Subsquid (SQD) Investment Research Report: Highly scalable decentralized data access layer

1. Project Overview
   Subsquid (SQD) has been launched on HIBT on May 17. Subsquid Network is a highly scalable decentralized data access layer designed to provide data support for various decentralized applications (dApps). As an indexing protocol, Subsquid can provide blockchain applications with the information they need to improve user experience. The network supports hundreds of major projects on over 150 chains and leverages Web3's fastest and most cost-effective decentralized data services. SQD is currently open for trading on HIBT.

Subsquid Network supports DeFi applications, NFTs, games, social media, and more on Solana, Ethereum, and nearly every other network. By leveraging ZK technology for data validation, anyone can manage nodes with authorization to extend Web3 data.

1. Token information
   Token symbol: SQD
   Total token supply: 1,337,000,000 SQD

Token distribution ratio and unlocking rules:
Pre-seed backers: 12% (160,440,000 SQD), locked for 6 months after the end of TGE, 20% unlocked first, and the remaining 80% linearly unlocked within 24 months.
Seed round backers: 16.3% (218,085,714 SQD), locked for 6 months after the end of TGE, 20% will be unlocked first, and the remaining 80% will be unlocked linearly within 24 months.
Strategy I Backers: 4.6% (61,349,225 SQD), linearly unlocked 12 months after TGE.
Strategy II Backers: 2% (26,737,968 SQD), locked for 6 months after TGE, 25% unlocked, and the remaining 75% unlocked linearly for 18 months.
Team: 15% (200,550,000 SQD), locked for 6 months after TGE, 20% unlocked, and the remaining 80% unlocked linearly for 24 months.
Reserved Treasury: 28.1% (375,697,093 SQD), 36 months linear unlocking after TGE.
Liquid Treasury: 5% (66,850,000 SQD), liquid tokens used for market making, providing liquidity on CEX/DEX, and other ecosystem activities and events.
Worker Reward: 10% (133,700,000 SQD), unlocked linearly 84 months after TGE.
Community Sale: 5% (66,850,000 SQD), 20% unlocked at TGE launch, then linearly unlocked for 6 months.
Testnet participants: 1% (13,370,000 SQD), linearly unlocked 6 months after TGE.
Testnet Workers: 1% (13,370,000 SQD), locked for 12 months after TGE and linearly unlocked for 24 months thereafter.

1. Technical architecture
   The Subsquid ecosystem is built around a decentralized query engine and horizontally scalable data lake. Currently, Subsquid Network uses a custom REST-like API to provide raw historical on-chain data from EVM and non-EVM networks, with plans to support general SQL queries and growing structured datasets of on-chain and off-chain data in the future.

Services provided by Subsquid Network API:
Raw event log
Transaction data (with receipt)
Execute trace (for selected network)
Status difference (for selected networks)
The network supports all major EVM and Substrate networks, with more in development. The Subsquid network currently has two deployment forms:

Production-ready private clusters running on Subsquid infrastructure: free and publicly accessible.
Decentralized permissionless network: currently a testnet.
The user API is the same between the two, providing historical blockchain data in a high-capacity and filtered form.

1. Squid SDK
   The Squid SDK is a powerful Typescript toolkit designed to build indexers on top of the Subsquid Network. Its features include:

A high-level library for extracting and filtering Subsquid network data, thought of as an Extract-Transform-Load (ETL) pipeline.
Ergonomic tools for decoding and normalizing raw data and efficiently accessing network status.
Pluggable data sink for saving data to Postgres, file (local or s3) or BigQuery.
Expressive GraphQL server with schema-based configuration.
Seamlessly handle unfinalized blocks and chain reorganizations for real-time data ingestion.
Fast data extraction and decoding for local analysis.
The Squid SDK is the first choice for production solutions and prototypes, for custom APIs based on smart contract group data, and for low-cost, high-performance internal data pipelines that work in real-time settings (<1s chain latency).

1. Summary
   Subsquid Network provides a highly scalable and flexible data access layer, providing strong support for decentralized applications. It uses ZK technology for data verification to ensure data accuracy and security. Through tools such as Squid SDK, developers can efficiently build and manage their own indexers, enabling real-time data analysis and processing. Subsquid's token economic model also provides a variety of incentive mechanisms for supporters and the community to promote the continued development and innovation of the ecosystem.