DeFiChain connects with BNB Chain through its decentralized bridge
Bitcoin-based DeFi platform DeFiChain announced the rollout of a decentralized bridge that connects its own token and the whole ecosystem with Binance’s BNB Chain.
The feature enables users to swap tokens between chains within seconds, unlocking new opportunities for arbitrageurs and staking optimizers. DeFiChain users can bridge-in or bridge-out tokens between their native blockchains and BNB Chain via regular deposit and withdrawal functions.
The blockchain startup anticipates the new mechanism will help users bridge assets and offer low-cost transfer of liquidity between the two chains, which ultimately helps it attract new capital from the BNB Chain. In the future, DeFiChain also plans to release a direct bridge to Ethereum to facilitate such conversion with the mega DeFi ecosystem.
Regarding the development, Dr. Daniel Cagara, the Lead Project Owner of DeFiChain Bridge, said: “It has never been easier to enter the DeFiChain ecosystem from the BNB Chain. Now it’s possible for the BNB Chain investors to access DeFiChain’s high rewards and decentralized stocks. That allows users to leverage the benefits of both worlds without the need for centralized exchanges and the tedious processes involved in setting up the necessary accounts and credentials.”
DeFiChain activated the Fort Canning Road hard fork
DeFiChain has also implemented a brand new automated control system where the DFI will act as the bridge token to transfer assets between the two chains. The firm will not maintain a surplus of BNB pegged tokens, also known as wrapped assets, meaning users won’t be able to create a composite swap from BNB to dBNB. Instead, users can lock native DFI on DeFiChain to mint wrapped DFI on the BNB Chain, which they can convert to BNB or any other asset of their choice.
When users want to switch from the pegged tokens back to the original tokens, they can burn the wrapped DFI and get native DFI on DeFiChain.
The company indicated that as the bridge adoption grows, DeFiChain plans to make composite swaps possible by allowing users to automatically convert BNB to dBNB and ETH to dETH.
The new milestone comes shortly after DeFiChain activated the Fort Canning Road hard fork on its network. With the launch of its hard fork, DeFiChain is fixing the premium pricing issue of decentralized assets (aka dTokens) that users create on the platform. Citing a “constantly high demand,” the dTokens were trading at a 10-15% premium over the prices of underlying stocks.
This effectively held users on DeFiChain platform back from going long on dTokens – which are similar to stock market indexes in that they reflect the value of another asset, but are fully autonomous.