Six Reasons Leobridge will be successful

Background:

The Hive Community Leofinance is a second layer token of Hive. It exists on Hive-Engine, the side chain of Hive Blockchain. The Community token Leo is thus a Hive-Engine token and a Hive Token, which is traded on Hive-Engine Exchange. In order to sell the token on a larger exchange with a larger potential market Leofinance created a ERC token called WLEO. WLEO trades on the Ethereum blockchain exchange called Uniswap. This effort was successful with the price of Leo Token increasing by 4x and many new members joined Hive and Leofinance. The Leofinance Community creator subsequently developed a sign-up process via Metamask, a wallet for ERC tokens and Ethereum. This also provided cryptocurrency investors on Ethereum a easy entry point into the Hive and Leofinance Communities.

After this successful foray into the Ethereum Network, the Leofinance Community Creator decided to wrap the Leo Token again, but this time to trade it on another Blockchain Network called Binance Smart Chain. To do this he created the equivalent of a EThereum ERC Token on Binance Smart Chain a BEP-2 Token called BLEO. Thus Hive Community members could now participate in cryptocurrency trading on Pancakeswap, the largest exchange on the Binance Smart Chain. In addition, Leofinance created their own Decentralized Finance trading platform on Binance Smart Chain called Cubfinance. The Leofinance Community on Hive called themselves the Lions. This "Project" on Binance continues that Lion Kingdom theme with the name Cubfinance and the Mascot is a cute baby lion Cub. The token name for this project Cubfinance is called Cub.

Uniswap on Ethereum and Pancakeswap on Binance Smart Chain.

So at this point the Hive community Leofinance, and their second layer token Leo is traded on Hive-Engine Exchange, as a Hive token, and also on Ethereum Blockchain, as an ERC Token WLEO, and on the Binance Smart Chain blockchain, as a BEP-2 token, BLEO. Now as you know Ethereum is the home of Smart contracts and the second largest Exchange in all of cryptocurrency UNiswap. And Binance Smart Chain is the home to the largest Exchange in all of cryptocurrency called Pancakeswap. Coinbase which recently launched an IPO, which was the largest exchange in all of cryptocurrency is now the third largest exchange because of Decentralized Finance, and the success of Uniswap on Ethereum and Pancakeswap on Binance Smart Chain.

Ethereums Uniswap has been the largest exchange in the world due to it's successful rise to become the most popular decentralized exchange in the world with over 12 billion dollars of value locked in Smart Contracts. However Binance Exchange launched a side chain, like our Hive Engine Side Chain, called Binance Smart Chain, which shared Binance's singular focus. It only does decentralized exchange platforms. While Binance Chain is singularly devoted to a centralized exchange platform Binance Exchange. Pancakeswap, a decentralized exchange and forked of Uniswap's , open source code, has become more successful then it's predecessor Uniswap, and is now the largest exchange in the world, surpassing Uniswap in total value locked in Smart Contracts. Thus the world now has two Blockchains with a massive amount over 24 billion dollars worth of value locked in Smart Contracts in two Blockchain ecosystems Ethereum Uniswap and Binance Smart Chain Pancakeswap.

The Rise of Binance Smart Chain

The great news story for the Hive Community is that transaction fees on Ethereum have soared to very high levels, as the value of Ethereum the token, has risen this past 18 months with the Total Value Locked in Smart contracts on Uniswap. This created huge problem for small investors involved in DeFi on Ethereum, as the Ether token, which was once were valued at 100 dollars, is now valued at 2500 dollars, and paying fractions of this token for transactions which has increased in value by a multiple of 25x, has meant that the transaction fees are greater then the profits on the many trades or consumed large portions of those profits. In my opinion this has partially fueled the rise of DeFi platforms on Binance Smart Chain, a Economics 101 rule from college, build a cheaper, faster competitor and business with come, and it has come to Binance Smart Chain.

The huge need to move crypto from Ethereum to BSC

But this also meant that investors wanting to move from platforms on Ethereum to platforms on Binance Smart Chain, must perform a series of swaps and wallet transfers. This creates two big problems: First, cost in ethereum transaction fees. Second, these complicated swaps and moves to multiple wallet addresses could result in sending the cryptocurrency to the wrong wallet address. Thus the cryptocurrency would be lost for ever.

The role of the Hive Blockchains

Into this great cryptographic divide between the 12 billion dollar Ethereum DeFi economy and the 12 billion dollar Binance DeFi economy is a and that bridge is called LeoBridge. Leobridge provides And the LeoBridge provides a simple graphic interface to simplify this crypto movement, and limit errors, thus reduce capitol loss. Leobridge is built by Leofinance, a community on Hive. So now, in a manner of speaking, the bridge between the two largest exchanges in all of cryptocurrency is the Hive blockchain.

Can you say Utility Can you say Use Case Can you say Buy Hive and Leo now while they are cheap

Now, I told you all that, so I could tell you this, and now it will make perfect sense...

Leobridge: the bridge between Ethereum and Binance,

which passes through Hive, will be successful for six reasons that I can think of....

First, Ethereum Transaction fees are high,

...so traders and investors are moving their capitol to Binance Smart Chain.

Second, Risk of token loss is big...

In order to move tokens from Ethereum to Binance Smart chain, you must perform multiple token swaps and move tokens between multiple wallets...

...this creates the risk of loss of cryptocurrency in this swapping and moving from wallet to wallet means if you make an error.

.Some traders aren't trading at all right now because Etherteum gas fees are to high and the complexity of this movement across blockchains is to complex. So this means a reliable method will be saught to safely bridge the gap between these two huge economies. Leobridge performs all the swaps for these traders and takes all the complexity out of it. You trade whatever you have on Uniswap for WLEO, put your WLEO on the Leobridge and it comes out at the other end as BLEO on Binance Smart Change. As we say in America; "It don't get any easier then that..."

WLEO in and BLEO out. Easy Peasey, lemon squeezey. LOL :)

Third, Arbitrage Opportunity.

It will be the necessary to swap into WLEO to use the Bridge, and necessary to swap into BLEO on the other side of the bridge, to get onto Binance Smart Chain, then a sale of BLEO on BSC to get the original ETH, BTC, DOT, BAT or other token back. This brings great market forces to bear on WLEO and BLEO by increasing the volume of buys and sells of each of these tokens.

Example you have ETH on Uniswap, and you want it on BSC. You can go through Binance Exchange and use Binance Bridge, or you can stay on Uniswap, trade your ETH for WLEO, then use Leobridge to send your WLEO to BSC, having it swapped for BLEO and then you swap BLEO for ETH on BSC to start trading. They sound similar, but one involves you doing all the complicated swaps and performing multiple wallet transfers at the risk of your capitol, while the other is as simple as WLEO in and BLEO out. The automation does all the work.

The Arbitrage situation is created by:

This means lots of Buying of WLEO on Uniswap. This means lots of selling of BLEO on Pancakeswap/Cubfinance. This means lots of buying pressure on WLEO, so price goes up. This mean lots of selling pressure on BLEO so price goes down. This means price differential between WLEO and BLEO may grow, This means an arbitrage opportunity will exist by buying BLEO, swamping it for WLEO, swapping WLEO for ETh, then swapping ETH for BLEO.

Fourth, reverse arbitrage

First, Ethereum Fees will drive capitol flight from Ethereum to Binance Smart Chain. This also means that cryptocurrency transfer cross chains will drive capitol to flee over the simplest and most trusted route possible: That could be Leobridge.

Second, this capitol flight via the Leobridge creates an arbitrage opportunity between WLEO and BLEO.

Third, the arbitrage opportunity is just as complex as capitol fleeing Ethereum, but it's not one way, it's two way, and the most trusted and simplest way to move capitol both ways...is Leobridge.

See how great this is... I am smiling just writing about it.

Reverse Arbitrage creates buying pressure on BLEO. So price goes up. And it creates selling pressure on WLEO. So price goes down. So the arbitrage ETH to BLEO opportunity creates a second arbitrage opportunity going in the opposite direction, then the flight of capitol from Ethereum, this time from BLEO to WLEO.

Isn't this great? Because we are in the middle..being the middleman is sweet...ask your banker!!

Thats quite a twist to wrap your head around I am sure.

This will either nullify itself and result in no arbitrage opportunities on either side, or create a cycle of arbitrage opportunities like a teeter totter, with one side going up, the other down, then the other side going down and the opposite up.

Fifth reason, NFTs

The Hive Blockchain, has two NFT stores that I know of, possibly more. Once all this capitol starts moving from Ethereum to Binance Smart Chain, investors will invariably notice they pass by Hive NFT stores and they will see lower prices and cheaper fees. Hmmm that sounds familiar...lower prices and cheaper fees... where did I hear that before...Binance Smart Chain... the side chain that blew up into 12 billion dollars of value locked.

Do I have your attention now? Price sells. And trading at these Hive NFT stores is in Hive...so investors will need to buy Hive..and bring pressure makes prices go...wait for it...Up Up UP. Hive has fast free transactions and Ethereum does not.
So Hive and it's applications are potential pit stops such as the two NFT stores.

Think of Leobridge as a Interstate Freeway bring traffic to a rural area, suddenly there's lots of traffic with empty bellies and thirsty mouths. NFTs are crazy big on Ethereum, but gas fees are crazy big too. There are two NFT stores on Hive that may benefit from increased traffic, and that's just one example, and yet another reason for Leobridge to be successful.

Sixth reason, Splinterlands

Splinterlands was one of the first successful cross blockchain applications back in Steemit days, or Before Hive. It moved over here to Hive and has continued to be very successful. I think this will also benefit from the Leobridge because it is a popular game, and once people figure out they can trade ETH for WLEO, and WLEO for LEO, and LEO for Hive, and buy splinter lands cards... well more foot traffic in the Splinterlands store means more sales of Splinterland cards.

Some of you may think that those trades are to complicated and to numerous for this Splinterlands trade to occur. This means you don't know gamers. We thrive in a multiple step environment. We revel in complicated challenges. They make us smile when conquered. These trades will be child's play.

Summary

These reasons are what I think will make Leobridge successful: First, High Ethereum Fees Second, Popular DeFi yield framing nd lending opportunities on BSC Third, Complicated cross blockchain swaps and potential loss of cryptocurrency Fourth, Arbitrage opportunities between WLEO and BLEO Fifth and Sixth, They may come for Binance Chain, but they may stay for NFTs or Splinterlands.

What do you think?

Are these reasons valid?
Do you see flaws in my reasoning?
Lend me your brain and share your thoughts?

I think the future here looks so bright...I gotta wear shades! 😎

@shortsegments

Shortsegments is a writer who focuses on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance, where finance meets technology.

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