Ethereum Layer 2 MegaETH (Mega Star) Testnet Launched

This series will introduce a range of protocols incubated by Mega Mafia, providing readers with clearer directions as they explore the ecosystem. Mega Mafia is the flagship accelerator program of MegaETH, aimed at helping developers with unique ideas create one-of-a-kind protocols on the World Computer, rather than forking already successful projects. In other words, do not reinvent the wheel on MegaETH.

The program is funded by investors including ABCDE, ANAGRAM, FIGMENT, GSR, KRAKEN VENTURES, MAVEN11, ROBOT VENTURES, WINTERMUTE, BASED16Z, CALVIN LIU, GEORGE LAMBETH, GUY YOUNG, ICEBERGY, JEZ, KAINAIN.D.KIAAIN, among others.

(Rethinking the World Computer: From Technology to Ecosystem, How Mega Star MegaETH Becomes Ethereum’s Savior)

Avon Introduces Limit Orders to Lending Protocol, Revitalizing the Lending Market

Avon is a lending protocol that adopts an order book mechanism, namely limit orders. They believe that the current stage of DeFi faces a major problem: it was supposed to eliminate the intermediary role of financial institutions, making financial services more open and accessible. However, the current lending market remains in its early stages, akin to AMMs following fixed parameters, failing to achieve true market-driven operations.

Issues include:

• Lack of price discovery: Lending rates are still set by the protocol rather than determined by market competition.
• Limited competition: Most DeFi protocols on new chains are merely forks of existing protocols, with little variation.
• Lack of evolution: Protocols may tweak parameters or introduce new incentives but fail to address core issues.

Borrowers often have to pay excessively high interest rates, while lenders must choose between low returns and high risks. The current nature of the DeFi lending market remains similar to traditional banks, rather than being a truly open market.

Therefore, Avon provides an open, competitive, and transparent on-chain lending market, replacing the fixed rate mechanisms set by traditional protocols. By introducing limit orders into the on-chain lending market, it narrows the interest rate spread and improves capital efficiency. Potential lenders can competitively set lending rates, enhancing market liquidity and efficiency.

Main features:

• Lenders control risk and return parameters, no longer merely providing liquidity passively.
• Borrowers can compete for the best rates, forming a market-driven pricing mechanism.
• The lending market becomes more proactive, similar to the bidding mechanisms of traditional financial markets.

The execution layer of MegaETH allows on-chain lending to compete with traditional finance. This means prices can adjust timely without distortion and can be liquidated promptly. If speed weren’t important, Wall Street wouldn’t spend billions vying for nanosecond trading speeds.

Autonomous World Engine: Create Your Own Web3 Game Without Developer Background

The Autonomous World Engine (AWE) is a new type of game engine, essentially the AI16z for games and the metaverse. It allows anyone to transform any idea into a 3D experience (AI simulations, crypto games, NFT galleries) without needing to learn any code. Furthermore, it is faster and more open than previous iterations. It appears to be developed by the OnCyber team, who possess considerable experience in 3D platforms. The real-time blockchain feature of MegaETH makes 3D platforms and blockchain games possible. The World Computer extends beyond finance.

CAP: The First Outsourcable Yield Stablecoin Protocol

Many DeFi protocols rely on internal demand to sustain yields, such as new capital willing to purchase governance tokens. When demand decreases, these protocols cannot maintain income, leading to token flywheel failures. Opting for external strategies (e.g., quantitative strategies) results in yields gradually narrowing due to market competition and appetite. Hence, CAP chooses to outsource yields, which in layman’s terms means institutional lending, allowing stablecoin providers to share in the profits.

Stablecoin holders can deposit USDC/USDT into CAP’s smart contract to mint cUSD at a 1:1 ratio, which can be used for trading or staking to earn yields.

Suppose a high-frequency trading institution wants to borrow through CAP, executing a trading strategy targeting a 40% annual return. The institution needs to pass CAP’s whitelist certification and convince the re-stakers. Once operators secure enough delegated capital, they can withdraw USDC from CAP to execute exclusive yield strategies. Here, operators can be banks, high-frequency trading firms, private equity companies, RWA protocols, DeFi protocols, and liquidity funds.

Operators must pay cUSD stakers the baseline yield set by CAP, as well as additional insurance costs to re-stakers. For example, if CAP sets a baseline yield of 13%, and the operator pays an additional 2%, the operator retains 25% of the yield. cUSD stakers can withdraw accumulated yields at any time.

Last October, CAP completed a $1.9 million pre-seed round of financing, with investors including ABCDE Capital, Robot Ventures, Kraken Ventures, former EigenLayer CSO Calvin Liu, as well as co-founders from Balancer, Polygon, Synthetix, and others.

Euphoria: Making Trading as Fun as a Game? A Trading Platform for the TikTok Generation

It is challenging to describe Euphoria with precise terminology; the official description suggests making trading easier and adding social attributes. I suspect it may resemble trading interfaces like MoonShot that focus on mobile devices. The official statement indicates that when we choose options and futures as derivative products, these so-called complex financial tools are merely predictions about the future. It is a way to express with money what one believes will happen next.

Euphoria transforms derivative trading into a gamified, mobile-first consumer experience with social attributes known as Tap Trading.

Risk Warning

Investing in cryptocurrencies carries a high level of risk; their prices can be extremely volatile, and you may lose all your principal. Please assess risks cautiously.