What I see from "air for big pie" is, when did the Binance Smart Chain have so many assets and players?
Produced | Odaily (ID: o-daily)
Produced | Odaily (ID: o-daily)
I don’t know if you have seen such a news yesterday. Someone used CAN (the token of the Cannon project) to short more than 3,300 BTCs on Venus, a lending platform on BSC. The market price of BTC is 38,000 US dollars, worth 125 million US dollars. panic among lenders.
But then, through the efforts of the community, Venus and BSC, the lender quickly returned the loaned "big pie".
This oolong is essentially caused by CAN’s private equity parties’ urgent need for liquidity, and it is another reminder of financial risk control in the process of DeFi innovation. At the same time, this incident also exploded a number of DeFi players who are making money on BSC, such as Shenyu, the founder of Yuchi, @CryptoApprentice,@superbitcoin, etc.
Unexpectedly, when many farmers were anxious about the rising gas fees of Ethereum, the high-end players had already moved to other "farms".
As an industry player said, "DeFi is still warm, but the value is escaping from the Ethereum ecosystem."
The BSC mentioned in the above incident is an ecological application public chain launched by Binance after Binance Chain. It is compatible with Ethereum EVM. It can be regarded as another form of Layer 2 expansion solution. It is also attracting attention at the moment when "gas anxiety" is spreading.
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Expansion into the "deep water area", is the Ethereum compatible chain ushering in a great opportunity?
Before continuing to welcome the mainstream crowd, DeFi products still have many difficulties to overcome, the most important are four points: cumbersome steps to use, low performance, high cost, and worrying security.
Among them, the continuous enhancement of security and the improvement of user experience cannot be achieved overnight. The security of the network or contract, in addition to requiring the project party to strictly complete the audit process, also needs to pass the double test of the market and time; and the optimization of user experience, the unique obstacles of encrypted native asset storage (such as remembering private keys and mnemonics) Words, accessing DeFi requires logging in to the Web3 wallet, etc.), it is difficult to solve in a short time.
Therefore, expansion solutions that improve performance and reduce transaction costs have become the direction of everyone's attention.
At present, the main DeFi projects are concentrated on Ethereum, and Ethereum has the lowest performance and the highest cost among all 2.0 blockchains. Therefore, the expansion is naturally carried out around Ethereum and its ecology.
The idea of expansion is nothing more than Layer2 scheme and cross-chain.
The Layer 2 solution includes state channels, side chains, Plasma, Optimistic, Validum, and zero-knowledge Rollup (ZKRollup). Cross-chain includes some cross-chain solutions (such as Polkadot's open heterogeneous cross-chain, Solana's wormhole protocol, NEAR Rainbow Bridge and BSC Bridge) and Ethereum-compatible public chains (such as Near, BSC, Oasis).
I believe many of you have heard of Polkadot, Solana and NEAR. Today we will introduce BSC, a public chain that has been a topic recently but you may still be a little unfamiliar.
BSC, the full name of Binance Smart Chain, also known as Binance Smart Chain, is the second chain launched by Binance after Binance Chain.
It and Binance Chain complement each other to form a complete ecology of dual-chain parallelism.
Binance Chain is built on Cosmos, focusing on efficient and low-cost decentralized transactions. Binance Smart Chain is compatible with the Ethereum Virtual Machine (EVM), and focuses on flexible programming and building applications, so it is called Smart Chain.
In September 2020, DeFi income farming was booming, and the timely launch of BSC quickly captured a large number of users.
According to the "October DApp Ecosystem Report" released by DappRadar, the number of daily active addresses on BSC has exploded. As of the end of October, the total number has exceeded 10,000, and the total transaction volume has exceeded 1.2 billion US dollars. Outstanding performance in all new public chains (other public chains except ETH, EOS, TRON).
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BSC daily Txs data, the picture is taken from: bscscan.com
By mid-December, Binance Wallet Trust Wallet released the platform currency TWT based on BSC, and airdropped millions of dollars of tokens to Binance trading users, which once again set off an upsurge of interaction. According to data from BscScan.com, on December 23, the daily transaction volume of BSC reached a historical peak of 470,000 times.
As of last week, on January 8, in order to meet the needs of users for regular investment and hoarding coins, Binance’s new currency mining section launched BTCST based on BSC issuance and anchoring Bitcoin computing power. Users can mine BTCST with BNB, BUSD, and BTC , 1 token corresponds to a computing power of 0.1Th/s and its income, and is tradable and liquid. This innovative gameplay has greatly mobilized users' enthusiasm for participation.
As of 18:00 on January 12, the BTCST mining pool has deposited 10.43 million BNB, 18,600 Bitcoin, and 186 million BUSD, with a total pledge amount of more than 1.255 billion U.S. dollars. situation.
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@CryptoApprentice said he didn't put BTC in Venus, so he put 3 million U…
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What is there to do on BSC?
You first need to buy a little BNB from a centralized exchange such as Binance and withdraw it to BSC as a subsequent transaction fee; your remaining assets, such as USDT, BTC, ETH and other mainstream assets, can be cross-chained through BSC Bridge Transfer to the BSC address.
BSC Bridge interface, the picture is taken from: binance.org
BSC Bridge interface, the picture is taken from: binance.org
The current implementation logic of BSC Bridge is a centralized operation, that is, the implementation logic of cross-chain transfer from Ethereum to BSC is as follows: the user transfers from the ERC20 address to the ERC20 address belonging to BSC, and then transfers to the official BEP address on BSC user. According to Zhang Xiaoguang, head of Binance Smart Chain ecology, the custody addresses on each chain are publicly available, and the address balance or transactions are also in one-to-one correspondence, and there will be no over-issuance or over-issuance.
According to the official website data, as of press time, BSC currently supports 42 currencies to cross-chain to BSC, the total value of cross-chain assets has reached 1.37 billion US dollars, and the total market value (peak value) of Binance BTokens has reached 556 million US dollars.
After entering the BSC ecosystem, you can perform various operations on Ethereum: trade on more than 10 DEXs such as PancakeSwap, provide liquidity and even yield farming. The tradable assets on it cover BUSD, renBTC and other common HODLers can also lock assets to Cream, ForTube, Venus for loans, and idle funds can be invested in income aggregators such as YFII, Beefy, dForce, and OpenOcean.
According to the map compiled by the community, the BSC ecology has initially closed the loop, such as wallets, oracle machines, insurance, payment, development tools and data tools, NFT and trading markets and other infrastructures have been put into operation. There are more than 100 ecological projects, and there are certain users and The volume of transactions reached 60 items.
Therefore, you can enjoy the same Lego combination as Ethereum here. Compared with some public chains that have cutting-edge products but lack ecological closed loops, the usability is greatly increased. This is the first bright spot I saw of BSC.
The second point that the author appreciates about BSC is that there are still some unique and easy-to-use products on it.
As mentioned above on PancakeSwap, the transaction on it is fast, the account arrives in seconds, and the handling fee is low. The actual measurement of a single transaction is between 40 cents and 90 cents. Exiting to avoid impermanent loss, the essence is that the low handling fee allows such an operation. If it is on Ethereum, when you want to withdraw coins, you will often be scared by the handling fee.
In addition to basic functions, PancakeSwap also supports users to mortgage LP tokens for liquidity mining. The mined platform currency CAKE can also be mortgaged to dig out some high-quality tokens in the BSC ecosystem (such as BNB, UNFI, BLK, HARD, VAI, TWT ). We checked and found that there are quite a few pools with an annual interest rate of 250%.
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Picture taken from: dappradar.com
Other interesting projects include the above-mentioned computing currency BTCST, lock BETH to BakerySwap to earn ETH2.0 Staking rewards + platform currency BAKE double income, and cooperate with Chiliz public chain, which focuses on blockchain + sports entertainment, Issue Chiliz fan coins on BSC, etc.
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Picture taken from: dappradar.com
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BSC's way of public chain
Through the product, we can roughly know the current development of this chain. In the longer term, what is the plan for BSC? How to make usability and differentiation in today's public chain gathering?
The positioning of the public chain is very important. If it is positioned for high performance, it may not be very attractive. Developers and users will still choose a public chain that is slow and expensive but has a complete system. If it is targeted at storage, the scope is still too large, as a senior developer said, "A chain that can store everything, how do I know what I should store, and why do I have to store it there."
It can be said that BSC has made great efforts in refining the cut-in scenarios for developers and users, and developing applications from 0 to 1 in a certain scenario.
Clear strategy: build financial infrastructure, create large-scale user scenarios and popular products
When talking about BSC's market strategy, Zhang Xiaoguang is very clear, making you feel that what you are doing is not a public chain, but a business with a clear model.
"In 2019, when we were doing Binance Chain, we focused on technology and assets. The next-generation DEX, what we need to do is to be quick and unbreakable. By doing BSC this year, we will focus on high-value assets and their application ecology. In addition to transactions, there should be more Many original gameplay."
Zhang Xiaoguang introduced his current main work in this way, "First, cross-chain or migrate assets and common applications on other chains to achieve basic composability. This is the first step. Then, our goal is to find different scenarios. Realizing and polishing the business model and making a benchmark product is like setting up a courier platform and delivering the first order, and the community and developers will jointly make the delivery bigger and stronger.”
For example, after BSC has opened up the mode of Bitcoin computing power chaining, it will be easy to wait for more computing power to be chained in the future. After BSC introduces the fan tokens of the Chiliz public chain, other fashion tokens and community tokens can be launched in the future in the same way. Therefore, this first order is the most critical.
In order to realize these small innovations, the BSC team and active community participants often look for new projects to research, and even dig deep into scenarios that do not yet have + blockchain.
"We position ourselves as a matchmaker. That is, we don't develop ourselves, but guide good and suitable projects to do it, and quickly verify the model through the accelerator fund, BSC, and the Binance ecosystem and community." Zhang Xiaoguang and The team is so clear about their roles.
He said that although it has not been online for a long time, the team has already explored many physical assets with poor liquidity in private chains and alliance chains, and found a large number of high-quality assets suitable for opening to more users. "There are also US stocks and real estate in the real world. You will soon be able to see them on our chain." Zhang Xiaoguang excitedly introduced them one by one, feeling that the listing schedule of these assets is full.
Be a public chain with services: help the project to promote and inject liquidity into it
Although the foundation has become the standard configuration of major public chains, how much support the leading party of the public chain will give to ecological projects depends on many aspects.
BSC's support for the ecology gives me the feeling that it has reached the level of "service and operation". This may benefit from the important experience accumulated by Binance as a leading centralized exchange for tens of millions of users.
According to Zhang Xiaoguang, first of all, Binance Main Station’s new coin mining, innovation zone and other sections will guide high-quality projects on BSC through activities or listing coins. A very fancy point.
Secondly, any project launched on BSC will be included in the public chain layout by the community and recommended to users in the BSC Daily.
After going online, BSC also wrote an operation experience document for the project party, providing guidance for those projects that focus on product construction and lack operational awareness, including how to write Twitter, interact with the community, and so on. If the volume of a certain project is not very good recently, and the promotion is not very active, BSC market personnel often ask why.
For projects in the initial stage of launch, Binance will also directly provide funds to increase token lockup and liquidity. For example, Binance has cooperated with PancakeSwap to allow users to mortgage CAKE to earn BNB (the pool value exceeds 100,000 yuan).
Under the diligent operation of the team, Zhang Xiaoguang said that the original plan was to achieve 20% of the transaction volume of Ethereum in the first quarter when the BSC chain was launched. Also maintained at more than 50,000 people.
Open and inclusive, cross-chain innovation: combine with other public chain ecology to explore future possibilities
As mentioned earlier, BSC has been looking for a suitable team to develop innovative applications on the public chain. Zhang Xiaoguang also shared some of their experience in selecting potential partners.
"Generally, it depends on whether there is an experienced technical master in the team. This is a foundation. Second, he has no financial background, which is very important. Now DeFi is no longer a single-point operation, but stacked and interactive. It There is no risk in a single point, so is there any linkage? So to make this product, you must have a certain overall view. The financial background can also help him discover more potential innovations in this market.”
Zhang Xiaoguang expressed an open attitude towards projects that have obtained grants, or more potential projects that may be migrated to BSC.
"If you develop on BSC, it will not limit you. We will also support many cross-chain solutions and cross-chain assets. We encourage you to interact with other ecologies. Therefore, BSC is the best place to try new ideas. It bridges The assets and traffic of Ethereum can also be understood as another kind of Layer 2. There are also many assets and applications on the chain itself, which are highly combinable, and there are users who are willing to participate. These can help you quickly and cost-effectively Verification mode, let your innovative ideas run quickly."
Zhang Xiaoguang’s words are not unreasonable. Although the Ethereum ecosystem is complete, it has long-standing disadvantages and retail investors are intimidated. BSC’s low-cost operation mode and strong support for new applications are a good choice for new product launches.
As of press time, the BSC Ecological Acceleration Program (valued at 100 million US dollars) has funded 3 batches of 15 projects. Projects supported by seed funds can also receive business development opportunities, marketing support, public relations, recruitment, Support from derivative resources such as peer support.
In addition to the Ecological Fund, BSC has also set up the "BUIDL Incentive Program" and the "Canal Program" to support ecological builders from all aspects.
"BUIDL Reward Program" means that BSC will reward developers who are active in the BSC ecology with more room for profit by rewarding 30% of the gas fee. As mentioned above, BSC will inject liquidity support into projects developed in the early stage, increasing Token lockup and liquidity.
The "Token Canal Project" includes not only the BSC Bridge mentioned above, the transfer of other encrypted assets to Binance Chain and BSC, but also the opening of the assets and high-quality applications on the Binance Chain and BSC projects to Ethereum, TRON, etc. Ecological users within.
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The DeFi ambitions of the number one centralized exchange
From self-built trading chains and ecological chains to the establishment of various ecological funds, the ambition of Binance All in DeFi, which started from CeFi, has become clear.
At the FAT summit on January 7, Binance founder Zhao Changpeng once again emphasized that he believes that "decentralized exchanges or decentralized financial services are the future."
"We may have a different philosophy from other centralized exchanges. We have been investing for the future. Other exchanges may hold onto this piece of cake because of their high profits and high user volume. But our The thinking is that we see what the future looks like, and we should subvert ourselves instead of waiting for the industry to subvert us. The centralized trading platform is just a transitional product, and the transaction scale of DeFi is likely to exceed that of centralized trading in 5 years platform.
At present, Binance is grasping both DEX and CEX and advancing together. If DEX increases faster in the future, Zhao Changpeng said bluntly, the center of gravity may also be adjusted accordingly.
"In the ecosystem of BSC or BC, Binance is only a small part; the role of Binance is to activate the entire community, and the rest of the core work development, etc., still needs to be done by the community; after the community can operate independently, the currency Ann will continue to provide support within her ability.”
Binance, can you create a brand new Binance in DeFi? let us wait and see.
