What is Huobi ECO Chain (HECO)? Overview of DeFi Ecosystem on HECO
Description of What is Huobi ECO Chain (HECO)? Overview of DeFi Ecosystem on HECO
The article gives you the first information about this blockchain of houbi. Let's refer to have a more detailed view of the project.
After the success of Binance Smart Chain (BSC), centralized exchanges in turn launched their own blockchain to build their own generation to gain more technological autonomy, Huobi has HECO, Okex has Okex chain,...
In today's article, I will share what Huobi ECO Chain (HECO) is and an overview of DeFi Ecosystem on HECO.
What is Huobi ECO Chain (HECO)?
Huobi ECO Chain or HECO for short was launched on the mainnet in December 2020, this is an EVM compatible chain designed and built by the Huobi team. HECO allows application developers to use familiar development tools and maintain the same dev experience while working on Ethereum.
HECO runs a Proof of Authority (PoA) consensus mechanism, which can be thought of as a customized version of PoS. HECO has no more than 21 Validators, these Validators are all trusted partners selected by Huobi's development team.
HECO is an attempt to expand the use cases on the Huobi ecosystem. HECO does not use a new token, but always uses Huobi's native currency, HT, some use cases of HT in HECO are as follows;
- HT is used to pay transaction fees on HECO.
- Validator needs to staking a certain amount of HT to run node.
- Join DeFi on the HECO ecosystem.
Highlights of HECO Network
Some highlights of HECO;
- HECO allows for fast, almost instant transactions, the transaction cost on HECO is extremely low, less than 0.1$ (on Ethereum it can cost a few $ or several tens of $ per transaction).
- HECO is an EVM compatible chain, with this compatibility, developers who have worked on Ethereum before can start building with HECO the same way they do on Ethereum and benefit from tools and applications similar.
- In fact, many users of HECO, and similar Exchange chains, haven't even used Ethereum or DeFi yet. Huobi has a big advantage in that they can provide a large user base, plus Huobi's ecosystem has developed before, it is very easy for Huobi to gain traction for HECO.
- In addition, quality projects on HECO are also supported by financial support from HECO Ecosystem Fund worth more than $200M.
HECO roadmap
HECO's roadmap is divided into 4 stages including Tinder, Spark, Flame and Blaze. Currently, HECO is in Tinder, focusing on improving on-chain infrastructure including: Oracle, Voting tool, Anchor Coin, DEX, Lending, Financial Management, Insurance, Synthetic Assets, Cross-solution Chain, Data Analysis,...
Tinder
This is the initial version of Heco, the system is stable and easy to use. Developers can develop protocols/dapps at low cost, users can access these dapps easily through familiar tools like metamask wallet.
Spark
Optimizing HECO, Heco's mission now is to connect CeFi and DeFi, allowing more users to access DeFi.
The works to be completed are as follows;
- Complete tools for developers.
- Launching forums, blogs for developers, FAQ.
- OpenID.
- Explosive infrastructure ecological chain.
- Personalize portal matching user & Dapp.
Flame
HECO Started using Layer 2, enhancing the performance of L1 HECO.
The works are as follows;
- Appication for L2.
- Cross-chain interaction protocol.
- Integrated cross-chain interoperability.
- Consensus protocol upgrade.
Blaze
HECO will support many types of traditional businesses operating on blockchain.
The works to be completed are as follows;
- Supports multiple virtual machines.
- “Multiple zeroknowledge” proof & privacy security capabilities.
- Multi-signature.
- Storage compression & expansion solution.
- Multi-dimensional sharding.
Overview of the HECO . ecosystem
Dex
- MDEX : AMM is based on the concept of Fund Pool, it is a quite functional DEX with the strength of fast transaction speed and the advantage of low transaction fees of the HECO chain. In addition, Mdex also supports the "dual mining mechanism" of liquidity mining and transaction mining. MDEX is currently the most prominent AMM on HECO
- MakiSwap: AMM fork almost completely PancakeSwap, from features to interface. TVL is not too prominent, only $7M.
- Bxh: AMM has a TVL second only to MDEX, currently supporting many chains like Ethereum, HECO, BSC,...
- Belt.fi: AMM similar to Curve on Ethereum, used to exchange stablecoins with low slippage. Belt.fi is present in BSC, HECO, Klaytn.
- O3Swap: Aggregator takes liquidity in multiple chains. O3Swap also has a mobile wallet product, making it easy for users to Swap on their phones. The O3Swap V2 version will add support for Layer 2 of Ethereum through the Atomic Swap mechanism.
- Pipi Finance: AMM combines the same Lending feature as Trader Joe on Avalanche. It looks convenient, but TVL on Pipi Finance is only about $15M.
- Sashimiswap: AMM combines a lot of extra features such as Farming, Staking, Bridge (only for the project's SASHIMI token).
- HFI.one: AMM combines Farming of both conventional assets as well as LP tokens. In addition, HFI.one integrates other AMM platforms in the Swap interface, which means we can choose other AMMs in the same interface.
Lending
- Lendhub: Market Maker platform on Heco, now supports other chains like BSC, OEC. Lendhub is supporting 20 assets, along with the project's own LHB token.
- Filda: Lending platform stands out after Lendhub. This is also one of the few projects in my opinion that has the most beautiful website interface among the projects on HECO. Filda's TVL is around $66M.
- Channels: Lending platform similar to Lendhub and Filda, but additionally supports the use of MDEX's LP token as collateral. Currently supporting about 20 assets, including LP tokens.
Derivative
The most prominent derivative project on HECO is dfuture, it is a decentralized derivatives exchange built on HECO that allows users to long/short some tokens on the market, leverage can be used up to x30.
Yield Farming
- Coinwind: Yield Farming, Staking integrated platform running Node of Blockchain. The aim of Coinwind is to maximize the benefits of participants through the above applications, forming an ecological closed loop through mechanisms such as DAO.
- Autofarm: Yield Farming platform combines Swap, supports many chains such as BSC, HECO, Boba, Cronos, Celo, Harmony,...
- Converter Finance: Yield Farming platform allows using the first lever on HECO similar to Alpha Finance, allowing you to earn more profit than normal Farming.
Algorithmic Stablecoins
- Demeter: Algo Stablecoin on HECO with Stablecoin as DUSD and governance token as DMT. However, the price of DUSD has deviated from the $1 peg, which is currently priced at $0.8. In addition, Demeter also plays the role of Lending but only supports about 10 assets.
NFT
- WonderHero: Play to Earn game with turn-based gameplay like Axie Infinity. The characters in WonderHero have drawings similar to Japanese Manga. With WonderHero, you can collect NFTs (Hero, items, ...) and sell on NFT Market in addition to playing normally.
- Torum: A platform that aggregates many features related to NFT and Metaverse such as NFT Marketplace, social networks, Yield Farming,... Torum is invested by Kucoin and Huobi.
summary
So I introduced to you what is Huobi ECO Chain (HECO)? Overview of DeFi Ecosystem on HECO. If you have any questions about HECO, leave a comment at the end of the article and join the Coin98 Insights Chat group to exchange and discuss with admins and many other friends!
