The total volume locked (TVL) in decentralized finance (DeFi) protocols recently touched a new high of $183.94 billion, reaffirming to the world that DeFi is here to stay. An idea that was thought to be a bubble is growing stronger by the day, and becoming an ever more serious threat to traditional finance methods.
While Bitcoin first introduced digital assets to the world, it was Ethereum that created a utility for these assets, and first allowed effective trading on a large scale. DeFi protocols built on top of Ethereum popularized trading, yield farming, staking, and other unique reward systems that contributed to the growth of DeFi as a key part of crypto. In fact, Ethereum’s AAVE alone amounts to almost 8% of the TVL in the system. Even though this unprecedented growth took Ethereum to new highs, it is also the reason why today more and more users are looking to move on from the Ethereum ecosystem.
The fact is, Ethereum is not technologically ready for scaling transaction handling en masse. The more people on the network, the more congestion and inherent complexity. This has lead to problems like high gas fees, low throughput, slowdowns, and an overall bad user experience, all of which have slowly but surely contributed to users realizing the system no longer serves their trading needs. Every day, more and more people are looking for alternative ways to improve the effectiveness of their trades, and new DeFi protocols that can offer solutions to their Ethereum woes.
The Search for Alternatives
For most people, the search for a feasible Ethereum alternative ends with the discovery of the Binance Smart Chain (BSC). With great built-in scalability, an under three-second transaction time, and minimal gas fees, BSC is a third-generation blockchain network uniquely positioned to empower DeFi. Not only does it solve the problems inherent to Ethereum, but also introduces new flexibility to common blockchain operations, and drastically improves the user experience due to its speed advantage.
ExpX is a trading protocol, yield farming platform, and multi-asset portfolio manager for the future of DeFi on the BSC. The goal of the project is to be the “Balancer” for BSC, only better. ExpX allows its users to add up to 8 tokens to a single pool, make fully decentralized P2P swaps directly using the smart contracts built into the protocol without the need for intermediaries, and all with a nominal gas fee of about 0.005 BNB per swap and minimal slippage.
The single biggest difference ExpX makes in DeFi is probably within yield farming. In a world first, the Protocol allows users to create liquidity pools with up to eight different assets per pool. For reference, liquidity pools on other DeFi protocols are limited to two assets only. Having up to eight different assets in a pool gives users a variety of options to diversify their investment portfolio and maximize their yield on a single pool, without the need for manually micro-managing multiple pools.
The assets in these pools always remain balanced in accordance with the ratios specified when creating the pool. This is achieved by automatically adjusting the exchange rates after every swap according to specific formulae. When the exchange rates within a pool begin to differ significantly from the open market, arbitrageurs step in to ensure the exchange rates are rebalanced, and make a profit in this process. This is a win-win situation: the pool owners enjoy leveraging real-time, market-value positions for their investments, and arbitrageurs get to earn separate rewards for helping out!
Furthermore, creators of liquidity pools on ExpX are rewarded with governance tokens for the platform in exchange for their contribution to it. Liquidity providers (LPs) are rewarded with a part of the swap fees generated on the platform, in proportion to their staked assets. To further incentivize LPs, the amount of liquidity staked in ExpX’s own tokens is multiplied 10X when calculating daily rewards. This means that LPs committed to the platform will automatically yield a lot more than they would on a regular platform. Finally, ExpX automatically rebalances the investment portfolio of LPs on the platform to mitigate risk and maximize yield.
The many innovative farming strategies enabled by and available on the ExpX platform, like multi-asset pools and pool multiplier rewards, combined with the power of BSC, make an unbeatable value proposition that will take yield farming on DeFi to the next level.