DEX Leader MDEX Says Binance Smart Chain is First Step in Multi-Chain Expansion
Singapore, April 9, 2021 — Yesterday, leading decentralized exchange MDEX.com announced its complete integration with the Binance Smart Chain (BSC). Within five seconds, it reported a TVL (total value locked) of more than USD 500 million. Twenty minutes later, it went up to USD 800 million, forty minutes to USD 1 billion, one hour to USD 1.3 billion and two hours, the figure had gone up to USD 1.5 billion with its 2-hour trading volume surpassing USD 268 million.
The Heco-based DEX has now completed a cross-chain bridge between Heco (Huobi Eco-Chain) and BSC, apparently the first step it will take in a multi-chain deployment endeavor.
If this sounds like an ambitious undertaking, it is because it is indeed a challenging task. Currently, multi-chain deployment on DEXes does not exist. There have been some cross-chain attempts, including MDEX’s BSC integration, but a grand plan to integrate across Heco, BSC, OKexChain, the Layer-2 network of Ethereum and Polkadot to achieve multi-asset interoperability will be a far more arduous enterprise.
Built on the Heco Chain, MDEX is very compatible with the Ethereum Virtual Machine (EVM) which has made it easy for users to switch between networks.
The relatively new public chain developed by Huobi enables seamless smart contract integrations, and has already processed many millions of transactions since its inception. Heco utilizes the novel HPoS consensus mechanism that facilitates low transaction costs and fast transaction times. Its meta transaction function also reduces the gas fees of users holding Huobi Tokens.
This well-calculated step to build on Heco has resulted in impressive results for MDEX. Beginning on January 19, MDEX implemented both liquidity and transaction mining on the Heco chain and a month later on February 19, its 24-hour transaction volume exceeded USD 2 billion. On February 25th MDEX ranked first on Coinmarketcap and a while later, also on Coingecko.
The magnitude of this achievement cannot be overstated. When compared with DEX leader Uniswap, which deployed on the Ethereum mainnet in December 2018, its 24-hour trading volumes were averaging USD 1–1.5 billion in the same time period. For a new kid on the block, MDEX’s explosive trading volumes were unheard of.
Heco’s fast transaction times of 3 seconds enabled MDEX to provide its users with a smooth trading experience. MDEX charges about 0.1 US cent per transaction which means that 1 US dollar equivalent of HT (Huobi Token) can sustain hundreds or even thousands of transactions. Its well-designed trading ecosystem has enabled transaction fees to be further reduced and even exempted because of the mining rewards paid out. Slippage is low with high liquidity in the pools, offering MDEX users a trading experience that is close to that of a centralized exchange.
But as funds continued to pour into the young DEX, the MDEX user base was not growing in proportion to the transaction volumes. Within the Heco chain, MDEX would hit the ceiling at some point.
Choosing to expand its market through integration of the Binance Smart Chain was a logical first step. The popular network is known for its capability to handle a large number of transactions per second efficiently and has been adopted by numerous projects and DEXes.
Developed to work in tandem with Binance Chain, Binance Smart Chain (BSC) is specially catered to decentralized applications (DApps) so that the original chain can be optimized for ultra-fast trading. This was to target congestion, caused by DApp smart contracts which could significantly slow down fast transaction times and has weighed down the Ethereum networks. Designed to be complementary but independent to the existing chain, BSC has been a proven solution for scalability.
BSC recently set a record on April 7 with 5 million daily transactions compared to the Ethereum network which saw a little less than 1.3 million transactions. That is a difference of more than 350%! Despite the massive transaction numbers, BSC continues to work efficiently which enables its fees to continue to be low.
As of yesterday, MDEX now successfully supports the decentralized cross-chain protocols of both BSC and Heco, enabling efficient cross-chain interoperability in asset services such as liquidity mining, single token staking and transaction mining.
The integration with BSC has already produced remarkable results for MDEX. Besides the impressive TVL amounts and trading volume increases mentioned earlier in this article, the liquidity pool rewards are also notable with very high APYs.
The MDX/WBNB pair is earning 1.795% APY, MDX/BUSD pair is earning 1,672% APY and the list goes on. Single token staking is also earning high APYs such as 241% for EPS, 117% for CAKE, 112% for HMDX and so on.
Moving Forward with Multi-Chain Deployment
The value of communicating is to transmit information. The value of connecting on the blockchain is to transmit value. When these inter-connections are made with the cross-chain bridges built, then value can be transmitted efficiently across entire networks.
While the congestion and high fee issues on Ethereum are currently vexing users, Ethereum 2.0 is anticipated to solve the current scaling issues. According to Ethereum founder Vitalik Buterin, Layer-2 “could scale 100x” in as early as “a few months”.
As with Ethereum, TVL in BSC and OKexChain are substantial and the MDEX team has made astute plans to choose multi-chain expansion in its route for development and growth.
Anticipated results of multi-chain deployment can be summarized as follows:
- Massive increases in user base and trading volumes.
- Improved user experience and convenience on its trading platform because of interoperability with all the mainstream DeFi chains.
- More opportunities for projects to profit from the exchange of multi-chain assets.
- More DeFi mining opportunities on the MDEX platform for investors, especially retail investors.
- Attract and facilitate large funds from big investors and financial institutions to mine.
- Increase the value of MDX for token holders.
- Improve the development of the entire DeFi ecosystem by virtue of its multi-chain initiatives which will impact not only the projects and users but also the other DEXes who will likely follow suit.
The multi-chain endeavor will of course not be without its challenges. Delays and inefficiencies can compromise user confidence and MDEX is undertaking a Herculean task in spearheading the multi-chain deployment.
However, as one of the fastest-growing DEXes in DeFi, if its past performance is anything indicative, the MDEX team seems well-poised to take on the challenge. If successful, it is likely that the entire MDEX ecosystem will expand extensively and entrench MDEX in its position as a DEX leader in the DeFi space.
For more info about MDEX, visit the official website: https://mdex.com/#/
English Telegram: https://t.me/MdexEN
Chinese Telegram: https://t.me/MixDex