😲 Uniswap Receives Wells Notice

In this edition, we explore the Runes Protocol, Uniswap’s Wells notice, Solana’s new TVC and more.

💥  Cutting Edge with Shoal Research

In collaboration with Shoal Research, this week’s special feature will dive into the Runes Protocol.

Key Terms

Unspent Transaction Output (UTXO) 

UTXOs exist in certain methods of transferring value, including on the Bitcoin blockchain. UTXOs represent the amount of digital currency someone has that is available for spending. When funds are transferred on the Bitcoin blockchain, UTXO acts similarly to receiving change after paying for something. For example, if you buy something for 0.75 BTC, and you pay way 1 BTC, you will receive 0.25 BTC back in UTXO. 

Fungible tokens

Tokens where each unit is interchangeable and identical to every other unit. Bitcoins and US dollars are both examples of fungible assets. 

What is it? Runes is a UTXO-based fungible token protocol on the Bitcoin blockchain, offering a streamlined approach to token management. 

What does it do? It simplifies the creation and management of tokens by integrating directly with Bitcoin’s UTXO model, reducing blockchain bloat and improving scalability. The UTXO model works similar to a bank where the system keeps track of the available spending a wallet can perform. 

What does it represent to the larger crypto sector? It introduces a less complex, more user-friendly approach to token economies on Bitcoin, potentially encouraging broader adoption and innovation within the crypto community.

Why is it interesting? Runes eliminates the need for off-chain data and separate tokens, integrating seamlessly with Bitcoin’s existing architecture, which could lead to more sustainable blockchain growth and usage.

Who is its competitor? Its main competitors include other Bitcoin token protocols like BRC-20, ORC-20, Taproot Assets and others. 

Important connections: Runes is connected to broader Bitcoin network enhancements and interacts with various aspects of the blockchain’s technical infrastructure.

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⏰ Crypto News Recap

Uniswap Receives Wells Notice 

On April 10th, Uniswap announced that it had received a Wells notice from the SEC. A Wells notice is a type of letter that the SEC sends upon completing an investigation as it considers moving forward to an enforcement action. Notably, Coinbase received a Wells notice in 2023 before the SEC sued them. Uniswap’s CEO announced on X (formerly Twitter) that he is “not surprised. Just annoyed, disappointed, and ready to fight”.

Solana Approves Timely Vote Credits 

In an attempt to speed up transactions, the Solana community has voted in Timely Vote Credits (TVC). 98.4% of users voted in favour of the proposal. The TVC feature solves a loophole that some validators have been using to maximize earnings, which was slowing the system. The TVC will award more credits to those who participate within a timely manner, increasing incentives to act sooner. 

EigenLayer Launches on Ethereum 

On April 9th, EigenLayer and EigenDA launched on Ethereum mainnet. Their new functionality on Ethereum allows: restakers to delegate their entire stake to an operator of their choice, AVSs to register with the protocol and operators to register with EigenLayer/run AVSs. The launch is only the beginning, as several services have yet to be deployed. The launch does not include in-protocol payments from AVSs to operators and slashing.

Ubisoft Blockchain Game 

Video game publisher Ubisoft announced their first blockchain based game, titled Champion Tactics Grimoria, which will be released near the end of 2024. The organization released the first trailer for the game at Paris Blockchain Week. The game is a competitive player vs. player and will feature the ability to role play as a variety of characters.

📚 N+1 Recommendations 

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This week's recommendation: What Is Cross-Chain Interoperability?

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