Executive Summary Through this article, I dive deep into chain abstraction and how Particle Network is tackling some of the biggest challenges with interoperating between multiple chains. Consider this article as my thesis for the extended chain abstraction vertical. My main thesis behind Chain Abstraction is based on two key assumptions: The likelihood of hundreds, if not thousands, of L1s and L2s coexisting on-chain. The critical importance of user attention in driving demand and shaping behaviors in the crypto space. And given the assumptions, I believe the primary drivers for chain abstraction are: The higher cost of capital resulting from fragmented liquidity across multiple chains. The opportunity cost of capital sitting idle in these fragmented pools. The main focus is on Particle Network’s approach, which is broken down into its key components: Universal Accounts, Universal Liquidity, and Universal Gas. Throughout the article, I have used some real-world examples and analogies to make the concepts more relatable. It strikes a good balance by highlighting both the benefits and potential challenges of chain abstraction. Introduction Chain Abstraction can be understood in many ways, but at its core, it's about one simple idea: creating a system where users can express what they want (their intent) without needing to worry about the complex processes working behind the scenes to make it happen. There’s been enough narratives running around for chain abstraction, and there are several layers to be executed on the chain abstraction layer stack—Account level, blockchain level, and application level. As we dive deeper into the ongoing debate—whether to focus more on infrastructure or applications—we’re faced with an emblematic challenge that impacts both: finding the right balance between foundational development and practical implementation. In today’s ecosystem, we’re in a pivotal phase where the primary focus is on solving key technical challenges rather than chasing immediate monetization. Builders on both sides of the debate are more concerned with simply “making it work” than worrying about where the value will eventually be extracted—and I personally believe that this is the right approach. The emphasis on solving core technical issues before focusing on monetization is reminiscent of the internet's early days. Just as early internet pioneers prioritized functionality over profit, blockchain builders today are prioritizing the creation of robust, efficient systems that can support the next generation of decentralized applications. Imagine if your favorite e-commerce websites only accepted payments from a single bank (let’s say Base L2) and only in one currency (ETH instead of SOL, BTC, BNB). On top of that, there’s no option for international shipping. This scenario would significantly limit the reach and usefulness of these platforms, much like how the current fragmented blockchain ecosystem limits the potential of decentralized applications. Just as we expect seamless international transactions and shipping in e-commerce, blockchain users should also be able to interact with different networks and protocols without any friction. At present, users' assets are fragmented across multiple chains. This fragmentation restricts their ability to fully access and take advantage of the wide range of opportunities available across different ecosystems, DeFi in Arbitrum, Gaming in AVAX, Memecoin mania within base, and much more. And because of this, developers are incentivized to either create simple applications that can be easily deployed across multiple chains and capture value from siloed userbases, or to focus intensely on a niche within a single ecosystem. This is because users are effectively siloed within the ecosystems where they hold assets, as moving between chains is complex and costly. Chain abstraction is a perfect solution for this. Chain abstraction introduces an intermediary layer between blockchain infrastructure and applications. Chain abstraction simplifies blockchain interactions by creating a unified layer between infrastructure and applications. It allows users to have one address and a universal balance across all networks, eliminating the need to manage different blockchains. This seamless, chain-agnostic experience removes complexity, supporting robust infrastructure and user-friendly applications, and could accelerate the mainstream adoption of blockchain technology. This is why I’ll be looking into Particle Network, one of the main organizations pushing chain abstraction, more in detail as you read through this research article. Challenges As more and more L1s and L2 solutions start emerging to address specific challenges and use cases, the more complex the ecosystem has become. For example, Berachain with its Proof-of-Liquidity focuses on incentivizing liquidity provision, making it ideal for DeFi use cases within it, for which they have built a loyal community around it as well. Interestingly, the 7 out of top 10 NFT projects on Arbitrum are Berachain focused projects waiting to migrate before Berachain mainnet goes live. Arbitrum has stood the test of time among its peers within Ethereum L2 in the DeFi space by beating its peers with the highest TVL. With ZKsync sitting at the lowest amongst its well funded peers. Source: Defillama Meanwhile, Base has found its niche with memecoins amid the farcaster bullrun and also contributed by the ongoing Coinbase-SEC lawsuit. Avalanche has gained popularity in the gaming dApp space, largely due to its subnets, which offer fast transactions and low fees. On-chain games demand cheap and quick transactions, even during periods of high demand, and Avalanche's subnets provide just that. With subnets, developers can easily create their own fully customized Avalanche blockchain tailored specifically for their game or gaming ecosystem. And, Solana has had a rapid growth over the past year. With an impressive 580% growth, far outpacing Bitcoin’s 120%+ and Ethereum’s 66%, Solana has become a hotspot for memecoin activity (outside Ethereum), driving high growth in total fees, DEX volumes, and new token launches (with pump.fun). \+ 100 more chains that exist have their own community, specialized use cases, and/or mission/vision. While these chains offer performance benefits, they also introduce significant complexity, mainly around: Fragmented Liquidity: With liquidity scattered across chains that specialize in DeFi, gaming, or memecoins, it becomes tough to efficiently allocate capital. This fragmentation results in less competitive rates for users and makes the market less efficient. For protocols, managing liquidity across all these different chains is not only expensive but also complex, with the need for cross-chain transfers adding costs and exposing users to additional risks. Complex user experience: This multi-chain setup also complicates the user experience. Managing assets becomes tricky when you’re dealing with multiple wallets, interfaces, and token standards across different networks. On top of that, understanding and handling gas fees on various chains just adds another layer of complexity, making the learning curve steeper and slowing down the wider adoption of blockchain technology. To move assets from one chain to another, users typically rely on bridge services or centralized exchanges. This process can be: Complex: It often involves multiple steps and requires a certain level of technical knowledge. Costly: Users usually have to pay transaction fees on both the source and destination chains, along with any fees for the bridging service. Time-consuming: Typical cross-chain transactions can typically take anywhere from minutes to hours to complete. Risky: There’s always a risk of user error or vulnerabilities in the bridge protocols and centralized exchanges. Impact on User Behavior: Users tend to focus their activities on the chains where they already hold assets. They are less inclined to explore or use applications on other chains if it involves going through a complex and costly process to move their assets. Thesis Behind Chain Abstraction My thesis behind Chain Abstraction is based on two key assumptions: First, we’re likely going to see hundreds, if not thousands, of L1s and L2s coexisting on-chain. Second, in the crypto space, user attention is everything. It drives demand and can shape behaviors. By creating a smoother, more engaging user experience, chain abstraction could capture and hold user attention more effectively. This could create a positive feedback loop where more attention leads to more development, which then attracts more users and capital. Given the assumptions, the two major drivers for chain abstraction would be the Higher cost of capital Opportunity cost of the capital sitting idle in fragmented liquidity. The cost of capital in this context is multifaceted and extends far beyond simple financial metrics. Each new blockchain, whether L1 or L2, needs its own liquidity to function well. This spreads users and liquidity providers thin, reducing capital efficiency. Smaller liquidity pools lead to higher slippage, increased volatility, and unstable token prices, raising the overall cost of using these networks. These effects essentially raise the cost of using these networks, as users often must pay more for certain services that are cheaper on other chains (on chains other than main chain that user uses) or accept poorer execution prices. Managing liquidity across multiple chains also comes with significant operational costs. Users and protocols deal with gas fees for moving assets between chains, juggling multiple wallets, and tracking assets across various networks. These tasks are especially tough for smaller players, possibly stifling participation across multiple chains. A big chunk of capital is also locked in bridge protocols for cross-chain transactions, creating both an opportunity cost and security risk. Locked capital can’t be used elsewhere, and bridges have often been targets for hacks, adding to the overall cost of capital in this fragmented blockchain world. However, the opportunity cost of this very liquidity lying dormant or underutilized in individual L1s and L2s is perhaps even more significant and far-reaching. When capital is stuck on one chain, it misses out on high-yield opportunities on others, leading to suboptimal returns. For instance, if a particularly attractive lending rate emerges on one L2, for a user, their capital confined to other chains misses out on this opportunity. This fragmentation also hampers efficient market-making and reduces the potential for composability, which is key to creating more complex and profitable yield strategies. This selective approach results in some chains having less efficient markets with wider spreads and less depth. The high costs and missed opportunities caused by fragmented liquidity really show why we need solutions that can bring everything together across different chains. This is where chain abstraction could really shake things up. If users could easily move and use their assets across all chains, protocols would no longer be just competing within their own chain’s ecosystem. Instead, they’d have to compete with every other application in the entire Web3 space. This could spark a lot of innovation because developers would need to create truly compelling and unique apps to stand out and attract users. The competition would be much tougher, but it could also lead to better and more innovative applications across the board. Chain Abstraction Landscape & Multi-Layer Framework Now, when you look at the landscape and specifically the projects building for chain abstraction, the best way to look at this is through the Multi-Layer Framework that was developed by Particle Network earlier in June this year. Source: Particle Network: The Multi-Layer Framework In the simplest of terms, the multi-layer chain abstraction stack helps simplify everything from how developers build apps to how users manage their assets across different blockchains. Source: Implementing Chain Abstraction: The Multi-Layer Framework At the top layer, the application level focuses on making it easier for developers. Instead of having to write code specifically for each blockchain, developers can use tools that let them build one app that works and composes across multiple chains. For example, using platforms like Agoric or Socket Protocol, a developer can create a DeFi app that automatically picks the best chain for each transaction based on fees, speed, quotes, etc. This means developers can spend less time worrying about the nitty-gritty details of each chain and more time building cool features. Source: Implementing Chain Abstraction: The Multi-Layer Framework The next layer down is the account level, which is all about making things simpler for users. The idea here is to give users a single account or wallet that works across all the different blockchains. Imagine being able to deploy your assets across various chains without worrying about manually managing each one. Here’s how it works: Unified Balances: It brings together your balances from different chains into one place, so you don’t have to juggle multiple accounts. Automated Gas Payments: No more stressing over paying gas fees on each chain; this layer handles it for you. Single Identity: You get a single identity or access point that works across all participating chains. For instance, with something like Particle Network’s universal accounts, you could use the same account to interact with a DeFi app on Ethereum, play a game on Solana, and join a DAO on Polygon, all without switching wallets or moving your assets around. It’s a much smoother experience and way easier for newcomers to get into. The account level layer addresses the opportunity cost variable of my thesis that I explained earlier in this research article. This is where Particle Network fits in. Their Universal accounts help minimize the opportunity costs associated with holding multiple assets across multiple chains. Source: Implementing Chain Abstraction: The Multi-Layer Framework At the base, you’ve got the blockchain level, which is like the foundation holding everything together. This layer focuses on making sure all these different blockchains can talk to each other and share information securely. Take Optimism’s Superchain which connects multiple L2s so they can share security and move assets between them easily. Or the Inter-Blockchain Communication (IBC) Protocol in the Cosmos ecosystem, which lets different blockchains work together seamlessly. This means you could stake tokens on one chain and use them on another without needing to mess around with bridges or complex processes, and finally Polygon’s AggLayer and Avalanche Subnets. These networks have unified communication standards and shared properties that make interoperability far more efficient than between traditional, separate blockchains. Together, these three layers aim to make the blockchain world more connected and easier to use. Imagine using a DEX built on this stack. The DEX would automatically find the best chain to execute your trade, let you manage everything from one wallet, and ensure your assets move securely across different chains. This approach could solve a lot of the fragmentation issues we see today and make blockchain much more accessible to everyone. The ultimate goal is to make using blockchain as easy and intuitive as using the internet, without all the technical headaches. The multi-layer framework is all about showing how a fully chain-abstracted experience can come together when different solutions work across multiple levels. At the blockchain level, you’ve got built-in interoperability between certain chains. Then, at the account level, users can see and manage all their assets across these chains from one place. Finally, at the application level, developers can build apps that work smoothly across different chains without the user having to worry about the complex tech behind it. We can use this framework to help make sense of the projects out there that are working on chain abstraction. It helps to categorize solutions based on which part of the stack they’re addressing and shows how they can fit together to create a completely chain-abstracted ecosystem. Enter Particle Network Particle Network has had quite an evolution. They started out by focusing on improving the Web3 user experience, realizing that the current onboarding process—like downloading MetaMask and dealing with seed phrases—was way too complicated for most people. Their first product was a "wallet as a service," which made it possible for users to log into Web3 apps using their social media accounts or email addresses instead of going through the usual hassle. As they grew, Particle Network introduced account abstraction, which brought in gasless transactions to make things even smoother for users. But they soon realized that despite these improvements, interacting with different blockchains was still a pain for users. This led them to pivot to chain abstraction. The goal here is to make using multiple blockchains as simple as possible, with users having just one account and balance that works across any blockchain. Particle Network's approach to implementing chain abstraction is built around the concept of Universal Accounts. These accounts are coordinated and validated through a decentralized Cosmos chain, rather than relying on something like a centralized server. This approach aims to maintain high security standards while enabling the seamless cross-chain functionality that chain abstraction promises. Before I discuss the architecture of Particle Network, let’s explore the key features of Particle Network: Universal Accounts: Universal Accounts are at the heart of Particle Network’s chain abstraction strategy. They give you a single address and balance that works across the entire multi-chain Web3 ecosystem. The idea is simple: one account, one balance, usable on any blockchain. Key Features of Universal Accounts: Unified Balance: Your balance and account state are consistent across all blockchains. Fund Pooling: Need funds for a transaction? They’ll pull from your balance across multiple chains to get the job done. Seamless Experience: You can deposit and use funds on any blockchain, and it’ll feel like you’re using just one. Universal Accounts work by attaching an ERC-4337 smart account to your existing Externally Owned Address (EOA). When you interact with a dApp using Particle’s SDK, you’re assigned or linked to a Universal Account connected to your EOA, making this account your main point of interaction across any app using Particle’s tech. Imagine you want to stake ATOM on Cosmos, but all your funds are sitting in USDC on Ethereum. Normally, you’d have to jump through a bunch of hoops: approve a DEX contract, swap USDC for ETH, bridge that ETH over to Cosmos, swap it for ATOM, and then finally stake it. But with a Universal Account, you can forget all that hassle. All you’d need to do is sign one transaction, and the system handles everything else for you, making the whole process way easier. Implications: Simplified User Experience: Users no longer need to manage multiple addresses or constantly bridge assets between chains. Increased Adoption Potential: By abstracting away blockchain complexity, this could significantly lower the barrier to entry for new users in the Web3 space. New DApp Possibilities: Developers can create applications that seamlessly operate across multiple chains, opening up new possibilities for cross-chain DeFi, gaming, and more. Universal Liquidity Universal Liquidity powers these accounts, enabling smooth, atomic cross-chain transactions and keeping your balance unified. It makes sure that funds move seamlessly across chains, so you can use your assets wherever you need them. Key Aspects of Universal Liquidity: Cross-Chain Funds Movement: It automatically handles moving your funds across chains when needed for a transaction. Automatic Fund Sourcing: Don’t have enough funds on one chain? It’ll pull from your balances on other chains. Bridge-Free: No need to manually bridge tokens between chains. With Universal Liquidity, interacting with different blockchains feels like using just one. The necessary liquidity for any action is sourced from your Universal Account’s balances across chains, and any required swaps are executed automatically. Now, picture this—you’re eyeing a rare Farcaster NFT on Base, but your funds are in AVAX on Avalanche. Usually, you’d have to manually swap, bridge, and transfer funds across different chains to make the purchase. But with Particle Network’s Universal Accounts and Universal Liquidity, you just sign one transaction. The system handles all the complicated steps behind the scenes, moving your AVAX from Avalanche to Base, swapping for the right tokens, and buying the NFT, all without you lifting a finger. Implications: Capital Efficiency: Users' assets become much more liquid and usable, as they're not siloed on individual chains. Complex DeFi Strategies: This could enable sophisticated cross-chain DeFi strategies that were previously impractical due to the friction of moving assets between chains. Potential for Centralization: While the system aims to be decentralized, the complexity of cross-chain coordination could lead to some degree of centralization in practice. Universal Gas Universal Gas, or gas abstraction, tackles the problem of having to deal with different gas tokens for transactions across blockchains. It lets you pay transaction fees with any token from any chain. Key Features of Universal Gas: Cross-Chain Payments: Pay fees on one network using tokens from another (e.g., use USDT from Base to pay fees on Arbitrum). Flexible Payment: Choose the token you want to use for gas fees when making a transaction through a Universal Account. Automatic Conversion: Part of the fee is automatically converted into Particle Network’s native token, PARTI, to finalize the transaction on their network. Universal Gas eliminates the hassle of bridging tokens or maintaining separate gas token pools for different networks. It simplifies things by letting you pay fees with whatever token you have on hand. Let’s say you want to interact with a smart contract on Arbitrum, but you’ve only got BNB on Binance Smart Chain. Instead of having to buy ETH for gas fees, you can just use Universal Gas. You pick BNB to pay the gas fee, and Particle Network’s system does the rest—it converts your BNB into the necessary gas tokens and settles the transaction on Arbitrum. You don’t need to worry about holding ETH or juggling multiple tokens for gas fees—the system takes care of it all in the background. On Particle Network's testnet, there’s even a Universal Gas Token called "USDG" that you can use after depositing various other assets. Implications: Improved UX: Users can interact with any supported blockchain without needing to acquire its native token first. Potential for Gas Tokenization: This could lead to interesting models where gas fees become more predictable and potentially even tradeable as derivatives. Economic Complexities: The system introduces new economic dynamics, potentially affecting demand for native tokens and introducing new arbitrage opportunities. These three components—Universal Accounts, Universal Liquidity, and Universal Gas—work together to create a smooth, chain-agnostic experience in the Web3 world. They remove the complexities of dealing with multiple blockchains, making it feel like you’re interacting with a single, unified system. Here’s me interacting with my Universal Account to send a test transaction from Optimism to Base, which took less than 4 seconds to execute. Verify the transaction from the hash here: If you haven’t already checked out what Particle Network’s Universal Account looks like in action, I’d highly recommend visiting Particle’s Pioneer campaign or their recent demo video. Architecture Particle Network's architecture is built on a modular Layer 1 (L1) blockchain using Cosmos SDK that breaks down different infrastructure components into separate modules. At the core of this architecture is a custom Cosmos app chain that serves as the backbone of the entire system. The app chain is responsible for verifying and settling all operations initiated by Universal accounts. When a user wants to perform an action that involves multiple blockchains, this app chain steps in to coordinate the entire process. It breaks down the user's request into multiple sub-operations, each targeting a different blockchain, and ensures that these operations are executed correctly and in the right order. Here’s how it’s structured: Master Keystore Hub: This is the core component, acting as the main point of coordination for deploying and updating smart contracts across all networks. It keeps everything in sync, like settings and modules, across each instance of a Universal Account. The account settings are stored on Particle Network and are used to ensure everything stays consistent across different networks. The L1 layer handles cross-chain communication, whether it’s deploying new instances or updating existing ones. Decentralized Messaging Network (DMN): This network is made up of Relayer Nodes that use a native Messaging Protocol. These nodes keep an eye on whether UserOperations on external chains are completed successfully and then report back to Particle’s L1, updating the system. Basically, the Relayer Nodes monitor what’s happening on other chains and make sure the network is up to date. Decentralized Bundler: Unlike the centralized bundlers seen in current ERC-4337 implementations, Particle Network’s Bundler network is fully decentralized. It’s designed to handle high volumes of cross-chain UserOperations. Node operators running these Bundler nodes are the ones who kick off and execute these operations on external chains. A standout feature of Particle’s setup is how it handles Data Availability (DA). Instead of sticking with just one DA solution, they use an Aggregated Data Availability (AggDA) model, pulling together multiple DA providers like: Celestia Avail NEAR DA The AggDA system operates in one of two modes for each block: either random deterministic redundancy or selective conditional publishing. In the first mode, data is randomly but deterministically spread across multiple DA layers, increasing availability and redundancy. In the second mode, specific conditions determine which DA layer is used, optimizing for efficiency. Particle Network's dual consensus mechanism is another area where they've innovated. This approach is designed to mitigate the risks associated with bootstrapping a new Proof-of-Stake network. In a typical new blockchain, if the entire validator set is secured only through the network's native token, any volatility in that token's value can impact the network's stability. For consensus and network security, Particle Network uses a dual staking model. This involves two separate pools of Validators: One pool secured by Particle Network’s native token ($PARTI). Another pool secured by Bitcoin (BTC) through Babylon. In this dual staking system, both groups of validators are required to independently agree on the validity of transactions and blocks. This ensures equal participation in the consensus process from both groups. By leveraging the established economic security of BTC alongside their native token, Particle Network reduces the pressure and security dependence on $PARTI, especially in the early stages of the network's life. This approach allows them to bootstrap the network's security using the well-established crypto-economic security provided by BTC staking. Competitive Landscape Near Protocol: NEAR makes cross-chain interactions straightforward and user-friendly with its Chain Signatures feature, allowing account holders to execute transactions on other blockchains like Ethereum or Bitcoin. By using an MPC Network for secure cross-chain transactions and a Multichain Gas Relayer to handle gas fees across different chains, NEAR removes the complexity of managing multiple accounts. The goal is to simplify cross-chain operations, making it easier for users to navigate various blockchains. Xion: XION is developing a "Generalized Abstraction" layer aimed at creating a smoother Web3 experience. Key features like Meta Accounts (similar to Universal Accounts), cross-chain interoperability, and seamless dApp interactions are all integrated at the protocol level. XION’s goal is to provide a unified interface where users can interact with multiple blockchains without needing to worry about the technical details behind the scenes. One Balance: OneBalance focuses on simplifying multi-chain asset management through its "Credible Accounts" system. This feature gives users a consolidated view of their assets across various blockchains, handles gas fees automatically, and enables cross-chain transactions with ease. By using resource locks to manage asynchronous state transitions, OneBalance ensures a smooth experience without issues like double spending, all while avoiding the need for immediate on-chain finality. Socket Protocol: Socket Protocol is developing comprehensive chain abstraction solutions through two main initiatives. Their Magic Spend++ smart wallet framework simplifies asset management across blockchain rollups by introducing a Chain Abstracted Balance (CAB), enabling cross-chain transactions with a single signature. This is to create the "first chain abstraction protocol" to streamline interactions across multiple blockchains. Using Modular Order Flow Auctions (MOFA) function, it abstracts away complexities like RPC endpoints, gas fees, and chain-specific details, allowing users to interact from a "global blockspace perspective." While they just released their whitepaper, Magic Spend++ smart wallet would arguably be just one of the applications built on top of Socket Protocol. LiFi: LiFi has been refining chain abstraction within the DeFi space for around three years, focusing on aggregating liquidity from various DeFi platforms and blockchains. By doing this, LiFi enables users to access liquidity from multiple sources without needing to interact with each platform or blockchain individually. This approach simplifies the DeFi experience by removing the complexities of dealing with multiple protocols and chains. These six tackle chain abstraction from different angles: NEAR leverages its existing ecosystem to extend functionality across chains. Xion builds a generalized abstraction layer at the protocol level. One Balance focuses on simplifying multi-chain asset management and transactions. Socket develops modular solutions for both wallet and protocol-level abstraction. LiFi specializes in aggregating DeFi liquidity across multiple platforms and chains. Particle Network creates universal accounts with seamless cross-chain interactions and liquidity. Final Thoughts Chain Abstraction is not just a narrative anymore. As an industry we are taking a significant leap forward in addressing the fragmentation challenges of the current (extended) blockchain ecosystem. Even though there are definitely challenges to overcome, the potential benefits of chain abstraction are huge. If it works out, it could open up a whole new world of blockchain interoperability, where assets and data move smoothly across different chains. Users would be able to interact with decentralized apps without having to worry about or even understand the blockchain tech behind it all. If you haven’t checked out what Particle Network’s Universal Account in action, I’d highly recommend visiting Particle’s Pioneer campaign. References Particle Network Documentation Disclaimer This article represents my personal analysis and thoughts on chain abstraction and Particle Network. While based on research and publicly available information, the views expressed here are entirely my own and do not directly represent the interests, official stance, or future plans of Particle Network or any other mentioned entities. Readers should conduct their own research and due diligence before making any decisions based on the information presented in this article.

It’s been a while since I’ve been in this chair, but it still feels warm from when I was doing this work nearly 15 years ago. As I said in my introduction post, my background in and love for print and online media have been with me for as long as I can remember. That’s why taking the role of editor-in-chief at ETH Investors Club and working on our quarterly magazine is such an important challenge— getting Ethereum ecosystem media right is a Herculean task. I wanted to take a little time out to give a bit of a story on my relationship with media and, at first glance, how I see that evolving alongside this New Internet, especially since there isn’t a virtual bucket of Editors-in-Chief in this space to hear from regularly. If you know any EIC or are an EIC, please reach out. I’d love to connect!! From an early fascination working with or starting newsletters, newspapers, and magazines covering all sorts of topics, writing, curation, and editing have long been passions of mine. Not only fascinated by writing for print or online publications, though. I’m particularly excited by the stories we tell on a daily basis between friends, in video games, in film, in group chats, and everywhere in between. Since being part of web3, I re-ignited this love for writing through a newsletter, Mirror posts, editing here and there, freelance writing, and helping other creators. Brands I’ve been privileged to work with just this year include Greenpill Network, Boys Club, Take Up Space, Unlock Protocol, Tally Content Guild, and Celo, among many more. I recall the purest joy of sitting down at a table in Barnes and Noble as a teenager with nothing else to do on a Tuesday evening than flipping through the latest Macworld, PC World, PC Magazine, or Scientific American with an iced coffee. That is the type of joy I want to evoke for readers through all knowledge levels—giddy, delightful, nerdy joy and optimism, no matter where you’re reading. Looking Ahead This is only week one, so no promises, but here are some things I want to accomplish in the next year at EIC: I want to try getting EIC Quarterly in bookstores. I think it’s a really special space for the average person to discover new tech, and I want to get ETH stories in front of as many eyes with as little current exposure as possible. Print does that, but being onchain also serves a purpose. I want to find more ways to challenge the ETH ecosystem to reward creatives, especially writers reporting on emerging tech. I want to make it easier for supporters to redeem physical copies. Getting a physical collectible should be a seamless and rewarding experience. Since EIC is currently donation-funded in the form of collectibles, building out robust options for viewing, sharing, and collecting pieces each quarter is imperative for growth of Ethereum writers, investors, and developers. I also want to start working on, or at least begin, the conversation about varying the ways we experience these quarterly stories. Are we super sure that media in the year of our Lord 2024 must only include interfaces for print, social, online/onchain, and podcast, and that’s it? I’m not. I think there are tons of new options to explore here. Defining a few things Curator: An editor curates words, features, and themes, knowing what needs to be said at just the right moment. For a quarterly magazine, curation is even more important. Producer: An editor is also a producer of creative work, no matter the interval. Therefore, my aim is always to be easy to work with, treat each author’s work with respect, and provide consistent and timely feedback. Narrative: An editor determines the voice and broad function of the pieces inside any particular issue. In this case, I view my role as important in maintaining and proliferating Ethereum narratives alongside my demonstrated sense of taste and ability to be terminally online/onchain. Pitching Pay: Yes, I'm happy to chat with you about that. We use a combined standard rate flat fee + mint split model. We hope this offers authors ownership, simplicity, and more upside for their work than any other industry. Since EIC is a quarterly report magazine, one can naturally determine when we’ll be seeking new pitches near the beginning of each new quarter! Beyond pitches, EIC regularly curates pieces written by ETH ecosystem contributors, so keep shipping great works! That being said, my DMs on Telegram, Warpcast, Twitter, or email are great places to start the conversation. If you’re a writer with a compelling story on Ethereum or emerging tech relevant to EIC, please reach out at any time. Here’s a quick guideline for sending pitches to EIC: EIC covers DeFi, culture, social, investing, feature interviews, research, and more - all pitches should have some effect on the Ethereum ecosystem Read previous issues of EIC. This will help guide the direction of your piece. Keep it short but eye-catching: Subject line (PITCH…), headline, short excerpt, list of published work, social links. If you need to explain yourself, send a 5-min Loom first before requesting a video call. Be curious, be creative, be analytical, factual, but most of all, enjoy the process. Tell, don’t sell. A pitch is not the time to sell me on your product or project. This is a video from Film Courage on pitching movie ideas. The concepts are similar. Here’s another super smart video guide from a writer’s perspective. \*Disclaimer: this may be updated or posted elsewhere in the future.

TRON 上的 SunPump，百舸争流第一名。 作者：深潮 TechFlow 多年以后，面对以太坊的沉寂，Justin Sun 会回想起，2021 年 TRON 链上因 DeFi Summer 掀起的稳定币浪潮的那个夏日。 夏日不会漱石，但是会重复。如果你错过了上一次资产发行狂潮，那请不要错过 2024 年的 SunPump。原因无他，你可以永远相信孙哥对热点的掌控和对币圈底层趋势的把握。 从和 USDT 的战略结盟，再到拿下火币HTX和 WBTC，以及最新的 Memecoin 资产发行平台 SunPump，TRON 以一种众人意料之外，情理之中的角度入局公链竞争。 秦失其鹿，得草根者得天下 弱小与无知不是生存的障碍，傲慢才是。 从 2021 到2023 年，大家都认为公链竞争也许就这样了，“Ethereum + Uniswap” 的黄金组合让以太坊坐稳了链上生态的唯一承载体的宝座，Uniswap 是一切链上交易的最终流向，在这种模式下，链上资产发射平台和传统的 CEX 占据了一切流量和资金的焦点。 但是，2024 年铭文改变了一切，人们第一次看到了比特币的潜力。尤其是在数字黄金以外的应用可能，随着比特币重新接纳散户群体，比特币作为一种资产发射平台重新被人们接纳。而在此之前，大多数的比特币从未移动过，铭文的价值在于将囤币党的 β 收益被转化为散户的 α 收益。 于是 Pump.Fun 诞生在 Solana 上，点击赚钱小游戏诞生在 TON 上，相较于以太坊及其 L2 Blast 和 Base 而言，这些“老公链”反而更具可玩性。尤其是长期被称为“华尔街之链”的 Solana，竟然也放下身段和草根群体玩到了一起。 天道酬勤，市场紧随其后给予了 Pump.Fun 丰富的奖励。截至目前，Pump.Fun 的收入正式突破 1 亿美元，其上的 Memecoin 部署已经接近 200 万规模。 这是Uniswap 之后的第二次资产发行叙事更新，是历史给予 Memecoin 发射平台的注脚。 历史总是踩着相似的韵脚，Uniswap 现身，那么 Sushiswap 也该出现了。2024 年 8 月中旬，孙宇晨宣布 SunPump 正式上线，虽然 SunPump 是 Sun.io 旗下产品，但大家都清楚，SunPump 最大的亮点和最显眼的标签，依然是孙宇晨本身。 这并不是个问题，至少困扰其他类似平台的冷启动和流量问题，在 Sun的Pump下都消失不见，取而代之的是在启动 10 天后日收入就反超 Pump.Fun。 但别看轻 SunPump，如果认为这只是 Pump.Fun 的仿盘那就落入流俗，SunPump 可以称得上是最适合草根宝宝体质的新新资产发射平台，苟日新，比新还要再新一个 Level。 TRON 上的 SunPump，百舸争流第一名。 接续上文，和上个周期不同，以太坊现在面临的是老公链的新打法，TON、Solana 和 TRON 无一例外都是如此，招数也都大致相同，超越 VC，抛弃链下，专心于走链上草根包围交易所里高 FDV 的空气价值币。 SunPump 的特点相较于 Pump.Fun 毫不逊色，可以总结为以下三点： \\• 极致情绪，拒绝严肃。\\从黑神话上线便开盘的 SUNWUKONG，到 Sundog 的戏仿和自嘲，在玩流量这方面，没有人能和孙宇晨加持的平台较劲。 \\• 波场精选，联动火币HTX。\\SunPump 承担着 TRON 搞流量的历史重任，而链上引发的流量依然需要 CEX 来放大，SunPump 已经为火币HTX贡献了数个涨幅翻倍的 Memecoin，如 SUNCAT、FOFAR 等。 \\• 优化到位，省钱到底。\\阻碍链上交易的最大问题是成本，以太坊又慢又贵，Solana 够快但是有 MEV，而 TRON 的 MEV 比 Solana 还少，毕竟这是数百亿的 USDT 都用的链。 从多个角度而言，孙宇晨的流量，火币HTX的流动性和 TRON 的流量，都在 SunPump 碰头聚面，造就了属于 2024 年的 Meme Summer。 能炒作空气也有价值，无炒作价值都是空气。 在公链发展到今天，技术路线的比拼已经无关紧要，更重要的是链上真实用户。如果换成 Web2 用户的获取之道，那么这个词语可以被分解为买量和地推两个部分。 读懂这一点，就可以明白 SunPump 的重要性。和链上 DeFi 的逻辑不同，Memecoin 的价值在于真实用户的留存，毕竟创造多个地址撸毛对 Memecoin 意义不大，TRON 长期被视为 USDT 交易链，而在 SunPump 的加持下已经出现了转化迹象。 在不到半月内，SunPump 已经聚拢起 2 万 DAU 用户量，创造 Memecoin 达 7 万以上，更别说还有高达 99% 的 Gas 减免，以及千万美元的生态激励支持。 在一系列组合拳的助攻下，SunPump 已经成为仅次于 Pump.Fun 的第二大链上 Memecoin 发射平台，仅半个月便达到了 Pump.Fun 八个月的积累。 新晋 Meme 之王的架子已然成型，但这只是一个开始，未来会更加海阔天空。 持续进化，用户上链的拐点时刻 在经济学中，刘易斯拐点描述了劳动力过剩状态向短缺的时刻，劳动力数量相对经济发展并不会平滑上升或下降，而是会突然走向自己的反面。 而现在，Web3 也面临相同的窘境。一方面，链比人多，以太坊 L2 已达 150+，各公链活跃地址长期在数百万级，但是活跃用户、真实用户量可能只有数百、数千，比如 StarkNet 发币后转账数只有可怜的个位数。 而 TRON 是少数几个具备真实用户、真实交易和真实用途的公链，借助 USDT 在全球范围内的流通，TRON 和 TRX 具备真实场景，为其带来了稳定的币价支撑。 在此思路指引下，SunPump 的发展也不同于其他 Memecoin 发射平台，最重要的就是致富效应——无造富，不加密。 要谈致富，先说用户体验。良好的体验是用户愿意使用的首要前提，在 SunPump 上，一键发币成为现实，一张图片即 Meme，三五十美元组流动性，无上币费，无市场费，无质押费。一切的一切，是将资产发行这件事做到极致。 解决了资产发行速度问题，还需要强大的造富效应来带动，这一点上孙哥的答案是引入链下流动性，这和 Pump.Fun 有所区别。 Pump.Fun 虽然允许用户 0 Gas Fee 铸造代币，但其主要是从中“挑选”上 Solana DEX Raydium的优选币种，其上的数百万个币种大概只有 1% 左右的 Memecoin 能最终“上所”。 诚然，链上 DEX 的流动性自然不如 CEX，但是高昂的上币门槛导致 CEX 沦为 VC 和交易所针对散户的屠宰场。 孙宇晨的对策是优中选优，SunPump 中的精品选送到火币HTX，打造精品，提高用户参与其中的财富效应，比如陆续上线的猫猫狗狗（SUNDOG、SUNCAT）已经让早期参与者赚得盆满钵满。 春江水暖鸭先知，孙哥依然是整个行业内最懂流量的男人。 无需多言，Memecoin 的特点就在于量大管饱。在热点来临时，有心人只需付出无比低廉的成本便可为情绪做价，流动性要么随着市场热度上天，要么随着情绪下行归于沉寂。 而在其中发挥作用的便是联合曲线（Bonding Curve）定价模型。简单而言，该曲线允许用户以极低成本添加初始流动性，并且价格会随着购买量增加而上升，随着销售量增加而下降，因此有利于先人一步参与者，即后来者的交易会让先交易者获利。 毫无疑问，这种情况如果毫无控制，很容易走向庞氏骗局，骤开骤谢短如泡影。因此在设计上，SunPump 联动 TRON 最主要的 DEX SunSwap，当某个代币市值达到特定条件时，SunPump会将预设的流动性资金注入到 SunSwap，并执行代币销毁，以此来调节市场流通量。 如果交易量足够优秀，那么可以上线火币HTX，获得更为丰沛的流动性扶持。在满足火币HTX上币审核标准的前提下，SunPump 上的项目只要保持 3 日日均交易量超过 1,000 万美元，或市值达到 3,000 万美元，就可以上线火币HTX，将交易所的资产发现和链上资产发行有机融合起来。 不止于此，在上线火币HTX后，一系列的扶持政策将会持续进行，诸如挖矿、空投、合约和流量等营销活动都会跟进，改变了以往 VC 背书，项目方让利，最后分割散户的上币流程，真正做到了人人可发币，人人可上所的时代变革。 可以这样说，SunPump 能在一众 Memecoin 发行平台脱颖而出，是综合实力的集中展现，发展后劲十足。如果说 Sushiswap 针对 Uniswap 发起的是吸血鬼攻击，那么 SunPump 就是 Pump.Fun 的强化升级款，两者身处同一赛道，但是打法完全不同。 结语 在 SunPump 问世后，TRON 和火币HTX也重新被大众所认知。回归到草根群体之中，为用户的财富增长而持续努力才是 Web3 产品竞争的正途。 我们相信，鲜花会再次开满枝头，SunPump 也会让每个人从 Meme 中找到自己的价值，可能是经济价值，也可能是 SUNWUKONG 的逆天改命。 深潮 TechFlow 是由社区驱动的深度内容平台，致力于提供有价值的信息，有态度的思考。 社区： 公众号：深潮 TechFlow 订阅频道： 电报： 推特：@TechFlowPost 进微信群添加助手微信：blocktheworld 向深潮 TechFlow 捐赠，获得祝福和永久记录 ETH：0x0E58bB9795a9D0F065e3a8Cc2aed2A63D6977d8A BSC：0x0E58bB9795a9D0F065e3a8Cc2aed2A63D6977d8A

TL;DR Unlock the value of your digital assets by using them as collateral. Earn solid returns with fixed-rate loans. Snag undervalued assets if borrowers can't repay. Safeguard your portfolio during market crashes. In the wild world of digital assets, managing risk isn't just smart - it's essential. With markets that can flip in a heartbeat, how do you protect your wealth while staying open to new opportunities? Enter PWN - the P2P lending protocol designed to help you hedge like a pro using your digital assets. In this piece, we break down how both lenders and borrowers can use PWN to manage risks effectively, especially when the market's looking shaky. Let’s dive into the strategies and outcomes you can leverage with PWN. Earn Interest on Loans For lenders, PWN offers a straightforward way to earn interest by providing loans backed by digital assets at fixed rates. This setup compensates for the risk you take on by supplying liquidity during uncertain times. Example: You issue a loan of 2,000 DAI, secured by a DeFi derivative such as stETH (Lido Staked Ethereum) valued at 3,000 DAI, with a 12% interest rate over three months. Here’s what you can expect: If the borrower pays back the loan, you pocket 240 DAI in interest, netting a solid return. If the borrower defaults, you get the stETH, which could still hold significant value, especially if the market bounces back. Acquire Tokens Below Market Price Lending on PWN isn’t just about earning interest - it’s also a smart way to get your hands on valuable digital assets, like gold-backed tokens (think PAXG or XAUT), at prices below market value. By carefully tweaking the Loan-to-Value (LTV) ratio and Annual Percentage Rate (APR), you can set yourself up to snag collateral at a discount if a borrower defaults. Here’s how it works: Imagine you issue a loan of 2,000 DAI against a PAXG token, currently valued at $2,500. Given PAXG's stability as a gold-backed asset, you decide to set the LTV at 80%, meaning the loan amount is 80% of the token's market value. You also set an APR (annual percentage rate) of 24% for 3 months (\~90 days). This rate is pretty competitive, especially when compared to traditional pawn shops where storage costs push interest rates higher. Here’s how you can expect a return on investment (ROI) up to 25%: If the borrower repays the loan, you earn an APR of 24% on the 2,000 DAI loan - 480 DAI over a year. If the borrower defaults, you get the PAXG token at a 20% discount from its market value, meaning that the ROI upon liquidation would result in an APR of 100% (25% for 3 months) if the asset price stays the same. Given PAXG's stability, this is a low-risk way to acquire a solid asset at a bargain, with potential for future gains. The Bottom Line In today’s unpredictable digital asset landscape, PWN stands out as a must-have tool for both borrowers and lenders. Whether you’re looking to earn interest or pick up discounted assets during market dips, PWN gives you the power to navigate volatility with confidence. By incorporating PWN into your risk management playbook, you can build financial resilience and stay poised for success—even when the markets get rough. Explore PWN today and take charge of your financial future! — Want to get in touch with PWN? Reach out to us on Twitter or join the community on Discord.