1/👋Hey #CryptoTwitter!!
We have already seen a lot of tweets on $ARB airdrop and how people could utilise another upcoming airdrop of $ZKS (@zksync).

This thread 🧵 is not about airdrops, but about rollups, a promising Layer 2 solution that could help scale Ethereum.

2/🌉But first, what are Layer 2 solutions?.

The Ethereum network is often congested, leading to slow transactions and high gas fees.

Layer 2 solutions are designed to address this by building an overlay network on top of the main chain to lighten the impact on Layer 1.

3/🔎There are various Layer 2 solutions, but in this thread, we'll focus on rollups.

Rollups are a recent development designed to increase Ethereum's scalability by performing off-chain calculations and bundling transactions into a single batch.

4/📈By batching transactions, rollups can achieve a high transaction rate without having to trade off security, making them an attractive solution to Ethereum's scalability challenges.

5/👉There are two types of rollups: ZK rollups and Optimistic rollups. ZK rollups verify the batch of transactions on the Ethereum network, while Optimistic rollups assume the off-chain transactions are valid unless proven otherwise.

6/🔍Let's dive deeper into how ZK rollups work. In a ZK rollup, funds are locked on a smart contract on the Layer 1 blockchain.

The off-chain transactions are verified for correctness, and a cryptographic validity proof is generated to make the batch of transactions final on the Ethereum network.

7/🔏ZK rollups use zero-knowledge proofs, a cryptographic technique that allows one party to prove to another that they know a piece of information without revealing the information itself. This makes ZK rollups secure, fast, and efficient(eg. @zksync , @loopringorg).

8/👀Optimistic rollups don't use validity proofs. Instead, they assume the off-chain transactions are valid unless proven otherwise. Fraud proofs can be used to challenge the submitted state, and the operator needs to prove the state and transactions are valid(eg. @arbitrum).

9/🔒@zksync is an example of an L2 solution that uses ZK rollups. @zksync is built on top of Ethereum and uses ZK rollups to process transactions quickly and cheaply.

@zksync locks funds on the L1 blockchain and generates a proof of validity for each batch of off-chain transactions, submitted via a SNARK.

10/💡Rollups are a critical scalability component to the inherent network congestion on Ethereum, and could offer a solution to the frequent congestion, slow transactions, and increased gas prices. They're still in development, but their potential to scale Ethereum is exciting.

11/🚀That's it for our thread on rollups! I hope you've gained a better understanding of this promising Layer 2 solution and how it can help scale Ethereum. Stay tuned for more updates on the crypto space!


Rollups: The Promising Layer 2 Solution for Scaling Ethereum

Defi Kingdoms ( $JEWEL ) is one of the most popular projects in DeFi.

So let's look at what it is and how you can make the most use out of this game.

A thread 🧵 

Defi Kingdoms is a gamified DeFi protocol and a P2E.....if that makes sense.

Dont worry. You will understand it better once you go through this thread.

This protocol has a lot of DeFi features like DEX, LP farming, NFT marketplace, a bank etc. But while we use all of these, we feel like we are playing a game.

For eg. if you want to deposit their main utility token $JEWEL in a bank, you go to the jeweler, and there you can find a jeweler named "Ian".
You can deposit your $JEWEL and receive $xJEWEL token. By depositing, you get a share of the fees generated in-game as rewards.

Defi Kingdoms have two realms
1. Serendale ( launched on Harmony network)
2. Crystalvale ( launched on DFK chain - a subnet of Avalanche network) 

$JEWEL is the main token of value in Serendale. And likewise
$CRYSTAL is the main token of value in Crystalvale.

$JEWEL and $CRYSTAL are used for minting new NFT Heroes on their respective blockchain, which will be used in the game to earn more rewards by doing quests( NFT heroes will need a whole another thread to discuss).

Additionally, $JEWEL will be used for gas fees on the DFK chain.

There are a lot of upcoming features like the PvE and PvP tournaments using the NFT Heroes, which will attract a lot of gamers.

You can also earn pretty good yields by doing nothing !!

Below is a step by step guide on one of my current favorite strategies on Defi kingdoms to earn yield .

Not a Financial Advice. This is just for educational purpose. Invest responsibly, that is the most important thing!!

1. Go to Defi Kingdoms : Serendale( game.defikingdoms.com). You will see a map like this:


2. Now go to marketplace. and there you will see a "trader". Click on trader and now you will see their DEX to swap tokens.
Notice how you have a gamified feeling while trying to use a DEX unlike other popular DEXs like Uniswap etc ? 

Feels pretty cool if you ask me. 😎 


Now, buy some $JEWEL from the DEX by swapping any other token.

3. Now we need to go to the jeweler. Deposit 50% of your $JEWEL to receive $xJEWEL tokens. 


4. Now you have both $JEWEL and $xJEWEL tokens. We need to move these tokens to the Crystalvale realm. For that, go to "Bridge". and here, you can bridge both tokens from Harmony to DFK chain.


5. Next thing would be to move to Crystalvale. For that, go to "Docks" and click on Dockmaster. Select "Travel to Crystalvale". 

Aaaaand Voila!!  You have reached Crystalvale.

6. Now we need to create LP tokens for $JEWEL-$xJEWEL pool. For this, go to Marketplace and click on "Druid". And then click on "Buy seeds" . Seeds are LP tokens here.

Select 1st token as $JEWEL, 2nd as $xJEWEL and create LP tokens.


7. Next, grab your seeds and run to the "Gardens". Click on "Seed box" and deposit your LP tokens in $JEWEL-$xJEWEL pool to earn rewards upto 1500% APR as per current rate!!

The rewards you earn will be in $CRYSTAL token.



Note that there is a locking model in place. So you would not be able to claim all your rewards at one go. As each epoch completes, a portion of the rewards will get unlocked.

8. To make things a bit more interesting and lucrative, you can take your claimed $CRYSTAL rewards , create seeds and deposit them in the $CRYSTAL-$USDC / $CRYSTAL-$JEWEL LP to earn another 1800% APR on top of the rewards you are already earning!!


So you could potentially make returns in many ways simultaneously on your $JEWEL holdings:
1. Token value appreciation of $JEWEL/$CRYSTAL.
2. Earn a portion of in-game fees by holding $xJEWEL.
3. 1500% APR on $JEWEL-$xJEWEL in the form of $CRYSTAL.
4. 1800% APR on $CRYSTAL LP

Do note that the APR on LP farming is subject to change.

To sum up the strategy:
1. Go to Serendale and buy $JEWEL.
2. Deposit 50% of $JEWEL for $xJEWEL.
3. Bridge both tokens to DFK chain.
4. Move to Crystalvale.
5. Create LP tokens for $JEWEL-$xJEWEL and deposit it in the garden.
7. Create LP tokens using $CRYSTAL , deposit it in LP.

There you have it.

To know more on DeFI kingdoms, you can refer the docs at  https://docs.defikingdoms.com/

For more such contents , follow me at  @0xRazi . Exciting contents coming up about crypto in general and DeFi.


You can read the unrolled version of this thread here: https://typefully.com/0xRazi/T9AUqNn

Defi Kingdoms : How to make use of this protocol?

Defi Kingdoms ($JEWEL) is one of the most popular projects in DeFi.

So let's look at what it is and how you can make the most use out of this game.

A thread 🧵 

You can read the unrolled version of this thread here: https://typefully.com/0xRazi/VOhJWRl

$BTC was released in 2009 and is said to be the solution to the problems in our current financial/banking system.

So what were the problems?  🤔 
Let's dig deep. 

A thread 🧵 

#BTC   #crypto

Let's go back in time and see the different stages,shall we?

1. Barter system
 When person “A” has an item, he trades it to person “B”  for an another item he needs.
 A reciprocal system, where money is not involved.


But it had it's problems, regarding quantity, valuation, and what if the person doesn’t need it now, etc. 
To negate this, coins were introduced.

2. Coin
Gold and Silver Coins were used to trade.
No specific utility but because it’s a precious metal, it has value.

Again it had problems. Coins had to be carried around, which was difficult and also led to more theft, etc.

Solution?

Enter paper currency.


3. Banks, Gold backed Paper money; Dollar pegged-FIAT Currency

Governments figured out a way to use the Peoples’ trust in the system to create paper money. Centralized Organisations known as “banks” will keep the gold.

And if the bearer of the paper money goes to a bank they will provide them with the equivalent amount of gold.

The Gold Standard had a huge problem . With the new findings of gold, the value of currency kept fluctuating.


After a long time and some Global Events (WW2), every country needed a tonne of money but gold reserves were limited. Also considering previous facts, the world decided to shift to a new system, where every currency is pegged to the Dollar and dollar is pegged to gold reserves.


After a few years the world decided to move to “FIAT Currency” where any government can print any amount of money and it won’t be backed by anything.



This present system has some problems:

a) Everything within the current system is controlled by a central authority.
Government can take drastic measures like demonetization and freezing of bank accounts of protesters.

Even multiple Indian banks have gone bankrupt and were unable to pay investors.

b) In recent decades the dollar and most currencies have depreciated in value.
Inflation is what causes this depreciation.

In simple terms, what is inflation? 
The value of your cash in hand decreases and prices of goods rises.
Inflation reduces the value of a currency's purchasing power, having the effect of an increase in prices.

(Image source : howmuch.net)

Inflation is bad for Savings. On a daily basis you may not notice it, if the wages rises along with the inflating prices. But inflation on assets affect the most.


Purchasing power is the amount of goods and services that can be purchased with a unit of currency.

If you want to buy the same goods that you can get for 100 rupees in 1958, in 2022 you’ll need 8716 rupees.

This shows the falling of purchasing power of Indian currency.


And when recession hit (2008), huge institutions went bankrupt and Government bailouts these companies by printing a tonne of new money.

This risks inflation.

Also Extreme mismanagement by central authorities can result in hyperinflation.

c) Security concerns
Security concerns within banking, transactions and other cyber-crimes.

d) Transaction problems
Transaction time delays & charges involved for international money transfer due to the number of banks involved.

Alright, we have seen enough problems. As always, we need a solution. Sooooo, a solution?

Bitcoin.  $BTC

Why?

a. Decentralization.

b. $BTC has a fixed supply of 21 million. This means that there wont't be more than 21 million $BTC EVER!!!  It cannot be printed further, and thus no inflation. 



c. Its open traceable transactions.

d. No need to worry about interest rates, exchange rates or heavy transaction fees. And can also transfer to any part of the world instantly.

So there it is. I'll be putting out another thread soon about how $BTC and blockchain works.

For more such contents , follow me at  @0xRazi . Exciting contents coming up about crypto in general and  DeFi.

You can read the unrolled version of this thread here: https://typefully.com/0xRazi/MJRtxxa

Problems with the current  financial system

$BTC was released in 2009 and was said to be the solution to the problems in our current financial/banking system.
So what were the problems?  🤔 
Let's dig deep. 
A thread 🧵 

#BTC   #crypto

You can read the unrolled version of this thread here: https://typefully.com/0xRazi/6I7dEO1