TLDR CRYPTO 2023-06-30

CME GROUP ANNOUNCES PLANS TO LAUNCH ETH TO BTC RATIO FUTURES

CME Group is planning to introduce ETH-BTC ratio futures by July 31, subject to regulatory approval. The ETH-BTC ratio is one of the most popular ratios crypto native traders use to understand market cycles. DeFi users also often trade this ratio when there are relative value opportunities. Now with this instrument, traditional funds can get exposure to this ratio. This comes after the exchange's addition of daily expirations for bitcoin and ether futures options contracts in May.

EXTRAORDINARY ABUSE OF PROCESS'

Coinbase is challenging allegations by the SEC that it has been facilitating unregistered trading in certain digital tokens. In a recent filing, the company countered that the tokens in question do not qualify as securities. Further, Coinbase accused the SEC of misapplying securities law, arguing that its due process rights have been violated and highlighting what it perceives as inconsistencies in the SEC's decisions. This is yet another example of the company's firm stance against the SEC's onslaught on crypto.

Coinbase's L2 blockchain, Base, is nearing its mainnet launch following extensive security audits. As a refresher, the chain was developed collaboratively with Optimism using the OP stack with an eye toward building an L2 and underlying ecosystem that can onboard the masses. The security measures employed included testing for potential vulnerabilities in all Optimism's pre-deployments and auditing smart contracts. They also utilized a technique called "fuzzing" and engaged over 100 external security researchers to identify and mitigate potential risks.

OKTA AS IT PUSHES INTO GERMANY

Blockchain identity project Worldcoin has partnered with identity management software provider Okta to launch its identity protocol, World ID, in Germany. Worldcoin's new feature, 'Sign in with Worldcoin', has been added to Okta's Auth0 marketplace, providing an alternative sign-in option for app developers. The project’s stated aim is to enhance privacy and provide a way to differentiate between humans and bots. It is set to launch across thousands of apps. Worldcoin currently boasts 1.9 million users in 30 different countries.

THE INEVITABLE ADOPTION OF COPROCESSORS, DRIVEN BY UNISWAP V4

Uniswap has announced v4, which features four improvements: Hooks, Singleton, Flash Accounting, and Native ETH. Hooks allow developers to create customizable liquidity pools. Singleton decreases pool deployment costs by 99%. Flash Accounting simplifies complex pool operations. Native ETH permits both ETH and WETH pairs. One of the main advantages of v4 is its programmability, with hooks significantly enhancing the flexibility and customizability of liquidity pools. However, this flexibility comes with risks, including potential bugs and new attack vectors. Given the wider array of customization, developers leveraging v4 will need to exercise caution and fully understand the implications of their design choices.

BUILD A TOKENGATED STOREFRONT WITH SHOPIFY

This guide from Shopify illustrates how to design and implement a tokengated storefront using Shopify's Hydrogen and Headless platforms. The tutorial guides developers through using the Gates API, applying gated discounts through Shopify Functions, and interacting with a connected crypto wallet. The end goal is to facilitate a customer journey that grants automatic discounts to various customer segments like loyal customers or token holders of another brand. Developers going through this guide should already have some knowledge of creating gates through the Gates API and establishing Shopify Functions for gated discounts.

FINDING INSPIRATION

In the midst of the bear market, builders can start to lose the spark that initially got them into the space. To counter this, the author of this blog takes a look at some of the most promising projects they’ve seen in the space. They discuss projects like 0xSplits, Protocol Guild, Nouns, and SongCamp, highlighting their innovative works, which infuse optimism into the crypto space amidst scams and grifters. 0xSplits develops 'hyperstructures': fee-less, on-chain fiscal tools that could be core building blocks for a non-custodial financial future. Protocol Guild helps align incentives of Ethereum contributors toward a common goal. Nouns, an on-chain art project, runs daily auctions. Lastly, SongCamp unites creators in an 8-week experiment to produce and distribute songs and complimentary content. These projects reaffirm the author's faith in experimentation and long-term thinking in crypto.

UK CRYPTO, STABLECOIN RULES RECEIVE ROYAL ASSENT, PASSING INTO LAW

The UK has turned a bill into law that enables financial regulatory supervision over crypto and stablecoins. Approved by King Charles, the Financial Services and Markets Bill grants more power to financial regulators, attempting to create a path for safer adoption of crypto assets in the UK. The law views all crypto as regulated activity and allows for supervision over crypto promotions. It also includes stablecoins under its payments rules. This move aligns with the government's plans, revealed earlier this year, to make the UK a hub for cryptocurrency.

BITCOIN SCRIPT PROJECT

The Bitcoin Script Project, an open initiative for Bitcoin development, is a concept that invites developers to re-focus on innovation on Bitcoin script itself. Recently, more development has been focused on Bitcoin “L2s” and “sidechains”, but this author argues that the space needs more focus on Bitcoin itself.

In this call-to-action, programmable retro-funding is suggested as a solution to inadequate traditional funding methods for open-source software projects, enabling fair, retrospective, and decentralized fund distribution.

FIDELITY REFILES FOR SPOT BITCOIN ETF

After a flurry of rumors that it would do so, Fidelity Investments has refiled paperwork for its previously rejected Wise Origin Bitcoin Trust, a spot bitcoin ETF, two weeks after BlackRock's similar application.

POLYGON 2.0: PROTOCOL VISION AND ARCHITECTURE

Polygon Labs has released its 2.0 vision and architecture. This framework, coined as the Value Layer of the Internet, consists of four layers: a Staking Layer for decentralization, an Interop Layer for secure cross-chain communication, an Execution Layer for block production, and a Proving Layer for transaction proof generation.