Avalanche rushed 180 million SBF to enter the venue with huge funds

With the launch of $180 million in mining incentives, Avalanche has become the most popular public chain platform for users and funds. SBF even brought $140 million in funds to join this feast carnival.

On August 18th, the Avalanche Foundation announced that it would launch a $180 million liquidity mining reward program “Avalanche Rush” to encourage more applications and assets to join the Avalanche DeFi ecosystem.

According to the plan, Avalanche will first integrate Aave and Curve, the two DeFi protocols with the highest total lock-in value, but the first Avalanche Rush plan is not Aave or Curve, but another loan project BENQI that has just launched.

Avalanche rushed 180 million SBF to enter the venue with huge funds

BENQI’s growth can be described as rapid progress. It was officially launched on August 19. Two days later, TVL exceeded 500 million. Four days later, on August 23, BENQI’s TVL reached a staggering $1 billion, becoming the largest on Avalanche. project. TVL has gradually surpassed QuickSwap, Mirror, Balancer and other applications, and the price of its tokens has been rising for many days, with a weekly increase of 1203%!

BENQI’s 3 million liquidity incentive was originally not part of the Avalanche Rush plan, and it was also earlier than the time proposed by the Avalanche Rush plan itself. As early as August 10, BENQI announced the 3 million US dollar incentive plan, but it was later accompanied by Following the launch of the Avalanche Rush plan, Avalanche officially incorporated it into the entire plan on August 20.

Avalanche rushed 180 million SBF to enter the venue with huge funds

Avalanche rushed 180 million SBF to enter the venue with huge funds

The great success of BENQI has inspired enough enthusiasm among cultivators, and naturally there is no shortage of giant whales like SBF.

SBF admission

In an Avalanche C chain address starting with 0x84d (this address is also considered exclusive to SBF), up to 130 million funds are involved in mining (as of August 24)!

Beginning on August 20, one day after the Avalanche Rush incentive plan was announced, this address has successively transferred 1.29 million AVAX, 11.292 million USDT, 330,000 SuShi and W ETH through the bridge.avax bridge. , W BTC and other mainstream assets, the total value of wallet assets is as high as 142 million US dollars.

At present, there are about 130 million funds involved in mining, of which 87.433 million U.S. dollars are in the BENQI loan agreement. The main assets are AVAX and WBTC; the remaining 44.16 million U.S. dollars are added through the flow of WETH-AVAX, LINK-AVAX, and WBT-AVAX. Participated in the TraderJoe project of the DEX agreement.

Avalanche rushed 180 million SBF to enter the venue with huge funds

0x84d address mining asset details Data source: markr.io

As of August 24, BENQI’s TVL reached 1.38 billion, and TraderJoe’s TVL reached 190 million. The two investments of SBF accounted for 6.3% and 29.4% of the TVL of these two projects, respectively. It can be seen from the proportions, SBF’s funds occupy most of TraderJoe’s locked-up funds, and its on-chain behavior will have a greater impact on the TraderJoe project.

Avalanche rushed 180 million SBF to enter the venue with huge funds

AVAX ecological application TVL ranking data source: markr.io

Moreover, SBF has also been pursuing the purpose of mining, selling and withdrawal. On August 24, SBF has converted all the nearly 230,000 QI proceeds generated in the BENQI agreement into AVAX, and SBF has recently been continuously transferring funds from BENQI to In the TraderJoe agreement, the income currently generated in TraderJoe has not yet been claimed, but it is likely to be fully converted into AVAX by then.

The ” fundamentals ” of Avalanche

BENQI’s amazing performance fired the first shot of the Avalanche Rush project. More and more people are beginning to speculate about who will be the lucky one in the next batch of Avalanche Rush projects?

Before answering this question, we first need to understand the characteristics and fundamentals of the Avalanche project itself, and take a look at the current ecological layout of Avalanche.

First of all, Avalanche has three core chains (X, C, and P chains) , which respectively take on different roles. If you compare it solely from the user entry barrier, Avalanche is relatively more complicated than BSC, Polygon, and Solana, and at the same time for users The handling fee is also more expensive .

Among them, the X chain is a DAG structure with the fastest transaction speed and is a commonly used chain for exchanges. Therefore, when we withdraw AVAX from the trading platform to the chain, we generally use the address of the X chain; the C chain supports EVM ( The chain of the Ethereum Virtual Machine) is also the chain of contract interaction, so if you want to interact through the MetaMask wallet, you need to transfer assets from the X chain to the C chain (which can be operated through the Avalanche official wallet); the P chain is the node The related chain can be understood as Polkadot’s relay chain, and the P chain can directly share the security of avax.

Avalanche rushed 180 million SBF to enter the venue with huge funds

In terms of handling fees, a simple swap on the C chain previously required a handling fee of about 2u, which is significantly more expensive than public chains such as BSC and solana. However, on August 24, Avalanche carried out the Apricot upgrade. The official announcement stated that the handling fee after the upgrade could be reduced by 66% at a minimum. At the same time, the upper limit of the gas price was stipulated. The current cost of a simple swap is about 0.7u-1u.

Interestingly, there was an oolong incident in this upgrade. After the upgrade of the Avalanche C chain on the 24th, there was a phenomenon of block packaging stagnation. Tens of thousands of transactions were stuck, and some users reported that there was a “double spend”, so that various trading platforms suspended the withdrawal of AVAX. After that, Avalanche The founder Emin Gün Sirer (complaintly known as Professor Gun) explained that “the main reason is that there is an error in the state verification, which does not involve double spending.” In response to the influx of high traffic, the C chain was urgently upgraded to improve performance and stability, and new node hardware standards were announced.

As a POS chain, the total amount of AVAX is currently about 387 million, and the speed of the additional issuance depends on the amount of AVAX pledge. As of August 24, the current total amount of AVAX pledge is 219 million, accounting for 56.65% of the current total. The rate of return is 10.3%. In addition, Avalanche currently has more than 1,000 verification nodes. Compared with 21 super node public chains such as BSC and Heco, the security is relatively higher.

Avalanche rushed 180 million SBF to enter the venue with huge funds

Data source of node pledge: explorer.avax

In terms of Avalanche’s ecological development, according to avax-projects statistics, Avalanche currently has 256 ecological projects, with project cultivation in various fields such as lending, derivatives, aggregators, insurance, and oracles, mainly in the fields of DeFi and NFT .

DEX:Pangolin、TraderJoe、HurricaneSwap、jelly swap、Penguin 等

Borrowing: BENQI, Marginswap, Vee.Fin, etc.

NFT trading platform: Curate, PolyientX, 420Swap, etc.

NFT games and meta universe: AvaxCells, AVAX Duels, Cubetarium, etc.

Oracles: Gravity Protocol, Chainlink, etc.

Decentralized storage: Copper, Aleph, Ceramic, etc.

Avalanche rushed 180 million SBF to enter the venue with huge funds

AVAX Ecological Layout Source: @Coin98Analytics

Who will be the next BENQI?

Then who will be the next BENQI? Or which projects may be selected for the Avalanche Rush plan?

Let’s first look at the official description of this plan. There is a description in the official blog: “After we launch Aave and Curve, Avalanche will continue to integrate other blue-chip DeFi protocols on the platform as part of the Avalanche Rush plan. The Avalanche Fund also Part of the incentive rewards are allocated to the current and future native Avalanche applications. Encourage the provision of high-speed, low-cost and more diversified DeFi products on the Avalanche public blockchain.”

In other words, the Avalanche Rush plan will mainly focus on the DeFi field, and it is a blue-chip project in this field, and will also reserve a portion of funds for native ecological new projects. Let’s take DeFi apart and look at it. At present, this field can be divided into application tracks such as lending, DEX, derivatives, aggregators, and algorithmic stablecoins.

In the Avalanche Rush list, the lending track already has Aave and BENQI; DEX only has Sushiswap , and stable currency exchange only has Curve. They are not Avalanche’s native applications. If you follow the lending track’s “off-chain application + native application” model , The native DEX and stable currency exchange platform may appear in Avalanche Rush’s next list.

Therefore, Avalanche’s various DeFi header applications are the focus of attention, and of course, it also includes the DeFi header applications that support cross-chain on Ethereum.

Avalanche rushed 180 million SBF to enter the venue with huge funds

Source: Twitter @AVAXDaily

In terms of the 180 million fund allocation, according to the currently published information, Avalanche allocated 20 million US dollars worth of AVAX to Aave; allocated 7 million US dollars worth of AVAX to Curve users; BENQI, as Avalanche’s native lending agreement, obtained AVAX worth 3 million; On the evening of August 24, Sushi was also officially included in the reward plan. The incentive amount was 15 million US dollars, of which 7.5 million US dollars were provided by Avalanche.

That is to say, the total amount of allocated funds has been confirmed to be 37.5 million U.S. dollars, and 142 million funds are left waiting for distribution. The incentives are all given in the form of AVAX tokens. According to the current price, it is about 3.6 million AVAX in total, which accounts for 2.1% of the current liquidity (excluding the pledged part) is still relatively large.

But at the same time, the problem of “stimulus overheating” has also appeared. Under the 180 million stimulus, both the TVL of the Avalanche ecological project and the token prices of various projects have seen general rises, and even projects that have gone off the road have appeared. Can still rise sharply.

Although the aforementioned TraderJoe did not enter the Avalanche Rush incentive list, its weekly token increase has reached nearly 30 times! Some users even shouted out the slogan “Treat the avalanche ecology as a dog, whichever is cheaper!” It seems that the incident has gone to the other extreme.

It is foreseeable that with the influx of a large amount of funds into the Avalanche ecosystem, various native dog projects will begin to appear one after another, and the risks of running away, code, and hackers may also become the norm. This requires us to always be vigilant. , Put an end to FOMO, reason is supreme.

*SBF Giant Whale C chain address: 0x84d34f4f83a87596cd3fb6887cff8f17bf5a7b83

*Note: The above content is for reference only. According to the “Risk Tips on Preventing Illegal Fund Raising in the Names of “Virtual Currency” and “Blockchain”” issued by the China Banking and Insurance Regulatory Commission and other five departments, readers are requested to abide by the laws and regulations of their regions, please invest Improve risk prevention awareness.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/avalanche-rushed-180-million-sbf-to-enter-the-venue-with-huge-funds/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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