Hdefi — The First Lending X DEX Platform Makes its Debut on Huobi ECO Chain

3 min readDec 22, 2020

Lending + DEX — The Next Big Thing in Crypto

The rise of DeFi is undoubtedly one of the most important events in the blockchain world in 2020. DeFi Pulse data shows that since the beginning of this year, the total lock-up value of DeFi has soared from 700 million USD to currently more than 16 billion USD. Also, this round of BTC bull market and the fast iteration speed and high composability of DeFi products make everyone look forward to the development of DeFi in 2021.

At present, in the DeFi world, lending and decentralized exchanges (DEX) are undoubtedly the two fastest-growing and largest sectors, and the total lock-up volume accounts for half of all DeFi projects. Many teams also started to explore the combination of the two, so LP Token lending came into being. LP Token is a market-making certificate obtained by users after providing liquidity in a DEX. It is proof for users to receive handling fees and get rewards in liquidity mining projects.

Three major advantages of the LP tokens

1. Significantly improve the user’s asset utilization rate. Compared with using stablecoins or other tokens as collateral assets, liquidity providers on DEX will not only participate in market making this wat but also stake the generated LP tokens and lend assets, which significantly increases the utilization rate of assets.

2. LP Tokens’ variety & options. Each different transaction pair corresponds to a unique LP Token. Compared with ordinary staking assets, there are more LP Token types, and the possibility of producing high-quality assets is greater.

3. Lend and mine at the same time. When using LP Token as collateral, the LP Token liquidity can also continue to be mined in the original liquidity mining project. So users enjoy double benefits!

However, looking at the entire DeFi industry, lending and DEX platforms are still independent and operate separately. We rarely see DEXs that include lending functions, and most lending platforms that use LP Tokens as collateral assets only use LP Tokens from other DEXs. There seems to be an invisible wall between lending and DEX, and it is difficult for the two to work together.

Hdefi Product Design

Hdefi’s design breaks this wall and allows the two major sectors of the DeFi world-lending and exchange to perfectly integrate and adjust each other to give full advantage to the combinable features of DeFi products and help users use every asset to the fullest.

Hdefi was officially launched on the Huobi Eco-Chain today, hoping to rely on the high performance of the Huobi Eco-Chain to bring users an extraordinary trading experience and tangible benefits.

The Hdefi platform is divided into three main modules: DEX, lending, and governance.

DEX

Users can exchange tokens and provide liquidity, that is, market-making. Hdefi also has a liquid mining project. After the market makers provide liquidity, they will receive a market-making certificate HDLP Token. HDLP Token holders are eligible to receive platform governance tokens HD as liquid mining rewards and commission rewards.

Lending

HDLP Token holders can borrow by collateralizing their HDLP Token, and users who lend out will receive high-interest rates. At the same time, both borrowers and lenders can get lend-mining rewards.

Governance

Users can post proposals or pledge to vote on proposals. Almost all indicators on the platform can be changed through governance, including interest rates, block rewards, and so on.

About Huobi ECO Chain

The Huobi ECO Chain (Heco) is a decentralized, high-efficiency, and energy-saving public chain. It is also the first product launched by the Huobi Open Platform. It supports high-performance transactions and realizes the compatibility of smart contracts.