Weekly Project Updates: Uniswap Releases v4 Code Draft, etc

1. ETH’s Weekly Summary

a. Ethereum Foundation Announces Q1 2023 Donation Projects and Allocation Details link

On June 15th, the Ethereum Foundation announced the recipients and allocation of funds for the first quarter of 2023. A total of $12.91 million was allocated to projects and communities such as BuildETH 2023, ETH Beijing Hackathon, and ETHDam. The grant categories included community and education, consensus layer, execution layer, cryptography and zero-knowledge proofs, developer experience and tools, Layer 2, protocol growth and support, among others.

b. Vitalik’s Blog: Three Technological Changes That Are Crucial for Ethereum’s Success link

On June 13th, Vitalik published a blog post stating that the future technological transformations of layer-two network scalability, smart contract wallets, and privacy protection are crucial for Ethereum. He emphasized that if any of these aspects cannot be achieved, Ethereum may fail. This is not only about technical feasibility but also about the practical accessibility for regular users. Vitalik called for efforts to embrace this challenge and work towards fulfilling these objectives.

2. Uniswap Releases v4 Code Draft, Introducing Hooks for Enhanced Flexibility link

On June 13th, Uniswap released the code draft for Uniswap v4, introducing the concept of hooks to support more flexible decision-making. The v4 pools will support dynamic fees, on-chain limit orders, and Time-Weighted Average Market Maker (TWAMM). Additionally, the v4 pools will exist as a single contract, reducing the cost of creating liquidity pools. The code is released under the Business Source License 1.1 and will permanently transition to the GPL license after four years. The governance can vote to add protocol fees to the pools, but it will be subject to an upper limit.

3. Polygon Announces Launch of Polygon 2.0 link

On June 13th, according to a tweet by Polygon Labs, Polygon announced the launch of Polygon 2.0, a unified network composed of Layer 2 chains supported by ZK technology, aiming to establish a value layer for the internet. The upgrade involves protocol architecture, token economics, and governance, with the goal of achieving scalability and unified liquidity. Polygon will gradually introduce the various components of Polygon 2.0 in the coming weeks and discuss future development directions and community governance.

4. Linea: Alpha v0.2 Upgrade Completed link

On June 13th, Linea, an L2 network built by ConsenSys, announced the planned launch of Alpha v0.2 upgrade, which was set to go live within 1 hour. Approximately 11 hours later, Linea announced on its official Twitter account that the upgrade was successful.

Prior to the upgrade, Linea had stated that Linea Alpha v0.2 would be released on June 13th. This version was intended to prepare for the mainnet launch through substantial architectural upgrades, and it was expected that bridge functionality would be temporarily suspended for 4–6 hours.

5. MakerDAO’s Weekly Summary

a. MakerDAO Achieves $95 Million Annual Revenue, Reaching Highest Point Since Mid-February 2022 link

On June 13th, according to makerburn data, the current annual revenue of MakerDAO has reached $95 million, marking the highest point since mid-February 2022. This represents a growth of 147% compared to the beginning of the year. The primary reason for this increase is that MakerDAO has been utilizing PSM USDC to purchase more US Treasury bonds, thereby generating interest income from them.

b. DAI Becomes the Third-Largest Stablecoin with $4.6 Billion in Circulation, Following USDT and USDC link

On June 16th, according to CoinMarketCap data, DAI currently has a circulating supply of approximately 4.6 billion, surpassing BUSD (4.34 billion) to become the third-largest stablecoin after USDT and USDC. Since the beginning of the year, BUSD’s circulating supply has decreased by over 70%, while DAI has experienced a decrease of around 20%.

c. MakerDAO to Reduce GUSD Reserves from $500 Million to $110 Million link

On June 12th, the MakerDAO community initiated a new proposal to reduce the maximum amount of GUSD held in Maker’s DAI stablecoin reserves from $500 million to $110 million. On June 15th, the voting period for the proposal ended, and it received a support rate of 84.18%, successfully passing the proposal. MakerDAO currently holds GUSD worth 88% of the total circulating supply, which amounts to $568 million.

d. MakerDAO Announces Increase of DAI Savings Rate (DSR) from 1% to 3.49% link

On June 16th, MakerDAO announced that it will increase the Dai Savings Rate (DSR) from 1% to 3.49% starting from June 19th at 22:00 Beijing time. The interest rate for DAI holders who choose to join the DSR will be consistent. The annual yield of the DSR is determined through voting by Maker governance participants and may be adjusted in the future. MakerDAO previously stated that increasing the DSR to 1% last year led to over 35 million DAI being deposited within a month.

6. Significant Liquidation Event Occurs in On-Chain Derivatives Protocol GMX link

On June 14th, the on-chain derivatives protocol GMX experienced a significant liquidation event. GMX traders incurred a net loss of $8.67 million, reaching a new all-time high. Simultaneously, the GMX protocol captured $3.44 million in fees on the same day, which is the second-highest in history. However, unlike previous fee captures, the majority of the fees, amounting to $3.13 million, were contributed by the liquidation process.

7. Pudgy Penguin Announces Launch of MVP Soulbound Token link

On June 13th, the blue-chip NFT project Pudgy Penguin announced the launch of the Most Valuable Penguin (MVP) Soulbound Token (SBT). The MVP SBT is designed to recognize outstanding members of the true penguin community who serve as role models. The MVP program is a revamped version of Penguin of the Week and will take place once a month. The penguin community will nominate their favorite penguins as MVP candidates. Both the MVP and the weekly selected community participants will receive airdrops of SBT tokens, highlighting their contributions to the community.

8. EigenLayer Announces Deployment of Stage-1 EigenLayer Protocol on Ethereum Mainnet link

On June 15th, EigenLayer announced the deployment of Stage-1 of the EigenLayer protocol on the Ethereum mainnet. Ethereum stakers now have the ability to restake on EigenLayer. Currently, EigenLayer supports stETH, rETH, and cbETH, with temporary limits set at 3.2k for each. According to Parsec data, within less than 5 hours of EigenLayer’s launch, there were 9,600 tokens (including stETH, cbETH, and rETH) deposited, reaching the maximum limit.

9. The Graph Initiates Migration of its Settlement Layer from Ethereum to Arbitrum link

On June 15th, The Graph, a web3 indexing and querying protocol, initiated the migration of its settlement layer from Ethereum to Arbitrum. This transition aims to lower the entry barriers for The Graph users by reducing gas costs and increasing transaction speed. The migration by The Graph is also considered one of the largest Ethereum applications transitioning to L2 rollup.

10. Stablecoin Project Frax Finance Plans to Launch L2 Chain Fraxchain link

Frax Finance, a stablecoin project, has plans to launch Fraxchain, a Layer 2 chain that aims to create a smart contract platform emphasizing decentralized finance. The network is expected to be ready for launch by the end of this year. Fraxchain will utilize the Frax stablecoin and Frax Ether, a liquidity collateralized derivative of Frax, for transaction fees. The design of Fraxchain incorporates a Layer 2 rollup model, with its security being derived from the Ethereum mainnet.