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EOS enters congestion mode due to EIDOS airdrop

Coinbase

through Don Yu, Patrick O’Grady, Peter Kacherginsky

What’s occurring with EOS?

On November 1st 2019, Coinbase started seeing degraded efficiency for EOS transactions. Coinbase didn’t have sufficient staked CPU to effectively have its EOS transactions processed through the community. You’ll be able to be informed extra about EOS and CPU right here. This degraded efficiency may also be attributed to the huge building up in process at the EOS community associated with the not too long ago introduced EIDOS token airdrop. Coinbase answered to this factor through expanding the quantity of staked CPU within the wallets we regulate to unblock buyer transactions. On this file we proportion our research of EOS sources, REX markets, and the way those have been suffering from the EIDOS token airdrop.

Key Information

  • A token referred to as EIDOS used to be launched at the EOS community on October 31st 2019.
  • EIDOS airdrop distribution comes to sending EOS transactions to and from the EIDOS contract.
  • Exchanges are checklist EIDOS/USDT pairs, which means that individuals can promote airdropped tokens for USDT.
  • To profit from this buying and selling alternative, persons are the use of leased CPU to dramatically building up the choice of transfers processed through the EOS community.
  • This higher process has led to the EOS community to go into congestion mode, which limits the quantity of transactions a person can broadcast to their pro-rata proportion of general staked CPU sources at the EOS community.
  • Customary customers are not able to get their transactions processed because of their rather low quantity of staked CPU sources.
  • You will need to notice that the EOS protocol is behaving as anticipated, however congestion mode prevents customers from having transactions processed that exceed their CPU stake.
  • The EOS community must be anticipated to stick on this state till it’s now not successful to gather EIDOS or till the huge rentals taken out on REX expire after 30 days and the leasers don’t renew their hire.

EIDOS Airdrop

At 6pm PST, October 31st 2019, a brand new contract used to be created at the EOS blockchain for the EIDOS token. With a view to distribute EIDOS, the contract makes use of an airdrop trend that purposes as follows:

  • An EOS person sends at least zero.0001 EOS to the EIDOS contract.
  • The EIDOS contract will then ship a transaction returning the similar quantity of EOS again to the unique sender.
  • The EIDOS contract airdrops a specific amount of EIDOS to the unique sender’s deal with. On this manner, any one maintaining no less than zero.0001 EOS is in a position to obtain EIDOS.
bloks.io

The picture above illustrates the trend of interacting with the EIDOS contract. Be aware that this conduct may also be noticed within the EIDOS contract code this is open-sourced right here.

Exchanges are checklist EIDOS

On November 1st, various exchanges made up our minds so as to add the EIDOS token to their record of supported property. In particular, those exchanges have offered an EIDOS/USDT buying and selling pair.

Cleared EOS/USDT Trades (Supply: MXC Alternate)

The above screenshot displays EIDOS/USDT trades clearing at three:40pm PST on November 4th 2019. EIDOS continues to be value a favorable quantity of Tether. Subsequently, someone who owns no less than zero.0001 EOS can ship a transaction to the EIDOS contract, obtain some EIDOS, then try to business it on an alternate for a non-zero quantity of Tether.

EOS is ruled through EIDOS comparable movements

A variety of events discovered that they are able to again and again invoke the EIDOS contract to procure further EIDOS, then business the airdropped EIDOS for USDT. The EOS community has transform flooded with those transactions. Be aware that during EOS, a unmarried transaction could have various movements. One form of EOS motion is a switch, which sends some foreign money from the sender to the receiver.

Ratio of EOS EIDOS Contract Switch Movements to General Switch Ops

Lately, we’re looking at round 95% of all EOS switch movements are associated with the EIDOS contract. As a result of every switch counts against the quantity of CPU utilized in a block, this spike in switch movements led to the EOS community to go into congestion mode.

Selection of movements according to hour (Supply: EOS Titan)

After the EIDOS release, we see the movements according to hour skyrocket.

Congestion Mode & CPU

The EOS community is determined by particular sources referred to as CPU, NET, and RAM to accomplish movements at the community (e.g. interacting with a sensible contract). Those sources may also be received through staking your individual EOS property or renting them from a specialised useful resource alternate referred to as REX. When the EOS community isn’t congested (when the full CPU utilized in a block is beneath 40 milliseconds = 20% of a block’s CPU prohibit of 200ms), customers of EOS are in a position to make use of extra CPU than they’ve staked. Alternatively, congestion mode (when the full CPU utilized in a block is bigger than or equivalent to 40 ms) strictly constrains the choice of transactions a person can carry out to the quantity of CPU they’ve staked.

As a gross simplification, the fewer CPU an deal with has, the less transactions it’ll have the ability to get processed in the course of the EOS community. We consider some events predicted that the community would transform congested as the results of the airdrop, and started proactively buying CPU rentals on REX to be able to dominate the community’s throughput.

CPU Value between 10/29 to 11/1 (Supply: EOSPark)

On October 31st, round 10:30pm PST, the quantity of staked EOS required for a ms of CPU (referred to as “CPU value”) spiked enormously. Over the route of four hours, CPU value higher through ~100,000%.

Airdrop Participation Trend

A variety of addresses that made the early funding in CPU had been the use of it to broadly invoke the EIDOS contract with transactions to procure airdropped EIDOS, then sending the EIDOS on quite a lot of alternate platforms. The next collection of transactions illustrates a commonplace trend of customers renting CPU sources and ultimately cashing out on a DEX:

Step 1: EOS deal with renting CPU

(Supply: EOSAuthority)

Step 2: EOS deal with taking part within the EIDOS airdrop

(Supply: EOSAuthority)

Step three: EOS deal with sending EIDOS to an alternate

(Supply: EOSAuthority)

The above deal with rentals over 2000 EOS value of CPU on November 1st. After leasing the CPU, the one transactions this deal with makes are to the EIDOS contract and deposits to exchanges.

Pattern alternate of EIDOS token to EOS via a DEX alternate (Supply: eosq)

The EIDOS token is actively traded on each centralized and DEX exchanges. Within the above case, somebody makes use of a decentralized alternate to obtain EOS for his or her EIDOS.

Present EOS State

As of November eighth 2019, the EOS community continues to be in a congested state. Handiest addresses with important CPU sources staked are in a position to have their transactions processed in an affordable period of time. As discussed above, lately ~95% of switch movements are associated with EIDOS. It’s truthful to mention that lots of the CPU staked at the moment is getting used for taking part within the airdrop and accumulating EIDOS.

REX Lending Over Time (Supply: EOSAuthority)

Illustrated within the symbol above, round 84% of EOS on REX is lately in a leased state. In line with the EIDOS mission web site, the airdrop goes to proceed for the following 15 months. So long as the cash produced from promoting EIDOS for USDT outweighs the associated fee for leasing CPU from REX, we will be expecting the EOS community to stick on this state.

Coinbase will proceed tracking the state of the EOS community and factor advisories on any adjustments which might impact its shoppers.

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