Welcome to the 9th edition of JediSwap's community-led newsletter!
Every two weeks, we compile the following:
updates from JediSwap
what's new in the StarkNet ecosystem
an educational content to help you learn more about Web3
Before we begin, the JediSwap community wishes you a happy new year. Let's make 2023 an excellent year for web3 progress together.
Updates from JediSwap in the last two weeks
As you can see, we have changed the publishing platform of our newsletter because our former platform, Revue, unfortunately, closes its doors:
From now on, all newsletter publications will be done on Paragraph (the current platform). Feel free to register not to miss any new editions!
Despite the current bear market, we have shown healthy organic growth since our launch. In particular, we've just passed 100k TVL.
Thanks for your confidence!
By depositing liquidity on it, you can earn an excellent yield on your assets. In particular, all ETH-stable pairs are currently earning 25%-50% APYs.
To add liquidity, head over to https://app.jediswap.xyz
What happened in the StarkNet ecosystem
Despite the holidays, things are moving very fast on the StarkNet ecosystem.
Notably, we recently learned that Visa, the digital payment company, is experimenting and building with our partner Argent, on StarkNet:
An excellent sign for the future adoption of the StarkNet ecosystem and web3!
Speaking of adoption, EVM compatibility is one of the biggest challenges in ZKRollups. The Kakarot has accomplished 100% EVM opcode compatibility in less than three months, demonstrating the power of the Cairo language.
By the way, if you want to learn more about StarkNet, StarkEx, L2, and Cairo, StarkWare is organizing a conference on February 5-6th, 2023, in Tel Aviv, where you will find panels, workshops, talks, networking, and much more:
The space strategy game, Influence announced its alpha launch in Jan 2023.
3 StarkNet projects went live on the StarkNet testnet in the last two weeks.
The option protocol: Carmine
The NFT audit and launchpad project: Stark Guardians
The pokemon card game: PokeCairo
Knowing that you need a wallet to interact on these testnets or web3 projects, wallet security becomes one of the most critical topics in crypto. As a result, Braavos recently published a security thread about a new way to protect yourself:
Learn about Web3
What is a DAO
DAO is the acronym for Decentralized Autonomous Organization. From the name, one could surmise that a DAO is one type of decentralized organization. In our context in blockchain and Web 3, a DAO can be quintessentially thought of as an organization run by a set of rules using code (hence the "Autonomous" descriptor). The code is often executed by a network of nodes that make up the blockchain - for example, StarkNet acts as a distributed ledger for JediSwap by executing and recording transactions. DAOs can be created to achieve a specific outcome, be it financial or social or something else, in a decentralized manner.
Simply put, a DAO is a group that operates in a decentralized manner utilizing code (like smart contracts) to make decisions, perform actions, and govern autonomously without a central leader or influence. In other words, one can think of a DAO as an organization that acts on the wishes of its members from the bottom up rather than a typical organization where decisions are made from the top down with members carrying out the instructions from a few people at the top(like CEOs and managers).
How do DAOs work, and what are their goals in general?
There is a myriad of mechanisms operating a DAO. Most often, projects opt for distributing voting power via issuing a governance token similar to owning common shares in a company. Token holders earn voting power in the DAO and can express their wishes through voting. Almost all DAOs run smart contracts, codes that automatically run when a specific criterion is met. One can imagine a typical DAO creating new governance proposals for members to vote on certain decision choices to influence the direction of the DAO. Hence, it can further its specific goals if most members vote on a particular outcome for the DAO without any central veto powers or bad actors attempting to quash the advancement of the organization for their self-interest.
The ultimate goal of a DAO is to put the power of the project and its assets/powers in the hands of the people over a single entity. It aims to advance the organization's missions without traditional bureaucracy and obstacles.
Interests of stakeholders represent the interests of the DAO
DAOs solve the principal-agent dilemma through community governance. Stakeholders aren't forced to join a DAO and only do so after understanding its rules. They don't need to trust any agent acting on their behalf and instead work as part of a group with aligned incentives.
Token holders' interests align as the nature of a DAO incentivizes them not to be malicious. Since they have a stake in the network, they will want to see it succeed. Acting against it would be acting against their self-interests.
While at the surface, DAOs sound all good, DAOs are in their very early phases of inception. Hence there are multiple challenges with most of the existing DAOs, like voting power being concentrated among very few, tokens attracting people driven by short-term financial outcomes, information flow within DAO members, collusion, etc.
At JediSwap, we believe in the power of DAOs and are on a mission to reflect the best impact of DAOs on the world. JediSwap is a 100% community-led project; hence the JediSwap community is trying to solve some of the problems of DAOs and creating frameworks for community-driven organizations. If this excites you and you want to help, join our Discord.
We hope you enjoyed this issue, and we'll see you in 2 weeks for a new edition! Don't forget to subscribe to the newsletter. :)