Centralized exchanges are trying to create DeFi ecosystems for their customers for some time now. The Binance Smart Chain is certainly leading the charge, but HECO is also becoming a competitor in this space.
The HECO chain has attracted over $1B in TVL since February 2021 along with a lot of protocols and projects that launched on this chain. If you are looking to start farming on HECO in just 20 minutes here is how it can be done:
Metamask Setup #
Like with every other chain, you will need to configure your Metamask wallet first. This can be done by clicking on the “Custom RPC” or “Add network” button in the dropdown menu on your wallet.
From here you will need to enter the following information:
Network Name: Huobi
New RPC URL: https://http-mainnet-node.huobichain.com
Block Explorer URL: https://hecoinfo.com
All you have to do next is click on “save” and the Huobi network will be ready to use with your Metamask wallet.
Funding Your Wallet #
The best and easiest way to get some funds over to the Huobi network is through their exchange. If you have a Huobi account, you can purchase the Huobi token on the exchange and withdraw it directly to the HECO network. This is mandatory because transactions on the HECO network are settled in HT.
Bridging funds from other chains is also an option but there are very few bridges that support HECO at this time. YouSwap is one the few, and currently it only supports swaps from ETH mainnet to HECO.
Keep in mind that you will need some Huobi Tokens in your wallet even if you bridge Ethereum over to HECO because transaction fees are paid with HT.
When the funds finally reach your wallet you will be able to start farming. Vfat tools is indexing all available farming opportunities on HECO and you can always use it as a starting point. Once you make up your mind and choose a farm that seems appropriate you will need to add liquidity to it.
If we take ElkDex as an example, it offers triple digit apy for liquidity providers but only for certain pairs.
To reap these rewards, you will need to deposit the pair of your choice in a liquidity pool at a 50/50 ratio. This means that if you are depositing $50 of Ethereum in a ETH/BTC pool, you will also need $50 worth of Bitcoin.
After adding your liquidity, the protocol will give you LP tokens that represent your liquidity position. These LP tokens are then deposited to the corresponding contract of your selected pair on the farming page and once the deposit is confirmed the rewards will start accumulating.
Depending on the farm of your choice these rewards can be in many different currencies and tokens. It is always best to get very familiar with the project before participating in it.
Heco can be great for those that are seeking cheap transaction fees without a high emphasis on decentralization. It can help users get started with DeFi and experience farming for the first time without the need to invest a lot of money. Since the transactions cost a fraction of a cent users can start farming with just a few dollars.
As always, it is highly advised that users new to farming get familiar with the risks first. They should learn how impermanent losses, coding mistakes or simply malicious project owners can hurt their investment before putting money in such protocols.