December 17th, 2020 at 12:01 pm UTC · 3 min read
On December 10, 2020 Huobi announced the official launch of its Huobi ECO Chain (HECO) test-net, a decentralized, high-efficiency and energy-saving public chain. HECO is the first product launched by the Huobi Open Platform, a unified infrastructure platform based on the technical resources, traffic resources and ecological resources of the Huobi Group, which is gradually opened to the blockchain industry.
Huobi is still widely regarded as one of the top cryptocurrency exchanges in the world based on reputation, volume, and ecosystem. The latter of which is quickly expanding as innovative projects look to work closely with Huobi’s talented team of developers to help further build out this expanding ecosystem.
The latest project to come to light is Fire Protocol, an innovative DeFi protocol which will help onboard non-Huobi assets via cross-chain solutions and an integrated trading and money market with lending and borrowing services. Fire Protocol was the first batch of developers invited to test HECO’s code and specs, leading to a strong decision to build on HECO. Part of the commitment to build on HECO includes the ability to work closely with HECO and Huobi in terms of technical development, co-building ecology, community support, and more.
To explain Fire Protocol’s technology, you can think of it as a combination of Uniswap plus Compound, with more powerful tools built-in. These include cross-chain wrapping, higher scalability and performance, and an efficient and low-cost on-chain environment for Dapps, smart contracts, and digital assets.
Another important part of Fire Protocol’s tech stack is their decentralized exchange (DEX) component called FireSwap. FireSwap will act as the infrastructure for HECO, providing fast and secure trading services for all HECO assets. Upon launch, FireSwap will offer high scalability, multi-asset exposure, and liquidity mining. The latter will allow users the chance to provide liquidity for trading parts in exchange for rewards.
The third important element of Fire Protocol is its Loan Platform that will support all HECO assets and open up a world of credit products for traders. Traders can also use HECO assets (including liquidity provider tokens) as collateral for lending and borrowing from Fire. The platform combines some of the most cutting-edge features currently in DeFi in an easy to use suite of products that are compatible with the most popular chains.
At the core of Fire Protocol’s ecosystem is their native governance token, FIRE. FIRE will represent voting shared which can be initiated by the token holder or even delegated to others. In order to participate in governance, users will need to stake tokens and later receive the ability to cast a vote. These votes will include things like product development features, incentivization programs, changes to the governance process, and protocol improvements.
FIRE governance tokens will also be the tokens allocated to the public markets where users can obtain the tokens for use on the platform. With a $2 million hardcap and an initial valuation of $10 million, Fire Protocol joins the shortlist of highly-anticipated DeFi protocol launches in 2020. FIRE tokens will be listed later in December 2020. More information can be found on Fire Protocol’s Telegram channel.