The meaning of Ethereum to the field of cryptocurrency lies more in the word origin. Ethereum is the first public chain to have smart contracts, so it is not an exaggeration to say that Ethereum is the 2.0 blockchain after the Bitcoin system. At the same time, Ethereum also carried most of the cryptocurrency in the early days. Ethereum is like a very fertile land, not only rich in nutrition, but also close to the river, it can be described as connecting rivers to the sea. This provides a favorable environment for the early development of DeFi.
In 2020, the fierce competition in DeFi has actually just begun. In fact, this kind of competition is not only reflected in a single system. The competition between DeFi and sector facilities is more reflected in the overall competition of DeFi in different public chain systems. It's just that in this competition, Ethereum seems to be squeezed out. Ethereum's own advantage lies in its earlier DeFi layout, facility options, capital volume and its restructuring, and the early DeFi facilities basically came from Ethereum. Ethereum carried the early ICO. For Ethereum itself, it has extremely rich asset types, transaction depth and liquidity, and DeFi deployed on Ethereum can also fully enjoy these convenient resources. The outbreak of DeFi on Ethereum in early 2020 also exposed the fatal shortcomings of Ethereum itself.
Users who use DeFi need to interact with the contract frequently, which will continue to incur GAS fees. On the one hand, with the surge in transactions on Ethereum, the GAS fee continues to rise, and the rising price of the Ethereum currency also makes the same GAS fee more expensive and inefficient, even for a normal transaction GAS fee. Sometimes it can reach more than ten or even dozens of dollars (small and medium investors may not be as good as a GAS fee). For Ethereum, it is the biggest drawback of Ethereum's own ecology. Although the emergence of Layer2 brings a trace of hope to the Ethereum ecosystem, Layer2 cannot solve practical problems, and Layer2 is centralized. The 2.0 Ethereum is difficult to go online in the short term, and for the blockchain world, it may be able to change the dynasty within a few months. Ethereum is like a prince who once dominated one party, but with the development of the times, it has not been able to keep up with the times. The era that belongs to Ethereum seems to be a thing of the past.
Heco and BSC
If DeFi is a fish, then the abundance of encrypted assets and sufficient liquidity are water. Before the emergence of Heco and BSC, few ecology could provide enough "water" for "fish" to live. In fact, Heco and BSC first have considerable competitiveness in the asset environment. Huobi and Binance rely on their own trading platforms to continuously provide assets and user groups for their own ecology.
The emergence of BSC and Heco is actually a watershed in the development of DeFi. Since the mainnet of the public chain of the exchange went live, it has been attracting users continuously. According to DeFiBOX data, the current 24-hour transaction volume of Ethereum is 2.81 billion U.S. dollars, the 24-hour transaction volume on Heco is 5.41 billion U.S. dollars, and the 24-hour transaction volume of BSC is 117.84 billion U.S. dollars, so it is not difficult for us to find Heco and BSC is eating away at ETH's market share in the DeFi sector. Although the lock-up value for Heco and BSC is not as good as ETH, the overall heat is shifting from Ethereum to Heco and BSC, and Heco and BSC have unlimited potential. As for BSC, 90% of the transaction volume comes from the loan project VENUS, so in terms of average activity, Heco is still slightly better. Although Heco was launched later than BSC, the momentum of Heco is obvious to all.
In comparison, Heco's DEX layout is broader
From the perspective of Heco itself, its transaction GAS fee is the cheapest among many systems. For users who frequently interact with contracts, 0.1HT is sufficient for a period of time. As for many developers, Heco is constantly pouring into Heco, so for the initial stage of the Heco mainnet, many DeFI facilities have an amazing annualized rate of investment. The cheap transaction fees have increased the number of active addresses on Heco. So far, the total number of addresses on Heco is about 2.4M, which is much higher than that on BSC and Ethereum.
The high efficiency and low cost of Heco transactions benefit from Heco's own excellent system performance. Huobi Eco-Chain Heco is based on the HPOS consensus mechanism, which generates blocks in 3 seconds and accelerates consensus. At the same time, Huobi Eco-Chain Heco uses the meta-transaction function as the basis for exemptions. The handling fee further reduces the cost on the chain for developers and users. For developers on Ethereum, Huobi Eco-Chain Heco supports the programmability of EVM, and the compatibility of Ethereum smart contracts is friendly to developers to reduce development and maintenance costs. According to the actual measurement, the TPS of Huobi Eco-Chain Heco exceeds 500, and the TPS of Ethereum is only 13.5. The transaction fee on the Heco Eco-Chain is as low as $0.001.
Compared with the BSC ecology, the DEX layout on Heco is broader. At present, there are 24 DEX members on Heco, and MDX, Depth and LAVAswap are the leaders. Although MDX occupies a larger share of DEX on Heco, But Depth and LAVAswap, etc., especially LAVAswap based on its own innovation, have the potential to become the leader. There are only 9 DEX on BSC, and only Pancake is the main DEX. So on Heco, the DEX sector also has more possibilities.
LAVAswap = pancake on HECO?
Although MDX is the current leader in the Heco DEX sector, the latecomer LAVAswap definitely does not lose to MDEX. LAVAswap is also one of the leaders in Heco's DEX sector. LAVAswap was launched at the end of January 2021, and its lock-up value exceeded 10 million U.S. dollars in less than one hour of launch. In 8 days of launch, the total The locked position value exceeds 45 million U.S. dollars. Less than a month after the launch of LAVAswap, the total lock-up value exceeded $200 million. For the crazy Heco, this may be just the beginning for LAVAswap.
LAVAswap is also a DEX based on the AMM model, which can provide users with services such as pledge pools, liquidity mining pools, DEXs, and cross-chain asset bridges. LAVAswap has opened 16 single currency pledge pools and 37 liquidity mining pools. Correct. LAVAswap's cross-chain asset bridge is a great highlight. Through the cross-chain asset bridge, LAVAswap can map other chain assets to Heco and perform corresponding transactions or bridges, such as Ethereum, BSC, DOT, TRON, etc. Ecosystem assets. On the one hand, LAVAswap's cross-chain asset bridge can provide users with better transaction services, and there will also be a large number of new assets and pledge opportunities in the ecosystem. On the other hand, the cross-chain asset bridge will also contribute to the richness of the Heco ecosystem. Make a huge contribution.
From the perspective of LAVAswap's governance mechanism, it also has an absolute advantage compared to other DEX. LAVAswap uses LAVA tokens as the ecological governance token. Holding LAVA can not only enjoy the rights and interests in the ecology, but also serve as the DAO reward token in the ecology. There is no pre-sale of LAVA and no quota allocation from investment institutions. The 100 million LAVA supply will be put into circulation in the next three years, of which 70% will be used for mining and pledge, 10% will be used for long-term holders of LAVA tokens (DAO), and 10% will be used for team members and future employees (DAO) ), 10% is used for marketing and ecosystem construction, and after three years, LAVA tokens will inflate at a rate of 2% per year.
So first of all, LAVA chips generally do not appear to be concentrated, so this avoids the situation where the founders of SushiSwap sell their tokens and cause the governance token to fall off the cliff, which will damage the rights and interests of investors and shrink the rewards of contributors. LAVA The value base is stable. And 70% of LAVA is used for pledge and mining reward output, which accounts for a relatively high proportion of the current DEX governance token output.
In the allocation of DEX fees, 34% of Mdex’s DEX fees are directly owned by the team, and 46% are allocated to mining users. Unfriendly LPs who make market on LAVAswap, compared with LAVA, 83.3% of DEX fees are directly given to For liquidity providers, 8.3% will be used for repurchase and destruction of LAVA and another 8.3% will be used for continuous product development and innovation, as well as the further development of LAVAswap, and for the same APY income behavior, LAVAswap's income may be more It is higher than MDEX. At the same time, MDEX will allocate 7% of MDX tokens to private investors, and the unlocking of this part of MDX will generate some selling pressure in the future, and LAVA token holders will not need to worry. This reflects the interests of users, and reflects the absolute advantage of LAVAswap.
LAVAswap has both repurchase and destruction, which SushiSwap and PancakeSwap (only destruction) do not have. Through continuous destruction and repurchase, not only can the value of LAVA continue to increase, but it will also help LAVAswap continue to form value. Low-lying land is conducive to the active development of ecology.
So to sum up, if the value depression on BSC rich in hundred times currency is PancakeSwap, then LAVAswap is likely to be an emerging value depression on Heco rich in hundred times currency. LAVAswap is against pancake on HECO, and what is worthy of attention for investors is: There is a high probability that some pools with higher APY will appear soon after LAVAswap is currently online. Friends can pay attention to it.