The rise of decentralized finance (DeFi) has reshaped how users interact with digital assets, and the launch of the Huobi ECO Chain (Heco) has accelerated this transformation—especially for new and retail investors. In a recent Cointelegraph Chinese HUB discussion titled “Heco’s Pioneer Phase DeFi Projects and the Impact of the Ecosystem,” leading developers from LendHub, Basis Gold, SOVI.Finance, and Mdex explored how Heco is lowering entry barriers, driving innovation, and shaping the next wave of DeFi adoption.
With insights from core contributors across lending, algorithmic stablecoins, NFT gaming, and decentralized exchanges, this deep dive reveals how Heco is not just replicating Ethereum’s success—but redefining accessibility in the DeFi space.
Why Heco Is Changing the DeFi Landscape
One of the most consistent themes across the panel was accessibility. Sky, CTO of Mdex, emphasized that high gas fees on Ethereum have become a major deterrent for new users. “If a beginner’s first interaction with DeFi costs $10 to $50 in transaction fees, they’re likely to leave before even understanding the system,” he said.
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Heco’s low-fee environment changes that equation. With transaction costs often under $0.01, users can experiment, learn, and participate without financial risk. This shift isn’t just about cost—it’s about democratizing access to decentralized financial tools.
Moreover, Heco benefits from Huobi’s established user base and infrastructure. As Jimmy from Basis Gold noted, Huobi’s strong presence in spot trading makes it a natural fit for introducing its millions of users to DeFi. The ecosystem acts as a bridge between centralized exchange familiarity and decentralized innovation.
Mdex: Redefining DEX Experience with Dual Mining
Mdex stands out as a cornerstone of Heco’s DeFi ecosystem. Unlike traditional decentralized exchanges (DEXs), Mdex combines liquidity mining and transaction mining—a dual incentive model that rewards both liquidity providers and active traders.
Sky explained that this approach creates a self-sustaining loop: more traders increase volume, which attracts liquidity providers, further deepening market pools. The result? A total value locked (TVL) exceeding $900 million in a short time.
Mdex also supports a dual-chain model, operating on both Heco and Ethereum. This allows users to benefit from Heco’s low fees while still accessing Ethereum’s vast ecosystem. Future plans include transitioning to full DAO governance, launching an IMO (Initial Mining Offering) platform, and implementing buybacks and token burns to strengthen long-term value.
LendHub: Meeting Core DeFi Demand with Scalable Lending
Jason, core developer at LendHub, highlighted that lending is fundamental to finance—and thus central to DeFi’s appeal. LendHub launched on January 14 and reached over **$200 million in TVL within 72 hours**, peaking at $400 million.
This rapid growth stems from several factors:
- A proven lending model inspired by Compound
- Ultra-low transaction fees on Heco
- Strong security practices, including audits and open-source code
- Backing from Huobi’s ecosystem
Looking ahead, LendHub plans to introduce governance decentralization, allowing the community to vote on new assets and parameters. They’re also exploring collateralized yield mining for LHB token holders, expanding earning opportunities beyond deposits and loans.
SOVI.Finance: Merging NFTs, Gaming, and DeFi
While many projects focus solely on finance, SOVI.Finance blends NFTs, strategy gaming, and liquidity incentives into a cohesive GameFi experience. Leo, global community lead, described their vision: a living game world where player decisions shape evolving storylines and NFT utility.
Currently in its airdrop phase, SOVI has already seen massive engagement on Heco—over 600,000 transactions and 80,000+ token holders—far surpassing its Ethereum performance.
Their roadmap includes:
- Launching liquidity mining on Mdex by early February
- Introducing NFT gameplay mechanics one week later
- Building a community-driven economy where rewards fuel in-game progression
What sets SOVI apart is its narrative depth. Unlike static NFT collections, SOVI’s assets evolve with the game’s storyline, creating lasting value through engagement.
Basis Gold: An Algorithmic Stablecoin with Real Utility
Stablecoins are the backbone of DeFi, and Basis Gold offers a novel alternative to USDT and DAI. Jimmy explained that Basis Gold operates through three tokens:
- BAG: The main stablecoin targeting $1
- BAGB: Bond tokens used during price dips to reduce supply
- BAGS: Share tokens that earn rewards during inflation
When BAG trades below $1, users can buy BAGB at a discount, burning BAG in the process (deflation). When BAG exceeds $1, BAGB can be redeemed 1:1 for BAG, and BAGS holders earn newly minted tokens (inflation).
This self-correcting mechanism aims for long-term stability without over-collateralization. Future goals include becoming a benchmark asset on Heco, expanding to more DEXs, and achieving parity with major stablecoins.
The Broader Impact of Heco on DeFi Adoption
The panel agreed: Heco is more than just another blockchain. It’s a catalyst for mass adoption.
By reducing financial and technical barriers, Heco enables users with minimal crypto experience to safely explore DeFi. Combined with Huobi’s user base and educational resources, the chain fosters a more inclusive environment—one where quality projects can thrive without being drowned out by noise.
However, challenges remain:
- Ensuring decentralization despite centralized roots
- Encouraging cross-chain interoperability
- Sustaining innovation beyond initial incentives
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Frequently Asked Questions (FAQ)
Q: What makes Heco different from Ethereum for DeFi users?
A: Heco offers significantly lower transaction fees—often less than $0.01—making it ideal for small investors and beginners who would otherwise face high gas costs on Ethereum.
Q: How does Mdex reward both traders and liquidity providers?
A: Mdex uses a dual mining system: liquidity mining rewards those who supply assets to pools, while transaction mining gives MDX tokens to active traders based on their trading volume.
Q: Is SOVI.Finance only about NFTs?
A: No. While NFTs are central, SOVI integrates them into a strategic blockchain game with evolving storylines, community governance, and DeFi mechanics like liquidity mining.
Q: Can Basis Gold really maintain its $1 peg without collateral?
A: It relies on algorithmic supply adjustments via BAGB bonds and BAGS shares. Success depends on market participation and community trust in the protocol’s mechanics.
Q: Will LendHub support assets beyond Heco?
A: While currently focused on Heco, future upgrades may include cross-chain integration and support for bridged assets from other networks.
Q: What is the long-term vision for Heco’s DeFi ecosystem?
A: To become a self-sustaining, community-governed network that lowers entry barriers, fosters innovation, and serves as a launchpad for next-generation DeFi applications.
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Final Thoughts
Heco’s emergence marks a pivotal moment in DeFi evolution. By combining low costs, strong infrastructure, and strategic project incentives, it’s attracting developers and users alike. From lending and trading to gaming and stablecoins, the ecosystem is proving that accessibility doesn’t mean compromise—it means inclusion.
As these projects mature from “spark” to “wildfire,” one thing is clear: the future of DeFi isn’t just about technology. It’s about who gets to participate. And with Heco, that circle is expanding faster than ever.