4. Sphinx Hub Based on the BSC
The choice of the Binance Smart Chain as Sphinx’s Protocol Hub is mainly due to the following considerations.
4.1 Speed and Latency
At present, the richness of DeFi application types and the scale of assets carried on Ethereum far exceeds those of other public chains. Even at the early stage of DeFi development today, the Ethereum network has experienced times of serious network congestion. GAS prices have reached as high as nearly 1,000 GWEI. With the further expansion of DeFi's asset scale, there is a need for an immediately implementable solution. The Binance Smart Chain offers tens of times the network throughput of Ethereum at a tenth of the network cost. Because of this, it provides the basis for a low latency cross-chain communication protocol that satisfies the Sphinx protocol's oracle third principle.
4.2 Cross-chain Asset Completeness
Of course, providing a low latency oracle network does not meet all the requirements of an oracle. A direct price oracle requires miners to pledge corresponding assets on the network. Without the existence of underlying assets, there is no reason for an oracle to exist. The Binance Smart Chain solves this problem very well. Through the Token Canal Project & Panama Project, dozens of mainstream digital assets have been mapped on top of the Binance Smart Chain, such as; ETH, XRP, LTC, BCH, LINK, DOT, etc. Each digital asset has now reached thousands to tens of thousands of holders across a wide range of applications, providing the Sphinx oracle with enough price oracle assets.
4.3 EVM Compatibility
Another reason for the Sphinx protocol to run on the Binance Smart Chain is its full compatibility with EVM. This feature has allowed the Binance Smart Chain to reach nearly a hundred DeFi protocols just a few months after its launch, with hundreds of millions of dollars worth of cumulative locked-in assets and a lack of unified attack-resistant oracle solutions. The launch of the Sphinx protocol not only meets the needs of DeFi projects on the Binance Smart Chain It also paves the way for cross-chain oracles.