World-renowned cryptocurrency exchange Bithumb Global will be among the first set of exchanges to support Binance’s foray into the DeFi space.
The world’s largest cryptocurrency platform by trading volume, Binance, recently launched its DeFi arm known as Binance Smart chain (BSC). This is the exchange’s way of getting in on the fast-rising DeFi sphere. According to reports, Bithumb Global will support BSC with their already existing projects on its platform. The platform also disclosed that it has plans to harness the benefits of its collaboration with BSC.
About Binance Smart Chain
Binance is arguably the world’s largest crypto exchange by trading volume. Well known for its creative innovations in the crypto space, the exchange decided to hop on the DeFi train. The surprising surge in the decentralized finance (DeFi) sphere makes the launch of its DeFi platform even more important. Binance’s DeFi arm was named Binance Smart Chain. While the exchange is known for its myriad of features, its DeFi arm – BSC – tops the chart.
Launched on September 1, 2020, the smart chain was built to run side-by-side with Binance Chain. The smart chain will also aid the new staking protocol (PoS authority) for the Binance native token, BNB. Interestingly, new smart tokens can also be created using BSC.
The CEO of Binance, Changpeng Zhao, also confirmed the partnership on Twitter.
Not a small exchange! 👍 https://t.co/goiIN9XGfu
— CZ Binance (@cz_binance) November 10, 2020
About Both Chains
The major difference between Binance Chain and its smart chain is the smart contract feature. BSC essentially supports smart contracts and the subsequent creation of smart tokens, unlike Binance Chain. Notably, the smart chain also creates more use cases for BNB.
As the name suggests, the most promising feature of the BSC is its smart contract support feature. This will allow the creation of smart tokens on the platform, as well as increase the utility of the Binance Chain and the Binance token.
The smart chain will also facilitate cross-chain interoperability, therefore increasing utility on the platform. Most DeFi platforms have poor utility and are somewhat rigid. The cross-chain operability of the platform will ensure DeFi projects on the platform can easily interact with one another.
The smart chain will also enjoy more liquidity and better market access via the Binance decentralized exchange. Binance Chain will further ensure that smart contracts governance of the smart chain is truly decentralized.
Interestingly, BSC boasts of carrying out seamless operations with an impressive speed of 1 block per 3 seconds. Transaction costs are also fairly low, i.e., about 1 cent. Its low-cost and high-speed features are sure to attract larger transactions to the network. It would also aid cross-chain assets, subsequently improving interoperability on the platform.
BSC Accelerator Fund
To further attract investors to its platform, BSC decided to launch its Accelerator Fund Project. The exchange has separated $100 million for different DeFi projects on its smart chain. The fund will be directed at providing selected DeFi projects with much-needed liquidity. The BSC Accelerator Fund will also provide technical, developmental, and educative support to projects.
The entire accelerator project will be facilitated by the platform’s Automatic Market Marker (AMM).
BSC, since its inception, has received support from top projects in the crypto space. Binance community members also played a huge role in launching the platform. Top projects like DODO, WazirX, Gravity Network, VIDT Datalink NFT, and Swipe recently went live on the smart chain.
As a top crypto exchange, Bithumb Global has shown great interest in the DeFi space. The exchange has plans to launch several DeFi-focused projects including staking, derivatives trading, etc. Bithumb boasts of affiliation with top tokens like UNI, COMP, CREAM, CRV, etc. Projects on its platform, furthermore, include Hedget, UniLend Finance, and Mantra DAO.
At the time of writing, Binance token BNB was trading at $27.85 with a market cap of $4,119,833,230 and a 24-hour trading volume of $290,162,094.
Find out more about Binance’s DeFi arm, BSC, on the Altcoin Buzz YouTube channel.