DeFi forces centralized exchanges to “improve”: “new coin mining” reconstructs asset pricing power

DeFi became popular, Uniswap rose rapidly, and the trading volume even surpassed Coinbase, the largest centralized exchange in the United States, and the statement that “DEX will replace CEX” was rampant. In the face of the “DeFi” revolution, the three major centralized exchanges have launched an “improvement movement”, combining the gameplay of DeFi liquidity mining, and launched the “new currency mining” function. It is worth noting that with the promotion of the “new currency mining” model, asset pricing power is also being reconstructed.

DeFi makes the centralized exchange (CEX) have to follow the market to improve its business.

In early September, the three major exchanges of Binance, Huobi, and OKEx successively launched the “New Coin Mining” function. This is a new gameplay that combines IEO and DeFi’s liquidity mining. When a new project is launched on the exchange, users do not need to “spend money” to rush to raise funds and pledge the assets specified by the exchange to obtain new assets.

In the IEO era, although major exchanges claim to make new products at low prices, the pricing power is still in the hands of the exchanges and project parties, and users have no bargaining power. “New coin mining” has changed this situation through DeFi. In contrast to the past, the era of “zero-cost payment” for users is coming.

After the three major exchanges of HBO have launched new coin mining, one question is whether this model can become the basic product of the exchange like IEO.

Both Huobi and OKEx maintain a flexible attitude and will adjust according to market changes at any time. Binance said that the liquidity mining gameplay uses a “fairer and more game-like experience” to distribute tokens to a wider user group, empower the project, complete the cold start, and provide users irregularly in the future. Launch new mining projects.

HBO’s “new coin mining” focuses on DeFi

In the DeFi riots, Uniswap’s transaction volume has often remained above 100 million U.S. dollars recently. Its rise has left many CEXs far behind, and even surpassed the largest CEX Coinbase in the United States. This also makes the expectation that “DEX will replace CEX” rises.

In the face of the “DeFi” revolution, HBO launched an improvement campaign, combining the gameplay of DeFi liquid mining, and launched the “New Coin Mining” function.

On September 7, Huobi’s first project of “Locking HT to Participate in DeFi Liquid Mining”, Alchemy Pay (ACH), was launched. This is a cryptocurrency payment platform where users can pledge HT to participate in mining.

Two days later, Binance’s “new coin mining” channel Launchpool launched the first phase of the project-DeFi aggregator and asset management platform Bella Protocol (BEL). The agreement was initiated and incubated by the ARPA project team, and users can pledge BNB, BUSD, and ARPA to participate in mining.

On September 10, OKEx Jumpstart pledged OKB to mine new tokens, the first phase of the project Zyro (ZYRO) was launched. The project was once known as Uniswap built on Zilliqa.

According to official announcement statistics, at present, Huobi has the most online “new coin mining” projects. As of September 20, Huobi has launched 4 online, namely Alchemy Pay (ACH), Suncoin SUN endorsed by Justin Sun, Polkadot’s privacy computing infrastructure Phala (PHA), and one-stop encrypted bank Golff (GOF).

Both Binance and OKEx have only launched two new coin mining projects so far. Binance is Bella Protocol (BEL) and Wing (WING), a cross-chain DeFi lending platform built on Ontology. OKEx launched Zyro and Realio (RIO), which plans to combine private equity with blockchain technology.

It can be seen from public information that among the new coin mining projects launched by the three major exchanges, in addition to the Polkadot privacy computing infrastructure Phala (PHA) on Huobi and the Realio (RIO) which combines private equity on OKEx with blockchain technology ) In addition, the others are all related to DeFi smart contracts, which is also in line with the recent trend of exchanges focusing on new projects-mainly DeFi.

Pledged assets are mainly based on platform currency

Although the logic of the “new coin mining” of the three major exchanges is similar, there are also differences in the rules.

Among the assets that allow users to mortgage, both Huobi and OKEx currently only support their own platform coins HT and OKB as mortgages; Binance mainly mortgages BNB and BUSD, and there are two main network coins ARPA and ONT.

The platform currency is the main pledge asset allocated by HBO in the “new currency mining”, which can also reflect to a certain extent, the “new currency mining” gameplay also aims to promote the value of the platform currency-users participate in the new currency mining , The need to hold platform currency, virtually increases the amount of user purchases of platform currency. In addition, when participating in mining, user assets are locked, which reduces their circulation in the market to a certain extent.

According to the non-trumpet account, as of September 17, the three major platform currencies have risen in the past seven days. BNB’s growth rate is 14.9%, OKB’s growth rate is 17.6%, and HT’s growth rate is 1.6%.

Regarding the lock-up period of pledged assets, both OKEx and Binance support users to redeem them at any time; Huobi’s lock-up period is fixed for 30 days, which will be automatically unlocked after expiration. Early redemption is not currently supported.

It should be noted that when users pledge assets to participate in mining, if the mortgage assets cannot be redeemed in real time, they will face the risk of falling mortgage assets. Binance does not have a limit on the number of mortgaged assets. Both OKEx and Huobi have upper limits, which protects the interests of small investors to a certain extent.

At present, judging from the time of opening “new coin mining”, Huobi is closer to the operating rules of the DeFi market, that is, mining on the same day and trading on the same day, users can almost realize that they can mine and sell. OKEx and Binance are not very synchronized between mining and transaction time. Among them, Binance’s first “new coin mining” project, BEL, was excavated on September 9 and opened for trading on September 15. The two projects launched by OKEx also launched online trading on the second day of mining.

“New coin mining” reconstructs asset pricing power

In the IEO era, although major exchanges claim to make new products at low prices, the pricing power is still in the hands of exchanges and project parties, and users have no room for bargaining. After the rise of DeFi, CEX’s innovative mining method introduced “new currency mining”, which changed the asset pricing method in the IEO era.

However, questions also follow, can the gameplay of “new coin mining” be maintained for a long time? Will the exchanges, like the IEO channel, make “new coin mining” their basic function?

In response, OKEx CEO JayHao responded that if this product continues to perform well in the future and is recognized by users, OKEx will consider fixing it as a “new infrastructure” project. Similarly, if the market situation changes, the platform will adjust the product accordingly.

Huobi also expressed a similar view, saying that the launch of “new coin mining” is to meet market demand, connect assets and users, promote better integration of DeFi and CeFi, and at the same time empower HT, “if new coin mining can Huobi will actively embrace it in the above business.”

OKEx and Huobi have shown flexible adjustments to the “new coin mining” model. In comparison, Binance is more determined, and Launchpool has been displayed on the official website as a feature.

The relevant person in charge of Binance stated that Launchpool, like Launchpad, will follow strict review standards when selecting projects to examine whether new project assets have rich usage scenarios and value capture logic in their respective ecosystems. “In the future, there will be irregular Users launch new new coin mining projects to provide users with more high-quality reward pool options, so that users can choose the pool that is most suitable for them according to their risk preferences and income expectations.

As for whether the “new currency mining” model can be maintained for a long time, some exchange practitioners believe that this is to a certain extent related to the development of the market outlook of DeFi application liquidity mining.

JayHao is skeptical of DeFi liquid mining. He believes that DeFi’s “liquid mining” is not sustainable. He explained that because the tokens mined in the primary market can be sold and realized in the secondary market, the high threshold and high gas fee of DeFi have gradually formed a “classification” for liquid mining. Large households and DeFi scientists are in the primary market. Market mining, selling in the secondary market, most small and medium investors can only take orders in the secondary market.

“Once retail investors can’t get enough funds from the primary market to make up for blood, it is questionable how long this game of drumming and spreading flowers in the secondary market will last.” JayHao said, if the token price in the secondary market collapses, then the primary market The market “dig-up-sell” system will collapse, followed by a large number of “farmers” leaving the market, and the liquidity of DeFi projects will dry up.

However, JayHao believes that the exchange’s “new currency mining” model is more sustainable than DeFi liquidity mining. “Especially for the top exchanges. In reality, the exchanges and project parties put “candies” into the market in the way of mining. The top trading has sufficient financial resources and will be more sustainable. ”

In any case, the market improvement effect brought by DeFi has already appeared. With the issuance of the Uniswap platform currency, the impact of DEXs on the past model of CEX is emerging. The value of the post-DeFi era may lie in who can bring new changes to the “class” of investors in the currency market. In essence, this is a reconstruction of the right to speak in market asset pricing.