Crypto exchange giant Binance transitions into DeFi with a new liquidity exchange token – Binance Liquid Swap .
With its newest offering, the automated market maker called Binance Liquid Swap, Crypto exchange Giant Binance explores the world of products of the DeFi type.
Binance will introduce a liquidity pool AMM, targeted directly at Uniswap and its clones, allowing users to supply liquidity via deposits. Like the most common decentralized exchange in the world, Binance Liquid Swap allows users to earn interest as well as cut trade fees for the pool.
Binance Liquid Swap is the first AMM pile product to be implemented in the Binance.com Exchange on a centralised platform that allows users to pool toks for incentives in their wallets.
Instead of an order book, the AMM uses a pricing module to offer the ads more predictable prices and lower transactions. Liquidity is given preference for their own tokens, so USDT / BUSD, BUSD / DAI, and USDT / DAI are the first batches provided for launch.
Earnings are multiplied by an annual percentage (APY) of the following 7 days and returns converted to assets in the relevant pools. The amount of assets in the liquidity pools shall decide the transaction fees and rates.
The new products to attract more volume and participants were reported by Binance CEO Changpeng Zhao:
“We hope to further the growth of the DeFi marketplace and empower our users with more earning power and easier liquidity through a centralized AMM pool with the credibility, safety and security provided by Binance,”
According to Uniswap.info, Uniswap is currently the world’s most common token swaping protocol and decentralised exchange with liquidity of over $1.8 trillion.
The second company within DeFi to be formed in a week’s time is Binance Liquid Swap. On 1 September, with the introduction of ‘Binance smart chain,’ Ethereum’s new smart blockchain compatible with the current financial chain was exchanged for crypto. The exchange aimed at Ethereum.
According to the firm, DeFi has optimised the blockchain, which has a low cost of 1 cent transactions. The network will generate a block every 3 seconds and offers BNB token staking rewards.