Binance supports Binance Smart Chain (BSC) with US$100 million, hoping to connect DeFi and CeFi ecology

image description

CZ at The World of DeFi Conference

It turns out that BSC's ambition is not limited to building a public chain expressway, but will also open up various public chains and become a bridge between expressways.

Some people in the community lamented: "BSC is doing a pioneering thing, breaking down the barriers between all public chains in one fell swoop."

secondary title

1. The super bridge between CeFi and DeFi world

The day before the news was officially announced, various communities in the blockchain were discussing this "pre-publicized secret". But no one knows what it is. Binance has many business lines, but some people still focus on BSC.

"Do you want to use BNB to mine on BSC?" "Want to issue Binance Swap?" "Issuing stablecoins on BSC?"

Everyone's speculation has become or will eventually become a reality on the BSC. Binance Smart Chain (BSC) is going to be a bridge between the DeFi and CeFi worlds, connecting all public chains and assets.

According to public information, BSC has recently launched the bridging project "Token Canal Project". Through Binance's safe custody service, various tokens currently on various chains can be bridged to BSC. For example, BTC on the Bitcoin network, ERC20 on Ethereum (ETH, LINK, USDT, DAI, etc.), XRP, BCH, LTC, ADA, DOT, XTZ, EOS, ONT, etc.

Not only that, BSC will also start the first batch of on-chain DEFI mining projects starting today, and support XRP, BCH, LTC, ADA, DOT, XTZ, EOS, ONT and other mainstream currency mining (subject to the settings of the DEFI project party) , which confirms the phrase "all public chains lead to Binance".

In plain language, you can transfer your various tokens to BSC to participate in various DeFi games such as AMM and liquidity mining in the future, and you can also easily transfer various tokens on BSC to Coin Enjoy spot, contract, Binance treasure and other products on the main website and other networks.

As long as you have a Binance account, you can safely and conveniently enjoy all CeFi+DeFi products and services with one click.

What does BSC's bridging project "Token Canal Project" mean? 

According to CZ's summary, the biggest advantages are 4 points: safe custody service, more comprehensive token cross-chain service, linked liquidity and privacy protection (no KYC required), etc.

secondary title

2. Seed fund of 100 million US dollars, liquidity of 1 billion, looking forward to the "hundred regiment battle"

CZ said that Binance will launch a $100 million seed fund to support participants in the BSC ecosystem.

BSC simultaneously launched the DeFi project solicitation contest today. High-quality projects can receive up to 100,000 US dollars in investment. The BSC community will participate in project construction as early investors and governance parties.

BSC not only participates in DeFi project governance through seed funds, but Binance Ecosystem will also provide all-round support and incentives to partners. Including: Binance's tens of millions of user base, media information within the ecosystem, knowledge education, incubation financing, derivatives, financial management and other comprehensive resources and financial support; in addition, it will also help DeFi projects conduct security audits. It is reported that BSC A security audit green channel has been established with Certik.

Binance will also provide early liquidity to projects that have passed security audits. It is not difficult to understand that early liquidity is crucial to project launch, and BSC hopes to help high-quality project launch in this way. Current liquidity can be checked on bscscan.

In addition to the earliest construction support of the project, if the project is outstanding, it can even be listed on the Binance centralized exchange.

One sentence summary:Binance and BSC will provide support, early liquidity, security audits, and even one-stop services for DeFi protocols.

At today's meeting, CZ also announced the latest 5 projects launched by BSC. They are the proxy mining projects Cream, ForTube, SpartanSwap, BackerySwap,Bounce.finance。

As of September 11, nearly 20 partners are currently deploying on the BSC. "Next week we will announce 10 new partners." CZ added.

The development of the matter is just like Zhang Xiaoguang, head of Binance Chain Ecology, predicted on the day of the launch: "The launch is just the beginning, and the next two weeks will be the busiest."

It is foreseeable that with such a large incentive and support mechanism, more project parties will join the BSC ecosystem in the future.

secondary title

3. The explosive growth potential of BNB

If you look deeper, this series of heavy operations of BSC is another powerful medicine for the long-term value of BNB.

The consensus mechanism adopted by BSC is Proof of Stake Authority (PoSA). This consensus algorithm is established on a network of 21 verification nodes. Nodes are rewarded with BNB by performing workload, and a block can be produced every 3 seconds. Currently, Look at both stability, high efficiency, and motivation.

The 21 nodes of BSC have been fully opened. As long as you have enough BNB, you can come to BSC to be a node.

Some people questioned that it is not good for me to put my BNB on the main station and enjoy the benefits. Why do I have to come to BSC to be a node?

Zhang Xiaoguang’s reply answered this doubt, “BNB stakers will enjoy all the benefits of Binance’s DeFi Staking in the future, including the benefits of BSC’s governance and the benefits of BNB DeFi products on Binance’s main site.”

In other words, BNB holders will not only enjoy the benefits of participating in the smart chain governance (Staking), but also the future rights and interests will be fully shared with the main station, including: the multiple benefits of BNB on the Binance main station, Binance Pool, Binance Mining, and BNB Staking Mining bring high annualized returns, etc.

As the only value token of the Binance ecosystem, BNB will easily cross CeFi and DeFi, while enjoying the scenarios and development dividends on both sides.

secondary title

4. Not only BSC, Binance wants to become a one-stop cross-chain DeFi aggregator

If you carefully study the DeFi layout of Binance, you will find that it is far more than BSC. Binance has layouts in transactions, wallets, stable coins, and pledges.

Judging from the latest Binance new coin mining data, the lock-up volume on the first day has reached 600 million US dollars. In addition, Binance already has Binance Mining (BSwap) and staking mining products to meet the needs of different users.

According to Binance insiders, future mining products are likely to be prioritized on the smart chain. Stablecoins and BNB will more directly capture the dividends of the DeFi world.

And according to informed sources, the BSC global community may launch its own Swap next week to participate in the BSC ecology.

Binance’s investment department also makes frequent moves. As of the end of August 2020, Binance has publicly disclosed that the DeFi start-ups invested include: DEX platform 1inch.exchange, collaborative analysis platform Dune Analytics, Injective Protocol, oracle machine Tellor, payment network Terra, derivatives Product agreement Strike Protocol et al.

Whether it is a wallet, protocol, or aggregator in the DeFi world, Binance may have the resources to do it by itself. However, BSC still chooses to open itself, welcome all DeFi partners to participate, and set up 100 million seed funds, 1 billion bridging assets to provide initial liquidity, "one-stop"
Services and other measures to vigorously support players in the BSC ecosystem.