everFinance: Decentralized Financial Services for All

everFinance aims to provide everyone with decentralized financial services without time and space boundaries. Its goal is to improve the user experience, lower the development threshold, and provide decentralized and trusted financial applications for everyone. everfinance is a DeFi protocol based on Arweave.

Before understanding everfinance, it is necessary to understand its underlying Arweave. Arweave has always been known as an important infrastructure in the Web3 era and a game-breaker in storage. The official introduction states that Arweave is a tool that helps anyone store data permanently. The way it works is by distributing stored information across a network of computers called nodes or miners.

Arweave Ecological Development

The creator and founder of Arweave is Sam Williams, a Ph.D. with extensive experience in the design and implementation of decentralized systems. He established Arweave while in college.

Back in 2017, when Arweave was called Archain. In 2018, when the Arweave team participated in Techstars, it was renamed. In 2019, Arweave raised $5 million from prominent venture capital firms including Coinbase, a16z, and Multicoin Capital. In 2020, Arweave received another $8.3 million in funding, which they plan to use to build on the user and developer community on top of Arweave. This includes projects such as Verto, ArDrive and Arweave News.

Before the outbreak of Filecoin, everyone was not familiar with Arweave. With the attention of the decentralized storage track, market users gradually discovered Arweave.

To put it simply, Filecoin stores temporary files and realizes decentralized storage. Arweave starts from another idea. What it does is to pay the fee at one time, and then store it permanently. Permanent storage keeps the Internet from being forgotten and makes the Internet more convenient. Credibility, opening the blockchain of the underlying storage and opening the era of decentralized web 3.0.

Unlike normal blockchains (blocks that hold the content of transactions), Arweave is not a chain, but a more complex graph structure. It stores data in a graph of blocks, which changes the data structure of traditional blockchains. Not every node needs to store all blocks, but every time a block is generated, a previous random block needs to be verified at the same time. Blocks, in this way, each block is connected to the two preceding blocks, forming a structure called a “blockweave”. Coupled with the Blockshadow mechanism—nodes can reconstruct the complete blockchain based on blockshadow and their own transaction files, so as to speed up consensus and provide TPS. Arweave improved on POW, pioneered the POA consensus mechanism, and optimized the problem of POW power waste. At the P2P network layer, Arweave uses a Wildfire scoring or review mechanism to ensure the stability of the network and promote the efficiency of data sharing between nodes. These are the 4 core technologies in the Arweave project.

Like many decentralized storage platforms, Arweave uses its own native cryptocurrency, AR, to run its services. When people spend tokens to store data, AR is paid to miners. From these transactions, AR is also stored in an endowment that can technically release rewards slowly indefinitely. Through this mechanism, Arweave guarantees unlimited permanent storage.

Additionally, some of the new features that make Arweave stand out are that it can be accessed through a traditional web browser; it’s open source, so the community can participate in its improvement process. The community is great in many ways, as Arweave has a voting mechanism that allows its users to moderate content and flag some as illegal, plus a thriving ecosystem of new app developers.

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(How Arweave works)

In terms of application, the application scenario of Arweave permanent storage is controversial in the industry. The official application scenario is that the regulations require documents to be kept for a certain number of years, provable media reports, academic research and unalterable records. Whether the data of applications such as games or social network DAPPs currently developed in the ecosystem needs to be permanently stored is not considered a rigid requirement.

everfinance development

As of early 2021, there are more than 250 applications based on the Arweave protocol, including finance, social networking, content distribution, verification, storage and archiving, DAOs, and infrastructure tools. For example, Verto is a decentralized exchange specializing in trading PST, Mirror and other published content are permanently stored, Permanent Archives has established a permanent archive of political and historical information, FOR Weave is a permanent storage anti-counterfeiting solution And more than 7000 academic certifications.

And everfinance is a DeFi protocol based on Arweave. everFinance aims to provide decentralized financial services to everyone without time, space and boundaries. The goal is to improve the user experience, lower the development threshold, and of course provide everyone with decentralized and credible financial applications.

everFinance is jointly funded by HashKey and SevenX Ventures, and subsequent investors include Arweave Official, Mask Network, DODO, OKEx Blockdream Ventures, Digital Renaissance Foundation (Yin Cao), D1 Ventures, etc. Individual investors include DeBank CEO Tang Hongbo and DODO founder Lei Mingda.

In addition, with the help of the gene of storage computing paradigm (SCP – original name: storage-based computing paradigm, it is the next-generation blockchain application development paradigm proposed by everFinance. SCP is a development practice that anyone can use to build decentralized application), everFinance can build decentralized applications that are close to the traditional Internet experience.

(Note: the importance of SCP. In Ethereum’s model, computation is performed by all full nodes, which then generate and store global state for querying. Unlike it, SCP manages to separate computation from storage. More specifically , the blockchain is only used for data storage, while the off-chain client/server is responsible for performing all computations and storing all generated states. SCP uses off-chain smart contracts, which can be written in any programming language, and all inputs come from storage-based regions Blockchain. In this paradigm, blockchain is very much like a hard drive, and off-chain smart contracts can run on any device with computing power. Using blockchain as a hard drive ensures immutability and traceability of stored data, So as to ensure its credibility. Therefore, off-chain smart contracts can ensure the eventual consistency of the state by computing trusted data. Applications built on SCP have both the transparency and trustworthiness of the blockchain, and Has the high performance and availability of traditional Internet applications.)

Currently, everFinance products include everPay, Toolkits, and Swap. Toolkits are blockchain developer toolkits for building Arweave and Ethereum DApps. Swap’s efficient AMM provides instant token swaps for USDC, USDT and AR. everPay is launched as an easy-to-use blockchain solution and application protocol, providing users with a payment and settlement experience close to the traditional Internet, while ensuring credibility.

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The ecological advantages of everFinance and Arweave from the operation of everPay

The official introduction pointed out that everPay is a blockchain real-time financial protocol under everFinance. everPay will lock encrypted assets on other public chains in smart contracts and map them to the protocol to provide users with real-time payment settlement. The transaction cost of everPay is very low, and millions of transactions can be made for 1 USD. In addition, everPay is built using the storage consensus paradigm, without the performance limitations of the blockchain. The TPS size of the protocol depends on the application architecture and server performance, and has TPS performance comparable to traditional Internet applications.

In the traditional legal currency field, stripe provides legal currency payment services, and in the blockchain field, everPay can be used for token payment. The everPay protocol has the important characteristics of the blockchain: transparency, immutability, trustlessness, etc. In the protocol, anyone can become a tester of the protocol and observe the ledger changes in the system. At the same time, we also provide a browser for everPay, any user can access the browser to view the account book of everPay, and ensure that the locked token assets and circulating assets in everPay always maintain a 1:1 mapping relationship.

With the above-mentioned storage consensus paradigm – SCP (SCP is inspired by Arweave’s smart contract SmartWeave and Ethereum’s second-layer expansion scheme Rollup, and improves the usability of SmartWeave and Rollup), many advantages can be achieved.

Composability: Business docking between traditional financial services requires accounting reconciliation, which is complicated and error-prone. Using SCP, financial transaction records are completely on the chain, traditional financial services are transformed into blockchain applications, automatic reconciliation is realized, and rapid collaboration and efficient combination between applications are achieved.

Low development threshold: Using the Ethereum virtual machine to write smart contracts requires the use of Solidity language, and off-chain smart contracts can be developed in any language, and developers can convert traditional applications into blockchain applications.

No performance limitation: Off-chain computing, its performance is the same as that of traditional applications, and off-chain servers can carry a large number of transactions. TPS depends on the performance of the machines that provide computing services and the technical architecture on which the application is built.

Consensus costs are extremely low: only $1 for 1 million transactions.

In addition, everFinance has improved SmartWeave in the product everPay application. SmartWeave is a smart contract platform built on Arweave. Allows users and developers to build applications whose execution is trusted and decentralized. The important feature of SmartWeave is “lazy calculation”, which removes the calculation process of the smart contract from the node and transfers it to the user for processing. This means that the computing process of contract code does not take place in the blockchain network, and all computing processes and states are computed and stored locally on the machine that requests them.

SmartWeave is a completely open and decentralized contract platform. Off-chain computing has stronger scalability but also raises new problems. SmartWeave is vulnerable to data DDOS, and a large amount of invalid data is transmitted to all computing nodes through Arweave, resulting in node consensus delay and unavailability. When conducting a data DDOS attack, the attacker can maliciously send a large number of wrong transactions to the chain, and the client needs to download these transactions before verification. A large number of wrong transactions occupy the bandwidth of the client, causing normal transactions to be submerged in wrong transactions. When the data DDOS reaches a certain level, it will cause the client state calculation delay.

In order to solve the data DDOS problem and ensure the availability of applications, everFinance proposes the role of Coordinator. All data of the application is first calculated and verified by the coordinator. After the calculation and verification are passed, the data is packaged on Arweave in batches by the coordinator. Coordinators are like operators of Rollups on Ethereum. Like Rollups, they package a batch of transactions onto the chain in batches, and these packaged data can be verified. SmartWeave’s “lazy computation” guarantees verifiability, and Rollup guarantees data correctness and avoids data DDOS attacks.

The everPay protocol operates through a DAO and is fully transparent and 100% verifiable. DAO’s data sharing and computing use SCP. There are three types of member roles in DAO, namely: Coordinator, Detectors and Watchmen. There is also an independent component, ProposalHub: used to collect DAO proposals and signatures, aggregate and execute proposals.

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How everPay works

In the agreement, all roles integrate the same off-chain smart contract code, and each role has consistent business rules. The contract program between the characters has no independent data communication, and the data communication and download completely use Arweave. The contract program will connect to Arweave for data download, and the order of transactions is based on the order stored on Arweave. After the contract program obtains the transaction data, it performs calculations in the off-chain smart contract to generate a consistent final state.

On the business side, everPay provides a transfer function that is close to the traditional payment experience. EverPay built with SCP is easy to build a cross-chain system. At present, everPay has integrated the two chains of Ethereum and Arweave, and maps the native token AR of Arweave to Ethereum to generate WAR. WAR is the ERC20 version of AR. The generation of WAR is governed by everPay’s DAO, which is transparent and 100% verifiable. everPay can provide excellent cross-chain withdrawal. Use the Arweave wallet ArConnect to connect everPay for AR recharge. When withdrawing, select Ethereum and fill in the corresponding Ethereum address to complete the cross-chain. The whole process is completed within an hour. The cross-chain nature of the protocol will extend to different blockchains and different tokens. In the future, everPay will become a multi-chain relay token payment layer. everPay supports accounts on various chains, and can even support Internet accounts. Off-chain computing allows everPay’s account system to have the best flexibility. At the same time, it provides batch transfer exchange and aggregated wealth management.

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everPay Ecology

The consensus of the everPay protocol is managed by authoritative institutions participating in the DAO. With the development of business and technology, under the premise of ensuring security and ease of use, it will gradually transition to the token governance model. At present, everPay has not formulated a token issuance plan, and will focus on infrastructure construction and ecological construction. The team will actively explore the token governance model and find the right time to transition the everPay protocol to a full DAO.

In 2021, everPay supports batch transfer payment, decentralized exchange, Arweave PSTs cross-chain, and seeks Watchmen partner institutions, etc. 2022 will further expand the Internet account system, use gmail to register and manage everPay accounts, and integrate more chains. 2023 will focus on aggregated financial services, legal currency and OTC.

Recently everPay also launched everPay NFT auction. The official introduction pointed out that collecting everPay NFT can establish a connection with everPay in the future. Proceeds from the auction will be distributed to users, artists and past everPay NFT holders.

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In the latest round of NFT auctions, the floor price has reached 112.45AR.

Note that recently, a fake airdrop token called EVER appeared on BSC. Hackers imitated everFinance, used the [Claim Your Token] button to steal coins, and airdropped EVER on BSC. Therefore, everFinance states that it has never issued EVER tokens since its launch, beware of this scam to avoid getting scammed!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/everfinance-decentralized-financial-services-for-all/
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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