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In addition to actively participating in popular DeFi gameplay such as liquidity mining, in terms of their own DeFi ecological construction, OKEx and Binance are more focused on the development of decentralized public chains, while Huobi is more focused on providing more cross-chains for Ethereum Assets become a bridge connecting the centralized market and the DeFi market, users and the DeFi world.
Written by: Zhang Gaijuan
Beginning in June this year, the focus of the cryptocurrency field has shifted from Bitcoin halving to DeFi, and the popularity of DeFi seems to have reached its peak in July and August.
The DeFi liquidity mining boom has led to nearly 12,000 trading pairs on the decentralized exchange Uniswap. At the same time, although the popularity of DeFi has declined slightly since September, according to OKLink data, as of now, the total lock-up volume of DeFi is close to 10 billion U.S. dollars, and the total market value is more than 12 billion U.S. dollars. These figures are only two. The previous level still maintained a considerable increase of nearly 200%.
Total market value of DeFi projects, source: OKLink
On this occasion, the layout of centralized exchanges in the DeFi field has also entered the fast lane. They are not satisfied with indirect participation in DeFi, but directly use the new strategy of DeFi+ mining, IEO+ mining, and the development of their own DeFi ecology to grab the beach DeFi market.
Can this new strategy take on the DeFi track? What is the essential difference between exchange mining strategy and liquidity mining? Compared with the IEO model that prevailed in 2019, is it the original “formula” to change the soup without changing the medicine, or is it a “strong medicine” injected into the market? In addition, can Binance’s newly launched smart chain and OKEx’s upgraded OKEx transaction chain achieve the integration and balance between CeFi and DeFi ecosystems?
Before answering these questions, let’s sort out the DeFi ecological layout of the three leading exchanges of OKEx, Binance and Huobi.
How does the head exchange lay out the DeFi track?
In the DeFi boom, in addition to accelerating the launch of DeFi tokens, the three major exchanges also extended the application scenarios of their platform tokens to DeFi through products such as new coin mining and DeFi liquidity mining, and then participated in the DeFi ecosystem. It is also planning its own DeFi ecological construction.
In terms of listing DeFi tokens, OKEx and Huobi are the most active, with more than 40 DeFi tokens listed.
In the process of DeFi ecological construction, Binance’s layout is progressing most rapidly and more comprehensively, such as the launch of DeFi liquid mining products, greater investment in DeFi ecology, and the launch of smart chains that focus on the development of its own DeFi ecology, followed by OKEx launched DeFi liquidity mining, OKB pledge mining, and upgraded its public chain OKChain to a complete decentralized public chain ” OKEx Transaction Chain “. The Fire currency more focused on providing more cross chain assets Ethernet Square, as a bridge connecting the central market and DeFi market, users and DeFi world.
OKEx: Combine DeFi and CeFi elements to launch OKB pledge mining, upgrade OKChain to OKEx transaction chain
The layout of OKEx in the DeFi ecosystem can be divided into several aspects, such as launching DeFi tokens, accessing DeFi protocol platforms, launching pledge mining, and developing its own DeFi ecosystem.
OKEx is very active in listing DeFi project tokens. According to statistics from the chain, as of September 13, OKEx has listed as many as 43 DeFi tokens. Among them, according to the market value ranking, OKEx covers all the tokens in the top 13 DeFi projects.
In terms of access to third-party DeFi agreements, as early as December last year, the OKEx mining pool has integrated the Dai deposit interest rate (DSR). Users can directly deposit Dai into the DSR contract to obtain the Dai deposit interest rate and an additional 1% provided by OKEx. Interest rate. This month, OKEx is also accessing the Compound protocol in its earning product (EARN) , allowing users to obtain interest income by depositing BAT, DAI, ETH, USDC, USDT, and ZRX into the Compound chain protocol. Some tokens are in deposit You can get additional COMP mining rewards during the entry period.
In addition, OKEx has also upgraded the Jumpstart platform rules. The most noteworthy upgrade is the addition of OKB pledged mining products. OKB holders can pledge OKB to mine new tokens in return. The first phase of the project is Zyro, a decentralized protocol developed based on the Zilliqa public chain.
In terms of its own DeFi ecological construction, OKEx launched the decentralized public chain OKChain testnet and OKChain-based DEX testnet in February this year, and is committed to developing DeFi ecological services in the Cosmos community. OKChain’s partners also include DeFi projects such as Kava. Last weekend, OKEx upgraded OKChain to a completely decentralized public chain “OKEx Transaction Chain” (OKExChain). Any individual and community organization can build their own blockchain applications based on OKExChain.
In addition to allowing anyone to create blockchain applications, the OKEx trading chain also has complete community autonomy and user cross-platform client software OKExDEX, including issuing tokens, creating currency pairs, creating liquidity pools, and participating in AMM or orderbook transactions. In addition, the OKEx transaction chain will support the Ethereum virtual machine EVM in the future , compatible with all Ethereum smart contracts , and will also support oracles and launch cross-chain gateways.
It can be seen that OKEx’s DeFi liquid mining products, OKB pledge products, and the decentralization upgrade of the public chain are all important measures that it is committed to opening up CeFi and DeFi, and integrating CEX and DEX.
OKEx CEO Jay Hao said that OKEx is constantly improving the ecological layout of DeFi assets and building its own DeFi ecosystem. In addition to coin-earning products connected to the Compound agreement, other currencies and lending functions will be launched successively. Regarding the development trend of CeFi and DeFi, he said that for OKEx, the combination of CeFi and DeFi is undoubtedly a more feasible path. These new mining methods in the DeFi field will have many impacts on the upstream and downstream industries of digital assets. One is that the primary market has higher requirements for security. Smart contracts are the most important “underlying building” of the DeFi protocol; the second is the secondary market, where the market has higher requirements for investor qualifications; the last point is , It is necessary to introduce DeFi insurance in DeFi mining.
Binance: Launched Smart Chain, established a $100 million seed fund to support the DeFi ecosystem, and launched multiple mining models
Starting in mid-August, Binance has accelerated its entry into the DeFi field, such as the first launch and continuous enrichment of its mining products, the launch of the smart chain mainnet, and the establishment of funds to support the DeFi ecosystem.
As of September 13, Binance has launched a total of 35 DeFi project tokens and some DeFi token derivatives. In the derivatives market, Binance Contract also launched the DEFI/USDT 1-50 times composite index perpetual contract (the index is the real-time weighted average price of 10 DeFi protocol tokens such as BAND, COMP, KAVA, etc.). Currency USDT is used as a margin.
Among the three exchanges, Binance is the first exchange to launch related mining products and the most abundant mining products.
DeFi liquid mining : On August 19, Binance launched the first DeFi liquid mining product DAI on its pledge mining platform. DAI will be used to participate in Compound mining. Since then, the Binance pledged mining platform has launched BNB, USDT, and BUSD DeFi mining products to participate in the mining of Kava, Curve and other tokens.
An coins mining: the first phase of the line BUSD, USDT, DAI, and open BUSD / USDT, BUSD / DAI, USDT / DAI trading right. Users can quickly realize currency exchange in Binance Mining, or they can become a liquidity provider by injecting funds to obtain commission dividends and current interest income.
New coin mining : The first phase supports the decentralized financial platform Bella Protocol token BEL. Users can lock up BNB, BUSD or other designated tokens for mining new coins in current wealth management. Less than 24 hours after it went online, BEL’s lock-up volume exceeded $600 million.
In addition to DeFi liquidity mining and SGD mining, Binance also supports some DeFi tokens in its lock-up income and position rebate, such as BAND lock-up income, KNC and KAVA’s position rebate.
Ecological building its own DeFi, as early as the first half of last year, it supported the creation of safe currency coins and currency security chain security DEX. In addition, the Binance Smart Chain (BSC) mainnet was officially launched in early September this year, aiming to provide support for smart contract support and cross-chain interoperability for DeFi projects and the blockchain community. Binance Smart Chain will operate as a parallel chain of Binance Chain, realizing functions such as smart contract creation and BNB pledge mining. At the same time, it supports individuals and institutions to collect BNB commissions and become verification nodes of this new blockchain.
Specifically, Binance Smart Chain supports the Ethereum virtual machine EVM, which can realize functions such as smart contract creation and BNB pledge mining. It also has a cross-chain DeFi mechanism to enhance DeFi interoperability. In addition, the Binance Smart Chain will also support the Binance ecosystem and provide funding and other support for some DeFi projects.
In terms of investment, Binance Labs, the investment arm of Binance, made an angel round of investment in the decentralized protocol Injective Protocol in 2018. In August this year, it also led the investment in the decentralized aggregate trading tool 1inch with Galaxy Digital. In addition, Binance announced that it will set up a $100 million seed fund to support the DeFi ecosystem . Specifically, Binance Smart Chain supports multiple mainstream coin mining. For projects that pass the security audit, Binance will provide “liquidity” incentives and resource and financial support. In the future, high-quality projects will have the opportunity to participate in the listing of Binance Main Station.
Huobi: Open DeFi mining and new coin mining to promote the integration of its Bitcoin anchor asset HBTC into DeFi
In addition to the launch of DeFi currency, pledge mining, etc., Huobi’s DeFi ecological layout also includes the establishment of a DeFi laboratory and related investment funds, and the promotion of its Bitcoin anchor HBTC into DeFi.
According to statistics from the chain, as of September 13, Huobi has launched 41 DeFi tokens, including DeFi projects in the “Global Observation Zone”. The “Global Observation Zone” is a section used to tap the potential applications and innovative projects of the blockchain. 11 of the 14 projects currently online in the observation area are DeFi projects.
In addition, Huobi also launched the first phase of ” Lock-in HT/HPT Participation in DeFi Liquid Mining ” last week, the first phase of which is CRV. In addition, new coin mining activities have also been launched. The first three projects are ACH (Alchemy Pay), PHA (Phala) and SUN.
It is worth mentioning that the Bitcoin anchored asset HBTC launched by Huobi in February this year is also actively integrating into the DeFi market. Last week, the stablecoin exchange platform Curve added the HBTC/WBTC fund pool. Users can exchange bitcoin anchor coins HBTC and WBTC on the Curve platform. The total amount of locked positions in the fund pool exceeded 6 million U.S. dollars three hours after it went online. In addition, yesterday, Huobi also announced that it will provide Ethereum with cross-chain assets, namely H series assets, after HBTC, and is committed to continuously providing more assets for the DeFi market, including mainstream crypto assets such as DOT, LTC, and BCH. In addition, the poll on whether to give priority to adding HBTC as MakerDAO collateral was also passed at the beginning of this month, after which it can enter the implementation voting stage.
In terms of investment, Huobi established a DeFi laboratory in early August, which will focus on DeFi research, investment, incubation, and ecological construction, and will invest tens of millions of dollars as an initial investment fund. Less than half a month later, Huobi DeFi Lab, together with MakerDAO, Compound, NEST Community, and dYdX, jointly initiated the establishment of the Global DeFi Alliance, which will help Huobi Group conduct DeFi research, investment, incubation, and ecosystem development.
In terms of the development of Huobi public chain and DEX, in February this year, the Huobi public chain testnet jointly developed by Huobi and Nervos Foundation was officially launched. Huobi public chain will be launched on the mainnet in the fourth quarter. It is expected that DEX will be launched after the mainnet starts stable operation.
It can be seen that in terms of its own DeFi ecological development, Huobi is more focused on providing more cross-chain assets for Ethereum, becoming a bridge connecting the centralized market and the DeFi market, users and the DeFi world.
New mining method of the exchange = lock-up + listing + airdrop?
As we all know, despite the attractive and completely transparent benefits of liquid mining, participating in DeFi liquid mining on a DeFi platform or DEX has disadvantages such as high thresholds, high handling fees, contract security risks, and unfriendliness to small capital users.
As pointed out in the DeFi report jointly issued by Crypto.com and BCG Platinion, the digital implementation consulting team of the Boston Consulting Group BCG, if DeFi wants to significantly increase the adoption rate, the following six important issues need to be paid attention to, including blockchain throughput And high network costs, liquidity, security and smart contract risks, over-collateralization, regulatory risks, etc.
The exchange’s newly launched DeFi mining and new currency mining strategies not only lower the threshold and complexity for users to participate in DeFi, simplify the mining process, but also empower the platform currency, which can be described as multi-tasking.
Lianwen has summarized and compared the new currency mining product rules of the three major exchanges, as follows:
Relatively speaking, OKEx’s new currency mining rules are more flexible and can be pledged at any time. In addition, OKEx and Binance are very friendly to small capital users and have not set a minimum position limit.
So what is the difference between the new mining method of such exchanges and liquid mining? How is new coin mining different from IEO?
Let’s review the concept of liquid mining first. Liquidity mining is to obtain DeFi project tokens by injecting liquidity, mortgages, transactions and other activities.
At present, the DeFi mining launched by centralized exchanges is ostensibly through the use of locked platform coins or other designated tokens to mine DeFi tokens. In essence, the mining is carried out by the exchange agent users.
The new coin mining strategy is a combination of IEO and DeFi mining models, but these mining methods are essentially the form of IEO+ airdrop new DeFi tokens. IEO is a one-time acquisition of new coins by collateralizing platform coins, and new coin mining is also collateralizing platform coins (or other designated tokens), but the obtained new coins are slowly distributed.
In the short term, this new model can indeed attract users to participate in DeFi through centralized exchanges and increase users’ demand for exchange platform coins. But in the long run, can centralized exchanges continue to strengthen DeFi and promote The rapid development of DeFi also depends on the complete transparency of the rules behind mining, the continuation of high yields, and the realization of public chain decentralized governance.