Decentralized finance (DeFi) has surged throughout 2020 and into 2021, with over $168 billion locked across various blockchains. Now, the Bitcoin Cash (BCH) network is joining the movement via the SmartBCH protocol. A newly launched decentralized exchange (DEX) called Benswap.cash enables users to earn yields through liquidity pools and swap tokens in a noncustodial manner.
Benswap.cash: The First Native DEX on BCH
Five months ago, the BCH community anticipated the launch of SmartBCH, a sidechain that combines Bitcoin Cash's security with Ethereum's EVM compatibility. SmartBCH has since matured, and Benswap.cash is the first DEX built on it. The platform functions similarly to Uniswap or Pancakeswap, allowing token swaps and liquidity provision. Users need a wallet like MetaMask configured for the SmartBCH network to interact.
Getting Started: Bridge BCH to sBCH via Coinflex
To use Benswap.cash, users must first convert BCH into sBCH (the SEP20 standard token) via the trading platform Coinflex. Registration requires only an email, and after depositing BCH, users withdraw as sBCH to their MetaMask address. The only cost is BCH network fees. Once sBCH is in the wallet, users can swap SmartBCH tokens such as $cats, arg, green ben (EBEN), honk, and more.
EBEN is the native governance token of Benswap.cash, currently trading at $2.48 with a circulating supply of 5.72 million, giving it a market cap of roughly $14.2 million.
High-Yield Liquidity Pools: APY Reaches 1070%
The annualized percentage yields (APY) on Benswap.cash are exceptionally high. For instance, the EBEN-BCH liquidity pool currently offers 1,070% APY paid in EBEN (minus fees). The $CATS-BCH and $CATS-EBEN pools offer APYs between 210% and 290%. As with all DEX platforms, these rates fluctuate over time.
It is important to note that Benswap.cash is a clone of Benswap.finance (on BSC), which is undergoing a Certik security audit—meaning the audit is incomplete. The project's creators remain anonymous and the platform is only a few months old. All DEX applications carry risks; users should exercise due diligence and never invest more than they can afford to lose.
The BCH community has been actively discussing Benswap.cash on Reddit (r/btc) and Twitter, hailing it as the first DEX built on the Bitcoin Cash network.