TLDR CRYPTO 2023-06-21

OPERATIONS

EDX Markets, a cryptocurrency exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab, recently launched, quietly beginning to execute trades in the past few weeks. The platform aims to differentiate itself by operating as a noncustodial exchange, thus not directly handling customers' assets. Instead, it serves as a marketplace for firms to negotiate prices and settle trades independently. EDX intends to target brokers and institutional investors rather than individual ones. As of now, the exchange plans to list only four cryptocurrencies - BTC, ETH, LTC, and BCH, aiming to avoid potential issues with the SEC.

BLACKROCK, THEN BITWISE — HOW THE SPOT BITCOIN ETF FILINGS DIFFER

Bitwise has revived its proposal for a spot Bitcoin ETF following a similar move by BlackRock and rumors of Fidelity pursuing one as well, even though the SEC has never approved such an offering. The Bitwise filing, like BlackRock's, emphasizes surveillance of Bitcoin via the CME futures markets. Analysts suggest Bitwise's move is a direct response to BlackRock's bid, and both filings cite the SEC's approval of a Bitcoin futures fund by Teucrium as a precedent. The outcome of Grayscale Investments' lawsuit against the SEC could further influence the prospects for approval of a spot Bitcoin ETF.

OPTIMISTIC POOL - A UNIVERSAL CO-PROCESSOR FOR ETHEREUM MAINNET

This proposal introduces the concept of an optimistic pool as a co-processor to Ethereum mainnet. It explains that an optimistic pool is a universal contract that offloads computations off-chain and validates them more efficiently on-chain, similar to roll-ups but without holding user tokens. The article mentions existing examples of co-processors being developed, such as WAX and Axiom. The optimistic pool being discussed is funded by Nouns DAO and aims to provide a low-cost solution for checking zk-proofs in a private voting system. This write-up provides an overview of how the optimistic pool works, covering claim kinds, blesser priority queue mechanics, and the blesser payout mechanism. It also suggests potential applications for the optimistic pool, such as private voting, Tornado Cash contracts, smart contract wallets, and optimistic aggregation of signatures.

SUPERCHARGED LIQUIDITY POOLS TO DEPLOY ON OSMOSIS

Osmosis, a decentralized exchange built on the Cosmos network, has received community approval to deploy supercharged liquidity pools. This upgrade allows liquidity providers to concentrate their assets and earn more rewards based on actual usage. The proposal received over 96% of the community's votes. The first supercharged pool will involve the DAI/OSMO assets. The migration of existing pools and the creation of new pools will follow a governance process until all curve pools on Osmosis are migrated. Whitelisted assets, including OSMO, USDC, and DAI, will be initially available for permissionless pool creation. The v16 upgrade is scheduled for late June.

DEEPER DIVE ON CROSS-L2 READING FOR WALLETS AND OTHER USE CASES

This blog from Vitalik discusses the importance of considering L1 + cross-L2 support, wallet security, and privacy as necessary features of the ecosystem stack. It focuses on the technical aspects of enabling easier reading between different layers of the chain and proposes various proof schemes, including Merkle proofs, ZK-SNARKs, special-purpose KZG proofs, and Verkle tree proofs. The article also emphasizes the need to optimize cross-chain proofs, minimize latency, and preserve privacy in the wallet ecosystem.

DEFI LESSON: FRAGMENTED LIQUIDITY AND 1INCH

Fragmented liquidity is a condition in the DeFi market where liquidity is dispersed among various trading platforms instead of being concentrated in one pool. This can create challenges in finding sufficient liquidity, executing trades at desired prices, and ensuring efficient trading across different protocols. To address this, 1inch, a liquidity aggregator, combines liquidity from multiple exchanges and protocols to provide users with optimal prices and efficient transactions. By aggregating liquidity and splitting trades across different pools, DEX aggregators minimize slippage and maximize price efficiency.

NFTS

Nike and Fortnite have collaborated on an in-game experience titled "Airphoria" in Fortnite's Creative Mode, allowing players to participate in a sneaker hunt within the game. While the experience does not directly involve NFTs, it does incorporate crypto elements. Users who connect their Epic Games and .Swoosh accounts and purchase non-NFT apparel items in Fortnite can unlock achievements on the .Swoosh platform.

POLYGON PROPOSES POS CHAIN TO BECOME ZK COMPATIBLE

Polygon has proposed an upgrade to its main chain to make it compatible with ZK tech, an upgrade that would transform the Polygon POS into a zkEVM validium, maintaining EVM compatibility. The change would also enhance security, eliminate reorganizations, speed up transactions, and scale the blockchain. This upgrade is being considered as part of Polygon 2.0, a rebranding initiative that will include various announcements about the blockchain, token, and governance.

Deutsche Bank is seeking regulatory approval from Germany's BaFin to provide a custody service for digital assets, including cryptocurrencies, expanding its digital asset income stream.

DEPARTURE LETTER

Alex Obadia, co-founder of Flashbots, has announced his departure from the company, citing the need for personal and organizational growth and warning of potential centralization threats to the system.

MASTERCARD SUBMITS FRESH TRADEMARK APPLICATION FOR CRYPTO TECH

Mastercard has filed a trademark application for a suite of blockchain and cryptocurrency-related technologies. According to these filings, the company plans to create an API to streamline blockchain transactions and crypto trading, bolstering its growing presence in the sector.

THERE'S A FAKE TREZOR WALLET IN THE APPLE APP STORE DRAINING CRYPTO

A fraudulent app named "Trezor Wallet Suite" has surfaced on the Apple App Store, potentially endangering users' funds by asking for their seed phrases.