GM! It's been another exciting week in web3. Welcome to your Monday digest, and here's what we'll cover:

• Fei Protocol is shutting down, submits proposal to exit Tribe DAO

• Sergio Gallardo: 10 research tools for web3 research

• Crypto exchange FTX's revenue increased by 1,000% in 2021

• This is the way...we've launched Quests!

Sarah at Layer3

Your Web3 Briefing 📝

An analysis of what you missed in web3 over the past week

Fei Protocol submits proposal to shut down and exit Tribe DAO

Drama has started to brew surrounding one of the largest stablecoins in DeFi, $FEI.

At a $188m market cap, $FEI is collateralized by various crypto assets, but unlike MakerDAO's $DAI, the assets are owned by the protocol itself. Last year, the protocol raised almost $1.3bn in ETH—which was also used as collateral—to build $FEI.

The troubles started when Fei Protocol merged with Rari Capital, known for its permissionless lending pools (called Fuse pools). With Fuse pools, anyone could create a pool to supply and borrow any ERC-20 asset. 

After the merger, one of Rari's Fuse pools was hacked for $80M. The merged DAO (Tribe DAO) voted to compensate the victims, but the reimbursement never took place. Tribe resubmitted a similar proposal to compensate hack victims a few months after, which incidentally, did not pass the second time around.

Now, major backers of Tribe such as FRAX have now accused Fei of re-negging on their re-payment. Instead, their new proposal only repays victims TRIBE tokens worth ~$16m , or allows them to redeem 1 FEI for 1 DAI. 

Sarah's Recommended Reads: Sergio Gallardo on 10 useful tools for web3 research

Welcome to Week 4 of Sarah's Recommended Reads!

Here, I'll be summarizing well-written articles or threads by web3 thinkers (or dabblers) that you should know about.

Up today is Sergio Gallardo's thread on 10 relatively unknown tools for on-chain research, if you're looking for something a bit more specific than Nansen, DeFiLlama, and Parsec. 

Searching for something to track wallet movements down to every transaction? You can try a bot like EthersDrop or Wallet Tracker, which'll send you alerts on specific wallets, pools, NFT collections, or protocol treasuries via Telegram and Discord.

Sergio's excellent thread covers tools that do everything from MEV-tracking to derivatives analysis to governance proposal aggregration, with no shortage of niche tools for the on-chain analyzooooor who wants to get their research feet wet.

You can find them all in his thread here!

What else you should know

• Crypto exchange FTX's revenue increased by 1,000% in 2021

• Australia to prioritize crypto regulation via "Token Mapping" in 2022

• Singapore-based crypto lender Hodlnaut freezes withdrawals to "stabilize liquidity"

• Variant Fund on Sufficient Decentralization: A Playbook for web3 Builders and Lawyers

What we've been BUIDLing 🏗️

Hello there, curious explorer...

If you're an active user on our site, you may have noticed something new and shiny recently.

While Quests are yet to officially launch across all channels, we'll let you in on a secret...you can try exploring our newest product feature now (and watch out for an e-mail tomorrow)!

🛣️ Stay up to speed on what we're building: Take a look at our roadmap to see what we've been cooking at Layer3, and a preview of what’s to come.

🚢 And if you want to help decide what we ship next: You can submit a feature request here and vote on your favorites! Some top community requests have already made it onto our roadmap.

Web3 101: Play-to-earn💡

Each week we’ll cover an essential web3 concept in simple terms. This week we’re looking at play-to-earn ✨

What is a play-to-earn (P2E)?

Play-to-earn is a concept in web3 gaming or GameFi where users can have ownership of their in-game digital assets. All the elements of traditional gaming, such as skins, characters, land, and more, can be owned and sold by the player for a profit in a P2E game.

How does play-to-earn work?

It depends on the game! Generally speaking, the in-game assets a player owns will be minted as an NFT on the blockchain, which then can be sold on the secondary market. You may have to buy the NFT to be able to access certain elements of the game (e.g. Sandbox, Decentraland), or earn in-game tokens in order to advance your gameplay (e.g. Axie Infinity, Gods Unchained).

How can I start P2E gaming?

P2E gaming isn't for everyone, and the tokenomics of many web3 games are still in their early stages. We recommend checking out this article before pursuing P2E gaming, as they can have a somewhat high barrier to entry.

Complete Layer3 Bounties so you can familiarize yourself with on-chain actions that P2E games may require! Remember: This is not financial advice! Please explore at your own discretion.  

Thanks for reading!

Join our Discord and follow us on Twitter to stay up-to-date on the latest Bounties, communities, and more!

That's all for this week! Until next time, frens!

Cheers,

Sarah at Layer3

Let us know how we did👇