What You Need to Know About Socket
stATOM on Arbitrum? | MakerDAO Endgame Roadmap | USDC on Cosmos
GM, this is your Daily Bolt briefing.
It’s now clear to most that the future of crypto is multichain. Socket is building out cross-chain messaging infrastructure, and gaining adoption from big names in the blockchain space along the way. Keep reading to learn more about Socket’s approach to the cross-chain problem.
We’ve also included two more notes reports detailing:
Axelar, a programmable interoperability layer. Our report also includes info on Camelot DEX’s stATOM liquidity, brining Cosmos assets to Arbitrum.
MakerDAO Endgame, a 5-step plan to incentivize governance participation in the MakerDAO ecosystem.
If you’re a fan of the sort of content we include in our daily newsletter, you’ll be glad to know you can access much more on our platform for free.
Our Project Breakdowns arm you with all the in-depth details you need to know before getting involved in a project. Whether you’re looking to invest, LP, or just use a particular project, having our research at your fingertips is definitely a helpful tool to have. Sign up for a free account today to get access to 14 high-level breakdown reports.
Stay sharp in the markets.⬇️
1/ Empire - MakerDAO Endgame Plans
Preview: In this episode of Empire, Santi and Jason invite Rune Christensen to discuss the early days of MakerDAO, decentralized governance, AI’s Role in DAOs, phases of Endgame, and the allocation system. Click here to listen to the full episode (70 mins).
Read our Note (7 mins) and save 63 mins.
Here are some key takeaways:
Rune says that to encourage active participation in governance and to counteract the influence of mercenary capital, the idea of introducing governance participation rewards should be introduced.
The Endgame plan is a roadmap designed by Rune to decentralize governance at MakerDAO and improve DeFi innovation.
Rune says that phase one of Endgame is called Beta Launch. This phase is about establishing a unified brand. It's the initial stage where the groundwork is laid for the future phases.
He says that the second phase involves the launch of several SubDAOs. These SubDAOs are designed to drive the growth and expansion of the ecosystem.
He explains that the third phase is to consolidate governance. This phase is about getting the governance into a decentralized equilibrium.
He says that the fourth phase involves putting in place rewards for participating in governance. This is designed to solve the problem of voter apathy by incentivizing participation.
Rune says that the fifth phase is the largest. It doesn't introduce anything new but rather re-architects and redesigns everything from the bottom up in the most efficient and future-proof possible state. This includes a new blockchain that can hard fork by itself, providing a fully sustainable design that can last through the ages.
Rune introduces the concept of the "allocation system", which will sit with a type of SubDAO called the "allocator DAO".
He says that these allocator DAOs will compete with each other to wield the economic power of MakerDAO and the DAI collateral portfolio. This system is designed to distribute the stablecoins to the most optimal places, capturing value and bringing value back into the MakerDAO system.
2/ Axelar Twitter Space ft. Camelot & Stride
Preview: In this Twitter Spaces, Galen from Axelar hosted IronBoots from Camelot and Vishal from Stride to discuss cross-chain liquidity staking and more! Click here to listen to the full episode (50 mins).
Read our Note (5 mins) and save 45 mins.
Here are some key takeaways:
Axelar Network is a Turing-complete interchain network — a programmable interoperability layer.
Camelot is an innovative and highly flexible DEX built to support the Arbitrum ecosystem.
Stride Labs - a blockchain ("zone") that provides liquidity for staked tokens.
Galen says that Axelar Network is a secure cross-chain communication network connecting nearly 40 chains.
Vishal introduces the concept of liquid staking. He highlights the challenge in the Cosmos ecosystem where users must choose between staking to support network security or using tokens in DeFi applications. Through liquid staking, which is offered by Stride, this trade-off is removed.
IronBoots talks about how Camelot has initiated liquidity for stATOM on Arbitrum. He believes that once spot liquidity is established, it opens the doors to creating other derivatives, options, and lending protocols.
Galen believes that Circle integrating native USDC on the Cosmos ecosystem last fall is a significant development. As a long-term partner with Circle, Axelar played a role in facilitating the cross-chain function of Axelar USDC, particularly in the Cosmos ecosystem.
Vishal talks about the importance of stablecoins not just as Liquid Staking Tokens (LSTs), but for all of DeFi. He sees LSTs as just one component of a broader DeFi strategy, many of which involve USDC or involve borrowing USDC against positions. Native USDC can help boost user confidence which in turn could lead to growth in the DeFi sector. This is particularly beneficial for Stride, as they are deeply involved in DeFi within the Cosmos ecosystem.
3/ The OPtimistic Podcast - Introduction to Socket
Preview: In this episode of the OPtimistic Podcast, Subli invites Rishabh Khurana to discuss the features and mission of Socket, unifying liquidity, integration with other protocols and applications, and future plans for Socket. Click here to listen to the full episode (50 mins).
Read our Note (6 mins) and save 44 mins.
Here are some key takeaways:
Subli describes Socket as an interoperability project that facilitates communication between chains.
He says that Socket is currently deployed on 11 different chains and allows cross-chain swaps through aggregating bridges, decentralized exchanges (DEXs), and DEX aggregators.
He also says that Socket offers services to other businesses and also offers a user interface called Bungee Exchange which users can use to bridge their tokens across chains.
Rishabh says that Socket started working with Synthetix about a year ago when Synthetix launched on Optimism. He adds that Synthetix leverages Socket to provide an experience where users could come from any chain with any token and start using Synthetix immediately without having to leave the Synthetix application.
He states that GMX and Slingshot leverage Socket as well. Rishabh mentions that Socket made GMX's GLP token chain agnostic, allowing users from Polygon to buy $GLP on Arbitrum in one transaction.
Rishabh says that Socket recently released a messaging protocol that allows users to send instructions on what to do with tokens. He provides the example for this messaging protocol that a user can send USDC from Arbitrum to Optimism, swap it to USDT, and then deposit the USDT into Aave, in one seamless transaction through Socket.
Rishabh says that the team is running an initiative called Socket Surge, a community-led approach to security.
Rishabh says that they have allocated five percent of any future token supplies to security initiatives.
He talks about the "lootboxes" which contain USDC rewards that will be distributed to hackers who manage to break into Socket.
If you read these 3 Notes on Revelo Intel you would have saved: 2 hours and 35 minutes!