Weekly Recommendations | BitMEX Founder Talks About Three Arrows Capital; What Use Cases Will Web3 Have in the Future

Organizer: Hu Tao, Chain Catcher

1. “BitMEX Founder Arthur Hayes Long Article: The Three Arrows Capital I Know”

This current bear market is the third one I have experienced. Although it sometimes feels like a replay, there are always lessons to be learned each time. In this article, Arthur will use the legendary story of Three Arrows Capital (3AC) as a perspective, through which we can better understand the real insights we should gain from the current bear market. Arthur intends to leverage his understanding of cryptocurrency, financial services, and common sense, starting from the implosion of TerraUSD and Luna, to identify the reasons behind the collapse of 3AC.

2. “Exclusive Interview with Mike Novogratz: What Mistakes Did Galaxy Digital Make in This Bear Market?”

Mike Novogratz was once a seasoned traditional hedge fund manager and is now the CEO of Galaxy Digital. He has openly stated that LUNA was his favorite token and even got a tattoo of a wolf howling at the moon on his arm to express his excitement. However, LUNA experienced an "epic zeroing out." Mike Novogratz admitted that this crash was very unexpected and that he took on too much risk during this period. He reflected deeply on the events of this experience, and although he could not hide his disappointment, he did not lose confidence, stating that he would learn from the experience and prepare for the next bull market.

3. “a16z: What Can Web3 Learn from the History of Traditional Governance?”

In Web3, governance is continuous, participation is completely open, and execution is rapid. Web3 governance is defined by different categories of participants, as customers are the owners. As a result, a new form of digital participation has emerged, characterized by broad experimentation and rapid iteration cycles. However, so far, participation in Web3 governance has not been high, and interest groups can easily capture and manipulate group decisions. To address this issue, we may find some lessons from the history of systemic governance.

While Web3 is a new thing, governance is not. The governance challenges faced by societies and organizations have been nearly the same for thousands of years—emerging from the Athenian church, where citizens gathered to make collective policy decisions, to the rise of the Dutch East India Company, where good governance could disperse risks and aggregate capital on a large scale, promoting a new era of organizational design and privatized governance through an additional layer of legal separation between shareholders and creditors.

4. “After Experiencing This Cycle, I Summarized These Six Major Mistakes and Lessons”

Perhaps only by fully experiencing the bull and bear cycles of cryptocurrency can one begin to truly understand the crypto space. The author has lived through the last bull market cycle, observed the madness of that time, and is currently experiencing this dim bear market, reflecting on the mistakes made and summarizing six lessons learned: 1. Not taking profits in time; 2. Having too many points of focus; 3. Not recognizing the relationship between DeFi mining and investment; 4. Misunderstanding small hype cycles; 5. Misunderstanding enthusiasm; 6. Lacking patience.

5. “A Comprehensive Analysis of Future Use Cases for Web3”

Web3 infrastructure will become the framework for most of our work in online and financial life. The experiments in economic design, incentive adjustments, and governance of Web3 protocols will leap out of the internet and impact institutions in the "real world." Killer applications will emerge in areas such as Web3 social and Web3 gaming.

6. “The dYdX Exodus: The Battle Between Application Chains and L2 Rollups”

This article argues that high-quality applications have a weak dependency on the underlying chain, while the underlying chain has a strong dependency on high-quality applications. First, in the current multi-chain landscape, if an application is good enough, finding a foothold is not difficult; second, the intersection between the underlying chain and users mainly manifests at the application layer. Apart from that, users' perception of the underlying chain is only reflected in speed and cost. If there are only good infrastructures without high-quality applications, then the value of the underlying chain cannot be fully realized.

In the past, applications would think about how to retain users; since dYdX, perhaps it is time for public chains to consider the issue of "application retention."

7. “In-Depth Analysis of StarkWare: The Best Team for Ethereum Scaling, Overvalued at $8 Billion?”

On June 22, dYdX, which accounts for 90% of StarkWare's revenue, announced its departure from rollups to develop an independent application chain within the Cosmos ecosystem. dYdX founder Antonio Juliano has publicly expressed that people are overly optimistic about rollups. In the foreseeable future, the Layer2 ecosystem will undergo a battle similar to the "public chain wars" of the last cycle, with multiple technical solutions and project ecosystems occupying certain market shares. This article will analyze StarkWare's super scalability capabilities from various data points to explain why StarkWare can bring us more possibilities.

8. “Average Gas Fees Once Exceeded Ethereum Mainnet: What Issues Did the Arbitrum Odyssey Event Expose?”

On the first day of the second phase of the Arbitrum Odyssey event, due to heavy on-chain load leading to higher than normal gas fees, Arbitrum announced the suspension of the Odyssey event. According to L2 Fees data, on that day, the average gas fee for each transaction on the Arbitrum network soared to over $9, double that of the Ethereum mainnet at the same time.

As one of the most popular Ethereum Layer 2 scaling networks, Arbitrum's main goal is to significantly reduce gas fees to enhance user experience, but such an occurrence is undoubtedly ironic. So, what exactly happened on the Arbitrum network?