Sep 10, 2020 at 17:11 UTCUpdated Sep 10, 2020 at 18:01 UTC
Binance CEO Changpeng Zhao speaks during Consensus. (CoinDesk archives)
Binance continues to chase after decentralized finance (DeFi) by giving its new decentralized Binance Smart Chain (BSC) access to its centralized exchange (CeFi). The global cryptocurrency exchange giant is putting up $100 million to support DeFi projects on BSC.
- Binance CEO Changpeng Zhao announced the plan during the company’s World of DeFi summit on Thursday. It’s a “bridge” between DeFi and CeFi, an integration between Binance, the exchange, and BSC, the Binance-owned public chain.
- Binance’s users can benefit from elements of CeFi – futures, margins, savings, DeFi staking and DeFi pooling – and DeFi – lending, automated market makers, liquidity mining, yield farming – according to the company’s news release Thursday.
- This new plan targets Binance users who want to participate in DeFi without leaving the centralized platform.
- Under the new platform, holders of Binance’s native token, BNB, can have more rights to the decentralized governance of the BSC, which uses a Proof-of-Stake Authority (PoSA) consensus mechanism, when they participate in staking on the BSC.
- Since the popular crypto exchange first ventured into DeFi with its decentralized exchange in April 2019, Binance has continued expanding its footprint in this space.
- Earlier this month, Binance introduced a product called Launchpool to provide users a way to make income by staking tokens for yield farming – the trendy strategy to make profits in DeFi.
- It also launched a Uniswap-like DeFi platform allowing trades on an automated market maker (AMM).
Read more: For DeFi to Grow, CeFi Must Embrace It
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