Bixin Ventures: Why we invested $10 million in BenFen

Author: Bixin Ventures

BenFen is an ecosystem based on stablecoins, consisting of the high-performance underlying public chain BenFen chain (underlying infrastructure), native stablecoin BUSD, BenPay, BenPay DEX, merchant services, etc. As countries introduce regulatory policies for stablecoins, we believe that the external environment for cross-border payments based on stablecoins is gradually maturing, and may partially replace the traditional payment system. BenFen is positioned as a Web3 version of the Swift system, focusing on stablecoin applications. Scenario, reshape the future of cross-border payments by building a self-built high-performance public chain.

TLDR

• Cross-border payment systems based on inter-bank communication networks have long settlement times and high costs. Payment systems based on blockchain can solve this problem.
• BenFen chain is the world's first stablecoin payment public chain, positioned as a Web3 version of the Swift system, specially designed for stablecoin payment and other scenarios.
• Focusing on high security, high throughput & low gas fees: BenFen chain uses the Move programming language and DAG-based enhanced consensus to achieve tens of thousands of transaction throughput, latency of less than 5 seconds, and gas of less than 0.1 cents fee, at the top of all public chains
• Innovative stable currency issuance mechanism and stability mechanism: BenFen permanently places 50% of the governance token BFC in the treasury to issue the native stable currency BUSD, and also designs a variety of stabilization mechanisms such as a flexible money supply mechanism and an exchange rate return mechanism. to ensure price stability
• BenPay: A super application that integrates deposits and withdrawals, exchange, pledge lending, offline consumption, and on-chain red envelope transfers. Compared with Ethereum and Solana, which use the governance tokens ETH and SOL as the first citizens, BenFen uses BUSD as the first citizen in the ecosystem and is used in various scenarios such as gas fee payment and in-chain staking.
• Smooth user experience: Supports zkLogin login, users can choose Google/Apple account to log in directly without cumbersome mnemonic phrases
• High-gold governance token BFC: Governance token BFC essentially captures the value of the entire BenFen ecosystem, including the BenFen chain, multiple stable coins (BUSD, BINR, BJPY, BEUR, etc.), BenPay DEX, BenPay, BenPay Card, Merchant Services. From a valuation perspective, the value of the governance token BFC should be the sum of the values ​​of all these projects
• Compared with other stablecoin solutions (infrastructure + stablecoin mechanism), the high-performance underlying public chain + native stablecoin BUSD solution launched by BenFen is superior in security, throughput, latency, gas fees, user entry experience, etc. Ahead of other solutions
• BenFen is a high-potential project in Chaoyang Circuit, with strong competitiveness, high customer stickiness, long track and large space. BenFen chain has strong performance, low latency, low gas fees, valuation is supported by income, and good user experience. It has built applications such as stable currency, payment, Card, P2P, and merchant services (Merchant), and the ecosystem is gradually prospering, with High investment value

Introduction to BenFen

Use stablecoins to solve the stubborn problems in cross-border payments: high fees and long settlement cycles

According to data from the Society for International Interbank Financial Telecommunication (SWIFT), traditional cross-border payments take 2 to 3 working days, and 5% to 10% of the total amount is required as payment fees. This model is costly and inefficient, seriously hampering the development of global finance and trade.

At the same time, because traditional cross-border payments rely on banking networks, and in some poor areas on the planet, banks have not opened operating outlets in those areas because they are unprofitable. This has also resulted in about 2 billion people without bank accounts. deprived these people of their reasonable rights and interests.

The payment solution based on blockchain and stable currency can solve the above problems. This solution usually consists of the underlying infrastructure (public chain) and the stable currency issued on the chain. The underlying public chain is similar to the SWIFT system, and the stable currency is similar to USD in SWIFT. The solution that combines blockchain and stable currency can achieve instant settlement (less than 1 second or a few seconds) and cent-level fees. It also does not require a bank account, which also means 7/24H global coverage.

**BenFen Chain: Web3 version of SWIFT system, a public chain specially

designed for stable currency payment scenarios**

The first thing needed to build a cross-border payment system is a safe, reliable, high-performance, and low-cost infrastructure, that is, the underlying public chain. However, existing public chains have problems such as low security, high cost, or weak performance. For example, the application development language of Ethereum, Arbitrum, and Base chains is Solidity, which is less secure than the Move language. Another example is Ethereum, which takes more than 10 seconds. delay and gas cost exceeding US$20.

In order to completely solve the above problems, BenFen chose to abandon building applications based on existing public chains. Instead, it decided to develop an underlying public chain based on the Move language from scratch and develop upper-layer applications. BenFen has assembled a team of nearly a hundred people and after more than two years of unremitting development, it has achieved a transaction throughput of tens of thousands of transactions and a latency of less than 0.5s. At the same time, components such as native stablecoins BUSD, BenPay, BenPay DEX, and BenFen Oracle have been developed. As a Web3 version of the SWIFT system, BenFen chain promotes the development of cross-border payments and is specially designed for stablecoin payment scenarios!

Achieving greater security with [**the Move programming

language**](https://static.benfen.org/whitepaper/BenFen-zh.pdf)

The Move language was early used in Facebook's Diem project. In terms of code, due to the strict type system, many common errors can be caught during compilation. At the same time, its unique resource concept can ensure that resources can only be used for set purposes and not for other purposes, thus avoiding reentrancy attacks, resource leaks and other problems. In addition, different control permissions can be set according to different groups of people, so that some unauthorized access can be prohibited.

The Move language advocates the adoption of immutable data structures and functional programming paradigms, which reduce code complexity. In addition, formal verification tools are provided, which can perform static analysis and verification on the code, and can discover and repair potential security issues.

Move also defines a set of languages ​​called Move Specification Language (MSL), which uses this set of languages ​​to ensure that programs can run correctly, reduce on-chain computing overhead and improve security. After the open programs are described by MSL and its specifications are defined, the Move to Boogie compiler is used to convert these programs into the intermediate verification language Boogie with formal semantics. Finally, an automatic theorem proving solver is used to verify whether the program complies with the specification.

The Move language can also rely on modular design, high-level abstraction capabilities, custom data structures, flexible permission control and cross-platform compatibility, making the BenFen chain flexible to meet the development of different applications. BenFen also provides a standard library, including more than 40 commonly used functional modules such as accounts, transfers, and transactions.

**Improved consensus mechanism and multiple fee optimizations to achieve

higher performance & lower Gas fees**

In order to achieve higher performance and lower Gas fees, the BenFen chain combines DAG-based consensus with no consensus. When users use their private keys to create and sign transactions, the transactions will be sent to every validator in the chain. Afterwards, the verifier performs a series of validity checks and returns the signed transaction to the client, after which the client collects responses from a majority of the verifiers to form a transaction certificate.

When transactions involving user-owned objects are involved, transaction certificates can be processed directly without waiting for the consensus engine to intervene. All certificates are processed using DAG's consensus protocol and executed by the verifiers of this branch. Each consensus submission forms a checkpoint, ensuring the long-term stability of the network. After the above process optimization, the BenFen chain can achieve a transaction delay of less than 0.5s and a transaction throughput of tens of thousands of transactions per second.

Source of this sub-chain flow chart: BenFen white paper

In terms of gas fees, the Move language itself adopted by the BenFen chain can significantly reduce gas fees. The object-based storage type and the adopted consensus mechanism can also reduce gas fees. Generally speaking, Gas fees are composed of computing fees and storage fees. The storage mechanism of this sub-chain provides storage fee refund when a transaction deletes previously stored objects. In addition to supporting BFC to pay Gas fees, this sub-chain also supports BUSD and BJPY for payment. Gas fee. After the above optimization process, the gas fee of this sub-chain will be less than 1 cent.

**No mnemonic required: supports zk-Login, users can log in through

Google/Apple account**

Traditional users often need to record mnemonic phrases when entering Web3. This cumbersome process hinders user adoption. The BenFen chain supports zk-Login. Users can log in with one click through a Google/Apple account without a mnemonic phrase, which greatly lowers the threshold for Web2 users.

zk-Login allows users to use a third-party to log in to OAuth to generate a local address. The OAuth provider cannot obtain the user's temporary private key.

zk-Login login interface Source: official website

**A native stablecoin that supports gas fee payment and on-chain

staking**

This branch will launch a variety of stable coins, among which BUSD is issued by pledging 50% of the BFC in the treasury, achieving flexible supply through BenPay DEX, and ensuring the relative stability of the exchange rate through a dynamic liquidity mechanism.

When minting BUSD, BenPay DEX will recycle BFC; when destroying BUSD, BenPay DEX will release BFC. In this process, the price of BFC will inevitably fluctuate. When the price falls, the system adjusts the depth downward; when the price rises, the system adjusts the depth downward. In terms of user experience, users pay BFC to obtain stable coins; users redeem BFC, and the system destroys stable coins.

BUSD Mining and Redemption Process Source: BenFen White Paper

In terms of the degree of deep adjustment, if the trading volume of BUSD increases, the system will automatically increase liquidity to reduce transaction friction. Conversely, if trading volume decreases, the system will reduce liquidity.

By dynamically managing the liquidity of Benfen, the Benfen stablecoin protocol can guide the price trend to a certain extent. For example, when the price rises, the system can provide more liquidity to restrain the rise. Conversely, when prices fall, the system will reduce liquidity to prevent excessive falls. The specific liquidity adjustment ratio is shown in the figure below.

Liquidity adjustment ratio

Regarding other stablecoins, we issue stablecoins in other currencies based on the native exchange rate oracle. Taking BJPY as an example, users obtain it through BFC casting or cross-chain exchange, and then mint BJPY through the price of the exchange rate oracle. When the user does not need BJPY, the user redeems BUSD at the current oracle price through the redemption process. At this time, the liquidity of BJPY in the market decreases.

**BenPay: A super application that integrates deposits and withdrawals,

exchange, pledge lending, offline consumption, and red envelope transfers**

BenPay is the core application of the BenFen ecosystem, with payment as the core scenario. In order to make it convenient for users to adopt, BenFen has developed a one-stop service. Users can use BenPay P2P service for deposits and withdrawals, use BenPay DEX to exchange for other tokens, and use BenPay Card for consumption and payment. Among them, BenPay DEX uses an oracle to obtain prices and realize spot and perpetual contract transactions. For merchants, BenPay has also developed an encrypted payment channel, BenPay Merchant, to help merchants collect payments and refunds.

During the bull market, many users do not want to sell their BTC, but want to have liquidity. At this time, users can use the pledge lending function in BenPay to pledge BTC to lend USDT. Users can obtain bBTC on the BenFen chain, pledge it on the BenFen chain, lend BUSD, and then convert BUSD into USDT through the BenFen Bridge and transfer it to the user's address on the EVM chain.

Schematic diagram of BenPay’s pledge lending function

BenPay has also developed a transfer function between users, similar to the transfer and red envelope functions between users in WeChat. When sending red envelopes, users can choose between ordinary red envelopes, lucky red envelopes, etc. The user who sends the red envelope designs the red envelope password, and then pays the gas fee to issue red envelopes to other users.

BenPay red envelope diagram

**BFC, a high-gold governance token, fully captures the value of the

entire ecosystem**

From a valuation perspective, the value of the chain is the discounted sum of gas fees received in the future, and the value of DEX is the discounted sum of transaction fees received in the future. The same is true for stablecoins, payments and other projects.

Compared with other chains’ governance tokens that only capture the value of the chain, BenFen’s governance token BFC captures the value of the entire BenFen ecosystem, including the chain, stablecoins (BUSD, BINR, BJPY, BEUR, etc.), BenPay DEX, BenPay , BenPay Card, merchant services, etc. Therefore, the value of BFC is the sum of the values ​​of all these items.

In addition, there are usually multiple projects with the same function on a chain, such as the DEX track. In addition to Uniswap, there are also Balancer, Sushi, etc. There is obvious value loss in the competition between multiple projects. Because the existing models on the market are relatively mature, such as the CLMM model of DEX. Therefore, generally speaking, only one product is developed for the same function within the BenFen ecosystem, there is no internal competition, and it has higher value capture efficiency.

**Diversified ecology: from deposits and withdrawals, asset transfers,

exchanges to offline consumption payments**

BenFen has a diverse ecosystem, including:

• BenPay DEX : A Swap application within the BenFen ecosystem that can provide transactions for multiple tokens
• BenFen Bridge : A decentralized cross-chain bridge that serves as a medium for users to transfer assets into the BenFen system
• BenPay Card : Users can use BenPay Card for offline consumption and pay through cryptocurrency. Users can recharge BUSD and make offline purchases. BenPay Card also supports other cryptocurrency recharges and multi-national fiat currency payments
• BenPay Merchant : It is an encrypted payment channel that implements more functions for users, such as purchasing BUSD with legal currency, instant transfers between users, merchant collection solutions, refunds, etc.
• BenFen KYC: On-chain identity authentication and authentication system, which aggregates the certification results of major KYC providers to achieve one-click query of multi-platform KYC and point-to-point identity verification.
• BenFen P2P : A secured trading platform that solves the problem of lack of deposit and withdrawal channels for users

Token functions and distribution

This sub-plan issues 1 billion tokens (BFC), including:

• 5% (50 million BFC) is used for staking rewards
• 5% (50 million BFC) is used for community incentives and sub-foundations to support and reward community contributors, as well as the operation and development of the sub-foundation.
• 84% (378 million BFC) are used for node rewards and are produced through node mining
• 16% (21.59 million BFC) belongs to the development team to encourage and support the contribution of core developers and teams in the continued development of the project
• 50% (500 million BFC) is used for the stablecoin treasury to maintain the price stability and liquidity of the stablecoin.

Investment logic and business analysis

Scale and potential: The total amount of stablecoin transfers may reach US$38 trillion per year by 2030

Judging from historical performance, according to Artemis data, in December 2024, the monthly settlement volume of stablecoins was US$5.1 trillion (equivalent to an average daily transaction volume of approximately US$170 billion), an increase from 1.2 trillion US dollars in December 2023 More than 3 times . The monthly settlement volume in December 2021 was only US$218.2 billion, an increase of more than 22 times in three years.

In addition, referring to VanEck's prediction for 2025, the daily settlement volume of global stablecoins is expected to reach a staggering US$300 billion , with the main increase coming from the adoption of some technology giants and payment networks (Visa, Mastercard, etc.). The cross-border remittance market will also explode. For example, stablecoin transfers between the United States and Mexico may increase fivefold.

Monthly stablecoin settlement volume Source: Artemis

From a longer-term perspective, according to statistics from the International Fund for Agricultural Development, FXC Intelligence and Statista, financial flows involved in cross-border commercial transactions, international commercial retail and global remittances will reach US$45 trillion in 2023, and by 2030 , this amount may rise to 76 trillion US dollars. Due to the instant settlement, low fees, 7/24-hour service, and transparent characteristics of stablecoins, they will partially replace existing payment methods. We assume that stablecoins will account for 10%, 20%, and 30% of the total in 2030. , 50% to measure the scale of stablecoin transfers. By 2030, the total amount of stablecoin-based transfers may reach as high as 38 trillion US dollars.

**Competitive landscape: USDT and USDC dominate, Solana, Base, and

Ethereum occupy the top three**

In terms of issuance scale, according to DeFillama data, as of January 2025, USDT ranked first with an issuance scale of US$ 137.8 billion , accounting for 66.7%; USDC ranked second with an issuance scale of US$45.8 billion, accounting for 22.16%; USDe ranked first with an issuance scale of US$45.8 billion, accounting for 22.16%. Ranked third with US$5.81 billion, accounting for 2.81%; DAI ranked fourth with US$4.48 billion, accounting for 2.17%.

Stablecoin competitive landscape by issuance size Source: DeFillama

In terms of settlement volume, according to Artemis data in December 2024, USDC’s monthly settlement volume was US$3.6 trillion, accounting for 71.6%, ranking first; USDT ranked second with US$1.3 trillion, accounting for 24.8%; DAI ranks third with a monthly settlement volume of US$87.6 billion, accounting for 1.7%.

Stablecoin competitive landscape by total settlement amount Source: Artemis

In terms of infrastructure, according to Artemis data, in December 2024, Solana ranked first with a monthly settlement volume of US$2.3 trillion, accounting for 45.1%; Base accounted for 17.62% of US$895.4 billion, ranking second; Ethereum ranked second with 8469 billion accounted for 16.67%, ranking third.

Stablecoin infrastructure (underlying public chain) competitive landscape Source: Artemis

Compare data with competitors

Due to applications based on stablecoins, in addition to the stablecoins themselves, they are also closely related to the underlying infrastructure (public chain). Therefore, we selected several stablecoin solutions with the highest settlement volume on the market as competitors of BenFen Chain and BUSD to conduct comparisons in multiple dimensions. These competitors are Solana chain + USDC, Base chain + USDC, Ethereum chain + USDT, and Tron chain

• USDT.

infrastructure

The infrastructure of stablecoins is mainly the underlying public chain, and its own security, performance, cost and other characteristics will affect the development of stablecoin applications.

In terms of security, compared to other solutions, the BenFen chain uses the Move language as the application development language. Due to the properties of the language itself, its security is higher than Ethereum and Solana, which use Solidity and Rust languages.

In terms of TPS, BenFen chain has tens of thousands of transactions per second, which is higher than other chains. The higher the TPS, the greater the settlement volume it can carry, and it can support larger-scale payment and transfer businesses.

In terms of latency, BenFen chain has a latency of 0.5s, ranking first in the industry. The lower the latency, the faster and smoother the payment experience users experience without having to wait for too long.

In terms of Finality, since the BenFen chain has a single-chain structure, Finality is almost the same as the latency, and it is in an advantageous position. Finality means the time that is actually recorded on the blockchain. The shorter the Finality, the shorter the time from transaction to entry (on-chain), the higher the security and reliability, and the better the user experience.

In contrast, L2 such as Base needs to transfer transactions to Ethereum and complete the final settlement (on-chain) through the Ethereum chain. Therefore, it is consistent with Ethereum's Finality and requires more than 15 minutes of settlement time.

In terms of gas fees, the BenFen chain has extremely low fees. The lower the fee, the easier it is to be adopted in actual payment scenarios. The BenFen chain can achieve a gas fee of less than 0.1 cents/transaction, while Ethereum’s gas fee is about $5.

Stable currency mechanism

Compared with other stablecoins that use US dollar mortgage issuance models, BenFen not only allows users to pledge their USDC at a ratio of 1:1 to mint BUSD, but also provides a BFC pledge and issuance model for BUSD.

In terms of anchoring mechanism, BUSD has designed a dynamic liquidity management mechanism, price guidance mechanism, gain depth adjustment mechanism, and arbitrage mechanism to achieve the stability of BUSD price.

User adoption

In terms of circulation, due to the recent launch of BenFen, the total circulation is US$1.83 million. USDT’s circulation on Ethereum is US$67.1 billion, ranking first, and its circulation on Tron is US$59.8 billion, ranking second. The issuance volume of USDC on Solana and Base is US$4.07 billion and US$3.46 billion, ranking third and fourth.

In terms of settlement amount, BenFen's BUSD has been ignored since it was launched shortly. USDC on Base performed well, ranking first with a daily settlement volume of US$28.9 billion, and USDC on Solana ranked second with a daily settlement volume of US$24.7 billion. The settlement volume of USDT on Tron and Ethereum is US$24.6 billion and US$10.4 billion respectively, ranking third and fourth.

Main competitors

Solana chain+USDC

Although the issuance of USDC on Solana is only US$4.37 billion, its daily settlement volume reaches US$ 24.7 billion. Solana chain and USDC's stablecoin solutions can achieve such excellent performance. First, Solana, as the underlying infrastructure, has high TPS and low gas fees, laying the foundation for the application of stablecoins. Secondly, Circle regularly discloses reserve details , and Deloitte regularly produces audit details , and most of the funds are managed by Blackrock to obtain returns. In terms of risk control, 68.94% of the funds mature within 1-7 days. Users can view relevant earnings on its website. Therefore, USDC has high transparency and compliance.

Blackrock’s liquidity management of USDC reserves Source: Blackrock official website

In addition, there is cooperation from Circle and the Solana Foundation, especially the incentive policies adopted by USDC. For example, some DeFi projects directly subsidize USDC to fund developers to develop applications on the Solana chain. In addition, the launch of the Cross-Chain Transfer Protocol (CCTP) has improved the liquidity and availability of USDC. At the same time, Circle simplifies the development of smart contracts, making it easier for developers to adopt USDC.

However, Solana uses Rust as its application development language, which is relatively less secure than the Move language.

Base chain+USDC

Base Chain and USDC As another stablecoin solution, the daily settlement volume has achieved rapid growth in the past few months, reaching 28.9 billion US dollars , ranking first, and this performance is only based on the issuance of 3.47 billion US dollars. superior.

In the second quarter of 2024, Coinbase's trading revenue fell by 50% year-on-year, USDC issuance shrank by 41% in five months, and the ETH pledge business faced regulatory pressure. Coinbase was in a difficult situation due to SEC accusations. Due to regulatory pressure, Coinbase had to fight with its last resort. Base Chain and other infrastructure are the focus of breakthrough.

As Coinbase continues to develop the Base chain, the total value of assets on the Base chain has reached 12.8 billion U.S. dollars, with the largest value being USDC, with a total of 3.448 billion U.S. dollars.

Base asset distribution on the chain Source: L2Beat

Overall, the Base chain + USDC stablecoin solution has many advantages. First, Coinbase’s resource advantages, Coinbase will spare no effort to support the Base chain. Second, there are barriers brought by compliance. Since the Base chain is backed by Coinbase, its compliance requirements are higher. Among stablecoins, USDC is more suitable for adoption on the Base chain due to its higher compliance. It also creates barriers to the entry of other stablecoins. Third, as an infrastructure, the Base chain has high TPS and low Gas fees, making it suitable for various applications of stable coins.

However, since the Base chain is developed using OP Stack and the application development language is Solidity, it is less secure than the Move language. At the same time, since the final chain needs to submit transactions to L1, making Finality consistent with the Ethereum chain will take more than 10 minutes. This process will reduce the stability and reliability of the entire system.

Ethereum chain+USDT

The Ethereum chain + USDT solution is an earlier stablecoin solution. Although the total issuance has reached US$67.2 billion, the daily settlement volume is US$10.4 billion, which is approximately 15.4% of the total issuance. In comparison, in the Solana chain + USDC solution, the daily settlement volume is 5.6 times the issuance, while in the Base chain + USDC solution, the daily settlement volume is 8.3 times the issuance.

Although the monthly settlement amount of USDT has a growing trend, the growth rate of USDT is obviously lower than USDC on the Solana chain and Base chain.

USDT settlement amount on the Ethereum chain (monthly) Source: Artemis

The main reason is that the Ethereum chain itself has problems such as low throughput, high gas fees, extended time, and long finality, which make users have great friction in using USDT, resulting in a greatly reduced adoption frequency. Because of these problems, the Ethereum chain itself will lag behind other high-performance, low-Gas fee public chains in terms of capturing the dividends of stablecoin growth.

Tron chain+USDT

Since the fees for stablecoin transfers on Tron are much lower than those on other chains, Tron has captured the big application scenario of stablecoin transfers. As a result, the issuance of USDT on the Tron chain reached US$59.7 billion, second only to the Ethereum chain, and the daily settlement volume reached US$24.6 billion, accounting for 41% of the issuance. Compared with Ethereum's stablecoin transfers that are driven by on-chain application needs, the main driving factor for stablecoin transfers on Tron is low fees, which is the preferred method for many users to switch from exchanges to on-chain. In the second half of 2024, Justin Sun proposed a Gas-free stablecoin transfer solution to meet the needs of the financial and payment fields. Driven by demand for stablecoin transfers, Tron’s on-chain users have exceeded 200 million.

For the Tron chain, its revenue mainly comes from two parts, the first is stable currency transfers, and the second is Meme currency transactions. Stablecoin transfers are Tron's core revenue source and have indispensable strategic value in the Tron ecosystem. Tron will definitely focus on consolidating this business.

For USDT, transfers on Tron are its largest application scenario, and its importance is self-evident. In the competition with USDC, USDC occupies a clear advantageous position on the Solana and Base chains.

Competitive advantages of BenFen chain + BUSD

Focus on the positioning of stablecoin application scenarios

The BenFen chain + BUSD solution focuses on stablecoin application scenarios, including PayFi, Card, Gas fee payment, P2P, etc., while other chains and stablecoins target all ecological applications, including DeFi, GameFi, Social, Meme, AI, etc., lack enough focus.

Integrated super application BenPay: integrating deposits and withdrawals, exchanges, pledged loans, offline consumption, and red envelope transfers

BenFen has built a super application BenPay with a complete closed loop and rich functions. Users can implement multiple functions such as deposits and withdrawals, exchanges, pledged loans, offline consumption, and red envelope transfers within the BenPay application. One application meets the multiple needs of users.

Security Advantages of Move Language

BenFen uses the Move language as its application development language. Compared with Solidity, Rust and other languages, it has special requirements in terms of security, such as strict type systems, resource concepts, etc., which greatly improves the overall security. Stablecoin applications are high-value applications, and security is the first priority.

Improvements in the consensus mechanism and cost optimization bring high performance and low gas fees.

The application scenarios of stablecoins require an underlying public chain with high performance and low gas fees. By improving the consensus mechanism and cost optimization, BenFen has achieved a throughput of tens of thousands of transactions, a latency of 0.5s, and a gas fee of less than 0.1 cents. Performance Far superior to the Ethereum chain. The excellent underlying public chain lays the foundation for the application of stable coins.

High-gold governance token BFC

Compared with the decentralized value capture mechanisms of other chains and applications, such as ETH capturing the gas fees of the Ethereum chain and UNI capturing the transaction fees of Uniswap, BenFen's governance token BFC can completely capture the value of the entire ecosystem, including the BenFen chain. , BenPay DEX, BenPay, BenPay Card, merchant services and other complete ecosystems. Therefore, its value is the sum of the values ​​of all ecological projects, and its gold content is higher.

Smooth user login experience: supports zk-Login, no mnemonic required to log in

The cumbersome mnemonic phrase has always been an obstacle for users to enter Web3 applications. BenFen chain supports zk-Login. Users do not need a mnemonic phrase and can enter the BenFen chain and the above applications with only a Google/Apple account. In contrast, other chain and stablecoin-related applications require users to record mnemonic phrases, and the operation steps are complicated, which greatly hinders user adoption.

**Driving factors and trends: the advantages of blockchain & stablecoins

themselves and policy support**

The advantages of blockchain & stablecoin solutions over traditional payments are highlighted

Blockchain has been operating stably for many years since the emergence of Bitcoin and Ethereum. Related applications of various stable currencies (Lending, DEX, Staking, etc.) including USDT, USDC, DAI, etc. have emerged in endlessly, which has basically proved the effectiveness of this system. Stability and reliability. Traditional payment systems such as Swift have been criticized by users for their slow settlement and high fees.

Therefore, based on the advantages of blockchain & stablecoin itself, it will replace traditional cross-border payment solutions.

**Policy support: policy support from the United States, Europe, Japan,

etc.**

With the end of the U.S. election, more than half of Trump’s team members support crypto assets. It can be predicted that as team members take office one after another, more policies that are beneficial to the crypto market will be formulated one after another. and enactment. At the same time, Europe also promulgated the Cryptoasset Market Supervision Act (MiCA). In addition, Hong Kong, Japan, Singapore, and the United Kingdom have all introduced stable currency bills.

The introduction of these policies and bills indicates that countries hope to regulate the development of the stablecoin market and make it develop in a more compliant direction.

Main risks

Centralization risk for validators

Since there are currently only 18 Active Validators, which is less than other public chains, there is a certain risk of validator centralization. However, Voting Power has a relatively even distribution, ranging from 2% to 10%. This distribution reduces the risk of centralization to a certain extent.

Distribution of Voting Power Source: BenFen Explorer

Security risks of smart contracts

The security risk of smart contracts is faced by all public chains and Dapps. Relatively speaking, because BenFen uses Move language as the application development language, the security of smart contracts has been greatly improved. However, due to the limitations of the smart contract itself complexity, there may be certain local security risks.

value assessment

The logical pivot of investment

a) Application scenarios based on stablecoins, including cross-border payments, P2P deposits and withdrawals, off-chain consumption, etc., are a rigid demand, and this demand is huge in scale and full of potential.

b) The policy side has been or will be liberalized. The formulation of policies and bills has laid the necessary development soil for the prosperity and development of the industry. Especially with the Trump pro-encryption team taking office, the policy advantages have gradually become more prominent.

c) The high-performance underlying public chain, multi-country anchored stablecoin combined with payment solution created by BenFen exactly meets the core requirements of stablecoin application scenarios, namely security, fast settlement, low fees, and smooth entry.

High investment value compliance assessment