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Hashbon Rocket: Reinventing Decentralized Finance with Cross-Chain DEX

Published 10/31/2021, 05:00 AM
Updated 10/31/2021, 05:00 AM
Hashbon Rocket: Reinventing Decentralized Finance with Cross-Chain DEX

  • Hashbon Rocket will reportedly solve the DeFi protocol’s problem of interoperability.
  • It is set to be a decentralized exchange where users can be assured of security and low transaction fees.
  • For now, there is no limit to the number of tokens that users can swap on Hashbon Rocket.

Decentralized finance ushered in yield farming, liquidity mining, staking, and other highly-rewarding activities. Currently, the total value locked (TVL) in DeFi protocols including staking and liquidity pools is estimated to be around $200 billion. More than ever, DeFi has provided crypto enthusiasts with several opportunities, most of which allow them to earn passive income. For liquidity providers or LPs, they are rewarded with fees paid for transactions executed by other users. In most cases, they receive the native token of such protocols as rewards. Liquidity provision is one of the major activities that have pivoted the DeFi industry, paving the way for more adoption and TVL.

However, a major problem that is facing DeFi protocols is interoperability. Most of the popular protocols only support intra-blockchain transactions. For instance, the first decentralized exchange in the history of DeFi only facilitates transactions within the Ethereum network while Pancakeswap is BSC-based.

Hashbon Deploys Cross-chain DEX to Solve Problem of Interoperability

In recent times, many projects have deployed protocols that support more than one network. It is the problem of interoperability that has prompted the advent of the first-ever cross-chain decentralized exchange (CDEX), Hashbon Rocket — a DEX that supports token swaps across Ethereum and Binance Smart Chain, including EVM-compatible chains like Polygon (MATIC), Solana, etc.

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In light of Hashbon Rocket’s unique value proposition, users will be able to swap an ERC20 token for another token that is compliant with the BEP20 standard and vice versa while creating liquidity pols. As of now, Hashbon Rocket supports only two blockchain networks — Ethereum and Binance Smart Chain (BSC). Hashbon Rocket is part of the Hashbon FiRe (Finance Reinvented) ecosystem, an initiative that is aimed at revolutionizing decentralized finance.

Hashbon Rocket To Be Supported by PoS Consensus Model

Hashbon Rocket will run on a proof-of-stake consensus algorithm that will be secured by people known as “arbiters.” Users can decide to become arbiters as long as they hold the utility and governance token HASH. The amount of HASH tokens held by Hashbon Rocket determines the voting power of arbiters.

The role of arbiters on Hashbon Rocket is similar to the one played by miners on the PoW consensus model which the Bitcoin blockchain and some others utilize. They verify token swaps such that every confirmed transaction is reliant on the correctness of the information provided by an arbiter. If an arbiter provides the wrong information about a transaction, he gets penalized by losing a portion of the tokens staked as a bond. However, arbiters who submit the correct response receive a high reward.

The HASH token covers both arbitrage and staking fees indicating that it is a core part of the Hashbon FiRe ecosystem. Users can stake HASH to earn rewards or use them to apply for the role of an arbiter. Hashbon Rocket is poised to be a decentralized exchange where users can be assured of security and low transaction fees. There is no limit to the number of tokens that users can swap on the cross-chain DEX.

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