MegaETH (Ethereum Mega Star) Testnet Now Live

This series will introduce a range of protocols incubated by Mega Mafia, providing readers with clearer guidance while exploring the ecosystem. Mega Mafia is the flagship accelerator program of MegaETH, designed to assist developers with unique ideas in creating one-of-a-kind protocols on the World Computer, rather than forking already successful cases. In other words, do not reinvent the wheel on MegaETH.

The program is funded by investors including ABCDE, ANAGRAM, FIGMENT, GSR, KRAKEN VENTURES, MAVEN11, ROBOT VENTURES, WINTERMUTE, BASED16Z, CALVIN LIU, GEORGE LAMBETH, GUY YOUNG, ICEBERGY, JEZ, KAINAIN.D.KIAAIN, among others.

Reinterpreting the World Computer: From Technology to Ecosystem, How MegaETH Becomes Ethereum’s Savior

Avon Introduces Limit Orders to Revitalize the Lending Protocol

Avon is a lending protocol that adopts an order book mechanism, specifically limit orders. They identify a significant issue in the current DeFi landscape, which should eliminate the intermediary role of financial institutions, making financial services more open and accessible. However, current lending practices are still in their early stages, resembling AMMs governed by fixed parameters, failing to achieve genuine market operations.

Issues include:

• Lack of Price Discovery: Lending rates are still set by protocols rather than determined by market competition.
• Limited Competition: Most DeFi protocols on new chains are merely forks of existing protocols, with minimal changes.
• Lack of Evolution: Protocols may fine-tune parameters or introduce new incentives but fail to address core issues.

Borrowers typically face excessively high interest rates, while lenders must choose between low returns and high risks. The nature of the current DeFi lending market remains similar to traditional banking, rather than being a truly open market.

Therefore, Avon offers an open, competitive, and transparent on-chain lending market, replacing the fixed-rate mechanisms set by traditional protocols. By introducing limit orders into the on-chain lending market, the interest spread narrows, enhancing capital efficiency. Potential lenders can competitively set lending rates, improving market liquidity and efficiency.

Main Features:

• Lenders control risk and yield parameters, no longer just passively providing liquidity.
• Borrowers can compete for the best rates, creating a market-driven pricing mechanism.
• The lending market becomes more proactive, akin to the bidding mechanisms in traditional financial markets.

The execution layer of MegaETH allows on-chain lending to compete with traditional finance. This means prices can adjust timely without distortion and can be settled promptly. If speed were not important, Wall Street would not spend billions competing for nanosecond-level trading speeds.

Autonomous World Engine: Create Your Own Web3 Game Without Developer Background

Autonomous World Engine (AWE) is a new type of game engine, essentially the AI16z for games and the metaverse. It allows users to transform any idea into a 3D experience (AI simulations, crypto games, NFT galleries) without learning any code. Moreover, it is faster and more open than previous iterations. It appears to have been created by the OnCyber team, who have significant experience in 3D platforms. The real-time blockchain features of MegaETH make 3D platforms and blockchain games possible. The World Computer extends beyond finance.

CAP: The First Stablecoin Protocol with Outsourced Yield

Many DeFi protocols rely on internal demand to sustain yield, such as new funds willing to buy governance tokens. When demand decreases, these protocols cannot maintain revenue, leading to token flywheel failures. If external strategies (e.g., quantitative strategies) are chosen, yields will gradually narrow due to market competition and appetite. Therefore, CAP opts to outsource yield, in simpler terms, institutional lending, allowing stablecoin providers to share in the profits.

Stablecoin holders deposit USDC/USDT into CAP’s smart contract, minting cUSD at a 1:1 ratio, usable for trading or staking for yield.

For instance, if a high-frequency trading firm wants to borrow through CAP to execute a trading strategy with an annual return target of 40%, it must pass CAP’s whitelist certification and persuade restakers. Once the operator secures sufficient delegated funds, they can withdraw USDC from CAP to execute proprietary yield strategies. The operators can include banks, high-frequency trading firms, private equity firms, RWA protocols, DeFi protocols, and liquidity funds.

The operators are required to pay cUSD stakers the benchmark yield set by CAP and an additional insurance fee to restakers. For example, if the benchmark yield set by CAP is 13%, and the operator pays an extra 2% fee, the operator retains 25% of the yield. cUSD stakers can withdraw accumulated yields at any time.

At the end of October last year, CAP completed a $1.9 million pre-seed funding round, with investors including ABCDE Capital, Robot Ventures, Kraken Ventures, former EigenLayer CSO Calvin Liu, and co-founders of Balancer, Polygon, Synthetix, among others.

Euphoria: Making Trading as Fun as a Game? A Trading Platform for the TikTok Generation

It is challenging to accurately describe Euphoria; the official description suggests the aim is to make trading easier and to enhance its social attributes. The author speculates it may resemble mobile-centric trading interfaces like MoonShot. Officials state that when we opt for derivatives such as options and futures, these so-called complex financial tools are merely predictions about the future, expressing what we believe will happen next using money.

Euphoria transforms derivative trading into a gamified, mobile-first consumer experience with social attributes, featuring Tap Trading.

Risk Warning

Investing in cryptocurrencies carries a high level of risk, and prices can be highly volatile. You may lose all your principal. Please assess risks carefully.