We are officially announcing Switcheo TradeHub’s integration with the Binance Smart Chain! This integration will be publicly available after the next Switcheo TradeHub node software upgrade (V1.15.0).
Why Binance Smart Chain
At Switcheo, we believe that traders should have the choice to transact freely, without restrictions. This includes being able to trade across various L1 blockchains. Owing to its low transaction fees, Binance Smart Chain has emerged as an attractive choice for new users, generating over $15b in total transaction volume in January alone.
Binance Smart Chain is an independent blockchain launched by Binance with smart contract functionalities and Ethereum Virtual Machine (EVM) compatibility.
An integration between Switcheo TradeHub and BSC is beneficial to both protocols for several reasons.
First, it would allow for cross-chain transactions to occur between BSC and Switcheo TradeHub, creating a more inclusive financial ecosystem for everyone.
Next, users onboarding through centralized fiat gateways that support BSC such as Binance.com will be able to start decentralized trading on Switcheo TradeHub with the lowest possible onboarding cost.
Finally, BSC users will benefit greatly as well, as dApps on BSC are currently restricted to Uniswap-like DEXs where order books and derivatives are not available. This is a strong need that can be filled with Switcheo TradeHub’s reference user interface -- Demex.
What this means for Demex
1.Lower gas fees for token deposits on Switcheo TradeHub
On Demex, the one-time wallet creation fee and deposit fees on Ethereum (transferring from L1 Ethereum chain to Switcheo TradeHub’s L2 protocol) has been a growing concern for users due to creeping Ethereum network fees. By choosing BSC as the onboarding chain, creating a wallet will now cost less than 10 cents.
2. SWTH on BSC
SWTH will be withdrawable as a BEP-20 token on BSC, allowing BSC users to buy SWTH directly on BSC DEXs such as PancakeSwap. More information on our BSC DEX partners will be forthcoming soon.
3. Supporting BEP-20 tokens on Demex
All BEP-20 tokens will be supported by Switcheo TradeHub, increasing the pool of spot tokens and/or derivatives that can be available for trading on Demex. This includes strong community-driven tokens like CAKE, XVS, BAKE, and more, giving Switcheo TradeHub’s protocol and opportunity to increase its exposure and usage.
4. Liquidity Pools for BEP-20 tokens unique to BSC may be created on Switcheo TradeHub
With TradeHub, we have pioneered a way to construct cross-chain pools involving both BEP-20 tokens and ERC-20 tokens. These n-weighted pools can be created via governance proposals on chain. Balancer style pools with assets from both BSC and Ethereum can be created, all on Switcheo TradeHub.
TIP-10 has proposed the incentivization of various BUSD and BTCB based liquidity pools. Holders of BEP-20 tokens can look forward to competitive APRs in a new liquidity mining programme to be launched very soon.
5. BSC-based derivatives
Our integration with BSC brings us a step closer to our vision of limitless markets, and opens up infinite possibilities for various cross-chain financial transactions. We are slated to implement a cross-collateral feature for our futures markets which enable users to trade derivatives using any underlying asset as margin, beyond only USDC.
This means that BEP-20 tokens like BUSD and BNB may be used as collateral to open futures positions in ETH, BTC and so on. Traders now have the flexibility to trade futures without being forced to convert their BSC assets into USDC.
Cross-chain at our core
Ultimately, the Switcheo Team envisions that the Switcheo TradeHub protocol will be the go-to trading platform across multiple Layer-1 chains. In a truly limitless financial system, assets and derivatives must be able to transact freely across multiple networks. This was built into our design since we started working on Switcheo TradeHub in 2019.
That’s why we chose to build Switcheo TradeHub on top of the Cosmos-SDK, paving the way for the Internet of Blockchains. Amidst the recent Stargate Upgrade, we are also working on becoming IBC-compliant to communicate with other protocols in the Cosmos ecosystem.
Switcheo TradeHub’s integration with BSC would not have been possible without strong support from our partners at Poly Network, the leading interoperability protocol alliance.
“Poly Network is committed to fostering an open and transparent blockchain ecosystem and we are proud to partner with Switcheo TradeHub and BSC to deliver true cross-blockchain interoperability, which marks a key milestone in the ongoing growth and development of the blockchain industry.” —— Tan Yuan, Tech lead of Poly Network
Harnessing the power of Poly Network, Switcheo TradeHub will be able to bring next generation derivatives to various L1 blockchains, allowing us to connect and access assets on other L1 chains like Ontology and the Huobi ECO Chain, as illustrated below.
About Poly Network
Poly Network a groundbreaking heterogeneous interoperability protocol alliance, consisting of leading blockchain platforms such as Neo and Ontology. Poly Network already integrates Bitcoin, Ethereum, Neo, Ontology, BSC, Switcheo, Elrond, Heco and Ziliqa, and aims to build the foundation for Next-gen Internet (NGI) by enabling greater integration, cooperation, and innovation. Representing both a technical breakthrough and a milestone for blockchain adoption, Poly Network is well positioned to become the pillar of NGI and the smart economy of tomorrow.