1. Project points
1. Project advantages
1.1 A corporate background with strong support: Relying on Coinbase as its backing, Base has strong user resources and financial support. In addition, Base can easily build decentralized applications that can access Coinbase products, users and tools, and seamlessly integrate with Coinbase products.
1.2 Integrating into the Super Chain Ecosystem: As a user of OP Stack, Base can seamlessly interconnect with all projects that have also adopted this technology stack, and at the same time enjoy the ecological support of other OP Stack projects, thus adding a lot to the ecological prosperity of the Base chain.
1.3 Excellent business performance: Base is still in a very early stage and was only officially launched on the mainnet on August 9, 2023. However, its business data far exceeds that of Linea, which was launched on July 18, 2023. TVL even surpassed Starknet to rank fifth in the Layer 2 TVL rankings, which shows that Base is more popular in the market.
1.4 High popularity in the community: As users were able to enter the Base chain in advance through the Token contract, a huge wealth effect occurred in the Base chain. The emergence of the thousand-fold coin $BALD aroused the enthusiasm of the Base chain and attracted many community members. attention.
2. Potential risks
2.1 Lack of core competitive advantages in technology: The emergence of Base does not seem to bring significant importance. It seems to be just an ordinary member of many Layer 2 projects. Although there is strong support behind it, this is not enough to make it stand out. . Moreover, the emergence of Base will have minimal impact on the entire industry and the field. (What core competitive advantage does this refer to? Is it technology?)
2.2 Regulatory pressure makes the prospect of its currency issuance unclear: While the regulatory environment is still unclear, it is difficult for Base to launch its Token, and it has clearly stated in the mainnet release route that there are currently no plans to issue Token. Compared with other Layer 2 projects that are expected to conduct token airdrops, Base is less attractive among airdrop hunters.
However, its official white paper also clearly mentions: The follow-up will be gradually decentralized. In the process of decentralization of web3, common implementation methods include issuing Tokens and establishing decentralized autonomous organizations (DAOs). In addition, many projects have announced in the past that they will not issue tokens, but later they also issued tokens and airdropped them to users. Therefore, another point of view believes that, as a public chain, Base has a high probability of issuing governance tokens.
2. Basic situation of the project
1. Project introduction
Base is an Ethereum Layer 2 built on OP Stack incubated by Coinbase, and Base will return part of the transaction fee income to the Optimism Collective treasury. Bases goal is to bring the next billion users into the crypto world.
As shown above, the companys founder, Brian Armstrong, proposed aoverall plan, outlining the growth of cryptocurrencies into four phases. These include:
Develop new protocols such as Bitcoin, Ethereum, etc. (Completed) - 1 million people
Building exchanges to facilitate trade (completed) - 10 million people
Building mass-market interfaces for dApps (completed) – 100 million people
Building dApps to Power an Open Financial System - 1 Billion People
And this last step is what the Coinbase team hopes to achieve through Base, which the Coinbase team sees as the next step in their mission to enhance economic freedom around the world. An open ecosystem provided by dapp people. The Coinbase team wants Base to be a seamless gateway for Coinbase users to access the broader cryptoeconomy, ultimately making web3 more accessible to more people.
Base is a fork of the OPs code base. The Base team chose Optimism because the EVM provides the path of least resistance and the OPs code base provides a fast-start path.
Coinbase and Optimism teams have been working together for more than a year and have made great contributions to the development of EIP-4844 (EIP-4844 is also known as Proto-Danksharding, which will reduce L2 transaction fees by 10-100 times), Coinbase is now OP Stacks Core contributors, join as a second core project team.
2. Project team
Base is incubated internally by Coinbase, one of the worlds largest cryptocurrency exchanges, founded in June 2012 by former Airbnb engineer Brian Armstrong.
As of today, approximately 245,000 ecosystem partners in over 100 countries trust Coinbase to invest, spend, save, earn, and spend cryptocurrencies easily and securely. As shown in the figure above, assets on the Coinbase platform are as high as $128B, transaction volume this quarter reached $92B, and the company has more than 3,400 employees.
It is worth mentioning that on October 30, 2018, Coinbase completed a $300 million E-round financing at a valuation of $8 billion, and was listed on Nasdaq on April 14, 2021, with the stock code COIN”, with a current market cap of $20.65 B.
3. Project financing
Currently, Base has not conducted a separate fundraising campaign, but its parent company Coinbase has successfully raised $505.6 million in financing. Given that Coinbase, as one of the largest centralized exchanges, has accumulated strong financial resources and cash flow, and Base in Coinbase"overall plan"It has been given an important role in the fourth stage of , which means that Base has a high probability of being able to obtain financial support from Coinbase and will not face the problem of shortage of funds.
4. Project progress and roadmap
Base launched the Base test network on February 23, 2023, and provided a $15,000 bounty for infrastructure developers in ETHDenver on March 4, 2023, and then announced the preparations required before launching the main network on May 24, 2023 (preparation are all done):
Successful completion of Regolith hard fork in testnet
Successful infrastructure review with the OP Labs team
Optimism bedrock upgrade successful
Successfully completed internal and external audits with no serious issues
Demonstrated the stability of the testnet
After completing the above launch criteria, on July 13, 2023, it was officially announced that the Base mainnet is now open to builders, and the first phase of the mainnet enables developers to deploy their products to Base.
Later, on August 3, Base announced that the mainnet will be officially opened to all users on August 9, and Base also held an event OnChain Summer for this purpose, which is a month-long on-chain event organized by Hosted by 50 of the best builders, brands, products, artists and creators. Every day in August, some interesting on-chain activities will be brought to users, including the following activities:
Onchain Summer – August 9-18: Create artwork, websites, or anything to get inspired for Onchain Summer on Base.
Building on Base – August 12-23: Deploy protocols, build infrastructure or new applications on Base.
Supporting Cryptocurrency – August 14-24: Make a one-minute video sharing a story about an on-chain use case, or advocating for sensible legislation.
Based Accounts – August 16 to September 13: Use the account abstraction to build something that unlocks new or improved user experiences on Base.
In addition to funding, Base is also collaborating with other Superchain (OP Stack) members to host the event from August 4th to 18thVirtual Hackathon Superhack, the hackathon prize is $125,000.
3. Competitive product analysis
1. Funding situation
In terms of financing, Base did not carry out project financing alone, but as shown in the figure below, its parent company Coinbase has received a total of 505.6 million US dollars in financing, with sufficient funds.
At the same time, Coinbase, as one of the top 5 leading blockchain centralized exchanges, has strong capital and cash flow. While providing Base with a large number of user resources, it can also provide strong financial support, and the above mentioned , Base, as a key player in the fourth step of Coinbase (10 B+), will certainly provide sufficient support.
In addition, other Layer 2 projects have also received significant financing: Arbitrum One received $143.7 million, OP Mainnet received $178.5 million, zkSync received $458 million, StarkNet received $273 million, Polygon zkEVM received In addition, it should be noted that Linea, like Base, did not conduct separate financing, but the company behind it, ConsenSys, received $726 million in financing.
2. Business data
Data source: compiled according to dune
It should be noted that the Base mainnet was only officially launched on August 9, so its data is currently for reference only.
It can be clearly observed from the above data that Arbitrum One has an absolute leading position in the current Layer 2 field in terms of business. From a total value locked (TVL) perspective, Arbitrum One holds over 55% of the market share, followed by OP Mainnet with over 26%. It should be emphasized that these two projects together account for more than 80% of the market share. Like Base, they both belong to the Op Rollup technology category.
In addition to TVL, it can be seen that Arbitrum One is also far ahead in other data, followed by OP Mainnet. Compared with the current Layer 2 leader, Base still has great room for development and improvement. There is a gap of more than 50 times between its TVL and Arbitrum One, and the difference is also far from the on-chain data.
However, compared with Linea, another project that has been online for nearly a month, although Base was only launched on August 9, it has surpassed Linea in all aspects of business data and has achieved a clear leading position. TVL is more than Linea It is nearly 3 times more, and the data on the chain is also ahead of Linea. Therefore, it can be considered that the market is more optimistic about the development of Base, and more investors are willing to operate funds on the Base chain.
It is worth noting that before the official cross-chain bridge is opened and the main network is officially launched, some cross-chain bridges have begun to support cross-chain operations from other chains to Base, such as Orbiter Finance.
Moreover, before these cross-chain bridges support cross-Base chain, users can also deposit funds into the Base chain by manually transferring funds to the contract. At that time, it also caused a wave of meme currency craze, and even a thousand-fold a day. Token $BALD, please refer to the specific situationThis article。
4. Base’s own highlights and OP Stack analysis
1. Backed by coinbase
1.1 Funding and resource support
Coinbase has a real-name authenticated user base of more than 100 million and an asset scale of nearly 100 billion US dollars. As mentioned above, Coinbase is one of the top 5 exchanges in cryptocurrency and has strong user resources. It also has strong funds, so Base can obtain financial and resource support through Coinbase.
1.2 Seamlessly integrate Coinbase’s products
Coinbase uses its superior capabilities to systematically remove the barriers that retail investors may encounter when migrating from centralized finance (CeFi) to decentralized finance (DeFi).
Coinbase wallet is one of the most integrated wallets in the DeFi field, withOver 1 million desktop usersandOver 10 million mobile users
Coinbase and Circle work closely to jointly promote the USDC stable currencyMarket cap expands to over $25 B。
Coinbases Liquid pledge Token cbETH is the highest pledge entity after Lido, with2.33 million ETHBeing pledged on Coinbase effectively protects the stability of the Beacon chain.
In addition, Base can easily build decentralized applications that can access Coinbase products, users and tools, and seamlessly integrate with Coinbase products, as shown in the figure below, just like the Linea mainnet is automatically integrated in Metamask, in the Coinbase wallet Coinbase also automatically integrates the base main network, and users do not need to add it themselves when using the Coinbase wallet.
At the same time, Coinbase is more than just an exchange. Its products cover digital asset staking solutions, liquid staking derivatives, institutional custody solutions, non-custodial wallet products, in-app integrated DeFi accessibility, and more. Base is a natural extension of this product line and provides Coinbase users with a direct way to integrate into the Web3 world.
1.3 Fund security support
At this stage, the size of the cryptocurrency market is relatively limited, so many investors and institutions with large funds may be hesitant to invest large amounts of money in the cryptocurrency field. They may also have some reservations about investing by storing their assets on the blockchain.
However, it is worth noting that Coinbase, which Base relies on, is a company listed on Nasdaq. As a mature market participant, Coinbase has reliability in fiat currency entry and is also subject to stricter supervision. This makes Coinbase more credible in terms of financial security, and thus may be more able to attract the active participation of some institutional investors.
2、OP Stack
As mentioned at the beginning of the article, Base is Ethereum Layer 2 built on OP Stack, and Base will return part of the transaction fee income to the Optimism Collective treasury. So what is the OP Stack? What benefits can Base build based on OP Stack bring to Base?
2.1 What is Optimism Collective
According to the official introduction, Optimism Collective is composed of communities, companies and citizens, and is jointly governed by Citizens House and Token House. It aims to avoid the governance traps that occur in other governance models on Ethereum. The task of the two major groups is to balance the short-term Incentives and long-term project vision, the purpose of Optimism Collective is to produce a strong public goods infrastructure for OP, increase the utility of L2, and create an efficient and complete crypto-economic foundation.
2.2 What is OP Stack?
According to the official introduction, OP Stack is a standardized, shared and open source development stack that provides support for Optimism and is maintained by the Optimism Collective. The OP Stack is made up of many different software components, managed and maintained by the Optimism Collective, which together form the backbone of Optimism. OP Stack is built as a public product of the Ethereum and Optimism ecosystems.
In the second half of 2022, Optimisms team is dismantling their original development work into multiple levels of modules (Data Availability Layer, Derivation Layer, Execution Layer and Settlement Layer) and developing the OP Stack. In short, OP Stack is a set of standardized open source modules developed by Optimism, which can be assembled into a customized chain. Any developer can innovate a new chain based on OP Stack.
Through the OP Stack module, developers can directly insert the data bits of the OP Stack to create a Layer 2, Layer 3 or even Layer 4; and standardization means that the standard of this module has a consensus and the current market Approved; open source means it is freely available to anyone to iterate on and request.
2.3 Super chain
The goal of OP Stack is to integrate all kinds of isolated L2 into a single superchain (Superchain), and integrate the original isolated L2 into an interoperable and composable system, that is, starting L2 is like integrating smart contracts today. Deploying to Ethereum is just as easy.
Essentially, as shown in the figure above, Hyperchain is a horizontally scalable blockchain network with shared security, communication layers and development kits between chains. OP Stack will be the modular development stack behind the super chain, and within the super chain are countless blockchains that can be linked to each other and communicate with each other.
Hyperchains based on OP Stack will have the following common attributes:
Once an Optimism satisfies these properties, it can be considered a super chain. 2.4 Base cooperates with OP Labs and Optimism Collective 2.4.1 Accelerate the activities of the super chain: Base is the second L2 after the Optimism main network is deployed on the OP Stack, and intends to become a part of the super chain. Base will bring Coinbases on-chain products and user base into the Hyperchain ecosystem, increasing activity on the Hyperchain while enabling Coinbase users to seamlessly interact with dapps and transfer assets across the ecosystem. 2.4.2 Adding value to the super chain: Base will provide Optimism Collective with a percentage of the fees earned by the exchange, making it part of the super chain, funding the core public product infrastructure of the super chain and the broader crypto economy. 2.4.3 Advancing the developer ecosystem: Base will continue to work closely with OP Labs and Optimism Collective to make it easier for developers to build new L2 and Rollups and deploy their applications across the hyperchain. For example, Base will work with the Optimism Collective to jointly create primitives (such as identities) that can be used on the L2 that joins the hyperchain, including Base and Optimism Mainnet. 2.4.4 Building an interoperable crypto-economy: In the short term, the Base mainnet and the Optimism mainnet will operate as independent Layer 2 (L2) platforms, providing a range of products for the cryptoeconomy, such as swaps, lending, etc. However, in the long term, it is expected that more use cases will choose to deploy on the Optimism mainnet or Base to achieve more meaningful applications. This will give developers the flexibility to deploy applications on the most suitable L2 platform based on the needs of their specific use cases.
3. What other projects adopt OP Stack?
3.1 Worldcoin
In May this year, the Worldcoin Foundation and Tools for Humanity (TFH) early protocol contributors announced their support for Optimism Collective to jointly build a scalable blockchain ecosystem based on OP Stack.
As the first step into Optimism Collective, Worldcoins decentralized privacy identity protocol World ID will be launched on the OP mainnet, and its native wallet World App carrying Worldcoin will also be migrated to the OP mainnet.
In fact, as early as 2020, Worldcoin had developed and launched Hubble, an Optimistic Rollup application chain only for simple payments, and launched a World App beta version. However, after the release, the team found that the test results were not satisfactory, and the user needs were not limited to simple payment functions, which far exceeded the carrying capacity of Hubble, and then migrated to Polygon PoS.
Today, Worldcoin turns to OP Stack to rebuild the application chain. However, the focus of this cooperation between the two parties will be around the construction of an on-chain identity system. For Optimism, an on-chain decentralized identity system is the key to self-growth of its economy, not only unlocking democratic governance and innovation, but also allowing individuals to better control their finances and participate in the global economy on their own terms. To this end, Optimism has deployed the identity primitive AttestationStation, an experimental identity system that allows anyone to prove other addresses arbitrarily, so that a specific on-chain address can be assigned a trust score, which measures the true social relationship of an address (Influence).
For Worldcoin, the identity system is equally important. Since digital currency is to be distributed free of charge to 7.9 billion people around the world to achieve a fair distribution of wealth, a method is needed to determine the identity of the user and prevent the same person from receiving it multiple times with different identities. Token. To this end, the team developed World ID, which is the underlying identity protocol of Worldcoin. It can ensure that each person can only register one account with a pupil. In addition, the team also developed a set of biometric devices to verify a persons uniqueness by scanning the iris, while ensuring the privacy of the verifier through zero-knowledge proof.
On July 13, 2023, the number of World ID registrations exceeded 2 million during the testing phase.
Furthermore, on August 6th, 2023, it was officially announced that in addition to the increase in the number of verified World ID holders, Tools for Humanitys World app (the first wallet built for the Worldcoin network) has also There has been a surge in global activity. Within 7 days of launch, World App saw a 3x increase in weekly active users and a more than 10x increase in the number of weekly accounts created.
3.2 BNB Chain application chain opBNB
In addition to Ethereum, other public chains can also use OP Stack to achieve their own Layer 2 expansion, such as opBNB, a two-layer application chain based on OP Stack.
On June 19, BNB Chain launched the Layer 2 test network based on Optimism OP Stack (the main network is expected to be launched in 2023 Q3). By using OP Stack Rollup, opBNB can move computing and state storage off-chain, thereby easing congestion and reducing transactions. cost.
opBNB can further increase the processing speed, and its performance will be better than BNB Chain. According to the official description, the opBNB block time is 1 second, the transfer gas fee is as low as 0.005 US dollars, and the transaction volume per second (TPS) exceeds 4,000. In comparison, the current processing speed of layer 1 BNB Smart Chain is 2,000 per second. transactions, the average cost per transaction is approximately $0.109. The speed of opBNB is almost twice that of the BNB Chain main network, and the cost is also greatly reduced.
opBNB is a Layer 2 network (Layer 2) on BSC built based on OP Stack. Like Optimism Rollup, opBNB calculates and packages transaction data off-chain, and uniformly submits it to Layer 1 to improve network performance, ultimately achieving high TPS and low TPS. Gas costs and security consistent with Layer 1.
So, why does opBNB use OP Stack to build its own application chain?
In fact, L2 is not a unique requirement of Ethereum. With the surge in transaction volume such as GameFi, even higher-performance public chains such as BNB Chain are facing network congestion and high gas fees. The original design and architecture have When new scalability requirements cannot be met, opBNB came into being.
As early as September last year, BNB Chain launched the zkBNB test network (a layer 2 network using zero-knowledge proof). However, because zkBNB is not compatible with EVM (not compatible with EVM means that it cannot be used with applications on Ethereum) interaction), this led BNB Chain to develop a new Layer 2 solution opBNB.
opBNB introduces improved data availability, batch transactions, and a gas limit of up to 100 M for the BNB public chain ecosystem. At the same time, the EVM-compatible OP Stack can also simplify the process of migrating Ethereum Virtual Machine (EVM) code from Ethereum to the BNB chain, allowing developers to create an open ecosystem faster and easier to expand the user base.
Unlike Optimism and Coinbases second-layer expansion solution Base, opBNB is built on BSC (not Ethereum). BSC itself is superior to Ethereum in terms of speed, and opBNB will further improve performance, not only surpassing BSC, but even It may be superior to expansion solutions such as Optimism in terms of speed.
Most importantly, it is of strategic significance for BNB Chain to use OP Stack to build a two-layer application chain. For the public chain BNB Chain, using OP Stack to build an application chain can still use BNB as a gas fee payment token. This means that as more use cases emerge in the future, the application scenarios of BNB can be greatly expanded, and these benefits can be used by BNB Captured, in the long run, BNB Chain can even become a strong competitor to Ethereums growing L2 ecosystem.
3.3 Zora Network
Zora Network has released a second-layer NFT minting platform based on OP Stack. It provides a series of NFT creator tools for NFT creators, brands and collectors, and can reduce the minting cost to less than US$3.
To build the best user experience around creators and collectors, Zora will provide faster, lower cost and better on-chain experience. As Zora Engineering tweeted: An interesting fact is that the cost of the two steps of bridging to L2 + minting combined is less than the cost of a single minting on the mainnet.
The Zora Network will seamlessly integrate with the existing infrastructure of the Zora marketplace. This means that existing artists, brands and collectors on the platform will seamlessly join the new second-tier network, including music NFT platform Sound.XYZ, wallet application Rainbow Wallet, Web 3.0 innovation incubator Seed Club and PleasrDAO, etc. There are 35 Web3 project entities and 130,000 existing users. To commemorate the launch, Zora released an open-source NFT called Energy that fans can mint over the next 10 days.
In addition, data shows that so far, since Zora Network was launched on the 21st, its bridge address has exceeded 164k, and the TVL on the chain has reached 1706 ETH, which is approximately 3.1 million US dollars.
Moreover, Zora is currently deployed on Base.
3.4 Rollup client Magi launched by a16z
Magi is a two-layer Rollup client solution launched by a16z Crypto in April this year. It is written in Rust language and created based on OP Stack. It acts as a consensus client in the traditional execution/consensus split of Ethereum and provides execution clients with New blocks to advance on-chain transactions. Magi execution has the same core functionality as the reference implementation (op-node) and works with execution nodes (such as op-geth) to synchronize to any OP Stack chain.
Magi aims to be an independently developed op-node drop-in replacement to improve Rollups client diversity. A16z hopes that building a new Rust-based client will encourage the entire OP stack to be more secure and active, and bring more contributors to the ecosystem.
As one of the most well-known investors in the encryption field, A16z has more than 7.6 billion U.S. dollars (equivalent to about 50 billion yuan) of funds for investment in this field (as of May last year). As one of the investors in the Ethereum expansion project Optimism, A16z Crypto is leading the development of the Magi client on the OP Stack. It is not only an investor but also a developer. This is also a16zs first step into the Optimism Collective.
3.5 On-chain games
Games on the OPCraft, Keystone and Loot chains usually have high-frequency interaction scenarios, so the requirements for speed and cost are extremely high, which means that games on the chain need to have customized blockchain infrastructure, and many expansion solutions are An expansion plan for on-chain games was launched.
OP Stack is one of the most popular infrastructures for on-chain games. Among them, OPcraft, one of the most representative on-chain game experiments, is built on Op stack.
OPCraft is an on-chain virtual world, a voxel game (full-chain game) built entirely on the chain using OP Stack. OPCraft is an autonomous world, a virtual space completely on the chain. Every aspect of the world, including every river, every blade of grass and the snow on the top of the mountain, exists on the chain, and every action in the world is Ethereum transactions happen.
Keystone is another chain made with OP Stack. It uses custom precompilation to build game ticks and ECS into the chain, which can increase the speed of games on the chain by 100 times and provide a more powerful gaming experience.
In addition, the Loot ecological project Adventure Gold DAO recently announced that it will use OP Stack to build a new Ethereum L2 network Loot Chain dedicated to the Loot community to reduce Gas fees, and use its own native Token AGLD as Gas Token. The chain also uses Polygon as the data availability layer, which significantly reduces the construction, deployment and operating costs of Loot Chain.
3.6 DeBank Chain
On August 11, 2023, the one-stop wallet DeBank announced the launch of the OP Stack-based DeBank Chain. The test network is now online, and the main network will be launched next year. DeBank Chain aims to become a social asset layer, natively integrating a system similar to Account Abstraction at the chain level, allowing users to enjoy a near-Web2 experience while maintaining 100% compatibility with the current EVM standard. The new account system supports dedicated L2 private key signature transactions, reducing the use of L1 private keys in social scenarios and enhancing the security of users L1 assets.
5. Ecological development
1. Base Ecosystem Fund
Coinbase issued an announcement on February 23. While announcing the establishment of Base, it also announced the establishment of the Base Ecosystem Fund, a fund pool for investing in early-stage projects based on the Base network, combined with dedicated support from the Base team to help projects Success.
The Base Ecosystem Fund provides 4 suggestions for ecosystem builders (excerpted from Base):
Inflation-tracking stablecoins (flatcoins): **Thinking deeply In the design of decentralized stablecoins, Base is interested in flatcoins, which can track inflation rates and allow users to have stable purchasing power, while also being resilient and able to withstand economic uncertainty caused by the financial system.
Base also welcomes other forms of “flatcoins” that are not pegged to fiat currencies but fill the space between fiat-pegged tokens and volatile crypto assets. Given the recent challenges facing the global banking system, Base believes these explorations are more important than ever.
On-chain reputation platform: Base believes that blockchain is the next internet, and that decentralized identity and reputation will play a key role in defining everyones on-chain role. By supporting reputation protocols for entities on the native chain, there is an opportunity to create more trust on the chain.
This could look like a FICO or Google PageRank type score on the ENS name, ratings/reviews of the merchant, and other measures that help build trust on-chain. Base likes to see teams think deeply about what on-chain reputation and trust looks like, and how to leverage these systems while protecting user privacy and autonomy.
On-chain capped order book (LOB) trading platform: While Base believes that existing exchange products such as AMMs are useful and are critical DeFi infrastructure, there is still room for LOBs, especially for professional traders and institutions Word.
Base’s high throughput will provide new opportunities for designing new mechanisms such as spot trading, limit orders, options, and perpetual rights. Moreover, builders can use open source tools such as OP Stack to build L3, which may increase the depth of liquidity while bringing greater speed and greater control, and can be accessed through L2.
Safer DeFi: As the DeFi ecosystem continues to grow, Base believes there is a need for better tools that allow users and developers to keep pace with innovation while keeping funds safe.
Includes tools that can prevent smart contract code vulnerabilities or protocol logic errors (e.g., self-service security testing tools, auditing services), tools that help mitigate the impact of ecosystem attacks (e.g., threat prevention, circuit breakers, and incident response systems), and ultimately On-chain insurance and coverage protocols, or any other product that can provide critical support to users in the event of smart contract failure.
Builders are building systems, protocols and tools that allow every user to store all their funds on-chain. Base believes this infrastructure is absolutely necessary to attract the next billion users.
2. Ecological projects
Since Base launched its mainnet, it has received extensive responses from the developer community. Currently, more than 150 projects have been deployed on Base, including DeFi, social, games, NFT, infrastructure, developer tools, wallets, security, Oracles, etc., this article will classify and select some of the more representative projects to introduce.
2.1 DeFi
In terms of DeFi, the ecology of the subordinates on Base has been relatively complete, including Uniswap, iZUMi, SushiSwap and other established projects. In addition, there are some emerging native projects such as DEX Baseswap, which tops the TVL list, and Pira Finance, which launched the stable currency aUSD. wait.
iZUMi
iZUMi Finance is a liquidity optimization protocol built on the Ethereum network. It is a Uniswap V3 ecological project that provides programmable liquidity as a service business based on Uniswap V3 for blockchain projects.
iZUMi’s LiquidBox program assists projects in attracting liquidity by planning effective incentivized liquidity supply plans. It also provides a shared liquidity box that maps the liquidity of one Token to multiple chains, and LPs can use one liquidity on the original chain to mine on multiple chains.
iZUMi Finance also launched iZiswap on BNB Chain and zkSync, which is a discrete liquidity AMM upgraded based on the Uniswap V3 centralized liquidity model. iZUMi is also developing iUSD, a USD-pegged stablecoin backed by USDC. iUSD is used in the iZUMi bond mining program.
iZUMi’s other user-centric decentralized financial products include the Impermanent Loss Insurance Plan, which provides liquidity providers with refunds for impermanent losses caused to their LP Tokens. It also offers fixed income opportunities with interest rates up to 10% per annum for 30 days.
iZUMi Finance has raised US$57.6 million so far, with investors such as Mirana Ventures, Everest Ventures Group, and IOSG participating, and has strong funds and powerful resources.
BaseSwap
BaseSwap is the native DEX on the Base chain. As of today (8.14), its TVL has reached $52.34M, ranking first in the TVL ranking of the Base chain.
In addition, Base Swap’s Token $BSWAP is currently one of the most liquid tokens on the Base chain.
2.2 Bridge
Orbiter
Orbiter Finance is a decentralized cross-aggregation bridge for transferring Ethereum-native assets, a layer 2 infrastructure that provides low-cost and nearly instantaneous transfers. Orbiter Finance is designed as a decentralized cross-aggregation bridge for transferring Ethereum-native assets.
Currently, Orbiter Finance supports more than 10 Rollup networks, including zkSync, StarkNet, Polygon, Arbitrum, Arbitrum Nova, Optimism, Base, Linea, etc., which can meet the cross-chain needs of almost all Optimistic Rollups and Zk Rollup networks, and can implement, for example, Loopring to Immutable X is a high degree of freedom cross-chain.
Orbiter Finance completed a first-round financing of US$3.2 million at a valuation of US$40 million on November 29, 2022, with participation from Tiger Global, Matrixport, Starkware, Cobo Ventures, GGV, Mask Network, Zonff Partners and others.
Axelar Network
Axelar is a universal overlay network that securely connects all blockchain ecosystems, applications, assets and users to provide Web3 interoperability.
Axelar consists of a decentralized validator network, secure gateway contracts, unified translation, routing architecture, and a set of software development kits (SDKs) and application programming interfaces (APIs) to enable composability between blockchains . This enables developers to build the best platform for their use cases while being able to access users, assets and applications in every other ecosystem. It can rely on a network architecture that provides a unified code base and governance structure, rather than pairs of cross-chain bridges.
Axelar SDK provides a rich suite for developing Web3 applications, ensuring developers have the tools they need to build. With these tools and APIs, developers can use the Axelar network and its SDK to write dApps that can be easily deployed across all Axelar-connected ecosystems.
In other words, Axelar distills cross-chain interoperability into a simple set of API requests. This is absolutely core to how it will be adopted, since the developer experience when deploying Web3 applications must be similar to the current Web2 developer experience, the underlying networking and ecosystem-specific deployment details must be eliminated. In Web2, the underlying networking and ecosystem-specific deployment details are largely simplified.
Axelar completed a US$35 million Series B round of financing on February 15, 2022 at a valuation of US$1 billion. Together with the seed round and Series A financing, the total financing amount exceeded US$73 million.
2.3 GameFi
Parallel
Parallel is a collectible sci-fi NFT trading card (TCG) game based on the ETH chain. Players can buy and collect cards and flexibly use different cards to combine decks that comply with the rules to play games and get rewards. .
Its team members come from 3A games such as Assassins Creed and Valorant. YouTube co-founder Chad Hurley joined the team in March 2021.
On October 22, 2021, Parallel announced that it has received a $50 million investment from Paradigm at a valuation of $500 million, and its foundation is Echelon. And the secondary market transaction royalties of its in-game NFT assets generated 7,560 ETH for the team, equivalent to a value of 11.94 million US dollars. Parallel brings its ecology to the Base mainnet, enabling users to collect and participate in games at a lower cost.
Iskra
Iskra is a blockchain gaming hub that brings together gamers and game studios. Iskra allows gamers to explore and enjoy high-quality blockchain games and create their own communities, and interested users will have the opportunity to explore new game projects for the first time through Iskras Launchpad.
Users can also freely trade in-game tokens and other in-game assets minted as non-fungible tokens (NFTs) outside the game.
Game studios can take advantage of various resources provided by Iskra to develop various types of games, including but not limited to TCG, strategy, collection and MMORPG.
Iskra provides the necessary comprehensive support for the development and operation of blockchain games, from funding and infrastructure to token economy and passionate community.
2.4 DeSocial
Farcaster
Farcaster is a decentralized protocol that enables developers to build novel social networks. Farcaster redefines identity, messaging, and the social graph, and addresses applicable scenarios for user social ownership at fundamental levels such as privacy, authenticity, portability, usability, and scalability.
Farcaster is the brainchild of former Coinbase executives Dan Romero and Varun Srinivasan. Dan once mentioned on his own website: Our goal is to build a trustworthy neutral protocol where users have a direct relationship with their audiences and developers are free to build new clients.
friend.tech is a fan economy product similar to bitclout, which recently announced its launch on the Base network. Because of its micro-innovation of turning personal influence into shares that can be traded, it suddenly became popular on August 11. A large influx of users caused its server to crash. The social behavior of users generated by its invitation code system also makes it highly topical and disseminated.
The form of this product can be understood as that each account is a token, which users can buy and sell, and the currency price will rise and fall accordingly. If other users buy your account tokens, you can get a share of the transaction. If you purchase account tokens from another user, you can enter their private chat room, where you can communicate with the blogger of the account you purchased, or in a chat room composed of all the people who purchased and held the account tokens.
CyberConnect
CyberConnect is the first decentralized social graph protocol serving Web3.0 social networks and the Metaverse. Its mission is to return the ownership and utility of social graph data to users, democratize social connections, make social graphs autonomous, portable, and composable, and make social graphs more than just blockchains. Related, it also allows users to discover more social identity meanings through this association.
CyberConnect is a developer-friendly protocol that provides an infrastructure for all Web3.0 developers to integrate.
CyberConnect has so far received two rounds of funding totaling $25 million, and raised $5.4 million in a public offering on May 19, 2023.
Base Name Service
Base Name Service (BaseNS) is ENS (the domain name system on Ethereum) on the Base chain. On August 2, it jointly held a domain name airdrop event on GALXE in conjunction with Base officials. During this period each participant can get a special character (BaseNS Inception Enthusiast) on Discord.
BaseNS will also randomly select 100 participants to send domain names, each .base domain name is worth $100/year, and winners can use it for free for 1 year).
2.5 NFT
OpenSea
Currently, the OpenSea webpage has been integrated with the Base mainnet.
BakerySwap
BakerySwap announced in August that it would launch an artificial intelligence-based NFT series — Punk X — on the Base network, with a total of 10,000 pieces. At the beginning of the release, it was replaced by Token in the form of NFT, with the intention of enhancing the liquidity of NFT. 40% of the total amount of Tokens bound to NFT is used for fundraising, 40% is used for users to add liquidity, 10% is used for airdrops, marketing, etc., and 10% is used for consultants, etc.
Because it is the first well-known development project of the Base network, the amount of funds raised reached 1,600 ETH within half an hour after the fund-raising. The official ended the fund-raising early due to excessive popularity. According to official information, its NFT will be launched on NFTSwap soon, and users can redeem PUNK NFT at a ratio of 1:1.
mintfun
mintfun, an NFT minting aggregation platform, has also announced support for the Base Network. Users can see a series of NFTs being minted on the Base network, and can observe the latest NFT collections, popularity and other information.
Coca-Cola
According to official news, the well-known beverage brand Coca-Cola issued a series of NFTs on the Base chain on August 14, 2023. This NFT series combines world art works with the iconic Coca-Cola bottle. There are currently 5 NFTs in this series available for casting, with casting prices ranging from 0.0011 ETH to 0.014 ETH.
2.6 Infra
Thirdweb
Thirdweb is a British Web3 software developer that launches free Web3 development tools that allow developers to build, launch, and manage web3 projects without writing any code. Developers can add features with just a few clicks, including NFT, Social Token and currency, Token trading market, NFT trading, etc.
Thirdweb completed a strategic financing of US$24 million at a valuation of US$160 million on August 25, 2022, led by Haun Ventures, with participation from Coinbase Ventures, Shopify, Protocol Labs, Polygon, Shrug VC, etc. In addition, individual investors include Joseph Lacob, a partner at Kleiner Perkins, a top venture capital firm in Silicon Valley, who is also the majority shareholder of the NBA Golden State Warriors.
In its previous seed round of US$5 million, Thirdweb also received investment from Mark Cuban, owner of the NBA Dallas Mavericks, and Gary Vaynerchuk, a well-known American entrepreneur. The total financing reached US$29 million, giving it strong financial strength.
6. Summary
Base, like Linea, is backed by a powerful company with strong user resources and financial support, which removes many obstacles to the development of Base. Base is still in a very early stage, and it will only officially go online on the mainnet on August 9, 2023. However, its business data far exceeds that of Linea, which was already online on July 18, 2023. Its TVL even surpassed Starknet and became Layer 2 Ranked fifth in the TVL rankings, it can be seen that Base is very popular in the market.
In addition, after users were able to enter the Base chain in advance by transferring coins to contracts, an eye-catching wealth effect occurred, with the emergence of a thousand-fold currency $BALD, which made the Base chain very popular and attracted a large number of community members. s concern.
In this thousand-fold currency phenomenon, Base has gained significant attention. This may be attributed to the excellent operational and operational capabilities of the Coinbase team, which is good at seizing market sentiment before the mainnet goes online, creating a high degree of interest for the Base chain. heat. In addition, this may also mean that there are some investors with large funds entering the market.
In addition, the Base mainnet has just been launched recently, and its impact and significance on the industry will still need to be gradually revealed over time. Although it has strong background support behind it and is a member of the super chain, it seems that this is not enough to make it stand out from the competition.
Therefore, to stand out among the many Layer 2 projects, Coinbase needs to provide more strong and effective support, and cooperate more closely with Optimism to jointly promote the development of OP Stack. At the same time, Base itself should also actively innovate on the basis of OP Stack to create more innovations that are meaningful to the entire field and industry.
Reference link:
[1] Positive outlook? This article summarizes projects using OP Stack
[4] Explore OP Stack: Optimism’s vision for modular extensions
[5] Positive outlook? This article summarizes projects using OP Stack
[8] Take stock of the projects and opportunities worthy of attention in the BASE chain ecology
Data link:
[ 1 ]https://dune.com/gopimanchurian/arbitrum
[ 2 ]https://dune.com/gm365/L2
[ 3 ]https://dune.com/Marcov/Optimism-Ethereum
[ 4 ]https://dune.com/KARTOD/zk-evm-mega-dashboard
[ 5 ]https://dune.com/tk-research/linea
[ 6 ]https://dune.com/angry/linea-mainnet-dashboard
[ 7 ]https://dune.com/gm365/era
