TLDR Crypto 2022-02-22

FTX is launching a new gaming unit focused on driving cryptocurrency and NFT adoption in the gaming world. It will initially offer a crypto-as-a-service platform that publishers can use to launch tokens and provide support for in-game NFTs. NFTs allow users to track ownership of digital items through the blockchain. They could make it possible for players to own, invest, and trade in-game items like avatars and skins outside of the game.

The pStake project is part of the Persistence protocol. Persistence is a multi-chain tech stack that supports Cosmos, Ethereum, and other Tendermint-based chains. pStake allows token holders to tap into the value held in their locked staked tokens while still earning a yield. Its main focus is on increasing liquidity for other protocols that are part of the Inter-blockchain Communication Protocol by adding Ethereum Virtual Machine compatibility. pStake will airdrop 30 million pStake tokens to stakers over the next six months.

Worldwide Webb is an Ethereum powered PC game built around NFTs with a 2D pixel aesthetic. Players can purchase apartments and customize locales to share with friends and online communities. Users can bring NFTs they already own into the game. It currently supports a variety of NFT avatars, such as CryptoPunks, Cool Cats, and CrypToadz. The cheapest apartment sold in the game over the last week was 3.6 ETH. Screenshots of the game are available in the article.

The Ethereum Name Service is a service that allows users to translate their Ethereum addresses into human-readable addresses. It is a complex system made up of at least 16 contracts. Breaking the system up into more contracts limits the scope of the damage that a single error can do, but it also makes it harder to understand. This Twitter thread provides a map of contracts related to the ENS and explains how the different parts of the protocol work together.

There are many new terms and concepts in web3, making it challenging to understand the fundamentals. This post lays out the basics of web3 and provides a learning road map for anyone entering the space. It features a section for developers and a curated list of resources for further learning. The post covers topics like how web3 works, how to get started in web3 development, setting up crypto wallets and using them to buy assets, and more.

Too many DeFi protocols focus too much on value capture and not enough on value creation. The fat protocol thesis hypothesizes that value in web3 will be concentrated at the protocol layer and only a fraction of that value will be distributed at the applications layer, the inverse of what happens in web2. Using incentive mechanisms to keep value within an economy creates a closed-loop incentive structure, which can cause a DeFi protocol to fail. DeFi applications can evolve from exchanges into protocols by inviting external actors to leverage incentive structures for their own best interests.

Magic Eden, the largest NFT marketplace on Solana, has put in new safety procedures to help prevent rug pulls. A rug pull is a type of exit scam that has been common in the NFT space. It involves anonymous developers abruptly leaving a project with their investor's money. Magic Eden's new rules will require NFT creators to submit identifying documents. NFT creators will have to prove they have experience running NFT projects and games and services must provide a whitepaper and realistic roadmap. Projects will now have their funds held in escrow for at least 24 hours.

El Salvador President Nayib Bukele has sent 52 legal reforms to Congress, calling for the removal of red tape, a reduction of bureaucracy, and new tax incentives and offering citizenships to foreigners looking to invest in the nation. Bukele wants to make El Salvador one of the most freedom-centric countries in the world. The country is set to launch its Bitcoin Volcanic bonds next month. It will use the funds generated from the bonds to build the world's first Bitcoin city.