It’s the dream of blockchain and crypto enthusiasts to live in a world where payments are made using DeFi applications and digital currencies. If you’ve followed this tech for any amount of time, though, you know a few kinks exist in the decentralized fantasy.
What are these kinks? They include unpredictable transaction fees, price volatility, and slow transactions.
These detractors have made many consumers shy away from taking the plunge into crypto. They’ve also rendered digital currencies impractical for daily use.
Ask any application developer, and they’ll tell you. Blockchain can prove challenging to integrate, too.
In this HoneySwap review, we’ll take a look at the xDAI chain’s approach to remedying some of these issues for a streamlined experience. Here’s what you need to know about this up-and-coming token.
What Is HoneySwap?
A part of the HoneySwap automated market maker (AMM) project, HoneySwap is a governance token designed for Binance Smart Chain as a SushiSwap-like DeFi project. At present, PancakeSwap remains the largest automated market maker (AMM) on Binance Smart Chain and takes the position of Uniswap.
If you’re new to cryptos, you may be wondering what automated market makers (AMM) are. AMMs are digital assets that can be traded automatically without permission by relying on liquidity pools rather than a traditional market of sellers and buyers.
The creators of HoneySwap have not only envisioned it performing like SushiSwap, but they foresee it delivering robust yields for liquidity providers on the HoneySwap AMM.
HoneySwap and xDAI
Now that you have a better concept of what HoneySwap is, let’s take a quick look at how xDAI fits into the mix.
The xDAI chain is well-positioned to enhance and work with the many Ethereum-based decentralized applications (dapps) currently being developed and used. It provides instant utility for a large number of blockchain developers.
Ultimately, xDAI is an EVM sidechain that’s fully compatible with Ethereum and Ethereum-grounded projects. For this reason, developers of existing Ethereum dapps can move effortlessly to xDAI.
The xDAI chain can be used with 1Hive’s HoneySwap and proves appealing because it still relies on the Ethereum blockchain as a sister chain or sidechain.
It’s also worth noting that swapping and transacting on the xDAI chain proves considerably faster and cheaper than sticking with the leading Ethereum network.
How to Use HoneySwap
To get started with HoneySwap, you’ll need a metamask wallet containing some Ethereum. Connect your wallet to the xDAI network.
Then, click on the circle on Metamask and select “add network.” You’ll need to add your network name, chain ID, symbol, and block explorer URL.
If you fail to add the correct information, you’ll receive a “wrong network” message when attempting to use HoneySwap. Go back and double-check that you’ve added the correct information in the right places to remedy this error.
Next, buy DAI on the Ethereum chain and convert it to the xDAI chain. You can purchase DAI on Uniswap and switch back to the Ethereum network option in your wallet. From there, you’ll convert Ethereum to DAI using another exchange, such as Uniswap.
You should use a bridge to transfer your DAI on the Ethereum network on xDAI. You’ll also need to add liquidity to a pool and will have many pairs from which to choose.
Purchasing Honey (HNY)
In your wallet, choose the xDAI network and buy Honey (HNY) on HoneySwap. Remember that the pool is split 50/50 between HNY and xDAI. Bear this in mind when deciding how much to swap.
Don’t neglect to leave at least one xDAI in your wallet, as you’ll need it for gas fees. From there, add to the HNY xDAI pair by clicking on the pool and adding “liquidity.” After you’ve chosen both HNY and xDAI as a pair, you’ll need to confirm and pay for the transactions.
After the swap gets approved, click on “supply” to place your pair in the pool to offer liquidity. At this point, you should see a screen that shows your pool allocations.
Congratulations! You’re now providing liquidity to the HNY xDAI pair via HoneySwap. What benefits will you reap by doing this?
On Uniswap, you’ll get UNI tokens as compensation for staking your digital assets. Moreover, you’ll see rewards for providing liquidity on HoneySwap.
HoneySwap Alternatives Worth Considering
Altcoins continue to gain traction, skyrocketing in price every day. Besides the exciting new potential with the HoneySwap (HNY) exchange, what are some other exchanges you need to pay attention to?
Most of the capital currently rests in several exchanges. They include:
- Uniswap (UNI)
- SushiSwap (SUSHI)
- PancakeSwap (CAKE)
- 1inch (1INCH)
- TrustSwap (SWAP)
Some of these are Ethereum-based while others are built on Binance Smart Chain. Regardless, they all do very similar things and are all worth checking out.
HoneySwap: The Takeaway
Are you interested in the HoneySwap token and the HoneySwap exchange? There’s plenty of potential worth exploring. The creators of the exchange and token continue to work towards mainstreaming decentralized finance.
Of course, you’ve also got alternative tokens, from Ripple to Ethereum and Tron. Before deciding on the right platform and token for you, do your research carefully. After all, the crypto market can turn on a dime, so you’ve got to stay on the front edge of this tech.
What’s the best way to do this? By checking in regularly with the Bitcolumnist blog. Get started now by reading about the CoinBene Cryptocurrency Exchange.
