Scaling, Scam & Partnership with PetroBras
Episode by Peter Bui on December 23rd, 2023
Pi’s new CIP proposal.
Another Cardano news update, we have a few really highlighted news stories this week in the Cardano ecosystem. One the scams, all these scams are happening at the moment. Number one is this Mercury Mint and also then Cardano scaling and looking into Plutus V2, V1 comparisons and seeing how we can improve things in the Cardano ecosystem so we’re ready for the next upcoming bull market. Looking forward to it and let’s get into these news stories.
The first one we have here is Mercury Cardano. Now it has already deleted their Twitter account, but this project here had a mint that was going on today and many people connected their wallets to the project expecting to mint whatever it is. It had a little bit of FOMO and all these other aspects to it.
But of course, they connected their wallet and these really strange transactions started to come into play. And let me just zoom in so you can see this one here better. And here we can see like someone’s connecting their wallet here and almost 4,000 AIDAs going out and over a hundred NFTs are going out in this transaction. And we can see the screenshots from all these other people as well. And they, I hope, stopped at this point and realized, hang on.
something is up here, something’s not quite right and then stop their transaction at that point. But unfortunately I know many, many people did not read that transaction, just FOMO’d into this mint and signed away all of their NFTs and all of their ADA, completely draining their wallets of any Cardano assets. Ah, see.
There was a pop-up timer that led many to feel rushed when claiming this caused many to sign the transaction without double checking. This is that sense of urgency that scammers use and this was done so well. I think the scammer looked and thought about all these various aspects, put the mint on at the correct time, put that sense of urgency into the
timer for that transaction and hey presto many many people FOMOed into it without checking and verifying What was going on now? I really hope we start seeing a lot more UI improvements on all of these wallets so that when people are signing transactions like this They can see that all their assets are moving out So this when you do in NAMI wallet for example here you have to click on details and that will expand
and show you what assets are leaving. And I really think that should be done as a default so you can see exactly what’s happening to your wallet. Unfortunately, many people got caught out here. So the project also asks you to connect your Twitter account. And I have no idea what level of access that would have given the scammer, but they may be able to take over your Twitter account. So check these settings. Go to Security and Account Access, App and Sessions.
and then check what connected apps are connected to your Twitter account. Probably a good time just to do that in general and delete everything that is there. If you’re not using it, just delete it. You have no idea what those apps can do. They could probably post on your behalf, send out scams, send out DMs, have your entire account taken over. So check those settings, make sure you’re safe there too. Now currently there’s over a hundred thousand eighty inside this wallet and they’re starting to move assets around all over the place to offload them.
onto NFT marketplaces such as JPEG store. So hopefully all the tools out there we can track and see where all these assets are going and have them all blocked. Have them all blocked on the marketplaces, have them all blocked from all the wallets as well. I really hope that something can be done. Let’s have a look at the current wallet as well. And this is the wallet here. So some assets looks like it has been moved out.
But let me just scroll through this. This is a lot of shit coins. So good luck dealing and offloading any of those. But we can see mint tokens here. We’ve got to WIT tokens. So a couple of decent tokens in here, governance tokens. We have some indie tokens, Paribus, lots of Paribus tokens there actually. Some mint tokens there. Yeah, so quite a few.
a handful of decent tokens but I suspect they would have offloaded or try to offload them as quickly as possible before anything was blocked. And then we have a lot of NFTs here. Again I can’t see anything that’s, oh hang on, here we go, there’s even more. There’s a lot. Okay, you get the point, you get the idea. I’ll put links in the show notes so if you want to dig into this one and have a look at what the scammer has gotten away with, feel free. They have gotten away with a lot and I really hope.
that scams like this don’t happen again in the Cardano ecosystem. There’s a lot of improvements that we can do for the wallets, for the education, and everything else around it to try and prevent these scams. Anyway, that’s my public service announcement. Check what’s going on, and make sure you’re disconnected from any of these weird apps that may be connected to your Twitter account. Now, this was a really interesting discussion. We had spoken about this between myself, Paul,
Farid and Josh on a joint livestream that we did the other day on Tuesday night, Wednesday morning for me, and we’re talking about the congestion or possible congestion coming up for the next bull run. The blocks at the moment on Cardano were at 90% capacity. And if you dig down deeper into it, it’s because of all these scripts, these Plutus V1 scripts that didn’t have the ability to use reference inputs or reference scripts in it.
And Smaug from Pool.PM did a really good breakdown, visual breakdown of what the blocks look like. We can see here after the Alonzo hard fork, the blocks are completely filling up with all the scripts out there. And what has happened is, well what Pai from Sunday Swap has suggested was that we work through a way to actually make all these V1 scripts compatible.
with reference scripts and reference imports. I think that was a brilliant idea. But before I go through that SIP, let me just have a look at some of these other data here. I can show you what’s going on. So this is the current Cardano block usage. You can see most of it is being filled up by scripts, a little bit with datums. That’s the information that is being sent with some of these scripts. It’s really hard to see. Let me zoom in a little bit. It’s those little tiny aqua green bits there.
And then we’ve got the rest, which is just transactions and then the rest of it’s empty. So we have a lot of improvements to do on these scripts, which is taking up so much of the block sizes at the moment. Now here is a nice visual comparison of the number of transactions based on the type of a script being used. So you can see here V1 scripts are still very dominant over the V2. And here is a comparison of the actual size itself. So Plutus V1 transaction sizes.
only account for maybe just under half the transactions on the Cardano blockchain, but they take up pretty much all the blocks everywhere. So reducing that, getting rid of V1 scripts would I think make a massive improvement to the Cardano ecosystem, have a lot more transactions and whatnot go through all at the same time because you can fit more into the blocks. And this is all before we do tweaks or parameter changes such as block size increases or block time increases as well.
or decrease I should say. So lots of improvements that we can do there just from the coding side of things. So this is an overview of the SIP that Pi is currently putting in place. So it’s v1 plus v1 scripts are unable to use SIP 31 and SIP 33, the reference input and script references to reduce their transaction size. And between 80 to 90% of every block is occupied by repeating the same transaction over and over. So that means.
when you’re executing a trade or swap, whatever it is, and it’s interacting with a V1 script, that entire script, that smart contract script is being put on chain every single time. That’s taking up a lot of space. With the reference scripts, it’s placed online, it’s placed on blockchain and any other transaction coming in references that existing one. So it makes it a lot smaller. You still have to…
get your transaction script up in that very first block, very first transaction. But once it’s up, you can then always reference that script and reuse it again and again. So really important to have those reference inputs and reference scripts. Now this problem won’t go away even as the new protocols support Plutus V2. They will forever exist. Now this is mainly because if you go to a DEX that was launched in the early days using V1 scripts such as Sunday Swap or the liquidity there.
is locked up in those V1 scripts. It will require everyone to migrate their liquidity from V1 to V2. So you need to get the person, get the people to interact with it, upgrade, migrate over to V2 and then you can reduce the amount of transactions on the V1 liquidity pool. Now this will take a lot of time, a lot of effort and not just from the development team running the decks but
the people using it and some people just leave their liquidity there and not touch it ever again. So it’s almost impossible to do and this will always be around. So this here is proposal that will help these V1 scripts have the ability to use reference inputs and reference scripts. So I think that’s really, really important to help with that backwards compatibility of all of these scripts that are currently on chain. So this is really important.
keep an eye on this one here and see how this one goes. I think it’s a massive improvement for the Cardano Smart Contract ecosystem in general. Now, I thought here was a really good graphical way of viewing what dApps out there actually use V1 and V2. There was talk in our joint live stream with Paul about boycotting projects that were using V1 scripts. And that’s really hard to do.
Especially if you’re using something like Dex Hunter and you just want the best trades from a point of view of a user I don’t care. I don’t care about the block size. I don’t care about any of that I just want my trade to go through because I need to exit or enter a position and Being able to boycott all these ones here, which aren’t on V2 yet Would mean I’m not trading on the majority of the Dex’s out there So, you know Wingriders on but Wingriders VyFinance, SundaySwap
Minswap, it’s where the majority of the liquidity is at the moment and if you’re going to block all them I’m going to have some terrible trades. So I do know these projects are upgrading. I know Minswap has their v2 of their entire decks rewritten in Aiken coming out very very soon. So just around the corner we should see some major upgrades. I’m not too sure about SundaySwap,
because it will make a massive difference for the Cardano ecosystem. All right, so Cardano Scally, another hurdle that we all need to jump over to scale. But I’m looking forward to it because there is progress and moving towards these type of upgrades to make things a lot better. This new story I thought was really exciting and this is the launch of the Rosen Bridge.
So this is the bridge between Ergo and Cardano and the watches have done their first interoperable exchange between the two chains and the bridge is up and running and working and the watches are validating those particular transactions. So this is quite a milestone. This is the first of many chains that Rosen Bridge will eventually connect to, the first being Ergo and Cardano. So congratulations to all the watches, all the people that are participating in this particular ecosystem.
I think I’ll set up a Rosen Bridge myself. I’ll set up a watcher for the Rosen Bridge. Be pretty cool to be a part of and I’ve always wanted to get a little bit deeper into the Ergo ecosystem so people have been asking me about it too. So I will get into that and keep you updated when that watcher is up and running. Now this one here is pretty exciting. This is one of those buy the rumor, sell the news moments. The SEC is holding a rare conference call today with all spots.
Bitcoin ETF applicants. That is super exciting, super bullish. The predicted date for this Bitcoin ETF is supposed to be January 10th. So literally just around the corner from now, less than 20 days from the time of this recording. If this all goes through, we should see Fidelity, BlackRock, ARK Invest all launch their ETFs hopefully all at the same time onto the market, allowing institutional investors an easy on
an exchange traded version of Bitcoin. So this would remove a lot of the barriers to entry for a lot of these institutional investors, such as setting up a wallet, managing seed phrases, custodial ownership of the assets. So all of these things, having an exchange traded ETF version of it makes it just that much easier. This is all rumors. We don’t know what’s going on in this conference call at the moment. It could very well be the SEC saying, sorry guys, no.
This is not happening. We can’t have this happen, but we will see. We’ll see what’s happening. I’m sure the news will come out and we’ll all know very, very soon if this is or isn’t happening. Another Cardano protocol launches today as well. And this is Option Flow. Option Flow dot finance. If you go there now, you’ll be able to interact with the brand new DAP launching Cardano that lets you trade options. You can now do calls and puts. And
Trade against the future price of various assets on Cardano. So this is all very exciting to have various markets that you can trade against lots and lots of assets there. But give it a go yourself and let me know. I will be digging deeper into this one to get a better understanding of how the platform works. I haven’t played around with it much on test net. I probably will now, now that the main net is launched, they do have their token trading in the Cardano ecosystem as well. It made quite a splash.
in the markets a little bit earlier this year. So pretty cool to have another Cardano protocol, a completely different idea and concept being able to do option trading on Cardano. Really cool to see. Congratulations to the option flow team for launching today. Now another one that’s launching tomorrow is Serra. These guys have been trying quite hard to get their MVP out, their testnet out and now their mainnet launch is tomorrow.
They tried to go through a token sale and all that to raise funds for the development, but instead they kept on going through, built their MVP and now are launching on Mainnet. What they are providing for the Cardano ecosystem is derivatives trading and peer-to-peer lending on their protocol. So you’ll be able to check that out on Mainnet tomorrow, have a play with their application and see exactly what the team have to offer. I’ll put links and everything in the show notes for you guys. You can find out a little bit more about it as well.
As always, please do your research before playing around with any of these protocols and entering in any of these tokens. Another token launch that’s coming up, I did an interview with Matteo and Raul from Fluid Tokens about their end of their ISPO and launch of some really cool brand new features from Fluid Tokens. They have their liquidity bootstrapping event launching on Minswap on the 12th of January
All the links again down the show notes for you. Check out that interview I did with Raul and Matteo about the fluid token LBE. You’ll be able to learn all about that, the dates and everything else you need to know about the launch. Really cool that this team have been building all throughout the bear market. They’ve built their MVP, they’ve built lots and lots of utility, lots of functionality in their application.
or before launching their token. So they’ve got a full fledged application with TBL locked into the platform before launching the token. So really, really commendable way of going about it as opposed to launching, raising all this funds and then delivering four or five years down the track. So definitely a project that’s over delivered. The Kandana Foundation has been really busy. Every news update, there’s something new, they’re up to something, whatever it is.
This one here is a partnership with a Fortune 500 company, Petrobras. It’s a Brazilian petrochemical company and they’re doing all of their blockchain education for them. So this is the type of company that are looking for ways to innovate and use blockchain technology to try and get ahead of the competition. And the Cardano Foundation are providing them with all the education necessary to make that happen.
So this is a really good way of getting your foot in the door with a massive Fortune 500 company with over 40,000 employees, educating them all about blockchain and Cardano and the benefits of it, and then hopefully have them implement some of these ideas and concepts that they’ve learnt into their company itself. So this is a really big way of doing it. I had no idea they had this partnership in their works, just like a lot of the Cardano foundation stuff.
They wait until everything is signed and everything is being implemented before announcing anything. So really cool to see. So if you have a look at the Petrobras account here, they have over half a million followers on here. It’s all in Portuguese, of course, I can’t read any of that. But this is the major press release news announcement from the Cardano Foundation itself. So they’re expanding the understanding adoption of blockchain throughout their company.
leading blockchain education workshops for Petrobras employees with Cardano Academy. They have a comprehensive blockchain education program developed by the Cardano Foundation, providing reliable resources to those interested in learning more about blockchain’s potential. Super exciting. Like I mentioned, they have over 40,000 employees and this is a nice thing for the employees. The first 500 Petrobras participants of the Cardano Academy will also receive an NFT.
which be minted for the first 500 participants. That’s a really nice thing. It’s also evolving NFTs. So it must be one of those SIP68 NFTs evolving over time. So as they progress through their course, they get it updated. Really nice, really good application there. Further down here it says, our partnership with Petrobras, a Fortune 500 company, and one of the largest public companies in the world highlights both the appetite for enterprise, from enterprise for blockchain education, as well as the growth
reach of Cardano Foundation and its mission. Really exciting Cardano Foundation, really good to see, absolutely fantastic partnership there. Now this next new story here is from Mint and they’re releasing their own stablecoin, MyUSD. Now the Cardano ecosystem is in dire need of a native stablecoin and this might fill the gap between now and when USDM from Mehen launches. And it looks like a fairly…
good protocol that they’re piecing together here. I’ve done a little bit of a breakdown of their article. I put the links in the show notes so that you can dig into it a little bit deeper. But yes, they mentioned that they’re trying to build a robust stablecoin and they have a little bit of a breakdown of how this one all works. So they have a redeemability to ensure its stability within their platform. And what it allows is for leveraging arbitrage on their platform.
for their stablecoin. So anytime my USD falls below $1 on a DEX, users have the opportunity to buy at a discount. So let’s say it depegs and drops to 90 cents, I can buy it at that 10 cent discount. Then I can redeem it on mint for that full dollar. So that’s pretty cool. So I could set buy orders on
A DEX for example, if it drops below at any point, I can always buy a discount and then redeem it on the MINTH protocol. That’s really cool to see. And this process naturally pushes the value of MyUSD back towards $1 because it’s artificially creating that buy pressure. Because if you know you can always get that 10 cents back, you might as well buy as much as you can and then sell it on the MINTH platform itself to get that profit back. Conversely, MyUSD if it rises above $1, users can create more MyUSD.
at the fixed rate of $1 and then sell it on the DEX at a higher market price later. So that’s arbitrage is the spread between the low price point and the high price point. If you can trade that, you can make that arbitrage and make a little bit of profit off that. Now if we had trading bots that could do this as well, this would be really convenient. You can just hook in your trading bot with your wallet and then make those arbitrage differences with MyUSD. So pretty interesting.
try and do an interview with the team here so I can learn a little bit more about MyUSD and the team behind it as well. It’s always good to know who you’re working with. The really interesting thing is I wonder where all this liquidity is coming from. So it’s all well and good to get liquidity from the Cardano community to mint the MyUSD through their platform and whatnot but we need massive amounts of this to actually make it worthwhile and actually happen.
So I’m talking millions of dollars worth of USD and you know all the dex’s out there will need this liquidity as well. So we need a massive liquidity provider to one mint all of the my USD and then provide it on the dex’s in various trading pairs, popular trading pairs so that people that can then trade against it. So one thing.
really cool that they’ve put this protocol together to make it happen and use the bridges cross-chain swaps to try and attract liquidity from other chains. But where is this liquidity coming from? So that’s my biggest thing. If they can bring in that liquidity, then I could see this protocol working. It’s pretty much the same with Mahan, USDM as well and all these other ones. You need that massive liquidity provider that market maker to actually make this all happen.
So cool that they launched. I would like to see how this one grows. Keep an eye out for the interview coming up and hopefully we can dig into that and learn a little bit more about the protocol. Now my last news story here is around TangleSwap and TangleSwap were launching on the Milkomeda side using Wrap Smart contracts. They had a little bit of a hiccup last week with the Milkomeda bridge falling over. Happens, something didn’t scale correctly.
but they relaunched it all and did a second sale. Thankfully this time nothing fell over. Again, they managed to raise over half a million ADA in that particular sale, which is absolutely phenomenal. You can still participate in that sale as well if you want to. And they also have the IOTA side of the sale launching today. So if anyone from the IOTA side wants to contribute and buy into the sale, they have that opportunity as well.
So really cool, really exciting to see another DeFi protocol, another DEX launch on the Cardano ecosystem via Milcometer. It’s getting rather lonely on the Milcometer side, so it’s nice to see another DEX launch there. So really cool to see. Congratulations to the TangleSwap team. Now that’s all I have for news updates for this episode. If you want to support the show, you can buy one of these Keystone wallets. This is a hardware wallet, completely air-gapped hardware wallet.
I have a review of it coming up real soon. If you’re watching this in the future, bing, link up there in the top right hand corner so you can watch the full review of the Keystone hardware wallet. I think it’s a fantastic device, a really good alternative to the other hardware devices out there at the moment, which somehow now upload your seed phrase online, such as this Ledger Nano. That’s it for me for this episode. Don’t forget to give me that thumbs up, click subscribe, click on the notification bell as well.
on your way out. Thank you so much for being here and I’ll see you in the next video.