One of the key aspects in delivering broader adoption of blockchain technology and DeFi is interoperability, which FinNexus has been focusing on to provide greater value to its users. In this vein, the DeFi start-up is continuing on its cross-chain deployment journey, adding Binance Smart Chain (BSC) to the list of platforms where it will open liquidity pools. The decision has been taken after a community vote that saw overwhelming support for BSC over its Huobi’s Heco Chain, two of the largest and most active CeDeFi platforms on the market.
This announcement would be noteworthy solely on its own, but FinNexus is also planning to release the first-ever decentralized leverage token, ushering in new possibilities for its platform users.
Migration to Binance Smart Chain
FinNexus is planning to launch on BSC on March 29, offering its users the ability to interact with a much more efficient chain than Ethereum. BSC features a robust DeFi ecosystem, a large, active, and growing user base, much lower gas fees, and quicker transactions than Ethereum. By expanding to other chains, FinNexus’s goal is to establish itself as one of the preeminent DeFi platforms, especially among those working with derivatives.
From this perspective, BSC is the logical next step for FinNexus, offering many of the capabilities available on Ethereum within a low fee environment.
With the introduction of FinNexus and the FNX token to the BSC network, the total value locked within the platform should increase as more users get involved, potentially leading to a surge in the price of FNX, as its verifiably scarce supply may shrink with the additional demand.
Introducing Decentralized Leverage Tokens
Beyond expanding to a new blockchain, FinNexus is introducing a fresh, first-of-its-kind token. Inspired by centralized counterparts, FinNexus will be introducing decentralized leveraged tokens that allow users to easily gain exposure to leveraged positions without having to actively manage their positions. FinNexus’ iteration makes it easy for any user to get involved, whether they are bullish or bearish.
Leveraged trading opens up a lot of opportunities for users but is traditionally highly technical. With leveraged trading, investors can gain access to additional potential profits by trading with more capital than they initially possess. This opens up the doors for greater profit, but also for greater losses. If you are not an experienced leveraged trader, managing a leveraged position can be challenging and risky, which is why FinNexus wants to simplify the process with an easy-to-use alternative.
Utilizing these tokens, zero position management is required, offering market exposure without having to worry about collateral upkeep, margins, funding rates, or possible position liquidation. This in turn will make the leveraged trading process extremely straightforward – all you have to do is buy the tokens to take the leveraged position. Everything else is handled for you on the backend through preprogrammed smart contracts.
The launch of this new asset marks a turning point for FinNexus, shifting from a platform that mainly focuses on decentralized options and cryptocurrency staking to become an all-encompassing DeFi network.
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Published at Mon, 29 Mar 2021 10:46:48 +0000