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Decentralized Finance (DeFi) has experienced phenomenal growth in recent years, but not without challenges!
Layer 1 networks, such as BNB Smart Chain (BSC), have seen congestion during peak usage, leading to high fees, slow transactions, and a suboptimal user experience. opBNB, a Layer 2 scaling solution, has emerged as a promising solution to address these issues and provide DeFi projects with the tools they need to thrive. In this article, we’ll explore what opBNB is and how it’s facilitating the future of DeFi.
The Congestion Problem on Layer 1 Networks & opBNB’s Role
Layer 1 networks like BSC are susceptible to congestion during periods of high demand, causing significant issues for users and developers. For instance, in 2021, a Web3 game on BSC generated over 8 million transactions daily, leading to a spike in gas fees and slow transaction processing.
This congestion underscores the need for upgrades to enhance the efficiency of Layer 1 networks, making a case for the introduction of opBNB.
Layer 2 scaling solutions built on top of Layer 1 blockchains offer a lifeline to DeFi projects looking to break free from the constraints of Layer 1s by offering high throughput and affordable gas fees.
opBNB is built on the OP Stack, designed to handle over 4,000 transactions per second (TPS). Gas fees on opBNB are remarkably low, meaning that the network borders on being gasless. These features make opBNB ideal for applications with high transaction volumes and demanding user experience requirements, such as games, social networks, the metaverse, and high-frequency trading.
opBNB in Action
As of 8 November 2023, Binance has added support for opBNB.
In October 2023, opBNB maintained an average of 61,081 daily active users.
Data from: opBNB Scan
The projects which contributed the most DAU in October included Polyhedra, Hooked, Cellula, Cards Ahoy and Dmail.
The average gas fees on opBNB remained relatively low, with the peak at $0.198 and the lowest fee for October hovering around $0.006.
Data from: opBNB Scan
The number of transactions processed on opBNB also saw steady growth, with October 19th marking the highest transaction volume for the month at 790,088 transactions.
Data from: opBNB Scan
DeFi Projects Building on opBNB
Several DeFi projects have recognized the potential of opBNB and are harnessing its capabilities to enhance the user experiences and overcome the limitations of Layer 1. Let’s take a look at a few of them:
PancakeSwap, a well-established decentralized exchange (DEX), recently deployed on opBNB.
The move aims to provide a low-fee, high transaction speed multichain DEX for the DeFi community, improving the user experience. Users can enjoy the benefits of over 4,000 TPS and reduced gas fees, all on a platform that maintains decentralization through Layer 2 processing.
PancakeSwap’s enhanced features on opBNB include:
a. Swap with low fees
b. Liquidity provision
PancakeSwap has also unveiled the sixth island in the “Traverse the Treasure Islands” Galxe campaign. As part of this, users complete token swaps and exciting social tasks to unlock exclusive NFTs.
Thena, a decentralized exchange and liquidity hub, leverages opBNB to address the challenge of cold start liquidity bootstrapping. opBNB’s speed and cost-efficiency align with Thena’s goals of facilitating liquid tradable markets for various assets. For DEXes with a large user base, the team at Thena also acknowledges that opBNB helped them curb substantial costs.
For those of you that want to try Thena’s integration on opBNB there’s an upcoming incentive to do so! Check out opBNB’s Airdrop Marathon, where Thena has something special planned for opBNB users.
KiloEx, a newly launched decentralized exchange platform, focuses on delivering fast trades, real-time market tracking, and a user-friendly trading experience. KiloEx’s integration of opBNB can enhance their users’ overall experience where users:
i. have full custody of their funds,
ii. are able to access median spot prices, mitigating “scam-wicks” while trading
iii. enjoy competitive fees
iv. are fully executing trades on-chain
v. are able to conduct copy trading in a decentralized manner. Users can follow professional traders’ strategy to making earning easy
Being an opBNB native project, KiloEx announced that they have an airdrop planned. This airdrop will be executed in stages to ensure that users can maximize their experience on KiloEx. Similar to Thena, KiloEx is also participating in opBNB’s Airdrop Marathon campaign. Be sure to check out their airdrop challenge.
DeFi projects old and new are embracing opBNB to enhance the user experience, reduce costs, and increase efficiency. As DeFi continues to evolve, opBNB will keep fueling the growth of the space by delivering greater affordability, scalability and reliability.