?? Aave Launched A New Stablecoin
Gm, this is doodhwala, the only crypto newsletter that’s as good as waking up two minutes before your alarm. ?
Take That Technology. ??
Here’s what we got you today:
???Celo’s Homecoming!
Guess who's coming home? ??
Our dear Celo blockchain, an EVM-based layer 1 blockchain with nearly $100 million in total value locked (TVL).
But wait... what does 'coming home' mean????
Okay, a quick intro first.
Celo is a carbon negative, platform that makes sending and receiving crypto easy from your mobile phones.
It was an independent EVM-compatible Layer-1 blockchain but now, Celo's is coming back to the Ethereum ecosystem as its Layer-2 solution. ??
And they're doing it by using something called the Optimism or OP stack.
So what's with this Optimism Foundation stack????
OP stack or Optimism stack is the technology architecture behind the Optimism blockchain which allows it to process transactions off the main Ethereum blockchain using optimistic rollups.
It's a lot of optimism indeed!???
Let's break down what this means:
Wtf is a Sequencer tho?
A sequencer in blockchain is like a DJ at a party.????They choose the order of songs (or in this case, transactions) that play next. This helps keep things fair and organized.
What good comes from all of this?
Imagine better safety with still low gas fees. ??
(oh and the carbon offset of Celo)
According to the plan, gas fees won't change much and could even be lower than on other L2s. ??
What about the users and people holding CELO tokens????
No worries! Everything stays the same for them!???
The move won't affect them and they can still use CELO tokens to pay for gas. ??
But, with every change, there can be some downsides. ??
More money might move between Celo and other chains, but costs might go up for sequencers. And it's still unclear if sequencers will get the same rewards as before. ?? ♀?
Doodhwals’s Take:
Celo is dreaming big, always improving, and focusing on helping the planet by being carbon-negative?(just like we are).??
??One Dashboard For ALL Your Crypto
When June moves to July and umbrellas come out, you know what season is approaching right?
It starts with an M.
I’m not talking about Monsoon. ??
I’m talking about Money. ??
Yup, it’s the Money season. For the government.
With Tax Day (July 31) fast approaching, you may be wondering – HOW TF DO I MANAGE TAXES ON CRYPTO?
We got you fam. ??
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???Another Algorithmic Stablecoin Enters
If you’re a psychopath who wants to see something like?LUNA?and?TERRA UST?possibly happen again, then we’ve got a story for you.
Say hello to?GHO?- the algorithmic stablecoin by?Aave protocol.
The rise of GHO begs the question -?Is there finally an algorithmic stablecoin that:
?? is Stable.
?? won’t De-peg.
?? doesn’t make the?doodhwala?write another?article?about it?
We don’t think so.???
What is GHO? And how has it gained over $2.5 million in market cap in just 2 days?
Time to?spook?the ?? outta this?GHO-st.
1?? What is GHO?
If you don’t already, let’s first understand what AAVE is??
Avara is a DeFi protocol that allows users to lend or borrow crypto without the intervention of a central intermediary.
领英推荐
Pssst AAVE in Finnish means “Ghost”. ??
That’s why they follow the?Cute X Spooky?theme all the time!
Anyways, the hype behind the GHO stable coin is quite simple.
?? GHO is overcollateralized (there’s more valuable crypto backing it than stablecoin issued)
?? GHO is minted by providing collateral on AAVE. (ETH, USDT, DAI, AAVE, and USDC)
?? GHO enables yield earning on the collateral while GHO is minted and in circulation.
Here’s AAVEs official announcement??
2?? GHO is already de-pegging.
Guess what y'all, the?doodh?is already spilling on this one.??
GHO stablecoin…wait for it…is?not so stable.?Been 2 days since the launch and it's already missing its peg. ??
Not just on one side →?But two!??
Yup, GHO has been?over-pegged?and?de-pegged?48 hours since its launch. ??
Just look at that chart??
It looks like a humour level indicator of this newsletter. ???(We're always de-pegging)
3?? Will GHO dominate?
It’s tough to say anything at the moment.
The prospect of an algorithmic stablecoin sound fascinating. But everybody is?hella scared?to touch them at this point. ??
Let’s take DAI for example.
DAI is currently the largest stablecoin on Ethereum with over?$4.28?billion?market cap. ??
DAI is an algorithmic stablecoin that has been facilitated by MakerDAO .
And even DAI isn't able to beat centralized stablecoins like?USDT?and?USDC. ?? ♂?
???Doodh Fact: The stablecoin primarily?backing?DAI is USDC, making up nearly a fourth of the reserves behind DAI.
Doodhwala’s take:
Q. Is GHO dominating anytime soon?
It’s the same answer we gave whens someone asked us – will oat milk replace cow milk?
A. Nah we don’t think so.
Until it maintains its peg properly. ??
???Cheese and Charts: Hash UP, Bitcoin DOWN
Now, don’t get happy just yet?(this is a different hash we’re talkin’ bout).
So, Bitcoin's hash rate just reached an all-time high?(so did our love for doodh). ??
What’s Hash Rate tho?
Take a deep breath…
When a computer(s), is mining Bitcoin or any other crypto, it's solving complex mathematical problems. These problems are necessary to process transactions and secure the network. Each successful solution to these problems is called a "hash." The hash rate, then, is the speed at which these problems are being solved
So, the higher the hash rate, the more computational power is being dedicated to the network, resulting in faster and more secure transactions.
Now, it's gone up a huge?500%?since 2021! ??
And Bitcoin's price is down by 50%.
So what?
That's weird because people usually think that when the hash rate goes up, so does the price.??
Let's take a quick trip down memory lane.
So, it seemed like the hash rate and price were connected, like dance partners.??
But in 2023, things are different.
The price has fallen by 50% from its high in 2021, but the hash rate is still going up. ??
Has the connection between hash rate and price changed, or are we just in a temporary phase? Could there be another big drop in price and hash rate?
What do you think? Let us know ??
?? Resourcewala: Navigating Layer 1 and Layer 2 Innovations???
Blockchain's had more layers added to it than a lasagna at an Italian restaurant. ??
But hey, you're not here for the food analogies, you're here for the crypto knowledge bombs. ??
And today, we're talking about the tradeoffs between Layer 1 and Layer 2 innovations, and how to manage them. We're dealing with the whole sandwich, not just the fillings. ??
So, let's break this down like a beatboxer in a rap battle:
Wen Moon? - Well, let's dive in and find out! ??
???Doodhshots:?.com?→ .eth
???Milky Meme Of The Day
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