Bridge from ETH to BSC network

Here we have outlined use cases for the ETH -> BSC bridge and highlighted some of the main benefits of using this solution to migrate FLy tokens from Ethereum over to the Binance Smart Chain and vice-a-versa.

What is the value for FLy holders to use this service?

Ethereum is spoken of as the second major cryptocurrency. The second big player. Often, you'll hear "Ethereum has the most potential". Usually followed by "If they can fix the scaling issue". Since Ethereum became a respected and well developed blockchain protocol, its price increased significantly. The Ethereum network was highly utilised, swamped with a massive increase in usage of functions like token creation and smart contracts. When a blockchain based network using the POW model has high activity, the network fees for transactions increase. This is an effort to encourage people to wait a little longer to send their transaction. This in turn, increases transactions fees for trading on decentralised exchanges (Uniswap, Sushiswap etc), staking and liquidity mining. If, for example, the average retail user has around $2k worth of tokens and they would like to move their FLY tokens - they could be asked to pay $50 or even more if the network is extremely busy. This makes no financial sense at all. In many cases, you'd be throwing away any trade profit you'd made from trading.

The after-effects of this can be recognised in low user counts on small exchanges. This means low trade volumes and little to no profit to be made after a successful trade. Who, in their right mind, would want to spend 5-15% of their assets on transactions?

What can we do to solve this?

The ETH -> BSC bridge is being developed to assist customers in migrating their FLy tokens to and from the Binance Smart Chain. Last time we checked BSC has pretty low fees, like $1-3 per transaction depending on the size of the transaction. This should positively affect the trading volume on decentralized exchanges across the board.

PancakeSwap is a decentralised exchange for swapping BEP20 tokens on the Binance Smart Chain. PancakeSwap uses an automated market maker (AMM) model where users trade against a liquidity pool. These pools are then filled with the users' funds. They deposit them into the pool, receiving liquidity provider (or LP) tokens in return. They can use those tokens to reclaim their share, plus a portion of the trading fees. As of writing the PancakeSwap had $13,189,448.42 or 325 BTC in trade volume over a 24 hour period.

This addition to the FLy ecosystem will increase marketing activities, because more people will be able to buy a small portion of FLy tokens, which will increase the number of active FLy wallets. If users are forced to pay a high fee, they will often send larger transactions to make it worth it. We want users to be able to send smaller transactions for a reasonable fee.

A note about fees

Of course, the ETH -> BSC bridge is a service. Black Ocean charges 1% per transaction of migration. To support Fly token holders, if a customer holds more than 100k Fly tokens in either network, the fees will be reduced to 0.5%. The fees charged will be spent to burn FLy tokens which encourages deflation.

Summary

Users looking to trade or buy FLy, now have this service available. Building this will encourage new FLY token holders to join the ecosystem. The fees generated and paid to Black Ocean increase liquidity and encourage new token holders to get involved.