The exchange seeks to create a platform on which users can access decentralized and centralized services in a one-stop-shop mode.
Binance cryptocurrency exchange will launch a $ 100 million fund to attract developers to create decentralized applications (DApps) based on the Binance Smart Chain (BSC) blockchain. During a speech at The World of DeFi Summit, Exchange Founder and CEO Changpeng Zhao stated that Binance is committed to supporting and integrating the Decentralized Finance (DeFi) ecosystem with Centralized Services (CeFi).
Zhao said his company aims to create a platform through which users can access CeFi and DeFi products in a one-stop shop. Binance plans to integrate its users and assets into BSC and add DeFi project tokens to the listing.
Binance expects its blockchain to become a kind of bridge between the decentralized and centralized worlds. For this, the Token Canal initiative was launched, which will allow the transfer of tokens from public blockchains to BSC and vice versa.
On his Twitter page, the head of the exchange highlighted two benefits of integrating DeFi with CeFi. Firstly, “reputable” centralized exchanges worry about their reputation, and therefore check tokens before adding them to the listing. Secondly, using BSC, the user will be able to receive income from several tokens at once, instead of betting on one DeFi project.
To support the DeFi ecosystem, the exchange is launching a fund that will support DApp developers. BSC members will be able to participate in the distribution of funds. To participate in the program, the project will need to meet a certain set of criteria.
The projects selected by the community can count on grants of up to $ 100,000. According to Zhao, after additional checks, the exchange can provide such projects with access to liquidity by adding their tokens to the listing of the Binance platform.
As a reminder, Binance launched the BSC mainnet on September 1st. The blockchain is compatible with the Ethereum virtual machine, allows the creation of smart contracts and is able to run decentralized applications. BSC members can earn by staking BNB tokens.
Binance also announced the creation of the Binance Liquid Swap automated market making pool late last week. The pool works according to the model employed by the Uniswap decentralized exchange and its analogues.