The BXH platform seeks to make itself a one-stop-shop for cross-chain DeFi activities.
DeFi Outgrows Its Audience
Since this year, the Decentralized Finance (DeFi) market has continued to grow at a rapid pace, with a total staking capital volume of over $44 billion across a number of verticals such as trading, lending, treasury and insurance. However, due to a lack of accessibility and user-friendliness, some complex product logic and complicated operational processes have restricted DeFi products from reaching a broader audience.
In the current DeFi track, Decentralized Exchanges (DEXes) are the most competitive, with almost all DEXs adopting the economic model of liquidity mining. But the prerequisite for liquidity mining to run smoothly is to have a large enough user base, transaction demand and quality assets, which allows the frequency of transactions and fees sufficient to cover the output of liquidity rewards. Faced with the large number of DEX projects that emerged in the first half of the year, DeFi’s trading users and trading demand did not achieve sufficient growth, and there is a stagnation of liquidity mining.
BXH Steps On the Scene
BXH was launched on March 23rd this year, during the FOMO phase of the industry due to the “animal coin” fad. A large number of DEX projects were growing on Ethereum, Binance Smart Chain (BSC) and HECO during the same period. Based on the rich community resources of the BXH team, the ability to acquire users from outside the industry, as well as the more favourable maker, BHX has achieved an excellence in terms of network volume and BXH token market performance: liquidity pledges, market capitalization in circulation, mining output, reward amount and other data on various chains have gained explosive growth.
However, since July, we have seen that all major DEXs, including BXH, have entered a phase of weak growth in users, assets and transactions. Apparently, the economic model of liquidity mining no longer fits the current DeFi environment. Faced with such a tough market environment, BXH has taken the initiative to change its economic model and business focus to align with the current DeFi market situation and user demand for profit.
What’s Changed for BXH?
The upgrade and transformation of DEX features a one-stop DeFi ecological platform with aggregated revenue as the main focus and DEX decentralized trading platform as a supplement. It plans to complete the multi-chain deployment of BSC, as well as Ethereum Layer 2 and other public chains in the near future. Among them, aggregated revenue mainly refers to the smart pool function of aggregated mining. A DEX provides advantageous trading pairs and reacts quickly to market changes and market hotspots. This helps open up the DeFi ecology of each main chain, and iterates on more, easier-to-use and more advantageous DeFi applications.
This strategic transformation is summed up as, making mining easier, generating higher stable returns, capturing more value from tokens and maximising user access to revenue.
While liquidity mining is hampering the longevity or even the viability of DEX, the money effect of the entire DeFi sector continues.
DeFi Llama data shows that the Total Value Locked (TVL) of DeFi applications on the major public chains surpassed the $100 billion for the first time on June 4. As of July 5, the TVL had climbed to $117 billion.
In the crypto world, the $100 billion volume is obviously impressive enough. But compared to traditional finance, this scale is actually only the equivalent of the 40th largest bank in the US, which is roughly equivalent to Silicon Valley Bank and BBVA USA.
Capital is always profit-seeking. In the current capital environment, capital outside of the coin circle will undoubtedly continue to influx to DeFi for its high returns, and TVL values are expected to achieve new breakthroughs. However, for new entrants, whether institutional or retail investors, there remains a degree of barrier to understanding and using DeFi as a native product of the chain world. One common challenge for all users is how to find a pool that is safe enough and has a high enough APY (annualized return) to earn as much as possible with as little risk as possible.
Search No Longer
BXH’s strategic transformation fully captures the opportunity of such a large volume of services to solve the problem of DeFi being inaccessible to users and the high threshold for researching new projects. This is where BXH’s “One-Stop DeFi Eco-Platform” is positioned, operated and targeted to provide users with a complete set of DeFi financial solutions through its income aggregation service.
BXH Smart Pool
First and foremost, BXH will officially launch its smart pool in July.
The BXH Smart Pool is a decentralized passive investment platform based on smart contracts, focused on providing users with DeFi aggregated financial management services. When users deposit stablecoins such as DAI, USDC, USDT and non-stable cryptocurrencies such as BTC, ETH, and TRON, the smart pool will invest the funds in some long-running and reputable DeFi protocols, while automatically regulating the deployment of funds according to the real-time floating yield changes of different protocols.
While automatically helping users to find maximum returns, the smart pool also reduces the gas cost of decentralized operations through the mechanism of a single position transfer.
Aggregate mining proceeds will be distributed to all users proportionally, with no middlemen and no principal draws, which is fair and equitable.
Benefits of Smart Pool Mining
Mining with BXH smart pools has a number of benefits compared to traditional DeFi liquidity mining.
– One-click mining: allocate funds to the preferred DeFi protocol (which combines high yield and high liquidity) to participate in liquidity mining, making it easy for novice users to get started.
– Low cost: Switching between different protocols and token pools in search of the highest returns, with the cost of transferring positions shared by all users, effectively reducing the cost of transferring positions.
– High liquidity: flexible and convenient as you deposit and withdraw
– Optimal returns: risk-adjusted optimal returns through access to different DeFi markets and incentivised mining with DeFi Passes.
Fees Stay the Same
Many smart pools charge fees directly in proportion to the principal amount. The problem lies in that charging fees in proportion to the principal amount is to some extent detrimental to the user’s principal. When users invest more principal, the fees to be paid will also increase.
In the BXH smart pool, no matter how much principal the user has invested, apart from 10% of the user’s mining returns, no other fees will be charged. This means that the BXH smart pool is truly a principal-free aggregated earner, which is a protection for the user’s assets.
Moreover, the smart pool aggregation mining revenue platform is just the starting point in the entire BXH ecosystem, as there is also a DEX that provides superior trading pairs. BXH token is expected to see more value empowerment in the future.
The Linking Token
The BXH token is a “key” to linking the smart pool, DEX, and more DeFi applications. It is not only a governance function, but also a credential to subsequently acquire many super rights such as airdrop shares, header mining rights, and dividend entitlements.
In other words, BXH tokens, featuring a limited total amount, halving mechanisms and rich application scenarios, will become increasingly valuable in the future.
Therefore, by using BXH tokens as an asset for mining revenue settlement, users will not only enjoy the dividends from mining, but also reap the rewards from the rising price of BXH tokens.
Since the “DeFi summer”, on-chain gas fees have become increasingly higher and the network congestion problem has become “unbearable” for users. In this context, the exchange public chain, which is also compatible with Ether EVM but has almost negligible gas fees, has become the best choice for the spill-over of funds from Ether DeFi.
Whether it is Ethereum or BSC or Heco, under the technical framework of EVM, it has become a relationship between the main chain and the side chain.
The problem of cross-chain silos has been a lingering problem since the beginning of public chain development. Due to the creation of silos, users cannot easily transfer assets and complete value transfer across public chains. The problem of silos has re-emerged.
Multi-chain development, as well as silos, is both a pain point and an opportunity, initiating new tracks. BHX recognised this in this strategic transformation and has launched a high-profile multi-chain initiative.
In addition to the EVM-compatible exchange public chain HECO, BXH also plans to complete the deployment of multiple public chains such as BSC and Ethereum Layer2, which is to achieve asset interoperability and create a full ecological trading protocol. BXH users can switch between multiple chains to transfer and trade assets freely with one click. Undoubtedly, this signifies a great competitive advantage in the future.
Taking BSC as an example. BXH crosses assets on the HECO chain to BSC via a cross-chain bridge with very smooth user operations. From a strategic transformation perspective, this captures the current user demand for complex cross-chain operations on different public chains.
Crypto Keeps Chugging Along
A day on earth is a year in the cryptocurrency world; a day in the cryptocurrency world is a year in DeFi. With DeFi, the crypto ecosystem grows everyday with new, innovative products and services. Looking forward, as DeFi develops further, more money will continue to influx into DeFi in the future.
Meanwhile, BXH has taken the initiative to adjust its strategy by launching a smart pool aggregation mining that meets user needs and fits the current DeFi market. Furthermore, BXH continues to increase its efforts to distance itself from other headline projects such as MDex during the transition stage.
One of the key features is that BXH’s DEX platform focuses on advantageous trading pairs, together with a series of incentives designed to provide the best trading depth and the best pledge yields to help users get maximum returns. This will further stimulate market attention and the flow of capital into DEX.
BXH End Goals
Digital assets with quality are a core competency for any DEX platform, which are the leverage for explosion of the platform. BXH’s DEX will continue the maker model, thus focusing on favorable trading pairs, providing them with the best maker market, helping to increase their long-term value and short-term wealth effect, thus siphoning quality users into BXH for trading.
In addition, as the logic of DeFi derivatives products further matures, investor education is gradually put in place, and more and more traditional financial investors enter the DeFi market. The usage needs of many DeFi users will go beyond simple trading and income, and involve complex operations such as savings/loans, contract trading and providing liquidity. Users distribute their assets across different applications, making it difficult for users to intuitively access the distribution of their assets.
This also suggests a declining user experience with DeFi, which is where the value of BXH’s “one-stop DeFi platform” will come to the fore. BXH provides users with a one-stop DeFi management application that may, to a certain extent, become an infrastructure similar to the centralized financial company Alipay.
Taken together, this strategic transformation of BXH makes it possible for users not to access multiple DeFi applications and perform a series of mining and trading operations, but to perform all operations and track asset portfolio aggregation mining returns from a single BXH portal, while effectively reducing transaction slippage and costs. This makes BXH an important infrastructure to bridge different blockchain network DeFi applications and drive DeFi into a broader market.
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.