Wrapped MetrixCoin in Binance Smart Chain and Ethereum
Decentralized Finance, or DeFi, has amplified the use of smart-contract technology to run automated agreements within decentralized applications (dApps). DeFi does away with intermediaries (e.g. centralized exchanges) to run peer-to-peer (P2P) transaction agreements between buyers, sellers, lenders and borrowers. The MetrixCoin project would like to introduce to the Metroid Community another use-case for wrapped MetrixCoin – participating in DeFi protocols within decentralized exchanges. Let’s start by addressing some questions regarding wrapped MetrixCoin and how to swap MRX from the native chain to MRXb and/or MRXe.
Why create wrapped MRX?
Wrapping MRX expands its utility and allows for:
MRX to be listed on Uniswap, PancakeSwap, InfinityCrypto, and other decentralized exchanges. This improves the accessibility to buy or sell MRX.
Opens the opportunity to listings and provide additional markets with decentralized exchanges at a lesser cost compared to centralized exchanges. Note: As most centralized exchanges support the Ethereum Main Chain and ERC-20 tokens, it is much easier for them to list MRXe than to list MRX on the native Metrix blockchain.
MRXe and/or MRXb may be used with other DeFi protocols, and to purchase NFTs.
Most importantly, wrapped MRX is in line with the MetrixCoin Vision: to create the environments for DeFi protocols on the BSC and Ethereum chain For Everyone, For Everything!
What does this mean for the MetrixCoin project?
The MetrixCoin community may now participate in decentralized exchanges’ DeFi protocols that use either the Binance Smart Chain (e.g. Pancake Swap) and the Ethereum Main Chain (e.g. Uniswap) while using MetrixCoin. Metroids participating in these DeFi protocols have the benefits of harvesting the fees and annual percentage yields as rewards for providing the market pair and liquidity. Our presence in Pancake Swap, Uniswap and other decentralized exchanges will increase the utility of MetrixCoin among all 3 chains.
Wrapped MetrixCoin may be considered as a payment method for NFTs.
To summarize, the bridging and wrapping of MRX will allow for increased exposure and accessibility for MRX and the MetrixCoin Project. Wrapped MRX is the entryway into Decentralized Finance general uses (exchange, Swap, invest and earn) and a mechanism for MRX holders to explore other blockchains while continuing to use MRX.
What is MRXb and MRXe?
MRXb and MRXe are wrapped versions of MRX that have been bridged to the Binance Smart Chain and Ethereum Main Chain, respectively. They may be used on those blockchains just like any other native BEP-20 or ERC-20 token.
What is a “bridge”?
A bridge is a smart-contract that functions like a real world currency exchange. For MRX, on one side, the bridge allows for deposits or withdrawals of MRX on its native chain, the MetrixCoin blockchain. On the other hand, it allows for deposits of withdrawals of MRXb on the Binance Smart Chain or MRXe on the Ethereum Main Chain. The bridge allows for a semi-custodial (soon to be non-custodial) and free (except for gas fees) one-to-one exchange of MRX from the native chain to wrapped MRX (MRXb/MRXe).
What does “wrapped” mean?
Wrapped means that MRX can be used on a blockchain that is not the native MetrixCoin chain. MRXe is wrapped for use on the Ethereum Main Chain. MRXb is wrapped for use on Binance Smart Chain. Similar to a wrapped present, what is inside the wrapping stays the same. You can always use the MRX bridge to get MRX back to the Metrix blockchain. However, the wrapping (paper, plastic, gift bag, etc.) can be different depending on which chain MRX has been wrapped in.
How will this affect the supply of MRX?
MetrixCoin wrapped products (MRXb and MRXe) respect our native coin supply. For example, 1 MRX from the native chain that is wrapped to the Binance Smart Chain will equal to 1 MRXb. Any amount of MRX from the native chain that is wrapped to either the Binance Smart Chain or the Ethereum Main Chain will be held in a smart-contract. When wrapping MRX to either Binance Smart Chain or Ethereum Main Chain, an MRXb or MRXe token will be minted. The smart-contracts involved in wrapping are auditable by the public to view transactions from all 3 chains. When unwrapping, the minted MRX will be burned. For example, when unwrapping 1 MRXb to 1 MRX, the 1 MRXb will be burned and the held MRX will be deposited. Note: Wrapping MRX may lower the network weight on the native chain thus allowing for stake nodes, or validation nodes, within the chain to be selected more frequently for block validation. This will permit for a higher value of stake reward.
MetrixCoin wrapped products offer the opportunity for the Metroid community to participate in DeFi protocols found at decentralized exchanges. Metroids may now be able to provide liquidity and be incentivized trade fees, and recieve liquidity provider tokens.