Connect with us

Diversity in Tech

Lightening Cash – Solving DeFi’s Legacy Problems

The Ethereum blockchain is a testament to the power of the first-mover advantage. Nearly six years after genesis, the world’s first smart contract platform is still far and away the most popular dApp platform, with over 3,000 applications and more users than any of its competitors. 

Yet, paradoxically, Ethereum is a victim of its own success. The aging infrastructure is creaking under the weight of transaction volumes. Users have to tolerate slow block confirmation times, spiraling transaction fees, and no fixed date for when the scalability challenges will be solved. 

Furthermore, DeFi, which is by far Ethereum’s most popular use case, also comes with challenges. As a public blockchain, users can’t transact with any privacy on Ethereum. It’s true that the platform is pseudonymous, as it doesn’t require a user to give their identity to transact. However, if someone knows your public address, they can trace any transactions on Ethereum that involve funds going to or from your wallet. 

In an age when our privacy is becoming increasingly eroded by tech firms and governments, many in the crypto community consider digital assets to be the last bastion of privacy. However, the traceability aspect is a serious fly in the ointment. 

DeFi tokens are another issue. Popularized by Compound’s COMP token launch in the summer of 2020, many projects have since gone on to release their own tokens to be farmed through decentralized exchanges like Uniswap. However, the DeFi token trend is characterized by chart patterns showing an initial pump, and then a drop-off as users seek to dump tokens while the price is still high. Unfortunately, this makes many tokens a poor bet for anyone other than those who were quick enough to buy low and sell high. 

Introducing Lightening Cash

Lightening Cash is a new project taking aim at all of these challenges, with a privacy protocol based on the Binance Smart Chain, supported by a token model that uses elements of deflation and inflation to preserve high yields with a sustainable price. 

Firstly, basing itself on the Binance Smart Chain (BSC) rather than Ethereum offers many advantages. The BSC is a smart contract platform developed for scalability and low fees. However, it’s also compatible with the Ethereum Virtual Machine (EVM) and is designed with interoperability in mind. Since the advent of platforms like Polkadot and Cosmos, interoperability is becoming a matter of competitive edge and future-proofing. Lightening Cash is setting itself up for a long-term roadmap that will enable it to interact with other DeFi applications beyond the BSC. 

A Privacy Protocol for DeFi

Interoperability is a critical consideration, given that Lightening Cash is a privacy protocol that works for DeFi users. It’s based on the same technology as Zcash, using zero-knowledge proofs (ZKPs) to ensure that users can transact in private. 

A user will log into the Lightening user interface to carry out their transactions on DeFi applications based on the BSC or other platforms in the future. The protocol encrypts the transaction such that a validator on the BSC can confirm its validity without needing to know the details of the transaction itself. Because it’s encrypted, it’s not viewable on the BSC ledger. 

Along with offering users an assurance that they can transact with privacy, a protocol such as Lightening Cash can also help fight some of the unfair market practices that have become rife in DeFi. For instance, users deploy frontrunning bots on Ethereum that scan the mempool for profitable arbitrage trades waiting to be confirmed. The bot will try to usurp the trader by offering miners a bigger gas fee to verify their transaction first. 

Users will pay a small fee of around 0.1% in the protocol’s native LIC tokens to use Lightening Cash. Fees are then forwarded to the projects Treasury, to be used in its token model. 

A Balanced Token Model

The BSC is also home to one of DeFi’s newest billion-dollar babies, PancakeSwap. On February 18, the exchange became the second-biggest DEX by volume. PancakeSwap is also the exchange that Lightening Cash has chosen for farming its LIC token. 

Anyone who stakes liquidity in the LIC token pools on PancakeSwap is eligible to earn LIC tokens as a reward. We already know that this model puts inflationary pressure on tokens. To offset the pressure, Lightening’s token model involves using part of the Treasury funds to buy back LIC tokens to restrict supply and create deflation. In this way, Lightening believes that it can provide a healthy APY to stakers while maintaining a sustainable token price that deters dumping. 

With the Eth2 development roadmap still stretching at least a year or two into the future, it’s hard to say for how much longer Ethereum will remain the most popular platform. With competitors like the BSC boasting billion-dollar DEXs and now privacy protocols, together with EVM compatibility, there’s now every incentive for developers to turn to other platforms. 

Advertisement defi

Join Disrupt Magazine

Become A Disrupt Contributor

Most Disruptive

Real Estate Disruptors13 hours ago

From Nothing To The Top 7% Percent In Real Estate With Joe And Lety Torres

What’s your backstory?    (Lety) We both have parents who immigrated to the US from Mexico. We were fortunate to...

Social Media6 days ago

Khaby Lame Becomes The Most Followed TikToker in The World

Khabane Lame was a machine operator but now trending and just became a star from an account he created on...

Tiger_Shroff Tiger_Shroff
Entertainment7 days ago

Meet Bollywood Star Tiger Shroff

Tiger Shroff has a long history in the film industry, starting before his birth. With prominent parents in the industry...

Amanda Bernardo Amanda Bernardo
Women Who Disrupt1 week ago

Meet “The Pizza Princess” Amanda Bernardo

If you live in or near New Haven, Connecticut, you may be familiar with the hidden gem that is “New...

Shirley_Setia Shirley_Setia
Women Who Disrupt1 week ago

Meet Upcoming Bollywood Star Shirley Setia

Shirley Setia is the little Kiwi that could. Coming out of seemingly nowhere with a hit cover on YouTube, she...

two people shaking hands two people shaking hands
Diversity in Tech1 week ago

How the Best Leaders Create and Build Trust in a Modern Workplace

Being a leader in any setting can be challenging but within professional settings, you really are juggling a lot at...

Jay Majors Jay Majors
Executive Voice3 weeks ago

How Jay Majors Is Disrupting The Barber Industry

When we see a successful figure in any industry, learning their story, where they came from, and how they’ve struggled...

Daymond JOhn Daymond JOhn
Executive Voice3 weeks ago

Daymond John Can’t be Stopped

Perhaps you know Daymond John from the wildly popular show Shark Tank. Or maybe you’re familiar with his revolutionary clothing...

Finance3 weeks ago

Ryan Carroll Establishes Wealth Assistants to Serve as a Launching Pad for Hopefuls Worldwide

Countless highly accomplished personalities and established authorities have proven that the pursuit of one’s passion can be a way to...

Business4 weeks ago

Social Media Star, TheBlondeJon’s Journey from Homelessness to Multimillionaire Status

A strong self-belief in oneself is a powerful enabler no matter the obstacles or challenges one faces on a journey....


Copyright © 2020 Disrupt ™ Magazine - Disrupt is a Minority Owned Privately Held Company

Disrupt ™ is the voice of Latino entrepreneurs around the world. We are part of a global movement to increase diversity in the technology industry and we are focused on using entrepreneurship to grow new economies in underserved communities around the world. We enable millennials to become what they want to become in life by learning new skills and leveraging the power of the digital economy. We are living proof that all you need to succeed in this new economy is a landing page and a dream. Disrupt tells the stories of the world top entrepreneurs, developers, creators, and digital marketers and help empower them to teach others the skills they used to grow their careers, chase their passions and create financial freedom for themselves, their families, and their lives, all while living out their true purpose. We recognize the fact that most young people are opting to skip college in exchange for entrepreneurship and real-life experience. This Podcast was designed to give them a taste of that.