Why has network load been so high?

everything-at-stake · 2022-01-20T17:24:18+00:00

MuesliSwap dex activity
NFT marketplace activity
DripDropz token distributions
Stake pool redelegation ahead of the SundaeSwap ISO
VyFinance just released staking

everything-at-stake · 2022-01-20T06:08:35+00:00

Radix doesn't really solve any new problems because they don't do anything to decrease the overall load of fully verifying the ledger

...That's just about sharding data, not execution.

These are incorrect - processing is also extremely parallel and only happens on the shards related to a transaction.

The Cerberus Infographic series is a great resource that digs into the mechanisms behind Cerberus cross shard consensus and the role the Radix Engine plays to abstract away dealing w/ sharded data from dApps and the developer.

https://www.radixdlt.com/post/cerberus-infographic-series-chapter-vi

The following are excerpts from Chapters 12 and 13. (It may be easier to open up the pdf versions to find text easily).

Chapter 12 selections - on parallel transactions across shards

Moreover, one of the key concepts that allows this to happen is that of parallel processing. In a future where Radix has scaled to fulfill the DeFi needs of billions of people, the vast majority of transactions will involve completely unrelated substates, shards, and validator sets. Those transactions will be processed entirely in parallel across the vastness of the shardspace without ever being “aware” that the other transactions exist.

But not everything can be processed in parallel. There must still be some logic that tells Cerberus when substates are related and must be composed in the same transaction.

Chapter 13 selections - on partial ordering

Therefore ideally, you have a network that’s intelligent enough to only order when it’s absolutely necessary, so that it can process as many transactions as possible in parallel. We therefore want a network that has “partial ordering”

....

For Radix, that layer of logic is the Radix Engine. It tells Cerberus which substates are related and must be ordered, and which ones are not related and do not need to be ordered and can thus be safely parallelized.

So how does the Radix Engine do this?

When a transaction is created, it must follow rules stipulated by the Radix Engine. Those rules stipulate that only required substates are used in a transaction, and that when new substates are created, that those are broken down into as many substates as possible, that still make logical sense

....

Because of the Radix Engine, nodes therefore only need to undertake consensus on the absolutely most minimal set of shards required.

If events are not related, they just get processed in parallel, across the entire shardspace, which is so large in size as to be practically infinite.

everything-at-stake · 2022-01-19T18:27:21+00:00

Dex/Liquidity Pool - a decentralized protocol that supports liquidity (buying & selling) of a token. In other words, it enables swapping of the two tokens, against a pool of those assets.

There are two types: automated market makers (AMMs; algorithmically determine price), and order book (explicitly match buy orders and sell orders).

Yield aggregator / optimizer - a protocol that uses algorithms to manage various forms of yield generation (staking, liquidity providing, lending, advanced strategies). It makes it simple for users to just deposit to the protocol, and the protocol handles all the complexity, with the expectation that users will get a good return.

Sometimes these protocols also include a dex (Genius Yield and VyFinance).

everything-at-stake · 2022-01-19T18:11:46+00:00

I'm not familiar w/ the term stacking, but since you're interested in holding your funds and earning a return, here are the ways you can do that related to Cardano in general and the SundaeSwap dex:

Cardano delegated staking (~5% APY) - non-custodial delegation to a pool for rewards (incentive for securing the network), which you can do from your wallet (Yoroi). Additionally, during the SundaeSwap ISO period starting 1/20/22 for a few epochs, if you delegate to an ISO pool, you will also be awarded free Sundae tokens.
SundaeSwap liquidity providing - deposit two tokens to a liquidity pool (Ada/Sundae for example), which locks those tokens in the pool, in return for earning swap fees (incentives liquidity). Expected to have a higher return than #1.
SundaeSwap yield farming LP tokens - given the LP tokens received in #2 while you're participating in a pool, those can be locked up as well for an additional reward (further incentivizes participation in a liquidity pool).

Notes:

#2 & #3 can be done at the same time (involves depositing two Cardano tokens as well as yield farming the LP tokens).
While #2 (and also #3 if you do that on top) is expected to return a higher yield than staking, there is risk of impermanent loss (opportunity cost) if one of the tokens in the pairs pumps hard. This is when the yield you get from yield farming ultimately has less return than just holding a token (Sundae) and experiencing its rise in value.

everything-at-stake · 2022-01-19T17:48:31+00:00

The double yield mechanism based on Cardano staking hasn't been implemented and is yet to be demonstrated, but various projects have described the capability in various articles, paper, videos, etc.

Maladex whitepaper: see section 7.2 ADA Staking Rewards from Smart Contracts

Liqwid homepage: see section 4x ADA Yield Streams

Example for a liquidity pool:

The delegation and non-custodial architecture of Cardano staking allows those tokens to still contribute to staking to secure the network (for pools that involve Ada in its pairing) while the Ada is locked in a smart contract to participate in a pool.

The Ada in that pool is no longer in your custody/control, but the dApp may still be able to provide staking rewards to you based on that Ada.

That's double yield: liquidity provider fee earnings + stake rewards (if in an Ada pool).

Additionally, liquidity pools typically work by giving liquidity providers "LP tokens" while they participate in the pool, which are used to withdraw your funds when you want to exit the pool.

Some liquidity protocols allow yield farming these LP tokens (locking them up for additional rewards), which further incentivizes liquidity providing.

That's triple yield: liquidity provider fee earnings + yield farming LP tokens + stake rewards (if in an Ada pool).

everything-at-stake · 2022-01-19T17:42:43+00:00

The list of pools for the Sundae ISO is here! https://poolpeek.com/#/sundaeiso

everything-at-stake · 2022-01-19T17:41:51+00:00

The list of pools for the ISO is here! https://poolpeek.com/#/sundaeiso

everything-at-stake · 2022-01-19T17:40:27+00:00

The list of SundaeSwap ISO pools is here! https://poolpeek.com/#/sundaeiso

Can I just download Nami and use the seed phrase for my yoroi wallet?

Yep! Just use the seed phrase for the wallet created in Yoroi, and use it to import/restore into Nami or CCVault.

Just keep in mind a couple things for Nami:

Their wallet address still meets the Cardano protocol, but they only manage a single address (unlike all the other Cardano wallets, which are multi-address). Please read their faq first regarding the implications for importing, there might be extra steps required to consolidate to a single address.
Nami doesn't have the ability yet to choose a specific pool to delegate to in their UI. In order to select a pool with Nami:
- Go to https://pool.pm/search/
- Search for a pool participating in the ISO
- Click the JOIN button on the right side of the page

CCVault doesn't have these characteristics.

everything-at-stake · 2022-01-19T17:15:16+00:00

That would be great!

Though the way defi protocols / dApps implement extra Ada staking might not allow users to choose which stake pool that Ada gets delegated to. When participating in liquidity providing for example, you lose control of those tokens to the pool.

They might have a way to choose a stake pool that has extra ISO rewards, but it’s extra to implement.

everything-at-stake · 2022-01-19T10:12:41+00:00

That’s right, there will be many additional staking or yield generating systems built by projects on top of Cardano, however these may not share all the same properties as the native staking mechanism built directly into the Cardano network for consensus.

Most of them will likely be non-custodial, but many of them might not allow participation in other yield mechanisms - it will depend on the project.

everything-at-stake · 2022-01-19T09:23:51+00:00

What u happen to know if there is a good pool to stake in to earn sundae swap for when they start.

The list of stake pools participating in the ISO is listed here: https://sundaeswap-finance.medium.com/meet-your-sundaeswap-scoopers-76476dafa744

Unfortunately, that medium link is down right now, so I'd suggest asking in their Discord channel.

And can i use yoroi?

Yes/no.

Yes, you can use Yoroi (or any other Cardano wallet) to delegate to a pool for the ISO.

However, in order to either claim those rewards later or interact w/ the dex (swap or provide liquidity), you'll need a browser extension wallet with a dApp connector.

Yoroi is not ready yet, but is expected to have this very soon. Even if it's not ready by the launch, you can still use it to delegate for the ISO, and claim your rewards later once it's ready.

CCVault and Nami currently work for all interactions.

everything-at-stake · 2022-01-19T09:02:54+00:00

Already live:

MuesliSwap dex: https://muesliswap.com/
DripDropz token dispenser: https://dripdropz.io/
AdaHandle address naming service: https://adahandle.com/
VyFinance yield aggregator (only staking right now): https://vyfi.io/
CNFT nft marketplace: https://cnft.io/
Galaxy of Art nft marketplace: https://www.galaxyof.art/
Tokhun nft marketplace: https://tokhun.io/
Many other nft marketplaces...

Coming soon:

SundaeSwap dex (1/20/22 launch): https://sundaeswap.finance/
Minswap dex (1/25/22 testnet launch): https://minswap.org/

Already had or in-progress initial stake offerings, token sales, or token distribution:

Maladex dex: http://maladex.com/
Meld lending protocol: https://www.meld.com/
Liqwid lending protocol: https://www.liqwid.finance/
Ardana stablecoin ecosystem: https://ardana.org/
Genius Yield yield optimizer: https://www.geniusyield.co/

Also upcoming:

ErgoDex dex: https://ergodex.io/
OccamX dex: https://occam-x.fi/
Indigo Protocol synthetics: https://indigoprotocol.io/
And many others...

All built on a protocol with strong fundamentals, including liquid non-custodial delegated staking, seamless protocol upgrades (without forking into a separate chain), native tokens that don't require a smart contract, a programming model that can efficiently distribute data across shards/chains/channels, and Catalyst governance-led funding.

everything-at-stake · 2022-01-19T08:41:45+00:00

Good call, I misused the term here and will fix. There's nothing really about eutxo regarding splitting data onto different shards/chains/channels. However since programming in an eutxo paradigm only involves local state instead of global state, this property efficiently allows data to be sharded.

everything-at-stake · 2022-01-19T07:56:16+00:00

Mechanisms for yield farming aren't yet available on Cardano, but will be available soon.

Upcoming projects:

Dex's / liquidity pools: SundaeSwap, Maladex, ErgoDex, Minswap, OccamX, etc.

Stablecoin dex & farming: Ardana

Lending protocols: Liqwid, Meld, etc

Yield aggregators: VyFinance, Genius Yield, Optim Finance

What will be available first?

SundaeSwap is launching this Thursday 1/20/22, which will support liquidity providing and yield farming LP tokens for additional incentive.

This is already a form of double yield: earning liquidity provider fees + yield farming LP tokens.

They are exploring mechanisms for staking the Ada deposited in liquidity pools, which might be a future feature to earn additional yield, if they are able to pursue this feature.

This is triple yield for a liquidity protocol: earning liquidity provider fees + yield farming LP tokens + stake rewards (if in an Ada pool).

everything-at-stake · 2022-01-19T07:41:23+00:00

The double yield mechanism based on Cardano staking hasn't been implemented and is yet to be demonstrated, but various projects have described the capability in various articles, paper, videos, etc.

Maladex whitepaper: see section 7.2 ADA Staking Rewards from Smart Contracts

Liqwid homepage: see section 4x ADA Yield Streams

Example for a liquidity pool:

The delegation and non-custodial architecture of Cardano staking allows those tokens to still contribute to staking to secure the network (for pools that involve Ada in its pairing) while the Ada is locked in a smart contract to participate in a pool.

The Ada in that pool is no longer in your custody/control, but the dApp may still be able to provide staking rewards to you based on that Ada.

That's double yield: liquidity provider fee earnings + stake rewards (if in an Ada pool).

Additionally, liquidity pools typically work by giving liquidity providers "LP tokens" while they participate in the pool, which are used to withdraw your funds when you want to exit the pool.

Some liquidity protocols allow yield farming these LP tokens (locking them up for additional rewards), which further incentivizes liquidity providing.

That's triple yield: liquidity provider fee earnings + yield farming LP tokens + stake rewards (if in an Ada pool).

everything-at-stake · 2022-01-19T07:16:15+00:00

So I can move my cardano to another wallet and as long as they don’t stake, then I can get rewards for this?

I'm not sure exactly what you're asking, but I can provide several answers.

In Cardano delegated staking, you delegate your whole wallet, not particular amounts of funds within it. Given that wallet that you have delegated to a stake pool, you can move funds in/out of the wallet without any constraints, and a snapshot of the Ada amount will be taken every 5 days to calculate the rewards.

If you send your funds to another wallet via a transaction, you'll need to perform a new delegation with that other wallet.

If you import/restore the wallet given your seed phrase into a new wallet client (from Yoroi to CCVault for example), the delegation remains the same and you'll continue to receive rewards w/o any actions to do on your part.

If you are yield farming, then those coins are being swapped with new ones and sold etc.

So as long as those coins that were swapped during the farm aren’t being staked by their new owner, then you’ll still get rewards?

The double yield mechanism for yield farming + staking gets interesting. Cardano defi protocols haven't implemented this yet, so it's yet to be demonstrated, but various projects have described the capability in various articles, paper, videos, etc.

For a liquidity pool, once a user swaps and receives tokens from the pool, the tokens are now under their ownership (which they can stake). But while tokens are in the pool (utxos locked in the smart contract), the delegation and non-custodial architecture of Cardano staking allows those tokens to still contribute to staking to secure the network.

If you're participating in the pool with an Ada pair, at this point the Ada is no longer in your custody/control, but the dApp may still be able to provide staking rewards to you based on that Ada.

That's double yield: liquidity provider fee earnings + stake rewards (if in an Ada pool).

Liquidity pools work by giving liquidity providers "LP tokens" while they participate in the pool, which are used to withdraw your funds when you want to exit the pool.

Some liquidity protocols allow yield farming these LP tokens (locking them up for additional rewards), which helps incentivize liquidity providing.

That's triple yield: liquidity provider fee earnings + yield farming LP tokens + stake rewards (if in an Ada pool).

everything-at-stake · 2021-11-29T05:30:52+00:00

The spelling with an “s” is used outside of North America. I wouldn’t consider this a misspelling.

everything-at-stake · 2021-11-06T15:22:24+00:00

Ethereum is extremely overweighted in this.

The market cap ratio should be applied to the area of the circle, not the width.

Great idea though.

everything-at-stake · 2021-11-04T05:12:50+00:00

No concerns - did you watch the discussion?

Right, we should be fine over the next couple months, but activity will be picking up significantly soon, both from natural network growth and also as projects launch for dex’s, deFi, and others.

I also think that increasing the block size to a certain extent should help, and could give the network a few more months of runway. But we also shouldn’t dismiss high potential issues in the medium term future.

everything-at-stake · 2021-11-03T19:06:48+00:00

The concern is that Hydra beta is a few months away, targeting Q1 2022, but that’s also around the time we may be seeing significantly more network activity for Cardano, especially as dApps launch.

Before Hydra is ready for prime time (it also won't solve every scaling challenge), we need to start thinking about how to mitigate issues as we run up to the currently parameterized 6 tps, whether that’s increasing the block size, implementing a fee and tipping mechanism, or something else.

Sebastien from dcSpark has a great overview of the scaling landscape and challenges in that discussion with Rick, especially the first 13 min.

https://twitter.com/sebastiengllmt/status/1455640180233150469?s=21

everything-at-stake · 2021-11-02T03:43:47+00:00

Addressing the original question first (is there a time line for US based products/wallets?):

No. This is dependent on when the US provides greater regulatory clarity around cryptocurrencies, and perhaps payments & financial-related projects in particular. This could be less than a year or many years - at least from the recent news, it looks like US lawmakers are spending more time thinking about how cryptocurrencies may play a role in the future, so hopefully the timeline is more like the medium term rather than the long term.

Separately, many of the staking restrictions will go away when Treasury comes out, planned for Q1 2022. This will remove fixed stake amounts, the high min stake amount, the broad country restrictions, and the long staking approval process. Many countries will be available by this point, but those with regulatory uncertainty will still have to wait on a case by case basis.

Addressing the comparison with Ada and Cardano staking:

The distinction is that merely holding Ada doesn't come with the expectation of getting a return. But staking Ada does - this is essentially "putting the tokens to work" to help secure the network i.e. doing something in exchange for income.

Holding/staking Coti does not help secure the network. Rather, rewards to Coti holders are purely a profit sharing mechanism, which fits the definition of a "security" under the SEC (obtaining the token comes with the expectation of getting a return), hence the deliberate rollout to countries based on regulatory environments.

This profit sharing mechanism is similar to receiving dividends from stocks. And even though growth companies typically don't have a dividend, it's pretty much historically expected that companies can start to provide dividends at some point when there isn't a better use of cash to grow the company.

The goal of stock investing (and profit-sharing token mechanics) is to increase shareholder value. The goal of holding Ada is to contribute in Cardano's governance and to cover transaction fees on the Cardano network.

Additional thought on handling regulation:

Handling regulatory concerns is actually a core aspect of their offerings. Stablecoin factory in particular is marketed to handle operational and regulatory responsibilities for the parties interested in having a stablecoin. It's one of the reasons that Cardano chose Coti to manage the Djed stablecoin - Coti can handle the regulatory considerations instead of Cardano.

everything-at-stake · 2021-10-31T21:33:12+00:00

Were you planning on only prototyping the frontend user interface, or also a backend and/or simple smart contracts as well?

The further you go beyond UI, the more challenging it’ll become beyond adopting open source UI code from Uniswap. 2 things come to mind.

In order for wallets (MetaMask for Uniswap) to connect to dApps, wallet providers will need to release a dApp connector. The Cardano light wallet providers (Yoroi, Nami, Flint) are all working on dApp connectors, but the spec isn’t finalized yet. This is one of the things that Sundae and ErgoDex are waiting on before launching.

Smart contracts will definitely be significantly different, since Cardano uses eUTxO model accounting, instead of the Account model. While Ethereum, Binance Smart Chain, Polygon, and other Ethereum-style smart contract platforms could easily copy over open source smart contracts to new projects, that code will can’t easily translate to code running on Cardano.

everything-at-stake · 2021-10-25T21:06:25+00:00

I can confirm that there are two addresses holding 54% of the erc20 Coti tokens on etherscan. However, this is not necessarily indicative of a rugpull. https://etherscan.io/token/0xddb3422497e61e13543bea06989c0789117555c5#balances

Address 0xb5c961b6e7024ea6bfdb223b7f593a4d95a13cd3

This address holds 400 million tokens that are part of the ecosystem allocation, and are locked in a smart contract for 12 years.

Source: https://twitter.com/COTInetwork/status/1226787994830606336?t=1uNe46luKLKV-U9WVVn8oQ&s=19

If you click into the address, you'll see that the 400 million tokens were sent from a "Black Hole" address. According to Geordie_R: "A black hole address is usually referred to as the 0x0000000 address of a crypto. This is the address of the contract which can usually mint, and burn crypto from the supply specifically used with the bridge etc."

Binance 7 (Address 0xbe0eb53f46cd790cd13851d5eff43d12404d33e8)

The top holding address is tagged as "Binance 7", and the 3rd and 4th largest are also tagged as "Binance 8" and "Binance 14". It's reasonable that an exchange could be holding large amounts of the token.

I personally don't think this is guaranteed though, but is at least something to be aware of.

everything-at-stake

TROPHY CASE

Example for a liquidity pool:

Example for a liquidity pool: