Infinity Exchangeis in the Cryptocurrencies Industry

Infinity Exchange

Courtesy of freepik.com It’s hard to keep up with the pace of developments in the blockchain industry. But we seem to already be at a point where NFTs can grow and evolve. Some NFTs have unique characteristics that can change as they grow and evolve. For instance, a gaming-related NFT can evolve to become a unique and very powerful figure that is highly regarded or useful in a given ecosystem. And the more useful an NFT is, the larger its price tag is going to be. NFT evolution is already taking place in a variety of different ways. Making Sense of NFTs In one sense, NFTs can be compared to cryptocurrencies. Everybody is talking about them. Yet few know what they are in a technical sense. And just like the best way to get familiar with cryptocurrencies is to download a wallet and buy some cryptocurrency, the best way to understand NFTs is to purchase one and play around. You can do this at one of the many NFT marketplaces. is a great marketplace for those looking to get familiar with the new technology. You can trace back the lineage (parents) of NFTs and all associated data such as sale history, owner, attributes, etc. You can buy digital land, pets, digital plants, digital jewelry, and pretty much anything else. And these are soon going to be tied to pieces like actual land, actual pets, actual plants, and actual jewelry. Axie Infinity physical In other words, it’s certainly an area worth investigating, even if it looks a little ‘cartoonish’ right now with virtual figures. Plus, the sales figures these pieces of digital art are selling for are far from comical. Remember that you will soon be investing in real things. has been exchanged on the Axie Infinity marketplace alone. Over $2 Billion Other noteworthy marketplaces include OpenSea, Cryptopunks, Rarible, and SuperRare. Most of these are on the Ethereum Blockchain so you will need to invest in ETH to participate. You’ll also probably need a Metamask wallet but this is very easy to create. A Growing Market - Utility NFTs While many predict that the NFT market could bubble much like cryptocurrencies, the rise of utility NFTs could offset this. This is a special branch of NFTs that are tied to a specific function other than aesthetic appeal. Just because digital art NFTs are hot right now, does not mean we won’t see a wide variety of uses. For instance, you might get to participate in a new game where there are 10,000 utility NFTs that denote ownership of the game itself. This gives gamers ‘skin in the game’ as they are contributing to the system with their investment and their participation. And the NFTs themselves could grow and evolve as the game progresses. Kind of like investing in your own avatar that you use to play the game itself. And this is without exploring the concept of actually ‘breeding’ NFTs together to create a new one. This is what certain projects are doing and blows the doors wide open in terms of NFT evolution. The Breeding of NFTs is a collection of 10,000 artistic NFTs on the Ethereum blockchain. About 1,700 have been ‘burned’ (i.e. destroyed) due to the deflationary nature of this ecosystem. The collection is available for purchase on , one of the most established NFT marketplaces. Roaring Leaders OpenSea At present, an NFT has yet to be ‘born’ on the Roaring Leaders blockchain. But it is the next milestone on its list. The Tinder marketplace for breeding NFTs has likewise is soon to go live. When a Male and Female Roaring Leader are bred, the new Roaring Leader “Cub” NFT is created as part of a separate collection. Breeding currently costs ​​600 $ROAR, the project’s native token. The platform also recently launched a with a DJ for a high price pool of $4,000. live poker game That’s not all the platform has got going for it, however. It’s also home to what it claims to be the world’s first NFT mutual fund. This is another massive area that could be extremely lucrative, especially for early entrants. Roaring Leaders is comparable to , a near-identical project. There are only 1,000 NFTs on the Cyberkongz market as opposed to 10,000 on Roaring Leaders. In Cyberkongz, the token is the $BANANA instead of the $ROAR. Cyberkongz Even the Bored Apes Yacht Club will soon be breeding with the sister project, Bored Apes Wives. The Future The NFT marketplace is already quite strong, with nearly $7 Billion being traded on the OpenSea marketplace. A digital art NFT sold for $69 million earlier this year. Currently, digital art is where all the action is taking place. But while it may expand in this arena, it's not going to stay there. Imagine being able to actually interact with an NTF. What if you could use a virtual reality headset to view a digital art NTF that you purchased? It might still be digital, but you would be viewing it in a 3D environment where you are physically moving around in. From Static to Evolution Miami-based is already working on a 3D tactical shooter where you can interact with NFTs. The ‘VAIL’ 3D VR tactical shooter provides an environment where users can ‘physically’ interact with NFTs. It’s set to provide a new NFT angle by combining social gaming with cutting-edge virtual reality. AEXLAB Like Roaring Leaders, the animal theme is evident with the release of the VAIL NFTs. These NFTs are pets that will be minted in the upcoming tactical shooter. Each NFT will have a unique appearance and its own unique behaviors within the game. This takes the concept even further than Roaring Leaders. The ‘VAILIENS’ will evolve to gain new traits over time in the VAIL VR world and also respond to touch and commands. AEXLAB is not the only company with this concept. features upgradable cars that grow and evolve. This is similar to the AEXLAB pet NFTs. In the ChainRacers Play-to-Earn NFT marketplace, it's a racing battleground where the Chainriders take command of Chainracers to compete. Both ChainRacers and ChainRiders are NFTs that are randomly generated. ChainRacers The Era of NFTs Multiple NFT marketplaces are emerging that are clearly not static in nature. And we are only at the beginning of a burgeoning ecosystem. NFTs seem to have already evolved from 2D digital art into 3D VR figures before most people have even heard of them. Now they are becoming evolving entities in the same shroud of mystery. We are watching the foundation of a new digital era being laid. When the rest of the world catches up, they’re going to see the finished product. They won’t have seen the baby steps in between. If you’re paying attention now, you’re one of the few who can say that you saw where it all began. Disclaimer: The author holds tokens in some of the above-mentioned companies. The opinions in this article belong to the author alone and should not be considered investment advice.

Breeding NFTs Like Pokemons: Your Tokens Can Evolve

“ ” - Karl Marx Religion is the opium of the people Today I will address three separate, but not wholly unrelated points about crypto. First point concerns the term “crypto” in itself. Second point concerns whether or not Bitcoin is suited as a “store of value.” As for the third point, I tie the knots together and explain why I think Bitcoin and a few other renowned digital currencies are future-proof investments, while the crypto market as a whole may fail. I am not giving out advice, but simply sharing my opinions based on the research I have done. The Term “Crypto” Two months ago, I wrote half-jokingly that young people should ditch the term “cryptocurrency” when they . On a more serious note, I do think that the term “crypto” is suboptimal, if not directly harmful to the mainstream adoption of Bitcoin, Ethereum, and similar assets. discuss Bitcoin with their parents “Crypto” is an empty, undefinable concept. It covers: - Bitcoin - Smart contracts platforms like Ethereum, Solana, and Avalanche - Meme coins like Shiba Inu and CumRocket - NFT arts - Collectibles like CryptoPunks and Bored Ape Yacht Club - Games like Axie Infinity - Web 3.0 initiatives - DAOs - Decentralized exchanges (DeFi) like UniSwap and PancakeSwap - Centralized exchanges (CeFi) like Coinbase and Celsius - Blockchain streaming services like Audius and Rocki - Clear pump and dumb schemes like SQUID The list could go on and on. Most of the concepts, projects, and digital currencies mentioned above have clear utility for users and the potential to aggregate long-term value for investors. However, the vast, VAST majority of projects in the crypto space will fail miserably when times get hard. If they are not designed to scam people from the outset. Contrarily, Bitcoin is a good example of a digital currency that has already “made it”. I am singling out Bitcoin as it is the first proven use-case of blockchain technology that has stood the test of time, and it has by far the largest market cap of any asset in the crypto industry. For these reasons, Bitcoin is typically a safe bet and a first choice when institutional investors and retail investors are looking to pour billions of dollars into “crypto”. When people use the term “crypto”, however, Bitcoin is unintentionally juxtaposed with meme coins and the abundance of crypto scams and scammers. My personal belief is that Bitcoin, and some other big names that I am cautious to call out, will be more widely adopted and increase in value over the coming years. But the rally to mainstream adoption — and more public acceptance — is long and bumpy with sharp turns and pitfalls. The “shitcoins” and the meme coins will miss turns along the way, not be able to follow the pace, break their engines, and eventually, they will be left behind for good. Bitcoin as a Store of Value Ever since Bitcoin came around, commentators from all sectors and paths of life have been skeptical about the asset and its abrupt price movements. The skepticism is understandable and unsurprising when considering that chunks of Bitcoin’s value are tied to its potential of disrupting traditional finance. Kevin Roose, who is a technology columnist for NY Times, recently where he questioned Bitcoin’s reputation as a hedge against inflation, or as a “doomsday insurance” in times of crisis. He pointed out that the price of Bitcoin had fallen steadily in the period leading up to . wrote an article [1] Russia’s invasion of Ukraine “Crypto bros” typically use the phrase “just wait”, whenever they are faced with doubts from people about Bitcoin’s future potential. Kevin Roose paraphrases their common response in this way: “ ” Wait until inflation hits, and people look to park their savings in a stable digital asset that won’t lose its value. Wait until war breaks out, and authoritarians start seizing assets and imposing capital controls on their citizens. Wait until big banks and tech companies start censoring dissidents for their political views. Then you’ll see why we need a stateless, decentralized, anonymous digital currency (..) Well this is a crisis (..) In other words, this is a perfect storm of economic and geopolitical events that should, theoretically, be great for Bitcoin. But Bitcoin hasn’t boomed. Despite Roose’s criticism, I note that the price of Bitcoin has steadily recovered since the invasion started on the 24th of February (20th of March today). Overall, Bitcoin’s price has performed better and been markedly more stable compared to gold and crude oil during the crisis so far. Mainstream journalists and casual writers (myself included) tend to make wrong assumptions when writing about new technologies that could be based on personal bias, gut instincts, or sometimes pure sensationalism. Kevin Roose makes the grave mistake of interviewing Jimmy Nguyen, the president of the Bitcoin Association, as the first key witness to take the stand against Bitcoin’s failure as a store of value in his article. “The Bitcoin Association” is a highly misleading name, since the association promotes Bitcoin SV (Satoshi’s Vision), which is not Bitcoin, but a fork of Bitcoin Cash which is itself a fork of Bitcoin. The two Bitcoin spin-offs attempted to solve by increasing block sizes from 1 MB to 32 MB (Bitcoin Cash) and 128 MB (Bitcoin SV) with the aim of turning Bitcoin into a new visa. However, these protocol changes were never widely adopted. the scalability problem The increased scalability comes with compromises in network security. Bitcoin SV suffered a series of 51 % attacks in July 2020 that overpowered the network and made possible. As a result, major crypto exchanges such as Coinbase and Binance have ceased all trading of Bitcoin SV. Besides, the founder of Bitcoin SV, Craig Wright, is a controversial figure who has made some bizarre claims that he is Bitcoin’s pseudonymous inventor Satoshi Nakamoto. The claims are widely regarded as fraudulent. Even the real Satoshi Nakamoto has appeared to come out of his perpetual silence to leave on the Bitcoin Developers mailing list in December 2015: double-spending [2] [3] a message “I am not Craig Wright. We are all Satoshi.” To make a long story short, Jim Nguyen is not a credible spokesperson on Bitcoin’s potential as a store of value. As the president of The Bitcoin Association — which in fact has nothing to do with Bitcoin — he is a key representative of a rare movement that sees Bitcoin as an everyday means of payment. However, there are other digital currencies, or FinTech solutions for that matter, that are much more suited for microtransactions. Another frequent argument advertised in mainstream journalism against using Bitcoin as an inflation hedge is its volatility. According to crypto engineer, Daniel Krawisz, that is a silly argument: [4] “ This argument is superficial and short sighted. Volatility is not a property that is inherent in Bitcoin. It is caused by the way people currently treat Bitcoin in the market. It is a function of people’s attitudes and behaviors. Bitcoin’s rapid adoption rate almost completely explains its volatility today; I see no need, at any rate, that any additional explanation is required. Bitcoin’s enormous manias and crashes are simply a reflection of the difficulty of negotiating a reasonable price, even in the short term, in an environment that changes so quickly. Something that regularly grows in both popularity and usefulness will necessarily be volatile. To complain that no one will use Bitcoin because it is too volatile is therefore like saying, “Bitcoin’s adoption rate is so astonishingly fast that it will never be popular!” It’s like saying, “This oven is heating up so fast that I’ll never be able to cook with it!” It’s like saying, “This novel is so exciting that no one will ever read it!” Crypto is the Hopium for the People I predict that Bitcoin along with a number of other large, technically advanced digital assets — some known today, others perhaps not — will eventually gobble up the entire crypto market. The boom of innovation we see in the space today will not continue forever. Sooner or later the tables at the crypto casino will close. Exceptional gains from random speculations and community-backed pyramid schemes will be rarer and less profitable. I can explain this thesis based on concepts from a published in Research Affiliates by financial analyst Alex Pickard. I disagree with some of Pickard’s viewpoints, but the concepts he proposes are useful: recent article [5] “In our simple crypto pricing model, the price of cryptocurrency is viewed as a function of “fair value” plus an avant-garde premium, a speculation premium, and a byzantine premium: Price = Fair Value + Avant-Garde Premium + Speculation Premium + Byzantine Premium Fair value is derived from the actual transactional utility that cryptocurrencies provide as mediums of exchange (..) The Avant-Garde Premium arises from the social utility associated with being a member of the experimental and innovative (i.e., avant-garde) crypto community (..) The Speculation Premium can be thought of as a lottery ticket that provides the chance for a massive upside return, which is the main attraction for many cryptocurrency purchasers. (..) The Byzantine Premium arises because of confusion around the apparent complexities of blockchain. Investors read confusing, jargon-laden articles and become convinced that smarter people than themselves are investing, so they should too. “ According to Alex Pickard, the crypto bubble could last for years, and it is sustained in part by some real utility, and also by community-backed “social value”, speculation, and confusion from investors. I personally believe that many cryptocurrencies are in fact strongly supported by the three premiums as laid out by Alex Pickard. However, as the present-day crypto market matures, the quasi-religious following that some projects have, along with speculation and confusion will be less and less determinant for prices. The reputation that Bitcoin shares with other cryptocurrencies as a speculative, overhyped asset will eventually be surmounted by strong fundamentals. In 2011–2013 Bitcoin was popularly known as a shady currency used by criminals to whitewash and purchase illegal items on the dark web, namely on Silk Road. Barely anyone thinks of Bitcoin in these terms anymore. Bitcoin’s strong fundamentals eventually overcame its bad reputation. To use Pickard’s framework, I believe from a long-term holding perspective that the value of any crypto asset is determined by its Fair Value. But right now, the three premiums are inflating price actions with hopium. Hopium causes an interesting paradox that Alex Pickard dubs “the Profitability Problem” : [6] “The crux of the matter is that although blockchain technology is solid and disruption is possible, it is not profitable. Disruption is not profitable for traditional financial organizations or for governments, and paradoxically, and most importantly, it is not profitable for cryptocurrency holders themselves. (..) . Great sums of money can be made from speculation if cryptos perpetually have the potential for disruption, but never actually disrupt anything. As a result, more time, money, and energy has been focused on the proliferation and strengthening of disruption memes versus actual work toward real disruption ” A similar idea was expressed by sociology professor Nigel Dodd in a paper from 2018. From the abstract : [7] “ ” This paper challenges the notion that Bitcoin is ‘trust-free’ money by highlighting the social practices, organizational structures and utopian ambitions that sustain it. At the paper’s heart is the paradox that if Bitcoin succeeds in its own terms as an ideology, it will fail in practical terms as a form of money Alex Pickard and Nigel Dodd seem to agree that the value of Bitcoin to a large degree is determined by its social value or by hype in “avant-garde communities” which inflate Bitcoin’s price. The ideology behind Bitcoin is also “anti-establishment, anti-system, and anti-state”. When Bitcoin finally disrupts traditional finance, the speculation, confusion, and social value it brought to communities of “Bitcoin believers” are gone, and so the price will drop. [8] I do not think that is the case. I think that Bitcoin and a limited number of other digital currencies will be more widely adopted in the long-term future. Mainstream adoption will come with an upswing in valuation, but also separate the sheep from the goats. Projects that are supported by a strong community, but offer little to no unique value will evaporate as the hopium takes off. Story also . Citations: published on my site Kevin Roose (March 2022), Bitcoin Was Made for This Moment. So Why Isn’t It Booming? -> (18–03–2022). [1] https://www.nytimes.com/2022/03/11/technology/bitcoin-ukraine-russia-roose.html (19–03–2022). [2] https://www.coindesk.com/markets/2021/08/04/bsv-suffers-51-attack-report/ (19–03–2022). [3] https://www.forbes.com/sites/thomasbrewster/2015/12/11/bitcoin-creator-satoshi-craig-wright-lies-hoax/ Daniel Krawisz (January 2014). I Love Bitcoin’s Volatility → (21–03–2022). [4] https://nakamotoinstitute.org/mempool/i-love-bitcoins-volatility/ Alex Pickard (March 2022) Cryptocurrencies: The Power of Memes -> (18–03–2022). [5] https://www.researchaffiliates.com/publications/articles/913-cryptocurrencies-the-power-of-memes Ibid. [6] Nigel Dodd (2018), The Social Life of Bitcoin, Theory, Culture & Society 2018, Vol. 35(3) 35–56. [7] Ibid., pg. 36, from The Declaration on Bitcoin: . [8] https://www.youtube.com/watch?v=XQqZ9b0S0BY

Whether the Crypto Market Booms or Busts, I'm Investing in The Top Digital Currencies Longterm

Decentralized Exchanges (DEXs) have undergone a significant evolution since the debut of NXT Asset Exchange, one of the pioneer DEXs to launch in 2014. At the time, using decentralized platforms for exchanging tokens was quite complicated and may in hindsight even have been a little ahead of its time. The perception towards DEXs changed with Uniswap’s Automated Market Making (AMM) genius, in 2018, which would later set the standard for most DEXs that exist today. Automated Market Makers The Automated Market Makers (AMM) model was born out of the idea of automating the entire market-making operation of digital asset exchanges. Unlike their centralized order book counterparts, which require users to list a buy and sell order for each token pair respectively; the AMM model leverages a smart contract-powered price algorithm that defines prices mathematically based on the forces of demand and supply for each given pair. In return, liquidity providers are rewarded with a small portion of the transaction fee, which in most cases is paid out in the form of a native token. This groundbreaking market-making protocol has since given birth to a number of interesting developments in the DEX space. DEX 4-year market performance At the time of writing, the top 100 DEXs combined have an average of $5 Billion daily trade volume. Also, the block’s DEX data, tracking 21 of the most used DEX,  shows an impressive growth trajectory. From just about $859 Million in trade volume in April of 2020, the DEX volume reached an all-time high of 200+ Billion dollars in trade volume in only 15 months. on-chain As evident, the average monthly volumes of DEXs have been on a downtrend this year following the effects of the ongoing bear market. For instance, Uniswap, which is currently the largest DEX, recorded over $80 billion in monthly trading volumes at the peak of the 2021 bull market. However, as it stands, the volumes have dropped almost by half, with the latest figures from November showing an average of $42.6 billion for the whole month. So, what has been happening on the fundamental front? DEXs still have a mile to go before they can catch up with their centralized counterparts. Let’s take a deep dive into some of the drawbacks that are hindering mass adoption. 5 Biggest Hurdles for DEX Mass-adoption In this section, we will try and cover the five biggest issues that persist with the use of DEXs over CEXs. **DEX Liquidity Still Maturing
\ Each DEX protocol or exchange reveals the need for liquidity when compared to its centralized counterparts. For some context, at the time of writing, Binance, the biggest CEX, has an average daily trade volume of $10 Billion + while Uniswap’s daily volume stands at $690 million. This lack of liquidity prevents bigger traders from relying too much on decentralized exchanges as market depth remains a top priority. On the brighter side, there are several solutions to DEX liquidity drawbacks such as DEX aggregators, these are decentralized protocols that allow access to liquidity on several DEXs regardless of the chain. **Scalability and High-Fees on Layer-1 Protocols
\ While Uniswap's meteoric rise was a game-changer in the digital asset trading market, the transaction fees on Ethereum have not been so friendly to the average crypto user. As recently as May 2022, the average network fee peaked at over $150 on the Ethereum network, which is over and above what most people find reasons for a single transaction. Fortunately, with the rise of alternative Layer-1 chains like Polkadot, , and Cardano, the boundaries for scalability are continuously being pushed. In addition to these, we also have Ethereum Layer-2 solutions such as Polygon and Arbitrum. Solana **User Experience is Still Not There
\ Another massive hurdle in mass adoption is the many user experience issues that persist with operating with a DEX. For starters, users of DEXs need to familiarise themselves with wallet solutions such as Metamask to interact with the exchange platform. Even for a technically adept person like myself this is not easy and will require hours of effort before you get the gist of how the interconnection works. **Protocol and Security concerns
\ Given DEXs are by nature autonomous in the way they work and have historically been plagued a lot by various forms of security issues, the topic of security remains core for the sector. According to , over 1.6 Billion dollars was reported lost to DeFi-related exploits, hacks, and scams in 2022 alone. blockchain security firm Certik Some of the most common attacks include bug exploits, oracle attacks, flash loan attacks, front-running, and the typical phishing attacks. This year, Axie Infinity’s Ronin Bridge was swindled over $620 million through an elaborate phishing scam that involved a fake LinkedIn job offer. Unsurprisingly, this is just one of the many DeFi exploits that have taken place in 2022. Appropriate AML Measures Perhaps more requested by regulators than users and venues, the DeFi space is often criticized for not applying strict enough AML measures. As the topic of compliance is becoming more and more a focus for regulators, it is clear that DEXs also will need to focus more on this in the future, which may prove cumbersome on technical levels. Post FTX Collapse: The Growing Need For Self-custody and Transparency A relevant theme that has been reignited with the whole FTX Saga is the need for good custody, and the old crypto mantra “ ” seems more relevant than ever. In the time past the FTX collapse, crypto users have been withdrawing their funds from exchanges at a very consistent pace. A look towards the net balance of exchanges Glassnode reports that more than 500.000 BTC has left exchanges in total, making it very clear that users are reacting to the instability in the space and resorting to self-custody rather than trusting their balance with exchanges. Not your key, not your coins This trend is likely to not die out immediately as regulatory probes and similar risks continue to loom over big exchanges such as Binance. In other words, the whole debacle may be a blessing in disguise for DEXs such as Uniswap and DyDx, which have witnessed a significant increase in volumes since the collapse of FTX. The former saw a spike in volume earlier in November when the FTX news broke and more recently on December 14th, hitting a high of $1.2 billion in daily trading volumes. DEX Improvements to Look Out For There is an increasing demand for functional DEXs fueled by issues of the CEX industry such as lack of transparency and custody security. Ultimately, it is the users who will decide where the flow of trading will go, and given the developments and the increase in distrust towards CEXs, it seems like a fair assumption that more volume will flow into decentralized platforms in the future. Two fundamental improvements worth looking out for shortly are the following: The rise of Hybrid DEXs’ Uniswap V3 upgrade for the first time, included the order-book exchange arrangement into the picture, to optimize capital efficiency on the exchange. Uniswap v3 upgrade compared to its predecessors v1 and v2, with better capital efficiency and flexible fee structures. The major driver for liquidity is a better LP system that incentivizes liquidity providers more and also provides low slippage in trade execution. This trend is likely to become a trend when it becomes a lucrative incentive source for the LPs providing liquidity. **The rise of DEX aggregators
\ The biggest setback for DEX operators is liquidity. Aggregator protocols address this problem by giving a user's wallet access to several trading liquidity pools via a single dashboard to allow users access to low-volume assets. A very common DEX aggregator is 1Inch and it is slowly becoming a trend to solve illiquidity challenges on some DEX. Given some controversies about the efficiency of introducing order books, some DEX users in the future may prefer AMM-type DEXs over hybrid DE involving order books. Also, as aggregator operations improve, they may become the status quo with DEXs in the future. Overall, this all depends on how efficient they turn out and less efficient individual DEXs become.

The Current State and Future of Decentralized Exchanges (DEXs) 

This is the official HackerNoon wiki for Axie Infinity. As part of our , this living wiki displays on . If you’d like to suggest edits to our official Axie Infinity wiki, please submit them in the comment field below, a real human editor will read and review your suggestions for accuracy and publication. coin price pages Axie Infinity crypto price page Axie Infinity is an online video game based on The game was developed by a Vietnamese studio known as Sky Mavis. The game is known for its in-game economy which uses based on the .  The native cryptocurrency for the game is called the Non Fungible Tokens (NFTs). cryptocurrency Ethereum blockchain Smooth Love Potion(SLP). The Axie Infinity game works on a model. Players of the game collect and mint NFTs that represent digital pets known as . The players can earn by progressing through the game and collecting the in-game awards after they pay the initial fees required to start. The pets can breed, and fight each other within the game. The players are charged a fee whenever they want to exchange Axies on the game marketplace. play-to-earn Axies History The development of Axie Infinity began in 2017. It was led by the founder and CEO Nguyen Thanh Trung with Jeffrey Zirlin, Andy Ho, and Aleksander Larsen. The team released Axie Infinity’s first battle system in October 2018 and developed the game’s real-time card battle system in March 2019. Sky Mavis launched the Ronin Wallet in February 2021 which sped up transactions and reduced gas fees for users who played the game. Biggest Claims to Fame Players can in theory earn an income through playing the game. Axie Infinity is one of the only that have managed to get a worldwide economy of gamers. The players get rewarded with SLPs whenever they play and win an in-game battle. If a player wins enough of these battles, they may be able to earn enough to make a living from the profit they make from winning a game. blockchain-based games Some of the Axies are collectibles. Axie Infinity has created mystic axies that are rare within the game, making them digital collectibles. This is a tried and true model with tradable cards of baseball players and collectible Pokemon cards in the market going for high prices. A company known as Delphi Digital spent $162,000 on five Axies as an NFT investment in September 2020. Axie Infinity has a roadmap of goals and achievements they want to achieve. This helps in the creation of milestones and creation of a timeline for growth. From the developmental milestones Axie Infinity has put on itself, users can easily see whether Axie Infinity is growing at the rate it had promised to be and if not, they can pull out their investment. Biggest Criticism Most of the players in the game are from the Philippines. They have to rent out characters in order to play since the cost of buying up the characters is high. They end up working as low-wage workers as they rent the characters from those who have Axies and progress in the game on the owner’s behalf in exchange for little to none of the awards that come from progressing with the game. This has been likened to colonialism as those who can afford the game are typically in the United States and Europe. The game model is very similar to gambling. A user pays the initial fee to buy into the game and then earns money by playing a game. The game will not be easy to navigate or win, which could be fun in a normal game but ends up being frustrating for those who want to play but also want to earn back the money they used to buy in. The game model also allows a user to think that by upgrading their character for more money, they can improve their chances of winning, which is the same formula that works in gambling. The game is overly reliant on new players coming into the game. The initial cost of getting into the game is higher than the amount of currency the game gets from players as they play the game. It is more likely for players to cash in on the money they get than for them to spend it as they proceed with the game. This is not a stable business model at all because the number of people coming into the game will reduce after some time and they will need the people already playing the game to put their money into the game to maintain the financial ecosystem of the game. Team Nguyen Thanh Trung is one of the founders of Axie Infinity. He was one of the investors of crypto kitties before he began working on his own game. He combined elements of Cryptokitties with elements from Pokemon and Neopets. This is the official HackerNoon wiki for Axie Infinity. As part of our , this living wiki displays on . If you’d like to suggest edits to our official Axie Infinity wiki, please submit them in the comment field below, a real human editor will read and review your suggestions for accuracy and publication. coin price pages Axie Infinity crypto price page

Axie Infinity $AXS Wiki: Coin History, Techstack, and Crypto News

For a year, the Axie Infinity community has waited with bated breath. Sometimes, abject terror, for the release of a new game, Axie: Origins. It's a brand new Axie Infinity Game, not an incremental upgrade. All crypto rewards have been moved over from the original game, "Classic" to the new one, Origins. This is a super important detail for the newcomer, as a huge draw of Axie Infinity is Play-to-Earn. That means a lot of the community is playing the game to earn Crypto. So, some people have a lot to gain--and lose--as the new game is released. Will it be a cosmic shift in blockchain gaming? The expected arrival has brought hope, upheavals, and blood in the water. And launch day of Season 1 starts today. I'm going to give a rundown of what this might mean for Blockchain gaming. The implications for Axie Infinity, and the crypto gaming winter. All from the perspective of a player with skin in the game. A Small Digital Pet Game's Early Origins Years ago, a small group of developers . They came up with the idea to create their own game. met online playing Crypto Kitties This small crew built the game, and called it "Axie Infinity". It was heavily inspired by Pokemon. They launched it in 2018 without much fanfare. In December of 2019, a cosmic shift came. At the time named Small Love Potion (now Smooth). The developers turned an in-game token into a cryptocurrency. A community member quickly listed it on Uniswap and created a liquidity pool. Then, the world changed. A cute game with lovely fighting digital pets became a way where you could earn actual money. Who would have thought this would develop into a multi-billion dollar economy? So, a group of gamers, devs, and entrepreneurs met online and started playing a cat breeding game. Then, this very small group made their own game quickly. During the pandemic of 2020, there was a perfect storm. After releasing an ERC-20 token you could earn while inside your house playing the game, the world shut down. Micro economies developed around Axie Infinity during this fledgling period. People realized they could earn money playing the game. This was especially appealing in The Philippines. The in-game currency went a lot farther there. Lockdowns were also more strict than in other parts of the world. All from home during rolling lockdowns. Enter 2021: The Crypto Melt Up In November of 2020, Sky Mavis released the AXS token, at a list price of ten cents, with a $200 cap on what people could buy. Now, with two tokens, the game was positioned to launch off into the stratosphere. If, say, Bitcoin and Crypto suddenly went mainstream. Months later, Crypto did, with a combination of unexpected factors. Like tweets from Elon Musk about Dogecoin. Axie Infinity's micro-economy suddenly blew up into a macroeconomy. . There were hypergrowth events. Billions of dollars of value were traded on their in-game marketplace DAU (Daily Active Users) suddenly launched into the stratosphere (millions). The way the tokenomics of the in-game currency SLP works sent the value soaring. SLP is used to breed new axies. What happened was a hyper growth of new entrants put buying and burning pressure on SLP. Demand for axies so people could play quickly sent the price from around 3.5 cents to 39.97 cents, all in a manner of weeks in the Summer of 2021. But that actually looks tame compared to the summer before, when the price rocketed from just over .3 cents to over 19 cents in just around seven days. At the time, this extreme growth didn't just fuel people making money playing the game. It created a sub-economy of everything from Axie tech service providers. Axie influencers, profitable gaming guilds, and even near-overnight millionaires. So what does Axie Infinity: Origins have to do with blood in the water? The small group of developers saw their lives change overnight. A recent interview highlights perhaps just how much. Een Mercado, a lead for one of the largest Axie Guilds YGG, was interviewing Jihoz, a co-founder, at AxieCon. Jihoz is currently likely a large stakeholder, being rewarded in what may be millions of dollars worth of AXS for bringing the game to fruition. Interview: Een: How much is your biggest loss in crypto in one day? Jihoz: Well, a lot. But there was one day in March of 2020 where I felt like I lost like sixty percent of my money. And I was living in my parent's basement at the time and I felt like I was never going to be able to move out. I was never going to be able to get married. So, yeah. Een: Buy you got married? Jihoz: It happens! Yeah! Now I'm married. (Credit: Transcript of ) Video from Een Mercado's Streamer Page This kind of exchange is a startling reminder of how very fast Axie's rise happened. The fallout--making millionaires--also ended up leaving other investors with potentially large losses. Around November and December of 2021, a change in the language around Axie happened. The devs started to try to prepare the community and warn them that a new game was coming. To an outsider, this might not sound so alarming. Yet the thing was, during those times, there were long periods where each individual Axie NFT was very expensive. Just to buy one mediocre Axie (as in, not amazing at the game), it could be upwards of $200. To investors who had just sunk money into buying teams, these were alarming times. The uncertainty around the new game's launch may have led to investor and player defection. Especially because the new game's impending release seemed to go on and on, and no one was clear when it would actually be here. This defection in turn hurt the price of the crypto you earn while playing, which in turn led to more players leaving. Viewing some of those exchanges on Twitter at the time was interesting. I both understood the complex game the developers were playing. Trying to fix unsustainable elements of the game that relied on new players coming in. While creating a new game (the one launching today, more on that soon), that had more of an appeal than earning. They wanted it to be fun. However, disagreements between the community and the devs got personal. Large influencers who came up in part through talking about Axie basically left. A recent Twitter exchange shows some of the turmoil and the personal impact: I had to re-create this using the google cache because it had been deleted. But basically, on Monday, an account called "The Axie Intern" with the handle @jihoz_intern, tweeted this. Pictured in the meme are three large influencers, some of who came to prominence with Axie, who seem to have left. The caption read: "Just intern things..." CryptoKing_NFT, who was tagged, responded with: I'm bringing this up because as an outsider, you may not be aware of all the upheavals in the community. Or that they weren't only financial. They got personal. SLP's value dipped. Some guilds completely dissolved basically overnight. Many guild owners complained bitterly that their guild members just walked away. Without a word, ghosting them. It wasn't just that they lost the players who gave them a return on their investment. It hurt on a personal level that these people they'd worked with left without a word, or it seems, a glance back. "So long, Manager." So, is this the devs’ fault? No one really knows. As a game participant, I do want to say one observation. There were times with my guild manager (just before he quit) that we discussed investing in other games for our guild to play. The funny thing is, despite his complaints, there weren't any other viable games I could find. I did my own search. I came across many games promising to be the next Axie. In the end, most or all crumbled, and fast. Some functioned more like Ponzi schemes. Axie Infinity does have an actual game. It has hundreds of thousands of active players, and a dev team that seems to care about the project. There were also painful moments on Twitter where community members expressed rage. And directed it at co-founders. A huge complaint was the devs not taking their suggestions to fix the SLP price. But reading the suggestions, many of them would have led to a short-term pump in token value. Yet been bad for the long-term ecosystem. So, the devs weren't in any kind of easy position. They seemed to be making decisions based on what they viewed as the health of the community. Whether those choices pan out, I think we may know fairly soon. What do the devs say? I reached out to Sky Mavis for a comment about what Season 1 means for Axie and the community. Philip La, Game Product Lead who joined Sky Mavis this year (from a high-profile position at Pokemon Go), replied: "The launch of Axie Infinity Origins Season 1 is a huge milestone for Sky Mavis and our community. Sky Mavis collaborated with the community to make numerous major updates and improvements over the past months. Season 1 is in a great position and is esports ready, as shown at AxieCon. We implemented an entirely new NFT Runes/Charms system, iterated until 1st/2nd turn win rates were even, and made thousands of balancing adjustments. I am super excited for players to enjoy the challenge of trying to reach the top of the Leaderboard for the glory, exclusive cosmetics, and over $1. 5M in AXS rewards.” So today, Season 1 of Origins is Launching: What's On the Line? Everything. Everything is on the line. This has been the game the developers have been nurturing for years. Sky Mavis has been teasing out the release for just under a year. There are over a million dollars on the line in season 1 in AXS rewards. They beta-tested the game since before April 2022. They've likely spent millions of dollars on development. As opposed to Axie Infinity: Classic, they were well funded, had as much time as they wanted, and probably a much larger and more experienced dev team. And they've been hyping up one aspect: they want it to be fun. What to look for? One huge question is current community involvement. The upheaval around the change is over. It's changed. Axie Infinity: Origins is a brand new game with totally new dynamics. All crypto rewards are gone from the OG game classic (at least for now) and can only be earned in Origins. Axies who were useful before in the arena may be much, much less useful now. They call this the "meta". New Axies may be super powerful now. Instead of the seismic shift in the meta which just occurred, changes will likely be incremental for the foreseeable future. Things will likely shift back to standard nerfs and buffs (standard changes to card balancing to prevent a single Axie or team combo from becoming overly powerful) on the off-seasons. Or, at regular intervals. So, are community members who may have bailed going to come back? That may depend on the value of the tokens--or how fun the game is. The second question is if new participants will find the game--and if so, what will draw them? In Axie Classic, a huge amount of the appeal was earn. As a player, I actually found that fun at the time. When you would win a match and earn 70 cents worth of Crypto in three minutes, there was a genuine endorphin rush. I believe that game was actually fun, in part for that reason. But will Axie Infinity: Origins, be fun outside of earn? That's one very important thing to watch. As the game (in Season 1, not as a beta or “Season 0”) launches this week, I'm excited to see if new players come in to play just for the fun of it. Unlike Classic, there are now free starter axies, that you can use to play the game, but that won't earn you any crypto. So, from the standpoint of a player, this is a potentially exciting moment. Day 1, Season 1 of the reboot. What does it mean for Crypto gaming? Axie Infinity has been the OG Play-to-Earn game. Whatever happens with the Origins release. Whether it's a stunning success. Or it doesn't take off beyond pro-players after the leaderboard rewards. Or somewhere in-between, it's going to impact every single element of Crypto gaming. There's also an x-factor. On the , there's a huge moment listed for 2022. It is "Mainstream release of Axie Infinity on iOS/Android". Axie Infinity Roadmap This event has been closely watched by community participants. Currently, you can download Axie Infinity as an APK. But it's not in the Google Play Store or App Store. Up until now, most or all player growth and downloads have come from word of mouth and been organic. When Sky Mavis actually does release the game on the app store, it's a big deal. Why? They would also be able to reliably acquire users through mobile download campaigns. In this way, they could potentially scale the game in ways currently unimaginable. The real question is though, and it's what makes this moment so stunning--is the new game sticky? As in, once people start playing, do they come back for more and join the community? Or, was Axie Classic, which has a proven track record of player retention, the real magic? Right now, we don't know. But I can tell you who is going to be able to tell us. The players. I'll be keeping a close eye to see what they say! Until next time friends, stay vigilant! Photo Credit: Axie Infinity: Origins Official Media Kit

Axie Infinity's New Game Is Launching: An Insider's Perspective

Update on August 31st, 2022, 6:45 PM: At 6:20 PM, August 31st, 2022, Axie Infinity co-founder Jeff Zirlin, aka, Jiho, made an official comment that the mystery wallet is the Binance Ronin Gateway Contract, meaning, according to Zirlin, that it is part of the official infrastructure of Axie Infinity. Original story below: What if one wallet was holding half the token supply of one of the biggest crypto gaming economies in the world? I have some news for you. That’s not a catchy headline. It's a developing story. In this article, I’m going to be taking you along for the ride as I investigate the mysterious 22,000,000,100 Smooth Love Potion (SLP) wallet. Key Points: Axie Infinity is one of the largest crypto games in the world. Players earn a crypto token called SLP by playing. It appears one wallet has been accumulating billions of SLP. This wallet controls over half the total supply of in-game token SLP. There are just over 43 Billion SLP in circulation. This mysterious whale wallet has over 22 Billion SLP as of writing. The wallet doesn’t appear to be a Sky Mavis wallet (creator of Axie Infinity). Sky Mavis has made no comment when inquiries were made. This whale could exert control over the in-game economy if it wanted to. Thousands of people’s livelihoods are linked to this token. This article traces my efforts to locate the source of the whale. It’s an ordinary Thursday morning. I wake up unnaturally early, grab my phone and start scrolling Twitter. Then, something stops me. Jiho, AKA Jeffrey Zirlin, growth lead of Axie Infinity is Tweeting about Axie Economics (you don’t need to read or understand the tweet): When a user tweet replies: I stop in my tracks. What? One wallet is holding half the supply of Smooth Love Potion (SLP)? No ordinary Thursday anymore. My first thoughts are, that this must be above board. That it’s the wallet Sky Mavis uses to mint and distribute SLP to players. I’m soon proven wrong, and the mystery deepens. I log onto the and find the wallet in the user’s tweet reply: Ronin Block Explorer ronin:030e37ddd7df1b43db172b23916d523f1599c6cb. Going forward, I’ll refer to this mystery wallet as “ ”. Whale AX Indeed, Whale AX is holding 22 Billion, one hundred Smooth Love Potion. That’s about half the total supply of the token. A token whose economics influences many thousands of gamers. I want to spit out my coffee when I dig a bit deeper. Deeper down the Axieverse hole. I dive into the block explorer. I'm wondering if these tokens were minted into the wallet by Sky Mavis. Sky Mavis is the company that makes Axie Infinity and distributes SLP. It seems, they’re not. What makes the mystery deeper is where the tokens seem to be coming from . Binance Normally, coins coming from Binance are purchased on the exchange. Or held there in a custodial wallet. Billions of SLP coins have been sent from the Ronin Binance Wallet into Whale AX's anonymous wallet. This strikes me as odd. Did Whale AX spend hundreds of millions of dollars buying SLP? Or, did this mysterious entity already have access to the tokens and was storing them on Binance? Perhaps, something else is happening. Examples of these massive transactions I’m pasting transaction screenshots to show what I mean. Let’s say the Whale AX transaction above of 5,968,600,115 was a purchase (in theory). Based on the opening price of SLP on November 1st, 2021 (the day of the transfer) of 7.1827 cents ( ), someone would have spent about $428,706,640.46 to buy those coins on that day. according to Yahoo Finance Something doesn’t seem to add up. Did a whale really spend that much on SLP in November? For reference, at the current price (as of writing) of approximately $ , that same purchase would buy over 107,295,061,488 SLP: over twice the entire max supply of all SLP. 0.003989 USD per SLP And just to explain: every single SLP was minted by a player playing the game, and at this point, it’s actually quite difficult to mint SLP. Just for fun, I did some napkin calculations, and in my experience, it’s realistic that an average player with a half-decent team could win about 30 SLP per day playing the game. This is based on the difficulty to mint in the last season of gameplay. So, that amount of SLP (107 billion) would take one player 3.576 billion years to mint, if they didn’t take any days off. Now, that was just one transaction, that accounts for a little under six billion coins in November. The wallet currently holds almost four times as much as that one transaction. So, what is this wallet?? I initially figured this wallet was part of some system Axie Infinity had to automatically distribute SLP to players who earned it. However, this doesn't seem to be true. If that were the case, there would be tens of thousands if not millions of transactions. This wallet has a mere 3 pages of them. Most of them . whale-sized Then, I saw “Binance” as the sender or recipient for many transactions. So I thought, this must be Binance’s wallet. It did strike me as a little odd that they had half the supply of SLP. I looked through the transactions. No, I was wrong again. Whale AX’s wallet doesn’t seem to be Binance’s wallet. Whale AX seems to be getting SLP as transfers from Binance’s wallet. So, the wallet doesn’t appear to be related to distributing SLP as an official Sky Mavis tool. And it doesn’t appear to be owned by Binance. So what’s going on here? Why is someone moving these huge amounts of SLP from Binance to a wallet on Axie Infinity’s Ronin Chain? That’s the 22 Billion SLP Question. I ran through options of what this might be. It could potentially be Sky Mavis. For some reason, moving huge amounts of their own currency back and forth from Binance. But why? I thought, hey, is this possibly the community treasury? I checked and it doesn’t seem to be. I found the community treasury wallet address in this official newsletter from Axie Infinity: . https://axie.substack.com/p/community And it’s not Whale AX’s wallet. Up until now, unless I missed something, Whale AX’s wallet has been flying mostly under the radar. The Scary Part The boogie man in the closet is if this isn’t Sky Mavis, Binance, or a responsible investor in Sky Mavis. What if it’s an independent whale? That would be much more confusing, and much more problematic. But why? Thousands of people’s livelihoods depend on (or have depended on) Axie Infinity. The main token earned by playing this game is SLP. If one rogue whale owned half the supply of SLP, they could manipulate the price or even crash it. For example, any token price is naturally controlled by supply or demand. Let’s say due to natural market conditions the token price should rise. There’s a supply crunch or demand goes up. Or both and it should shoot up meteorically high, allowing stakeholders who have been in a long HODL to cash out tendies. A whale with such massive holdings could slowly flood the market with more SLP. As supply is crunched, it could replace supply. Or as demand goes up, it could increase supply. Making the price stay flat instead of going up. All while cashing out huge profits. This kind of potential action could influence many thousands of people's lives. People who can’t afford that. So what does all this mean? It means we don’t know whose wallet this is or what it is being used for. Why they’re buying or being transferred so much SLP and AXS. And finally, what they plan to do with it. Research I did. The first thing after seeing the tweet was to go to the ronin block explorer and find this wallet. The original tweet was a screenshot without the full address. So I searched by asset, which organizes wallets by their holdings. It was easy to find Whale AX’s wallet as the first one. For reference, the second largest wallet has 5,121,563,949 SLP and is listed as the [Deprecated] (sic) Ronin Gateway as of writing. It looks to be an official Sky Mavis or Axie Infinity Wallet. Then, I copied the wallet address and googled it, but didn’t come up with anything I could make sense of. So I searched the wallet address on Twitter. Only about 7 tweets came up. It was mostly community participants asking Sky Mavis staff what this wallet was. I couldn’t find any replies. I then tweeted at a known crypto sleuth, whose work I had admired in the past, asking what they made of this wallet. I haven’t heard back yet. I then looked for a press contact for Sky Mavis, and couldn’t find one. Since I couldn’t find a press email, I tweeted at them: Sky Mavis, Axie Infinity, and the COO who seems nice. I haven’t heard anything back yet. I also sent one of their staff a DM on Twitter, but I didn’t get a reply yet. I emailed Binance’s PR email address. I briefly explained the investigative piece I was working on. Then asked if they had any insights (disclosure: I trade crypto using Binance.US). As of writing, they have not returned a comment. Diving deeper into Whale AX Now, there’s another option of what’s going on here. It would completely explain these transactions, and also likely be 100% above the board. Binance . There’s also the possibility that these transactions are not purchases or independent holdings. But that they are internal transactions between Binance and Sky Mavis. Or, they might be Sky Mavis transactions that don’t include Binance. But again, regular internal company workings. owns a sizable amount of Sky Mavis Then there’s another theory of what’s happening which may be possible. And it would make sense that Sky Mavis wouldn’t want to disclose. . Players deposit SLP on Binance, cash out, and then Sky Mavis buys the coins back. I need to repeat, that this is a theory, not a statement of what is actually happening. It’s possible that these could be coin buybacks In this scenario, it would support the SLP price or prevent it from a total collapse. Afterward, they then would send the SLP back to their wallet on the Ronin Blockchain. This would account for the large transfers. More questions tho Not only is the wallet holding SLP, but it’s holding large amounts of other coins too. One that raises eyebrows is the amount of AXS it’s holding. Not only is it holding 4,672,754 AXS as of writing, but it also appears to be staking millions of them. And . claiming hundreds of thousands AXS as staking rewards at a time This means that over the course of a year Whale AX will have the opportunity to earn huge volumes of AXS. Likely worth tens or hundreds of millions of dollars depending on the token price. This was a recent AXS staking claim by Whale AX. But there are also other large claims, like this 737,550.4 AXS claim on May 2nd. The complete list of Whale AX’s 178 (by my count) transactions runs 3 pages on the explorer. Most appear to be of truly massive scale. There are a few that make you wonder. Like a transaction consisting of , worth at the time under $10. 777 SLP on May 16th, 2022 The above screenshot shows Whale AX staking two million more AXS. These transactions are all public and may be viewed by anyone at the block explorer. Here’s a link to that transaction: . https://explorer.roninchain.com/tx/0x63ae85ff115285757485b9c4cbb34e1543c15a2ce9557998de10314cbacc341b So, is this Sky Mavis’ AXS stash? If so, is this where the AXS that’s being used for season leaderboard rewards and prizes is created? My guess is probably not, but the amount of AXS held raises many more questions than it answers. The less interesting holdings, but worth noting, are 1,747 WETH worth $2,969,551 as of writing, and .26 USDC. This is all the information I have at press time. All information presented in my investigation is publicly available to the best of my knowledge. I will update this as soon as, or if, further significant developments are made. If you uncover any data that may offer clues or see any errors I made, or tweet at me (@michaelbenko). email Thanks for tuning in. Til next time crypto explorers, stay vigilant! Photo Credit for Featured Image: Clint Patterson Via Unsplash. Disclaimer: I am a holder of SLP, AXS, Axie NFTs and some RON tokens. These tokens are part of the Axie Infinity economic ecosystem, and some are discussed in this article. None of these holdings influenced my reporting of this ongoing mystery. Disclaimer 2: I in the past applied to be a creator in Axie Infinity’s content creator program, and never heard back. That didn’t influence this article, and I have no contact within Sky Mavis or form of communication with the company.

Mysterious Axie Infinity Whale Holds 22 Billion Smooth Love Potion (SLP)

La misteriosa ballena Axie Infinity tiene una poción de amor suave de 22 mil millones (SLP)

La mystérieuse baleine Axie Infinity contient 22 milliards de philtre d'amour doux (SLP)

मिस्टीरियस एक्सी इन्फिनिटी व्हेल में 22 बिलियन स्मूथ लव पोशन (एसएलपी) है

ミステリアスなアクシー インフィニティ クジラが 220 億個のスムース ラブ ポーション (SLP) を保有

Misteriosa Axie Infinity Whale detém 22 bilhões de Smooth Love Potion (SLP)

Cá voi vô cực Axie bí ẩn chứa 22 tỷ lọ thuốc tình yêu mịn (SLP)

神秘Axie Infinity Whale持有220亿顺滑爱情药水（SLP）

Uniswap is an Ethereum-based protocol designed to facilitate automatic exchange transactions between ETH and ERC20 token digital assets, automatically providing liquidity on Ethereum. It has the most striking features of decentralization, permissionless, and unstoppable among current DeFi projects. As the leading decentralized exchange (DEX) in the DeFi field, Uniswap strives for the largest market share. Even with unique protocol, there are still many features to be optimized for Uniswap V2 and V3. Under Uniswap V2, when LP provides liquidity to the pool, the liquidity will be evenly distributed along the price curve. So, liquidity will be distributed across all price ranges between 0 and infinity. As most of the assets are actively traded within a much narrower price range, it causes the problem of low capital utilization. Uniswap optimized this problem and deepened the pool but caused high impermanent loss which is not friendly to novice users. Faced with the conflict between the potential high impermanent loss and low capital utilization, a solution has to be found to optimize Uniswap system. This article introduces a new trading platform, Klein Finance. Together with dynamic peg, it provides better solutions to a range of problems such as impermanent losses, centralized liquidity, improved capital efficiency, low slippage, and dynamic fees on general exchange channels. A brief introduction to Klein Finance is a liquidity provider on KCC (KuCoin Community Chain), on which tokens under KRC 2.0 standard can be traded. Klein Finance Aims to allow digital assets to be traded in a safe and stable on-chain environment with low slippage, good depth, and low fees, it also enables users to obtain rewards by locking digital assets. With a mixed liquidity pool trading model, Klein Finance provides a cross-market mechanism for creating stable coins, which can meet the requirements of multiple stable coins vs. non-stable coins and multiple non-stable coins vs. multiple non-stable coins. Klein Finance The Mechanism: Klein Finance offers a compromise by providing a mechanism to create cross-markets for stable coins in what could be called “Uniswap with Leverage”. Its immutability allows most of the liquidity to be concentrated around the price of 1.0 (or any real price), and this is a very useful feature for creating liquidity between stable coins. Automated market making using dynamic peg creates liquidity for assets that are not necessarily pegged to each other in a more efficient way than m * n = λ invariant. This creates more than 5 - 10 times more liquidity than Uniswap and also provides higher profits for liquidity providers. The dynamic peg AMM can further optimize the issues of price stability and liquidity of stablecoins (especially for decentralized stablecoin like DAI). Highlights of Klein The most prominent feature of Klein is it can have both low slippage and aggregated liquidity close to the "price equilibrium point”. This can optimize the utilization of capital, and control potential impermanent loss, especially for novice users, which combines the advantages of both Uniswap V2 and V3. In one word, what problems does Klein Finance solve? It inherits the advantages of StableSwap's ultra-low slip point and aggregation liquidity near the "equilibrium point”. By fitting between the constant product curve and the StableSwap curve and to the constant product curve in the middle and tail area of the curve, the advantage of the constant product curve in rapid response to liquidity changes is obtained, to avoid the depletion of pool liquidity and respond flexibly to rapid market changes. The model of Klein Finance can be applied in transections among stable assets. The mechanism can be briefly explained in this way. As the number of all types of stable assets are equal to each other, which is C/n, hence the product of the numbers should be constant, that is C/n to the power n. Hence, When coefficient Ψ approaches positive infinity, Klein Finance invariant function approaches the sum constant formula, while when coefficient Ψ approaches 0, the Klein Finance invariant function approaches the product constant formula. If the above equation is valid, the leverage level of the transaction will be maintained on Ψ. However, this mechanism will not support prices far below the ideal price. In order to provide liquidity at any price, Klein finance introduces dynamic Ψ instead. When the price is away from the equilibrium price (i.e Ψ tends to 0), the invariant function is similar to the constant product function while when the price tends to the equilibrium price (i.e Ψ tends to K), the invariant function is similar to the constant sum function. Key functions of Klein Finance: Create a transaction pool without permission. Allow users to freely create trading pairs, not only limited to stablecoins trading pairs, and
users can create trading pairs of any tokens: trading pairs of any tokens and meta pool with shared depth. Allow users to freely create trading pairs and support long-tailed tokens, and use the meta pool to create them, which can be done one by one to complete the swap of main stablecoins. Transaction Routing: this allows users to create liquidity, transactions require users to use
transaction routing to select the exchange pool with the smallest slippage for users at the front end. Transaction mining: According to the different transaction pools, the user's transactions are counted, calculated according to the token distribution speed and the different reward pools. Different xTokens are obtained according to the user's transaction volume within a period of time. The fundamental function: trading. On Klein Finance, The bottom layer of Klein Finance uses a permissionless transaction module, which can satisfy stablecoin-to- stablecoin transactions and stablecoin-to-non- stablecoin transactions. First, Uniswap brings a market created by the x y = k invariant that makes no assumptions about the pricing of the underlying asset and distributes liquidity evenly across all prices. Next, Klein introduces the stableswap invariant, which allows to concentrate most of the liquidity around price 1.0 (or really any price), a very useful feature for creating stablecoin-to-stablecoin liquidity. From the above figure, the blue line is the StableSwap currency exchange curve, while the yellow curve is constructed by automatic market, making using the dynamic peg exchange rate method. Two characteristics can be observed: the yellow line lies between a constant product curve and the blue line; the curve tail features have obvious equal-area curve fitting. Klein Finance has built a robust ecosystem around governance, rewards, and staking, all designed to drive future growth and decentralization of Klein Finance, resulting in a better experience for users. The way to calculate KEN (token in Klein Finance platform) can be expressed this way: KEN = individual transaction volume / total transaction volume * KEN output Where total transaction volume is the total transaction volume that has not been rewarded. The number of xTokens for transaction rewards will change with the total transaction volume. When the total transaction volume increases, the number of xTokens that an individual can receive decreases; when other people receive KEN rewards, their transaction volume will be added to the total transaction volume. Removed, the number of xtokens that an individual can receive at this time increases. Staking mining: Additional path to maintain liquidity of the pool. Other than transaction mining, staking mining gives another way to reward liquidity providers. The protocol will calculate the reward to be obtained based on the amount and type of tokens staked in the pool. The basic reward is set to 1 time, and veToken can be used to accelerate the reward up to the maximum of 3.3 times. Three types of transaction pools: solve targeted liquidity problems Klein Finance supports integration with other DeFi protocols, and Klein's liquidity pools are divided into three types, each of them is created to solve a specific liquidity problem. : a meta pool is a liquidity pool composed of a stablecoin and a Base Pool. The purpose of this liquidity pool is to reuse the stablecoins with higher capital utilization and better pool depth in the base pool. Meta pools : a Stablecoin pool supports 2-4 stablecoins. Considering that swaps among stablecoins are very common, pools of this type are crucial as they can efficiently reduce slippage. Stablecoin pools : a Plain pool supports a stablecoin and a non-stablecoin. This type is designed to provide liquidities to non-stablecoins so that range of users can be expanded. All these three pool types form the ecosystem where users can make transactions with low costs and improve the utilization of tokens. As the scale of pools improves, a forward cycle can be expected in long run. Plain pools KEN Tokenomics Ken token is the non-stablecoin in in the Klein Finance protocol. The initial supply of KEN is 100 million. Three key functions are required for KEN token: to regulate the and stabilize the liquidity of the system; to balance the benefit of users, Liquidity providers and governors; to behave as the transection fees among all protocols. Also, the Klein Finance introduced veKEN to act as governance token, which can distinguish the governance and voting rights with the other rights. The below table demonstrates the general usage of KEN tokens. Also, the above graph demonstrates the scale of released tokens, percentage of tokens for different usage, as well as release rhythm. DAO & veKEN mechanism in Klein Lab. KEN tokens can be used for community voting, staking to boost the mining process, and making proposals in the community. However, the above-mentioned functions can only be applied when the KEN token is converted to veKEN token, which can be realized by locking KEN for a certain period of time. The number of veKEN obtained is determined by both the number of KEN locked and the locking period. The below curve shows the relationship between the locking time and voting weight of the locked tokens. For instance, 1 veKEN can be obtained once 1 KEN token is locked for 4 years; while only 0.25 veKEN can be obtained if the locking period is 1 year. As it approaches the end of lock-up period, the balance of veKEN will linearly decrease. Such a mechanism will motivate KEN holders to lock their tokens for a longer period, thus promoting the activity of the community. During the lock-up period, the locked KEN cannot be traded or unlocked in advance, which can assist to prevent “dig and sell” actions, releasing selling pressure and stabilizing the price of KEN. Then it comes to the functions of veKEN in detail. Firstly is boosting the liquidity mining process, users will get different boosting rates according to the amount of veKEN staked. The more veKEN used for boosting a certain pool, the higher the boosting rate will be. The ceiling of boosting rate is 2.5X. Besides, users will also receive proportional transaction fee dividends. Eventually, the voting right is also essential for veKEN holders. As the voting weight is proportional to the number of veKEN, the users are motivated to extend the lock-up period for more voting rights. Conclusion Klein Finance applies a completely different technical path from Uniswap V3 in AMM. In Uniswap V3, LPs can decide the price range they would like to provide liquidity, which can be risky for novice users as there are high potential impermanent losses. Unlike Uniswap V3, the AMM mode of Klein Finance can automatically adjust the liquidity aggregation range based on the feed price of the internal Oracle, without requiring liquidity providers to redeploy the liquidity range. This design is more friendly to novice investors and does not require liquidity providers to formulate complex market-making strategies. This article has generally discussed the underlying architecture, key functions as well as basic technical paths of Klein Finance. We can observe that the Klein Finance trading platform performs well in stablecoin trading, but in the field of non-stablecoin trading, AMM of the dynamic peg is still in process of exploration. In later articles, we will further discuss detailed technical methods and advanced trading strategies of the Klein Finance platform. Join Klein Finance: Website: Twitter: Telegram: https://klein.finance/ https://twitter.com/KleinSwap https://t.me/KleinFinance

Klein Finance: Low-Slippage, Low-Impermanent-Loss Decentralized Exchange in KCC

is a well-known play-to-earn NFT blockchain-based game in which users may earn money through gameplay and contributing to the ecosystem. Inspired in part by the successful Pokémon video game series, the game allows users to pit creatures called Axies against one another in combat. Gamers may also capture and raise monster pets, as well as construct land-based kingdoms for them as they progress through the game. Axie Infinity ($AXS) Axie Infinity is undoubtedly one of the most popular games in the blockchain industry. Founded by Vietnamese game developer Sky Mavis, the game completed a $7.5 million investment round in May 2021, with Reddit co-founder Alexis Ohanian and billionaire Mark Cuban as investors. According to Bloomberg, between April and August 2021, the number of daily active users on Axie Infinity increased from 30,000 to 1 million. Furthermore, from April 2018 to July 1st, 2021, Sky Mavis earned $21 million through Axie Infinity; by the end of August that year, that figure had increased by more than 2,200 percent to $485 million. Despite its spectacular ascent to global recognition, Axie Infinity has suffered a severe drop in daily revenue and public interest since its all-time high of $165 USD in November 2021. Let's take a look at some challenges faced by Axie in the last months to better comprehend the unraveling of one of the most popular blockchain games. Accusations of Digital Exploitation One of the major difficulties in Axie Infinity is the unreasonably high barrier to entry. Although Axie Infinity is free to download, players must start with at least three Axies, each of which costs at least US$29. For some, this might be an incredibly expensive initial expenditure, deterring them from ever beginning the game in the first place. Because of the high initial investment, there are active Discord and Telegram groups where potential players are always looking for sponsors to help them get their foot in the door. Unfortunately, before aiding players, sponsors occasionally make unacceptable requirements. For example, Axie Infinity was forced to to claims of sponsors asking nude images from gamers in order to be offered an Axie. respond Other contentious practices emerged, such as the "Scholarship" practice, in which players lacking initial capital (identified as "Scholars") borrowed Axies from "Managers" in exchange for a considerable amount of in-game revenue. In certain circumstances, the ratio between Scholar and Manager was as high as 50:50. The practice was highly common in the Philippines, where it was well-known that individuals quit their jobs to play Axie professionally with its high returns. Many scholarship "guilds" were founded during Axie's peak in 2021, with some having over 3,000 participants playing numerous games for their Managers. These Managers have even gone so far as to threaten to revoke people's scholarships if they do not perform to their expectations. Given that the average income for a Filipino worker is only US$3,218, critics have compared Axie Infinity's business model to "digital serfdom," or modern exploitation in the digital domain. Sky Mavis Co-founder and Chief Operating Officer Aleksander Leonard Larsen compared Axie Infinity to a digital nation, implying that criminals exist in any civilization, in reaction to charges of questionable activities by some Axie Infinity players. The COO acknowledged that the problem is an internal concern for the company and that the platform has so far banned "several thousand" accounts. Decrease in Revenue Since its peak in November 2021, Axie Infinity's income has been declining. According to a Token Terminal graphic, Axie Infinity started October with $6 million in daily earnings. Revenue increased over $10 million between October 4th and early December, but that has also decreased to about $2 million. In fact, Axie hasn't surpassed $2 million since mid-December, with the number reaching as low as $21,000 on March 30th. According to a recent , Axie Infinity’s revenue fell 40% in September alone. report Ronin Network Hack The most significant challenge Axie has experienced in its four-year lifetime is a US$625 million hack that occurred on March 23, 2022. Hackers attacked Sky Mavis' Ronin Network validator nodes and Axie DAO validators, which are used to power the game, according to an official Substack . As a consequence, the hackers were able to escape with 25.5 million USDC and 173,600 Ether (ETH). In two transactions, the unknown hackers emptied cash from the Ronin bridge. article Ronin added that the chain now has nine validator nodes to prevent illegitimate transactions and that any withdrawals or deposits require five validatory signatures to be recognized. Ronin allowed Sky Mavis to sign transactions in November to assist with the strong demand from new Axie players. Although this only lasted until December, and the attacker was able to access Sky Mavis systems and get a signature from the Axie DAO validator using Ronin's gas-free RPC node. By doing so, the hacker gained validation access to this highly centralized network, gaining control of the majority of nodes and consequently decision-making authority. Chainalysis, a blockchain analytics firm, is presently assisting Sky Mavis in tracking down the stolen funds, which are still in the hacker's wallet. Ronin further stated that all partners are currently working to guarantee that users do not lose any money. Other steps are also being taken to prevent additional loss. For example, withdrawal or deposit recognition now takes eight signatures rather than five. In addition to Binance deactivating their bridge to and from Ronin, there is a temporary halt on the Ronin Bridge. The Katana DEX was also suspended immediately. Unfortunately, none of this has prevented the price of their AXS token from plummeting by 25% since the attack. Is this the end for Axie Infinity? Despite these inherent difficulties, numerous members of the gaming world feel Axie Infinity has a promising future. Some experts believe that the platform's large and growing population can only mean long-term success. Axie Infinity has grown in popularity and boosted AXS token values to the point where many people feel there is no suitable rival. The current hack, on the other hand, has the potential to quickly change public opinion. Although Axie's income has been steadily declining since late last year, the decrease has been considerably more precipitous in March 2022. According to Token Terminal statistics, Axie earned $184,500 on March 1st, down from $2.1 million on January 19th. On March 25th, revenue was less than $10,000. Several competitors, like Crypto Kitties and Decentraland, had failed to compete with Axie Infinity initially. However, now is the opportunity for these alternative play-to-earn ecosystems to take advantage of Axie's unsatisfied users. Popular options can take advantage of Axie Infinity's current downtime to remodel or launch new products, making the features appealing enough for Axie users to switch. In fact, players may be content with the idea of keeping and utilizing accounts across most of these popular play-to-earn games. With all of the commotion in the GameFi world right now, it could be a good moment for new games to be released, or at the very least to quench gamers' appetites. Security improvements, more gaming possibilities, more accessible play-to-earn solutions, and immersive games that can compete with Axie Infinity are all possible options. If rivals provide little to no financial barriers to entry, Axie Infinity may have a difficult time getting back on its feet once the Ronin bridge is opened.

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