weiWard offers tokenized ethereum gas, emphasizing trust as the cornerstone

The weiWard team wants every user to know that trust is a necessary condition of their agreement.

weiWard requires trust

weiWard offers tokenized ethereum gas, emphasizing trust as the cornerstone


Trust is a prerequisite for the weiWard platform to function properly. weiWard protocol uses an off-chain prophecy machine that can change contracts and even upgrade them. Currently, weiWard is still in the experimental phase. It will take time for us to reduce the trust requirements. However, certain implementation details cannot be fully decentralized due to economic feasibility.

Decentralization presents different degrees
The need for trust is common across all businesses and the degree of trust required varies. This is reflected throughout the cryptocurrency industry.

The Yearn Finance team could have initially set up arbitrary addresses for certain lenders to withdraw funds, but they gave ownership to zero addresses to lock in. The team recently modified the deposit limit for DAI Vault in real time based on Alchemix’s needs, and it took the approval of MultiSig members to change this provision. For decentralized management, its governance system can sometimes run too slow and requires a reduced team size for quick decisions.

The primary voting rights of a governance token (e.g., UNI or SUSHI) may be owned by the token creator and/or significant investors. Regardless of how the governance tokens are distributed/sold to the broader community, it is reminiscent of the shareholder-manager relationship in traditional corporate governance frameworks.

At some point, 61% of Ether nodes are hosted on the cloud, and almost a quarter of nodes are on the Amazon Cloud Platform (AWS). A recent study shows that the US and Germany hold 58% of the global Ether nodes. More worryingly, as of March 9, 2021, there are only 6,806 Ether nodes operating globally.Ethernodes provides some of the most recent statistics on Ether network nodes.

weiWard offers tokenized ethereum gas, emphasizing trust as the cornerstone

Major decentralized applications (dapps) such as MetaMask, Aragon, Gnosis, OpenZeppelin and Uniswap all rely on Infura for their processing infrastructure. infrastructure.

Ocean Protocol, a decentralized data sharing protocol, completes a hard fork of the contract to recover the OCEAN tokens stolen by hackers from the KuCoin exchange. Other contracts are upgradable when Ocean v3 is launched.

After the DAO hack, Ether developers and miners into recovering funds through a hard fork.

Chainlink acts as a centralized agency for customers, deciding which data feeds can be treated as fiduciaries.

Benchmark tokens such as Ampleforth and Badger DAO (DIGG) use centralized prophecy machines and/or data feeds to correct token supply.

Well-known custodian exchanges such as Coinbase and Binance operate with centralization and execute transactions off-chain.

The ethereum community has come a long way on the road to decentralization, and we still have a long way to go. In the process, each project starts from a different place. By knowing the weaknesses in achieving the goal of decentralization, we can make informed decisions.

There is nothing inherently wrong with trust being a prerequisite for using protocols, unless the community’s assumptions about de-trust are flawed. This is likely to be invited by the platform’s false propaganda about decentralization or the degree of “crypto-economic security”.

The weiWard team wants every user to know that trust is a necessary condition of its protocol.

weiWard trust points
The weiWard team requires trust based on the following facts.

We use a centralized prophecy machine that computes a one-day median filter (moving median) of gas prices from the Geth program.

Most contracts have variable variables.

We use a scalable agent.

Below, let us elaborate on why implementing these details requires trust.

Centralized prophecy machine

Recently, I read an article by Eric Wall about the ChainLink 2.0 study. In the article, Eric sharply criticizes Chainlink’s trust mechanism as merely following tradition, rather than being motivated by “cryptoeconomic security”.

In order to achieve crypto-economic security, it is necessary to ensure that the specific entity relying on it loses the specific value it currently possesses, which must be higher than that obtained by fraud.
-Eric Wall
The potential benefit of using Chainlink is that redundant data feeds and quorum requirements are distributed among multiple “trusted” parties, reducing the risk of hacking and dishonesty. The weakness of the Chainlink 2.0 version of the two-tier regulatory prophecy machine is that “trusted parties” are not penalized for dishonest behavior. This mechanism pushes the trust requirement to obfuscation. Ultimately, the centralized institution (i.e., Chainlink) determines for the client who is trustworthy and who is not.

Trusted data feeds have nothing to do with “cryptoeconomics”.
-Eric Wall
weiWard relies on a centralized prophecy machine. weiWard uses an off-chain process to calculate a one-day median filter of ethereum gas prices from Geth nodes, and publishes on-chain values every 4 hours. This moving window is critical to defend against 11th hour prophecy machine manipulation attacks.

The following are a few ways to reduce trust requirements.

Use a 2-tier solution to calculate gas prices and publish them to layer 1 at a much lower cost. We are currently working with the Polygon team on this solution and the development process will be announced immediately.

Data feeds are handled by multiple participants. Redundant data feeds reduce the likelihood of hacking and create mutual accountability among the trusted parties.

The latest gas price for each block is published, and a median filter is calculated based on the data on the chain. This reduces some of the trust requirements, but still requires users to trust the gas prices we calculate for each block. More importantly, it is economically infeasible and uneconomical to write a new state on each block of the blockchain and calculate the on-chain median filter.

Use the EIP-3198 BASEFEE opcode to issue a new pseudo gas price (pseudo gas price) for each block. It is not a gas price, but it can be used to estimate network utilization without having to trust the off-chain prophecy machine. Nevertheless, it requires the same unaffordable high cost as the above method.

1 hour delay in posting when updating prices. Each trader will know the price 1 hour before it is posted. If the price is unreasonable, it can be withdrawn. At the same time, knowing the price one hour in advance provides a great arbitrage opportunity for each trader. It does not bring competitive uncertainty as moving window (moving window) does. However, it may be easy to deplete the platform’s collateral.

Use the gas refund mechanism promoted by GasToken and CHI. This would cut the cost of large 1inch transactions, but has never been widely adopted. gas refund tokens effectively act as a “leech on the network” for others, cluttering the blockchain with useless data in order to publish it for potential refunds later. For the average user, the ROI can be prohibitive, requiring significant adjustments to gas prices and appropriate economic costs. In any case, the Ether EIP-3529 London hard fork is officially scheduled for July, by which time it will be difficult for these tokens to survive as refunds will have fallen from 15,000gas to 4,800 gas.

As the weiWard team continues to evolve, we can simplify the process of calculating the price of gas for any entity and select fiduciaries to provide consensus mechanisms for weiWard’s gas prices.

Variability

Fei DAO allows to adjust almost every variable on its contracts. According to its documentation, despite the distribution of TRIBE governance tokens, only a 2.5% quorum is required to pass the proposal.

The weiWard contract also allows the administrator address to adjust numerous parameters in the protocol. The motivation behind this is that the protocol, the economic model and the game theory have not yet been proven. We have done our best to incentivize the implementation of every detail, but the platform is still not perfect and we may have made mistakes. As the platform grows and evolves, parameters may need to be adjusted to provide the ideal experience for the platform’s users.

One way to potentially reduce the trust requirements of the weiWard team is with governance tokens.

Releasing a decentralized governance system in a pilot and unproven phase may have a negative negative impact. It is impossible to develop a truly decentralized and fair governance token distribution mechanism while stakeholders benefit from the platform. If the mechanism for selecting stakeholders is not carefully implemented (note that this requires centralization help), they can vote on their own whether to pay salaries or even break the rest of the agreement.

If decentralized governance uses tokens, it also has its drawbacks. Most teams that choose governance tokens will continue to relax as they stabilize. weiWard plans to use Snapshot to collect off-chain sentiment indicators. We reserve the right to choose to migrate to a decentralized form of governance as the platform gradually stabilizes.

Scalability

Immutable smart contracts have many advantages, but also some disadvantages. When a bug or security flaw is detected in immutable code, the only way to resolve the issue is to abandon the code and redeploy it entirely, requiring users to migrate data from one contract to another.

This migration is sufficient for applications and contracts alone, which have no intrinsic value. If weiWard AMM had to give up the contract code, it would also have to give up all locked ETH collateral in the contract, resulting in the collateral being lost forever.

Therefore, we choose OpenZeppelin’s transparent, scalable proxy for the contract. If a security vulnerability is found in the weiWard or Solidity compilers, the agent allows us to push updates to protect the contract. In addition, scalability helps the platform stay liquid and keep updates linked to the rest of the ethereum ecosystem. We can leverage scalability to implement future decentralized solutions for other trust points, such as the gas price prediction machine.

weiWard will use the Gnosis Safe MultiSig wallet to ensure contract fungibility. If changes are desired, multiple signatures will be required.

weiWard team incentives
The weiWard team will only be paid if the agreement is profitable. The transfer fees generated by using the platform are our only driving force, it is both a source of income and a reward for ETH contributors. Transfers only occur when the gas peg is successful and users wish to trade with it. If the platform succeeds, the weiWard team succeeds. If the platform fails, the weiWard team will fail.

Risk Factors

Inability to Compete

The weiWard team will make mistakes, and the community may perceive us as incompetent as a result. All protocols have similar risks. This perception by the community will cause a massive exodus. eTHtx value is tied to gas prices and is always backed by ETH. Users will always be able to retrieve ethereum. the ETHmx token value may go to zero, but this applies to all protocols.

Hacking

While weiWard is committed to creating solutions to reduce the likelihood of potential hacks, they can still happen. This is common to all protocols. whitehats has reviewed the weiWard platform for smart contracts. The team will complete several official security audits when it begins to make a profit.

gas price manipulation

The weiWard team, and even future “trusted” price feeds, can subtly manipulate the price of gas for automated market makers (AMMs). It is possible to profit from price manipulation by buying and selling ETHtx and maliciously and conspiratorially predicting the machine, while modifying the predicting machine price. However, this manipulation is quickly detected because we use a one-day median filter of the gas prices from the Geth nodes to calculate the prices. Anyone can validate the data.

Migrating to a layer 2 solution that calculates gas prices has the potential to eliminate that risk factor.

Runs

Without considering the reputational impact, anyone could end up changing their mind and trying to defraud customers. Currently, the cryptocurrency and DeFi situation is unstable and there is a great deal of uncertainty about the future. Operators may not be optimistic about future revenues and therefore decide to “make money and run” from their current customer base.

Legal implications

To mitigate the legal risk, weiWard has made public the information of the team founders (Matthew Mahaffey and Benjamin Kostreva) through a public company in Colorado, USA, and the company complies with all applicable business laws. If we try to defraud the community, we will lose all of our ill-gotten gains and be behind bars. We would be saddled with heavy debt due to the need for compensation.

Epilogue
You have to trust the weiWard team to benefit from the ETH gas peg. currently, the only viable option to get ETH gas is to trust the off-chain prophecy machine. We are considering migrating the centralized prophecy machine to a layer 2 solution that eliminates this trust requirement. I will outline the exact operation in my next post.

The weiWard team identified a gaping market in the ethereum community when ethereum gas prices became an issue. We came up with a solution and intend to provide the best experience for the community.

We are adamant about providing long-term value for all and want to enhance the breadth of the ethereum ecosystem so that word of mouth spreads about our product. Integrity and honesty are our core values. We would rather go out of business than give up such values.

weiWard -gas price volatility ender
weiWard is an automated market maker for ethereum gas prices, providing users with tokenized ethereum gas.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/weiward-offers-tokenized-ethereum-gas-emphasizing-trust-as-the-cornerstone/
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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