What do early investors value most about BXH?

Recently, Winter, founder of Biki, and Wesley, founder of IDC capital, visited the online Salon of deep chain school, focusing on “what is BXH that early investors are optimistic about when its liquidity exceeds US $1.2 billion in 10 days?”. The following is the recap of sharing.

Winter: Hello, I’m Winter, the founder of Biki, which is headquartered in Singapore. As an old exchange, our platform currently has nearly 4 million users. Our businesses include spot, contract, ETF, lending and other decentralized businesses.

At present, decentralized business is mainly involved in the form of investment. Biki ventures has invested nearly 20 projects, with an investment amount of more than US $5 million in the first quarter, including spot DEX, perpetual contract DEX, NFT and social token issuance and trading platform, Dao open platform, decentralized insurance, etc., and is expected to invest more than US $20 million this year.

The key word of Biki ventures is investment + empowerment. At present, it mainly invests in potential projects in each chain, and uses the advantages and resources of Biki exchange to support its growth, such as operation, online exchange, cross chain, community, media, etc.

Wesley: my identity tag: a major mining user of DeFi, with $40 million + mining on the chain, from Sushi to BSC, and then to Heco.

In addition, I am a trader of Leotank, a North American hedge fund, and the founder of Infinite Decentralization Capital, a primary fund. I have participated in the early investment of high-quality DeFi projects including DODO, Litentry, BXH, etc.

At the same time, I am also the consultant of Supreme X, a loan project on OKExChain.

Deep Chain : first of all, there are so many projects in DEX track. What are the opportunities and reasons for winter and Wesley to invest in BXH?

Winter: Compared with Ethereum, many infrastructures of Heco ecology have not been formed and the basic track pattern has not been determined. Because the track where DEX is located is large enough, although the competitive products have a certain advantage in starting, but the entry angle is not the same, so there is still a great opportunity in the market.

In addition, in the past three years, I had a lot of business contacts with BXH team, and I recognized the team’s execution, momentum and experience.

Generally speaking, good market and good team.

Wesley: Because I’m a big miner, starting from YFI, Curve and Sushi, and then from BSC to Heco, I have asset allocation in every chain.

When BXH team found me, I found that MDex, the DEX leader on Heco, was not satisfactory. Moreover, I also believe that a mature public chain should not be dominated by only one DEX, but should have a decentralized exchange that can compete with it to make the whole ecology more healthy and rich.

At the same time, I think BXH’s team has a mature view on defi and decentralized exchange, and their technology and operation are also very experienced, so I think they can make a successful decentralized exchange project.

Deep chain: Recently, BXH’s popularity is very high. Only 10 days after the launch of Heco on March 23, TVL reached a maximum of US $1.2 billion. In Winter’s opinion, compared with other DEX on the market, what are the unique and attractive features of BXH?

Winter: I think in Heco, it’s undeniable that MDex is very powerful. His model has played a key role in establishing a virtuous circle in the early stage, but in the long run, it will also be his constraint.

In the design of BXH’s economic model, the needs of LP and users are relatively balanced. In the long run, BXH’s composability and openness will be stronger. This feature is very important in the field of defi, especially when projects on Heco break out.

For example, BXH gives LP service charge, while there is no service charge on MDex. Under the condition of similar transaction experience and transaction cost, the project will be more motivated to build a pool on BXH. Of course, MDex can also do it through follow-up subsidies, but it will be more centralized. BXH is more permissive, composable and open, and I think it will attract more partners. BXH can bring more profits to LP and attract more liquidity in the long run.

Deep Chain: as an investor of BXH, Wesley is also a miner of defi and a hedge fund trader. Would like to ask you, as a professional trader, what kind of DEX can become your first choice? In your opinion, what are the shortcomings of many DEX?

Wesley: the essence of a decentralized exchange is still an exchange. For an exchange, the most important thing must be the quantity and liquidity of tradable currencies, followed by handling charges and user experience.

Especially for me, if the depth and algorithm are not good, and the sliding point of trading is very worn, I will definitely not choose.

At present, the biggest problem of decentralized exchanges is not only the depth problem, that is, the sliding point problem of large orders, but also the big gap between the available trading tools and CEX, and the relatively high handling charges.

Deep Chain: at present, whether it is CEX or DEX, the head effect is more and more obvious. As the founder of Biki, winter must have a deep understanding. At present, old DEX such as Uniswap occupies a huge market share. In your opinion, how can new DEX like BXH stand out?

Winter: at present, the liquidity of each chain is fragmented, as well as the performance problems of Ethereum, it is difficult to unify the whole world. At present, in local markets, there are still opportunities and time windows to design the product experience, business model and technical path well.

BXH deeply cultivates Heco’s ecological users and assets, and quickly iterates its products, which is a good opportunity.

Deep Chain: Wesley, at present, apart from the DEX track, what other segments and products in the field of defi are you optimistic about? What is the reason?

Wesley: NFT, social money and computing power token. NFT has been very popular recently. Whether it’s art, blind box or game, a large number of regular troops have entered. After all, people in the circle have placed high hopes on attracting external traffic and funds.

The rise of fan economy and star effect will push the market value of social money to a new height.

But the first two are now very popular, and the calculation of computing power token has just begun.

Computing power can bring the world of Bitcoin to DeFi, followed by real assets rather than air issues. Among them, I prefer that BTCST on Binance represents real computing power, and TAU protocol is applied to BSC ecology. Using real computing power as endorsement to issue anchor algorithm stable currency is a huge innovation, and it must be an important part of BSC ecology in the future.

Deep chain: On the one hand, the development of DEX is related to the quality of its products, and at the same time, the quality of the environment also has a profound impact on it. I would like to ask you two, in the second half of this year, where will the market of the whole market go? During this period, as a start-up project like BXH, how should it deal with the market?

Winter: DeFi has indeed improved the efficiency of the whole finance. This trend is irreversible. The impact of the environment is certain, but as long as the product itself has been creating value and the agreement has sustained profitability, it will go through the bull and bear market.

BXH should continue to focus on how to create more value for users, better transaction experience, lower sliding point, lower transaction cost, better LP yield and more partners.

Wesley: personally, I think there may be a bull market for another two or three months. Of course, this is just my current view, not investment advice.

BXH works steadily, and helps Heco public chain to expand the ecology and increase the repurchase amount. It can develop and maintain the supporting trading tools and trading information, and give the market confidence, and it will certainly have further development.

Deep chain: Last question, would you like to talk about the relationship between DEX and CEX in the future? Is it possible for DEX to replace CEX? Why?

Winter: the efficiency of DEX in currency loading, liquidity, trading, operation and maintenance, security and other aspects has been greatly improved, and the marginal efficiency of long tail currency has been greatly improved in these aspects. CEX is more friendly in terms of transaction experience, cost and tools of mainstream currencies.

The two complement each other, with CEX as the leading and DEX as the auxiliary. We also see that CEX also has ways to complete its own ecological closed loop, such as public chain ecology, DEX and DEX investment. The two are integrated and coexist for a long time.

Wesley: I think DEX will complement CEX. The advantage of DEX is fast and anonymous. But it will not replace CEX in the short term, and I think the two exchanges are not antagonistic, they should meet the needs of different users.