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Huobi launches a DeFi liquidity mining pool to take on DeFi competition

Photo of: Dennis Ramos
by Dennis Ramos

This surely looks like the battle of titans which is Centralized exchanges versus Decentralized exchanges. Now that the reality has set in, Centralized exchanges are aware of losing grounds to DeFi protocols that are scalable, flexible, transparent, and most importantly have lowered costs involved with transactions. They have now realized that if they have to get back to their own game, they have to launch their DeFi products to get customers back. And at present what has grabbed all the eyeballs is the liquidity farming in the DeFi industry. 

Talking about big players, Huobi is a huge singapore-based crypto exchange that has made an announcement of a DeFi liquidity mining campaign that starts today. The users are incentivized because they will be allowed to stake Huobi’s native token HT. The new launch announcement has also mentioned that there will be an additional allocation of 5 million USDT worth of blockchain assets for liquidity mining. After this, there will be initiation of more rounds meaning there will be a total of 100 million USDT worth of blockchain assets anticipated. 

Rewards will be distributed to those who stake in the HP/HPT pools. HPT is the Huobi Pool token. The staking cycle will take place for 14 days and rewards will be generated from the Curve Finance pool as it appears. Depending on the success of this move, Huobi will keep expanding with more such products planned for the future. 

“The reward will be [a] certain amount of CRV that the token gained from mining. However, the actual reward may be affected by market volatility.”

The move comes at a close call with Binance’s announcement of its own DeFi products last week. As reported earlier by Bitreporter, Binance had launched its own Bswap which is an automated market maker. This will provide users with immediate liquidity and also enjoy lower fees at the same time. Exchange customers also can deposit BUSD, Dai, and Tether if they want to start earning interest in the provision of liquidity. The product has been designed mainly to cater to Uniswap users who can perform the same thing on the DEX but with a high gas fee.

Binance has been smarting out every other important link. With the launch of the Binance smart chain, it has targeted Ethereum to reduce transaction fees and surmounting problems on the Ethereum network. Binance smart chain that was launched on 1’st of this month will run alongside Smart chain and will enable smart contract creation and a staking mechanism for BNB.

Now that DeFi has pitched in great growth prospects, there is mounting fear of going obsolete. Hence in order to keep up, there is a need to come up with DeFi-friendly products. With such innovations, it is ultimately the users who stand to gain. Now with CeFi coming after DeFi to win, it is likely that new product launches and products might just be the latest news soon. But, it is great that with such healthy competition to better each other, users enjoy technologically advanced solutions to the old-school problems.