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State of Stake vol. 33

Paradigm
Paradigm
Published in
18 min readOct 1, 2020

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Paradigm’s biweekly update on Proof-of-Stake ecosystem, 18th September — 1st October

Global Market Overview

Source: stakingrewards.com

The current Staking Market Cap (valuation of all projects that have a staking mechanism) is now about $34.8 billion USD, while two weeks ago it was nearly 35.3 billion.

Source: stakingrewards.com

During the last 2 weeks Average Total Staked % dropped significantly from 52.7% to 41.4%.

Source: stakingrewards.com

Polkadot remains the first position in top-5! Now, the leading projects by locked in staking are Polkadot, Tezos, EOS, Cardano, and Algorand. Cosmos is currently rated 6th. Tron is out of top 8, welcome newcomers: Band and Synthetix.

Current Value in Staking by Asset

Source: stakingrewards.com

Think & Stake

Evolving Trends in Token Powered Networks Part 1.

by Mara Schmiedt

  • Regulatory scrutiny has increased, which has resulted in initial token distributions taking place in private rounds of accredited investors. Proposals such as the Safe Harbor present a first step in the direction of formal regulatory guidance that bridges the gap between regulation and progressive decentralization;
  • Private infrastructure and capital providers are increasingly evolving into Web 3.0 native business models, uniquely positioned to support early stage bootstrapping and ongoing participation in decentralized networks;
  • The road to Proof of Stake is transitioning from its lengthy research phase and genesis implementation to growth.

Slashing is Not Required to Solve Nothing-at-Stake

by John Adler

Resolving the Nothing-at-Stake problem in permissionless consensus protocols using Proof-of-Stake can be accomplished with slashing. Common knowledge tells us that slashing is required to solve Nothing-at-Stake, but is it? This post analyzes slashing and Nothing-at-Stake, and proposes an alternative to slashing that can provide exactly the same guarantees.
The author comes to a conclusion that slashing is not necessary to resolve Nothing-at-Stake in permissionless consensus protocols using Proof-of-Stake, but instead a generic class of penalties, which includes blacklisting — locking bonded coins that have equivocated for a period of time — is sufficient. In fact, blacklisting is functionally identical to slashing, and provides the same guarantees under the presented model.

2-hop Blockchain: Combining Proof-of-Work and Proof-of-Stake Securely

by Tuyet Duong, Lei Fan, Jonathan Katz, Phuc Thai, and Hong-Sheng Zhou

In this work the authors propose a novel 2-hop blockchain protocol that combines PoW and proof-of-stake (PoS) mechanisms. The analysis shows that the protocol is secure as long as the honest players control a majority of the collective resources. In particular, even if the adversary controls more than 50% of the computing power, security still holds if the honest parties hold sufficiently high stake in the system. As an added contribution, the protocol also remains secure against adaptive adversaries.

Account Management in Proof of Stake Ledgers

by Dimitris Karakostas, Aggelos Kiayias, Mario Larangeira

Blockchain protocols based on Proof-of-Stake depend — by nature — on the active participation of stakeholders. If users are offline and abstain from the PoS consensus mechanism, the system’s security is at risk, so it is imperative to explore ways to both maximize the level of participation and minimize the effects of non-participation. One such option is stake representation, such that users can delegate their participation rights and, in the process, form “stake pools”. The core idea is that stake pool operators always participate on behalf of regular users, while the users retain the ownership of their assets. The authors’ work provides a formal PoS wallet construction that enables delegation and stake pool formation. While investigating the construction of addresses in this setting, we distil and explore address malleability, a security property that captures the ability of an attacker to manipulate the delegation information associated with an address. The analysis consists of identifying multiple levels of malleability, which are taken into account in our paper’s core result. They then introduce the first ideal functionality of a PoS wallet’s core which captures the PoS wallet’s capabilities and is realized as a secure protocol based on standard cryptographic primitives. Finally, consider the wallet core in conjunction with a PoS ledger and investigate how delegation and stake pools affect a PoS system’s security.

Comparing Staking Rewards — Is Liquid Staking Better Than Proof of Stake (PoS)?

by Andrea Chang

To investors looking for staking rewards, blockchain adopting the Proof-of-Stake consensus mechanism and decentralized finance (DeFi) projects with liquid staking components are great options to participate in. In this article, Andrea Chang summarized some DeFi projects with liquid staking that are gaining traction in the market.

Proof-of-Stake Networks’ Updates

Ethereum 2.0

Ethereum 2.0 is getting closer every day! The biggest event from these weeks was the launch of Spadina, a minor testnet intended to give everyone a chance to test launch tooling.

Furthermore, Danny Ryan and Vitalik Buterin submitted EIP 2982 which is an EIP to upgrade Ethereum’s consensus mechanism from proof of work to sharded proof of stake — aka, an EIP to upgrade eth1 to eth2.

Check out our latest Ethereum biweekly vol.53 covering the following topics: Spadina is live, Optimism launches testnet, Gitcoin introduces grant collections, UNI token launches, tBTC is live, Ethereum.org updates, and much more!

Here is our recently-published Defi in Ether — biweekly update on Ethereum DeFi ecosystem vol.14 full of news from the ecosystem.

SKALE Network

SLALE Network mainnet is live!

On October 1st the Phase 2 of SKALE Mainnet went live, along with staking, and Proof of Use period beginning for tokens that were delegated and confirmed by validators prior to the end of September.

SKALE Delegator Hub is live: In the newly introduced Delegator hub you will find Important dates & deadlines, rewards calculator, list of confirmed validators, delegator FAQ, and a brief overview of SKALE’s technology.

Meet the SKALE Network Validators:

Avalanche

Avalanche mainnet is Live!

The highly anticipated project by Emin Gün Sirer has officially launched it’s mainnet. With the Avalanche consensus protocol serving as the platform’s engine, transactions are processed at 4,500 transactions per second, with sub-second transactional finality. Avalanche thrives to alleviate bottlenecks that exist in current blockchain systems, as well as usher in a new generation of decentralized applications.

Secret Network

Binance completes the Enigma (ENG) to Secret Network (SCRT) token swap and opens deposits & withdrawals:

StaFi

StaFi is building an ERC-20 Bridge for rTokens: Given the entire DeFi ecosystem majorly is built on Ethereum, StaFi thinks it is necessary to create an ERC20 version of rToken in order to tap into the broader ecosystem. The ERC-20 bridge is planned for september/october 2020.

StaFi is now into Matic’s ecosystem of mainnet validators:

Matic Network

Recently, Matic Network has announced integrations with stablecoins DAI, USDC, and Tether.

Cosmos Network

Stargate-3, the latest version of the Cosmos Stargate public testnet, is live!

Daily Cosmos Outpost Oct 1 UTC Inflation 7.0% Bonded 64.0% cosmosoutpost.io:

Check out our latest biweekly update on Cosmos ecosystem vol. 31 covering the following topics: Stargate-3 is live, HackAtom V is coming, Tendermint partners with B-Harvest to build the AMM DEX Liquidity Module, Kava Labs introduced Harvest, Oracle chosen as TikTok’s secure cloud provider, Akash mainnet this Friday, and more!

IRIS Network

Rainbow Validator (July)| IRISnet Validator Rewards Program: IRIS Foundation launched the Validator Rewards Program, which aims to support and reward validators, further boosting the participation of newly-joined validators, encouraging active community outreach by validators, and incentivizing active engagement in the IRISnet ecosystem for increasing bonded tokens. IRIS foundation will select up to 3 validators from the validators who applied every month and reward them each with 10,000 IRIS.

This week in IRIS Network:

Terra

Announcing TerraUSD (UST) — the Interchain Stablecoin: While there are already many USD stablecoins, the recent spike for stablecoin demand on DeFi proved that none are sufficiently scalable to help blockchain ecosystems scale. TerraUSD is the first decentralized stablecoin that is scalable, yield bearing and interchain.

Terra is officially available on ZenGo:

Kava Labs

Introducing Harvest.io, the world’s first cross-chain money market: Harvest is an application built on Kava, as such, Harvest leverages Kava’s existing validators for security, bridges for cross-chain asset transfer, and partners services such as Chainlink oracles for price-reference data. With Harvest you will now be able to lend, borrow, and earn with assets like BTC, XRP, BNB, BUSD, KAVA, and USDX.

Kira Network

Kira Network Review: What’s that all about the new network that is powering Cosmos & Polkadot with cross-chain liquid staking? Kira Network is designed to secure and power DeFi applications by utilizing the real, intrinsic value of any digital asset at stake, such as cryptocurrencies, stablecoins, digital fiat, or even NFT’s. Kira provides liquidity to staked assets through staking derivatives which at the same time can be used with any DeFi application in a trustless manner.

Tezos

Introducing Tezos Harpoon — a new way to delegate: Harpoon is a new staking dashboard that allows users to find high quality bakers to delegate to.

Polkadot

Moonbase Alpha, the first public testnet for the Ethereum-compatible Polkadot smart contract platform Moonbeam Network, is live.

In other Polkadot news, the first project teams have submitted proposals for funding from the Polkadot Treasury.

Polkadot Digest 30 Sep 2020:

Near Protocol

Transitioning NEAR MainNet to the Next Phase: It is Time to Stake, Delegate and Vote: As announced in April by this roadmap blog post, NEAR is entering into Phase I, called “MainNet Restricted.” This transition was completed on September 24th.

The NEAR Foundation has shut down its nodes, handing control of the network over to the community. Details are available on the NEAR company blog.

Community Update: All our Node are Belong to You: The foundation has shut down all its nodes and effectively handed over the reigns of the network to a subset of pioneering node operators from the community and our NEAR Validator Advisory Board (aka NVAB).

Solana Network

Solana Foundation has proposed a delegation token matching program that they are calling the Stake-o-Matic Delegation Matching Program (“Stake-o-Match”?). The Foundation is committed to using its token treasury for the development and growth of the Solana protocol. A major focus of this commitment is toward efforts that lead to increased decentralization and censorship resistance of the network.

Furthermore, Solana community member, @blocks_go_brr, curated an excellent list of resources for anyone looking to build on the Solana blockchain. The list includes official resources, relevant podcast episodes, and various integration tutorials. You can check them out here.

You can now wrap ERC-20 tokens on the Solana network using http://sollet.io.

Algorand

Algorand together with Algorand Foundation have announced the launch of Algorand’s comprehensive smart contract capabilities that join our existing suite of features to power a new wave of sophisticated applications across DeFi & beyond!

Algorand’s Smart Contract Debugger is here! Jason Weathersby introduces this new tool that provides line-by-line debugging information when running transactions against your smart contracts.

Ledger launches self-custody staking for Algorand. Owners of a ledger hardware wallet will now be able to stake Algorand (ALGO) via the Ledger Live application.

Elrond

The new Elrond wallet is LIVE! The team has put a lot of thought and love into this new interface for the EGLD mainnet. Don’t miss out on the cool new features.

eGold Is Now Officially Available on Ledger: Elrond app is now officially available from Ledger, enabling you to safely store your eGold on your Ledger hardware wallet. Check out the detailed instructions about adding the Elrond app to your Ledger device and using it with their wallet.

MantraDAO

MANTRA DAO Staking Platform Goes Live: MANTRA DAO is a community-governed DeFi platform focusing on Staking, Lending, and Governance. MANTRA DAO leverages the crowd’s wisdom to create a community-governed, transparent, and decentralized ecosystem for web 3.0.

Previously, MantraDAO officially crossed the number of 50M $OM that is being staked.

Only on BitMax, over the period there were 4000 Stakers and 32M $OM being staked.

Oasis Network

The team is a day away from launching Mainnet Beta! Tomorrow is a day of events planned — including an AMA with Oasis Team, talks from privacy thought leaders, product demos, and more. Reserve your spot here — https://oasisprotocol.org/mainnet-beta

Oasis Labs partners with Genomic data startup: Nebula Genomics and Oasis Labs have developed a platform that lets people own their genomic data. With Oasis Labs’ “privacy-preserving” smart contract technology, Nebula’s users can share their data with researchers in a completely private way.

A Privacy Computing Discussion between Oasis Labs and Phala Network: On 11th September, 2020, Odaily, one of the top blockchain media in China, hold an online interview with Dawn Song and Marvin Tong, discussed how Oasis Labs and Phala Network — leading projects which both applied TEE-blockchain hybrid architecture to protect confidential data on blockchains — value privacy and privacy computing and the future blockchain world empowered by Web3.0 applications.

Icon

September Roadmap Update: ICON 2.0 Timeline and Gangnam Testnet

This month was highlighted by the announcement of Icon’s new and improved blockchain, ICON 2.0: BATANG. Further details on the ICON 2.0 BATANG feature set can be found here. For the past year, the team has been developing this new technology, and it’s one of our most important achievements to date. Check out the latest timeline and testnet information in this post.

Currently, the team is planning to release the alpha version of the ICON 2.0 implemented Goloop by Feb 2021 and to complete all data migration work by June 2021. ICON 2.0 Testnet Gangnam set to launch at the end of Oct 2020. One of the significant improvements of ICON 2.0 is the Java virtual machine that enables the Java SCORE. The Java SCORE running on the virtual machine is a new SCORE execution environment that no longer requires the smart contract audit process conducted by the Foundation.

Launch of the Omm protocol: The Omm protocol will be a fair launch project following the ethos of the recent DeFi trends, and will take additional steps to push for mass adoption of DeFi. Using the Bridge widget developed by ICX Station, the Omm protocol will create both a frictionless and permissionless money market meant not only for avid DeFi users and yield farmers, but also traditional non-crypto users looking to earn extra yield. The Bridge widget will provide a seamless user experience when withdrawing or depositing stablecoins directly to and from a user’s bank account, enabling the first of its kind DeFi user experience.
ICON Signed MOU with ICONLOOP and Pohang City-POSCO-POSTECH to build Pohang data ecosystem. ICONLOOP plans to cooperate to create a digital ID ecosystem in Pohang City based on MyID, and aims to create a practical smart citizen life. As Icon team states it will use MyID, hence, ICON network.

NuCypher

NuCypher has finished distributing its network’s native token, NU, to over 2,000 prospective node operators who staked more than $125 million worth of ether (ETH) during the month of September.

As a reminder, October 15 is the target date for mainnet launch.

COTI

COTI-X is live: The team announced the first release of COTI’s liquidity pool and fiat on-ramp.

COTI-X is the instant settlement layer of all forms of value on the COTI network for users, consumers, and merchants alike and is powered by the various COTI-X liquidity pools. As such COTI-X forms a critical part of the overall COTI ecosystem and allows us to bootstrap and supply liquidity to both the COTI network and external networks in a manner that was not previously possible.

IOST

Zilliqa:

Orbs

Orbs is working on projects at advanced stages with big global enterprise companies and non-governmental entities. For an overview of some of the use-cases and partnerships the Orbs team is currently working on, read this blog post.

Dock

Dock’s Mainnet is live: Dock was launching its mainnet on September 30th, 2020, to provide a decentralized network for credential issuing and verification. Dock’s blockchain is custom-built and utilizes a proof of authority consensus mechanism. Currently, there are fifteen independent validators running the network which provide decentralized infrastructure and ensure network security.

Coda Protocol

Coda Protocol is launching Testworld, an incentivized testnet. 1% of the total supply of Coda tokens and Genesis Grants will be reserved for testnet participants. Sign up here.

DFINITY

Sodium Network Launched on September 30th. The Sodium Network will unveil the Network Nervous System (NNS), an open algorithmic governance system that controls the Internet Computer. In the coming weeks, the team will share details on the event, which will feature a series of presentations, discussions, and demos exploring algorithmic governance, DeFi, and the economics behind the Internet Computer.

Announcing the $14.5 million Beacon Fund — a fund managed by Polychain Capital with support from DFINITY and Andreessen Horowitz the $14.5 million Beacon Fund — a fund managed by Polychain Capital with support from DFINITY and Andreessen Horowitz.

On Dfinity Sodium and future development:

“The Network Nervous System (NNS) now means the Internet Computer is feature complete. It represents a seminal moment in the history of the internet. For the first time, internet services will be governed in a completely independent, decentralized manner. It is the technical solution to the systemic problems Big Tech has created with its monopoly over the internet, a public utility that should be completely open — bringing back the concept of the programmable web. The NNS is the catalyst for the open internet we were promised in the 1990s, and it ensures that the future of the internet remains open and free.”

Dfinity Demo Day Spotlight: A thread about demo projects running on Dfinity.

Filecoin

Announcing Mainnet Ignition & Liftoff: Over the last few weeks, the Filecoin network has made immense progress. More than 500 miners have onboarded over 325 PiB of storage, 265 clients have made >40,000 storage and retrieval deals, and collectively they’ve thoroughly exercised and tested the network’s functionality, security, and resilience. The team shared an update on Filecoin’s launch phases & schedule as they enter Mainnet Ignition — the onboarding phase to bring miners, clients, custodians, applications, & ecosystem partners onto the network — and get ready for Filecoin Mainnet Liftoff the week of October 19–23.

Slingshot Week One Recap: It’s been an exciting week with the kickoff of Filecoin Slingshot, a two-part competition for storage clients and developers to deploy their products to the testnet. Phase One of this competition (“Onboard”), which started on September 23, 2020 and runs through October 14, aims to onboard 1PiB of real, useful data to the Filecoin network. Phase Two (“Scale”) aims to onboard 10PiB of data. Between the two phases, participants have a chance at getting a share of a prize pool of up to 500,000 FIL based on their network storage commitments!

Want to Learn More about Filecoin? Start here. The following ‘syllabus’ of instructional videos and materials covers all aspects of the Filecoin network — from mining to storage to application development. This resource is designed for anyone interested in learning about the history and development of the network, as well as how to leverage the network at all levels: mining, building, and storing.

Space Race AMA #4 Summary: As a part of the Space Race events program, the Filecoin team are hosting weekly live AMA’s with the Filecoin community. On September 23rd the team hosted their fourth AMA answering 20+ questions on Space Race 2 and Filecoin mining.

Upcoming Staking Events

Major upcoming events by CryptoDIffer:

MISC

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Paradigm
Paradigm

Written by Paradigm

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