What Is Huobi ECO Chain (HECO)?
Decentralized Finance, also known as DeFi, has played a crucial part in blockchain application and adoption. DeFi allows you to invest your money in a new form of assets and generate wealth.
The DeFi space has been evolving at a rapid rate. Currently, most DeFi applications are built on top of Ethereum due to its third-party layers and wallet support. However, the growing DeFi demands are causing overloads on Ethereum. According to YCharts, the average cost to process a transaction, known as the gas fee, per day was as high as 538.01 compared to 20s on normal days. The hike in gas fees is to offset the increase in transaction demands.
As a result, many companies have been committed to improving the scalability of the public blockchain while ensuring decentralization, low cost, and security such as Solana, Binance Smart Chain from Binance Exchange, and Huobi ECO chain from Huibo Exchange.
This article will focus on the Hubio ECO chain.
Huobi
Huobi Exchange is a virtual asset trading platform established in China in 2013. It ranked third in the global exchange ranking of CoinMarketCap as of June 16, 2021. Huobi supports a large number of coin transactions, including BTC, ETH, USDT, and its native token HT markets.
HT was issued in January 2018 that aimed to support the Huobi ecosystem. HT holders can use HT to get a discount on transaction fees and use various blockchain incubating services, including Hadax listing voting, Huobi Cloud, OTC, and community services. However, the most interesting thing about Huobi is its ECO chain.
Heco
According to its website, “Huobi Eco Chain (Heco) is a decentralized and cost-efficient public chain that Ethereum developers can easily get started with and smart contracts are seamlessly compatible.” Heco has built a developed Defi ecosystem, with wallets, assets, and applications rankings. Users can easily experience the latest DApps.
Heco was developed based on Ethereum but improves cross-chain functionality as well as low gas fees. It helps reduce costs and optimizes user experience with the cross-chain asset transfer.
For users, they can enjoy low transaction fees, low transaction delay, high transaction concurrency, and cross-chain asset transfers. For developers, they can develop smart contracts with high compatibility with Ethereum and other public blockchains to reduce development and migration costs. Heco provides financial, traffic, and marketing support for developers so they can focus on making the best DeFi applications without worries.
Heco has laid out its roadmap until 2023 Q1. Currently, it is in the first stage called “Tinder” which focuses on improving the on-chain infrastructure, as the developers say in their official docs. Its main focus is to attract developers to develop and promote DeFi applications at a low cost.
Heco DeFi Projects
Lendhub
LendHub is a debit and credit protocol based on a modification of Compound that provides debit and credit mining capabilities for LHB.
MDEX
MDEX is a decentralized trading platform (DEX) that automatically makes markets based on the concept of fund pools. It supports the decentralized cross-chain transaction protocols of BSC, Heco, and ETH. MDEX combines the different advantages of various basic public chains, and creates a well-rounded DEX ecosystem with high performance. The “dual mining” mechanism of liquidity mining and transaction mining brings greater returns to the participants. It runs on both the Heco and Binance Smart Chain (BSC).
FilDA
This is a cross-chain lending DeFi project based on Heco. Launched on January 5, 2021, it features loan functions for HUSD, HBTC, HT, ELA -HECO, USDT- HECO, HDOT, HLTC, HBCH, ETH, HPT, HBSV, HXTZ, and 16 other assets. This project has no pre-mining and no fundraising. Basically, it was created to become a DeFi loan platform of choice for Heco users.
Channels
This is a fully decentralized lending platform. It offers great asset security, mining revenue, and user experience. Channels focus on mainstream lending currencies such as HUSD, USDT, ETH, HBTC, and HT, and always adheres to product experience as the basis and user interests as the core.
StarLink
StarLink is a decentralized search engine. The core objective of StarLinkNetwork is to build a global search for both a centralized world and a decentralized world. At present, the mainstream search engines in the world are only limited to the content of centralized websites.
CoinWind
CoinWind is a DeFi smart mining financial platform. It aims to build a DeFi digital asset bank, launching a product with high yield and safety, and reliability, pooling different tokens deposited by users into different pools and then mobilizing funds from a certain token pool to participate in different liquidity mining according to the strategy, so as to achieve higher returns for users.
PickFiance
PickFinance is a decentralized mining platform by staking single coin with smart pairing. The smart contract uses an intelligent hedging method with high frequency to decrease the risk of impermanent loss generated by LP mining.
Even though Heco is a relatively new project, it already has 124 dApps with a total volume locked (TVL) of $6.42 billion. It demonstrated a new infrastructure with high performance, low gas fees, and a better cross-chain user experience. However, Heco has a long way from challenging its rival, Binance Smart Chain (BSC), which boasts a TVL of $20.9 billion. Nevertheless, Heco, along with BSC and Solano, will continue to contribute to popularizing crypto-asset investment to the world.
