In a bid to expand its ecosystem, leading decentralized exchange MDEX has integrated Binance Smart Chain (BSC), officially completing the deployment today April 8 at 8.30 PM (UTC + 8). Five seconds after integration, MDEX reports a TVL (Total Value Locked) of more than USD 0.5 billion.
The BSC integration includes functionality in liquidity mining, single token staking, transaction mining and cross-chain asset services. Users can now use the MDEX Bridge to realize cross-chain interoperability between Heco (Huobi Eco-Chain), and BSC.
BSC and Heco Solve Issues of Congestion and High Fees on Ethereum
According to MDEX CTO Sky, after Heco, BSC integration was always the plan.
“Like Heco, BSC was developed to target the congestion and high fees on the Ethereum network,” states Sky. “Both are also supported by CeFi resources.”
According to Binance, the Binance Smart Chain was envisioned as something of an extension to Binance Chain. With dual chain architecture, both chains are complementary – Binance Smart Chain caters to decentralized applications (dApps) without congesting the original chain, which is optimized for ultra-fast trading. These features make it efficient and very much optimized for running dApps, and transacting at a lower fee.
Indeed, the advantages associated with the BSC network make this move critical. A recent report announced that Binance Smart Chain overtook Ethereum in daily transaction amount, courtesy of its low fees and fast transaction architecture.
One of the crucial attributes that make blockchain-based transactions unique is reduced costs. The Ethereum blockchain has been unable to live up to its name in this aspect, with current transaction fees above USD 20. It even soared to an all-time high of USD 43 on Feb 23.
MDEX Sets Eyes on Market Expansion with BSC
This makes the current decision a well-calculated one. Being one of the few projects on both BSC and Heco, MDEX is positioning itself in the current move to be a serious contender in the ecosystem.
Dubbed the “Heco golden shovel” in Chinese crypto circles, MDEX has dominated the Huobi Eco-chain, carrying about one-third of the TVL (Total Value Locked) of the asset locked-up value.
Having hit the Heco ceiling, for MDEX, the BSC integration is undoubtedly a move to cover new fertile ground. BSC currently supports more than 100 currencies across the chain with a total market value of more than USD 84 billion. Entering the BSC ecosystem is an opportunity to increase both TVL and trading volumes.
Rising to a New Challenge
Speaking of the BSC integration, CTO Sky declares that, “This is a great opportunity to test the effectiveness of our products and operations,”
As the only mainstream DEX on the market that implements dual mining – combining liquidity and transaction mining – MDEX has managed to cause an explosion in its platform trading volumes.
On February 25th MDEX ranked first on Coinmarketcap, capturing 54% of the market share, dethroning Ethereum DEX leader Uniswap. On March 18, MDEX TVL exceeded USD 2.3 billion which is a new record. On March 19, its cumulative transaction fees were over USD 340 million, with its 7-day transaction fee amount ranking third, only behind Bitcoin and Ethereum.
Sky has confirmed that the dual mining “two-scoop incentive model” will be carried over to the BSC platform. MDEX users can continue to enjoy low-to-zero fees and fast transactions in a liquid trading environment on a secure and user-friendly platform. MDEX recently released an upgraded Version 2.0 with even more platform improvements on March 16.
More Value for MDX Token Holders
Sky points out that multi-chain deployment supports expansion which leads to more value capture.
“More assets and more transactions on MDEX means the platform receives more fees which means more funds to buy back and destroy MDX in the market, which will further deflate MDX.”
He is referring to the buy back destruction mechanism of the MDX token whereby a portion of the daily transaction fees will be used to repurchase MDX for burning. On March 12 the total amount of repurchased and burnt MDX has exceeded USD 10 million and its real-time deflation rate is at 10.96%.
As for the semi-centralized nature of the BSC and Heco public chains, Sky calls for the “continued openness of BSC and Heco to attract more excellent developers and apps.” When ETH 2.0 is eventually implemented, multi-chain deployment will likely become an important route for decentralized apps.
As MDEX continues in its endeavor of being a top, reputable exchange that provides an excellent trading environment for its growing community, alongside, it will aspire to deliver unmatched value to the entire industry.
For more details about the BSC integration: https://mdex.medium.com/mdex-com-onepager-latest-version-e7795a2ee24c
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