For Ethereum users, high GAS fees and serious network congestion have always been huge problems. Recently, more and more users are turning their attentions toward DeFi projects on DEX (Decentralized Exchange), such as DeFi lending and NFTs. Many users are now focusing on the Huobi Ecological Chain (Heco) and Binance Smart Chain (BSC) to explore DeFi projects. Low GAS fee is the main driving force. It has also greatly attracted those potential users with limited capitals.
Why is cross-chain necessary for digital asset?
There is no denying that DeFi projects are very popular nowadays. However, since the cryptoassets on different chains are relatively independent, users can only carry out their business on a single chain. Without interconnection, the performance of different blockchain ecosystems is highly homogenized. The conversion and transition of assets between chains mainly rely on centralized exchanges.
For example, some users need to frequently transfer their assets between BSC and Heco to earn high profits from liquidity mining. To transfer USDT from BSC to Heco, they need to first send USDT from BSC to the Binance exchange, then transfer the USDT from Binance to the Huobi exchange, then ultimately withdraw the USDT from Huobi to HECO. The whole process is very complicated, the gas cost is also inflated accordingly.
Cross-chain transaction is like an internet protocol between different chains. It’s the interconnection that makes all transaction services possible. Being the only bridge between chains, cross chain transactions might lead DeFi to another summit since the emergence of public chains.
What are the benefits of cross-chain transactions?
Recently, Huobi and Binance have added support for mainstream cryptoassets recharge on BSC and Heco respectively. That is to say, users will be able to directly transfer their mainstream cryptoassets between BSC and Heco without complicated conversions. It is much more convenient for the users, it also helps users save multiple gas fees.
Some technical analysts believe that cross-chain asset is totally technically feasible nowadays. The reason why it is still lesser-known is due to the fierce competition between exchanges. The cross-chain ecosystem still has huge room for improvement, the value circulation between various public chains is still plagued by many limitations. It is a good start that BSC and Heco have already started experimenting on it.
DMEX’s plan on Binance Smart Chain (BSC).
According to DeFistation data, BSC has a Total Value Locked (TVL) of more than $30 billion, accounting for more than 30% of ETH’s total market value. At present, BSC still maintains its momentum of rapid development. The decentralized exchange MDEX has supported the cross-chain transactions between Heco and BSC. As of 2 pm on April 9, the TVL of MDEX on both chains reached $4.1 billion, the trading volume reached $4.2 billion. The scale of cross-chain transactions will continue to expand.
Users can regard BSC as an alternative ETH with higher TPS (Transactions Per Second). Higher TPS implies a lower gas fee, which helps attract more users and facilitate smart contract interactions.
Binance has a huge international customer base. Upon HECO’s cross chain with BSC, HECO can further expand its user group and greatly enhance the liquidity of users’ cryptoassets .
DMEX is a decentralized mining power financial service platform based on Heco. It provides mining power trading, liquid mining, joint mining, Proof of Working mining, and Proof of Stake mining, etc. DMEX users can earn a stable mining income on a daily basis.
In order to increase cryptoasset liquidity and enhance the platform’s global influence, DMEX is deploying its products on BSC. Once the deployment is completed, users of DMEX can enjoy a number of new benefits:
1. More mainstream tokens would be introduced on DMEX. Users could also enjoy more mining options on BSC;
2. Users could conveniently transfer their cryptoassets between Heco and BSC;
3. DMEX would provide users with more innovative financial services on BSC;
4. Asset liquidity would see significant improvement. Users could deposit or withdrawal their assets with more straightforward operations;
5. Users of liquidity mining could earn higher profits. The trading volume will also increase;
6. Users can enjoy more flexible options. They could mine in different chains for higher yieldings;
7. With the participation of more international users, DMEX’s number of users will be significantly increased.
The development of cross-chain transactions between various exchanges will help construct a larger cryptocurrency ecosystem in the near future. Users can participate in liquidity mining on different chains with better user experiences and lower costs. At the same time, the mining process would become much simpler. DMEX is continuously working on mobilizing users’ assets. It will explore more innovative mining power products in the context of multi-chain and cross-chain transactions.
Official website: dmex.finance
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