Altcoins are leaving the HECO network due to its doubtful development prospects. One of the more promising directions for altcoin migration is the biggest DEX exchange in the BSC network – PancakeSwap. We’ll tell you what opportunities will arise for altcoin investors.
Key feature of the PancakeSwap platform is implementation of AMM (Automated Market Maker) with concentrated liquidity for maximization of the APR (Annual Percentage Rate) pool. Essentially, liquidity gets concentrated around a relatively narrow range of the current asset’s price, where the majority of deals take place. As a result it doesn’t just accelerate completion of operations, but also brings significantly more revenue to the liquidity holders.
For example, the recently launched Uniswap V3 ensures 5.5 times the revenue for the same amount of deployed capital. Or, while saving the same level of revenue, it requires the same amount of times less capital.
These technologies are being actively used by altcoins, which traditionally react faster to the new market initiatives. For example, just recently the Minto company had announced the final liquidity withdrawal of 2.4 million $BTCMT (around $1.5 million according to the market price of the token) from the HECO network and putting it into the BSC net, as well as transferring it into DEX liquidity of the PancakeSwap.
Minto believes that the time has come to minimize risks of losing liquidity related to the likely closure of the HECO network and the possible freezing of the assets in this liquidity.
Increasing the $BTCMT token’s liquidity in the PancakeSwap network will also increase the speed of completing operations with the token and reduce spreads in buying/selling the active. Thanks to implementation of concentrated liquidity in the PancakeSwap network, the range of operation spread with the $BTCMT token will be reduced to 10%.