov announced at the SmartCon 2022 conference held in New York City on Wednesday that the international fund settlement system SWIFT A partnership has been established with Chainlink Labs on the Cross-Chain Interoperability Protocol (CCIP). SWIFT is an interbank messaging system that allows cross-border payments. CCIP will enable SWIFT messages to indicate on-chain token transfers, helping the interbank network to communicate across all blockchains. Communication in a blockchain environment. Jonathan Ehrenfeld Solé, director of strategy at SWIFT, said that traditional financial (TradFi) participants want to access a variety of digital assets and traditional assets on a network that can connect different types of asset classes. The cooperation between Chainlink and SWIFT in cross-chain interoperability will have Helps bridge the gap between traditional and digital assets for TradFi institutions. [2022/9/29 22:39:30] At present, the vast majority of liquidity mining is based on Ethereum, but with the launch of liquidity mining in public chain ecological projects such as Polkadot, Cosmos, Solana, etc. The trend of chain liquidity mining has gradually developed. Ethereum is the center of DeFi activities and is currently the largest smart contract platform. Compared with Bitcoin, it has the ability to construct smart contracts. Compared with other public chains, it has a larger market value and greater security. However, due to the high fees, low throughput and slow speed of Ethereum, under the current circumstances, many DeFi have begun to consider other public chains. For example, Serum is built on the Solana public chain, and the DeFi projects of Cosmos and Polkadot are also becoming more There are more and more, with an ecological trend, which means that Ethereum cannot unify all public chains, and DeFi will have a trend of diversification. This provides the soil for cross-chain DeFi. Now the liquidity mining of cross-chain DeFi is beginning to emerge. At present, it can be seen from wBTC, renBTC, etc. that as of the writing of Blue Fox Notes, there are currently 59,392 bitcoins (tokenized BTC, also known as packaged BTC) circulating on Ethereum, with a total of 59,392 bitcoins. More than $700 million. A considerable part of them are mined on Curve, among which renBTC mined on Curve has a total of more than 100 million US dollars, while renBTC has a total of 168 million US dollars, and wBTC’s total mining on Curve has reached more than 83 million US dollars. Marvin Inu's cross-chain bridge was hacked, and the official promised to repurchase and destroy the tokens to make up for this loss: According to news on April 11, according to official sources, the meme coin Marvin Inu's cross-chain bridge was hacked, and the stolen value was 110 ETH tokens were sold, causing a sharp drop in price. The project party immediately closed the cross-chain bridge and fixed the loopholes. At the same time, it has adjusted the purchase tax to 0%, and promised to repurchase and destroy the tokens after the price fluctuation stabilizes to make up for this loss. It is reported that Marvin is named after Musk's dog Marvin. [2022/4/11 14:16:52] (The total amount of different tokens in Curve’s pool, Source: Curve) Farmland’s cross-chain DeFi mining trilogy 1) Cross-chain aggregate mining Farmland first uses existing There are foundations. This is a common practice in the DeFi field, because DeFi itself is a composable Lego building block. Farmland plans to integrate the tokenized cross-chain technology of wBTC and renVM in the stage of cross-chain aggregate mining. From the perspective of user experience, the process is designed as follows. Users deposit BTC directly into Farmland and bind it to an Ethereum address, which is used to receive income. When a user deposits BTC into Farmland, it will convert it into wBTC and renBTC that can be circulated on Ethereum through wBTC and renVM, and then use it to participate in mining, and the mining proceeds will be sent to the user's Ethereum account. (Farmland’s cross-chain aggregation mining stage, Source: Farmland) Celer’s cross-chain payment network cBridge announced support for xToken (XTK): On December 28th, the cross-chain payment network cBridge launched by the second-tier expansion platform Celer Network announced Support one-stop digital asset smart wallet xToken (XTK). Users can now conduct fully non-custodial, high-speed and low-cost cross-chain transfers of XTK between Arbitrum and Ethereum through cBridge. [2021/12/28 8:09:13] 2) Synthetic assets The second phase of Farmland will introduce FarmBTC. FarmBTC is an asset that aggregates tokenized BTC such as wBTC, imBTC, and renBTC. It is a synthetic asset, somewhat similar to mStable's aggregation of current stablecoins such as usdt, usdc, and dai, and similar to ycrv on Curve. The advantage of this aggregation is that it is more resistant to volatility and more resilient. (Farmland’s synthetic asset stage, Source: Farmland) 3) farmBTC This is the last stage of Farmland. Users deposit BTC into Farmland and can directly convert it into FarmBTC. That is to say, at this stage, Farmland will have its own tokenized cross-chain technology. Users deposit BTC into Farmland, and Farmland completes the packaging process of BTC through its decentralized node network, and finally forms a decentralized token. Assets farmBTC. It can be seen from this that Farmland's goal is to form a decentralized asset cross-chain, and participate in cross-chain mining on the basis of this asset cross-chain. (Farmland's farmBTC, Source: Farmland) BHEX Chain person in charge: MPC is currently a safer and more decentralized cross-chain solution: In response to the attack on PloyNetwork and the transfer of more than 600 million US dollars of assets, BHEX Chain According to the person in charge, there is a huge demand for cross-chain in the current DeFi market, and it is developing rapidly, but the security still needs to be further improved. Most of the cross-chain solutions in the market currently adopt the method of deploying smart contracts on the chain. There are certain security risks, which is also one of the main reasons for the frequent occurrence of cross-chain security incidents recently. Compared with deploying smart contracts on the chain, MPC is a better direction. BHEX Chain's BBS cross-chain solution adopts the MPC cross-chain solution, which can generate an independent hosting address for each user, avoiding the need to deploy smart contracts on the chain. The verification logic and security of assets are basically the same as those of exchanges; at the same time, BHEX Chain does not issue any assets, and there is no exchange process between assets. These features have been fully tested to ensure the security of user assets and avoid attacks. [2021/8/10 1:46:32] So, specifically, how does it realize decentralized asset cross-chain? There are potential risks of centralization in most of the asset cross-chains. How to form a decentralized asset cross-chain is a topic of great concern to everyone in the encryption field. As of the writing of Blue Fox Notes, the number of bitcoins circulating on Ethereum has reached 59,392, exceeding US$700 million. Among them, wBTC has reached 39,104, renBTC has reached 14,159, HBTC has reached 2,810, and sBTC has reached 2,243.... Most of the current tokenized BTCs are wBTC and renBTC. At present, wBTC is hosted by a centralized institution, initiated by BitGo, Kyber, etc. BTC is escrowed by the custodian alliance, and only registered merchants with KYC/AML qualifications can initiate wBTC. It has a DAO governance, and BTC custody is guaranteed by multi-signature contracts. Therefore, when users want to obtain wBTC, they must either contact the wBTC cooperative merchants, deposit BTC through the merchants in exchange for wBTC, or exchange wBTC through the exchange. On May 31, the first cross-chain exchange function built on the SWTC public chain was opened: based on the smart contract bank-office cross-chain technology developed by Jingchang Digital, the first Weichain digital asset Decentralized exchange platform built on the SWTC public chain was launched in 2018 On May 31, 2019, the cross-chain exchange function of ETH and ERC20 tokens (tokens) was opened, enabling the barrier-free exchange of tokens between different public chains in reality, allowing the digital asset Decentralized cross-chain exchange technology to move forward greatly took a step forward. Jingchang is one of the few distributed exchange technology platforms based on blockchain in the true sense. [2018/5/31] imBTC is generated by locking BTC in the Tokenlon wallet. BTC is deposited into a multi-signature address, and then corresponding imBTC tokens are generated. renBTC realizes the tokenization of BTC through renVM, and renVM consists of a network of dark nodes. At present, there is a great demand for fully decentralized cross-chain assets in the encryption field. What Farmland needs to do in the third stage is also cross-chain tokenized assets. In order to realize the cross-chain of decentralized tokenized assets, Farmland will also build a node network, which is called a "caretaker" network. The "keeper" is responsible for the custody of deposited assets and the generation of packaged assets. Since the "watchman" is given such an important responsibility, how to prevent them from doing evil? Will they divide up the deposited BTC? When tokenized assets are generated, how to ensure that sufficient corresponding assets are generated, and when users redeem, how to ensure that users are given sufficient corresponding assets? Judging from Farmland's white paper, it has designed a set of game mechanisms to prevent evil. First of all, the "keeper" must pledge excess assets. Once the "keeper" is found to be doing evil, his assets will be confiscated. However, the mortgage assets themselves are also volatile. If they fall rapidly, it may be too late to liquidate. Farmland's mortgage assets also adopt a multi-asset mortgage model to increase the resilience and security of the system. In addition to collateralizing excess assets, Farmland will additionally reward honest nodes. The so-called integrity nodes refer to nodes with good historical records. Real nodes can increase their weight in the system, and these expected rewards will align the interests of the "keeper" with the interests of the system, reducing the motivation for evil. Finally, in order to prevent the collusion of "watchmen", Farmland introduces the concept of "sharding" similar to renVM, and reduces the possibility of attacks through random grouping. (Farmland's "shard", Source: Farmland) When the "keeper" does not sign a normal transaction, or signs a false transaction, their assets will be liquidated to keep the deposited assets redeemable. When Farmland completes cross-chain assets such as BTC, these assets can be used for mining, so how to mine specifically? This involves Farmland's one-stop aggregation mining and revenue distribution. At present, the handling fee of DeFi mining is very high. For example, if a user mines SUSHI, which has been hot recently, they must first build a liquidity pool on Uniswap, such as the SUSHI-ETH pool. To build a liquidity pool on Uniswap, the ETH and SUSHI assets must first be authorized, which is the first fee. After authorization, liquidity needs to be added to the SUSHI-ETH token pool, which is the second fee. After depositing tokens for the SUSHI-ETH liquidity pool, users get LP tokens for the pool. Users need to deposit the SUSHI-ETH pool liquidity LP tokens on Uniswap into SUSHI's mining pool for mining, which is the third fee. Finally, when the user withdraws the income, a fee needs to be generated. Depending on the congestion, the fee can sometimes be as high as tens of dollars. On the whole, the completion of a mining may exceed more than 100 US dollars or even higher. Mining with a small amount of money is not cost-effective unless there is a high return. In order to solve the problem of high handling fees, some service providers have proposed a scheme of aggregating user tokens to evenly share the high handling fees. However, some schemes have centralization risks, and the income is not transparent. The organization can take a large part of the user's income. Finally, if there is a loophole in the mining agreement, the organization will not compensate for the loss.


Sushiswap "wrong currency" incident: I wanted to save Gas fees but lost $400,000

DeFi liquidity mining became popular, and the old leeks who had been out of space before could not hold back and ended up one after another.But you never know, which one will come first.

Golden Map | Overview of Sushiswap's development path

Since the appearance of Sushiswap at the end of August, there have been many storms in just half a month. Assets worth $700 million were locked in three days.

First release | Stablecoin Report: Market value rises to $16.556 billion.

To help crypto market participants keep updated on the development status of stablecoins.

Can cross-chain mining aggregator Farmland participate in liquidity mining?

Since Compound launched the liquidity mining of COMP tokens on June 15, DeFi liquidity mining has become a key means for early projects to guide liquidity. After Compound, Balancer, Curve.

Despite a 12% plunge in Bitcoin, Reuters polls suggest a massive rebound may be coming

Over the past two days, Bitcoin appears to be in its most bearish state in over three months.Cryptocurrencies experienced a major sell-off on Wednesday that continued into the opening session of the New York stock mar.

Video: What is UNISWAP? Analysis of the hottest DEX in the summer of 2020.

Hello everyone, welcome to the blockchain big cousin channel, I am Camille. In the summer of 2020, DeFi continued to detonate.

Gu Ronghui, CEO of CertiK: Security audit is a standard configuration for high-quality DeFi projects

In the past 8 months, DeFi has been developing at a rapid pace. As of September 1, according to Debank data.