HALO Network brings a lot of revolutionary additions to the blockchain space, an ecosystem aimed at making the digital ledger conducive for DeFi dApps. One of such additions is seen in the blockchain’s main DEX, HOSWAP.
HALO Network’s decentralized exchange, HOSWAP, is launching the LP cross-chain function. The contract codes are already in place, but users will get to test the functionality sometime later.
What Is A LP Cross-chain Function?
To understand the importance of this latest feature on HOSWAP, some insight on LP cross-chain capability is needed.
An LP cross-chain functionality will allow a DEX to support LP tokens from multiple chains. So you can add liquidity on Uniswap and yield farm using the LP on PancakeSwap. It changes how we see liquidity providing. Currently, liquidity providers add liquidity on DEXs within one chain to use their LPs for whatever DeFi purposes. This will change with the introduction of cross-chain LP tokens.
How Would The LP Cross-Chain Function Work On HOSWAP?
Once the LP cross-chain functionality is activated, you can add liquidity on the chains supported and use the LP tokens generated to mine HO on HALO Network.
Recall that HALO Network is a blockchain that allows you to pledge HO/USDT LP tokens and mine HO tokens in the process. This is where HOSWAP’s LP cross-chain functionality gets to work.
You can create your LP token on the DEXs of supported chains and put it to use in mining HO on HALO Network.
What’s The Need For A LP Cross-chain Functionality?
With the existence of cross-chain communication between blockchains, many might ponder the purpose of an LP cross-chain functionality. Here’s why it is such a big deal:
Many users feel at home using certain decentralized exchanges. For instance, BSC might be a new blockchain, but certain users have gotten accustomed to that chain and its main DEX, PancakeSwap.
What HALO Network hopes to achieve through the integration of the LP cross-chain functionality on HOSWAP is to have these users not leave their comfort zone yet leverage the many perks of the blockchain.
Through this LP cross-chain functionality, you can add liquidity on that chain you’re familiar with, then proceed to use that LP token on HALO Network. The APY on the HOSWAP and HALO Network makes mining and farming activities lucrative on that blockchain.
Current Status Of HOSWAP
HALO Network’s main DEX only has the LP cross-chain functionality support for LPs generated from PancakeSwap. That means you can create your HO-USDT LP tokens by adding liquidity to the pool on PancakeSwap. Then proceed to use the LP on HALO Network.
Once the LP cross-chain functionality gets the green light, HALO Network will add more chains. This will put HOSWAP at the center of all these activities.
Besides this latest feature, HOSWAP has other novel attributes that make it a force to reckon with. The DEX’s support for two different modes – HMM nodal market maker and automated market maker which is not seen on any other DEX. It’s one of the first signs of the level of innovation the DEX brings to the De-Fi space.
Why Pledge LP Tokens On HALO Network?
HALO Network operates a distinct version of the POS consensus. Here, the blockchain's security is guaranteed through the staking of assets. For HALO Network, you have to pledge HO tokens or HO-USDT LP tokens, then HO tokens are mined and distributed amongst stakers.
The POS Node on HALO Network provides the opportunity for HO holders to assert their desires on the blockchain. Users can partake in governance proposals for the digital ledger through the POS Node setup of this blockchain.
Where Does HALO Bridge Come In?
With HOSWAP support for LP cross-chain functionality, where does HALO Bridge come in? The bridge is HALO Network’s solution to the calls for interoperability among blockchains. It’s through HALO Bridge that asset conversion is achieved. Users of different chains can utilize their resources freely across these networks.
The outstanding thing about HALO Bridge isn’t its capacity to convert these assets into their HALO Network equivalent, but the speed of the entire process. You can convert Bep-20 USDT to its HALO counterpart within seconds.
Despite how fantastic HALO Bridge might be, the few supported chains – Binance Smart Chain only – points to a bridge still in the works. There are lots of ground to be covered, and the bridge hasn’t scratched the surface yet.
Conclusion
The creation of the LP cross-chain functionality points to the interconnection of blockchains going forward. If this sails through, the harmonization of blockchain activities will kickstart the progress of the digital space.
DEX users can add liquidity anywhere and put it to work elsewhere. This will dismantle the stigma of TVLs, creating more organic growth of DeFi protocols. It is a step in the right direction. Fingers crossed LP cross-chain functionality becomes a staple across all chains.
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