Hey Everyone,
Welcome to this week's edition of the DEXTF Newsletter!
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DEXTF updates
Added 2 new token(s) to the list of underlying assets to build XTFs! (total 81) :
DEXTF’s Digital Asset Management University is now live here: damu.dextf.com
DEXTF’s Digital Asset Management University is now live here: damu.dextf.com Read the thread to know more about this initiative. 🔥 1/We published a detailed thread compiling all $DEXTF highlights from the month of July:
For those that want to dig into what’s DEXTF, this is a good start:
Also, DEXTF is hiring! If you think this is you, reach out to us. DMs are open.
👍 Featured opportunity: 💼 Senior Blockchain Developer at 🏛️ DEXTF- Decentralized Traded Funds @dextfprotocol 🌍 Remote Apply now, or share with your friends! 👇 #CryptoJobs #TechJobs #HiringNow #RemoteJobs #RemoteWork cjl.ist/344vqg0Portfolio Metrics
[As of 5th August 2021].
Please refer to the DEXTF website for the latest APRs:
DEXTF/ETH is offering a 66% APR
XTF/DEXTF is offering a 45% APR
You can also earn $DEXTF by providing liquidity on Uniswap (29.6K tokens daily) or investing in any of the XTF funds (12K tokens daily)
Current TVL is US$ 2.6M* (refer to DeFi Pulse)
*calculation includes TVL v1 + TVL v2
You can invest by buying on Uniswap or on the DEXTF app
Here’s a quick guide on how to buy
Protocol Revenue
DEXTF has earned cumulatively US$ 68.3K in revenue since the Treasury started its asset allocation strategies. This has resulted in an additional buyback of 12K $DEXTF, 1154 BPTUMAUSDC, and an accumulation of 400 UMA.
To date, the cumulative amount of assets bought back by the Treasury are:
175,984 $DEXTF
4,547 B-UMA-USDC
1,144 $UMA
Concept of the Week
⚖️ What is the London upgrade?
The Ethereum London upgrade implements five improvement proposals that we will dive into today's piece.
EIP-1559: on users' default bidding system for transactions on Ethereum
Ethereum users have bid based on first-price auction system until this EIP, in other words bidders would pay exactly what they bid to the miners. Resulting in some users overpaying relative to same transactions in the same block.
With EIP-1559 in place, the protocol quotes a to-be burnt "basefee" that guarantees a utilization rate of 50% of the block.
This is possible because the block size adjusts itself based on market demand.
So if transactions fill up more than 50% of the block size, then the BASEFEE would algorithmically increase. If below, it would decrease.
Miners can still get what are known as "tips" to prioritise transactions that needs to be included urgently, however the tip can be a fraction of what we're now paying as there's always around 50% block space available for the transaction to be included.
The EIP introduces predictable gas costs, although not necessarily cheaper because of the tip which can be bid up (just like before). It results, however, in fewer failed transactions and, in theory, better user experience and increased adoption.
The burning of the BASEFEE slows down the Ethereum supply inflation, which increases scarcity and therefore value of the second largest token.
EIP-3198: introduction of BASEFEE opcode (requires EIP-1559)
Opcode is a low-level human readable instruction used in programming. There are 140 in Ethereum currently.
The primary use case that this EIP introduces together with EIP-1559, is that the market BASEFEE changes dynamically, reflecting the degree of network congestion. The BASEFEE indicates how much ETH per gas should be burnt.
Although the block header already contained BASEFEE info, this EIP makes it observable on EVM by smart contracts bringing forward new applications, e.g gas futures.
Gas tokens are contracts that represent how much state you store in the contract, and on top of that they are fungible. Because Ethereum has refunds, you can send these gas tokens when gas prices are high back to the contract. This is essentially an arbitrage operation, which accelerates network clogging.
With BASEFEE in place, you can mint gas tokens when BASEFEE is low, much like futures, then it will be more valuable when network is more congested.
This method is more accurate and efficient but not fungible.
EIP-3529: on reduction of gas refunds
The Ethereum gas refund system's main purpose is to incentivize developers to clear the state when possible.
A state in Ethereum is the information held in an address or smart contract.
Gas tokens are currently filling up the state when gas prices are low and get refunds for executing transactions when gas prices rise, capturing an arbitrage while clogging up the network.
This changes with EIP-3529.
EIP-3541: on the rejection of new contracts starting with 0xEF byte
Apart from the technical changes that would impact developers mainly, this EIP separates executable code from non-executable data. This is especially useful for on-chain code validators and blockchain analysts.
EIP-3554: on the difficulty bomb delay to December 1st 2021
A difficulty bomb in Ethereum refers to a period during which the difficulty level of the mathematical puzzles in the mining algorithm increases to prevent forking.
This "bomb" is implemented as the Ethereum blockchain transitions from Proof of Work to Proof of Stake.
As miners hold the majority of the network hash power under POW, they can decide to build upon a different "forked" chain to the detriment of investors and holders of Ethereum. The latter are the primary beneficiaries of POS.
With this EIP, the bomb is pushed to December 1st, 2021.
To conclude, DEXTF supports the London upgrade which has occured today August 5th, 2021 at block height 12965000.
Semper Fortis
DEXTF Team