Centralized cryptocurrency exchanges, OKEx, and Binance, are now jumping on the bandwagon of yield farming, the hottest thing in the DeFi.
After launching the mainnet of its smart contract-enabled blockchain and an AMM called Binance Liquid Swap recently, popular crypto exchange Binance released Launchpool to take advantage of the leading DeFi growth driver.
The exchange clarified that Launchpool is a new product, different from Launchpad, which will continue as normal, that allows users to earn yields from farming new coins while staking BNB and other digital assets. “BNB staked in Launchpool also counts for Launchpad,” it says.
Binance announced this latest product over the weekend, which will allow users to earn income by staking their tokens.
For now, users will be able to stake Binance’s native token BNB and its very own stablecoin BUSD, along with another token, ARPA.
Launchpool has also announced the first project it is hosting, which is Bella Protocol, which raised $4 million in a seed funding round led by Arrington XRP Capital last month. The project aims to enhance the user experience when interacting with DeFi assets by removing complex issues like high gas fees and hopping to different protocols in search of high yields.
Users can start providing staked liquidity this Wednesday for 30 days in three separate pools. A week from that, the exchange will list the BEL token against four crypto assets BTC, USDT, BNB, and BUSD.
Binance is offering BEL rewards at 90% for staking BNB, 9% for staking BUSD, and 1% for ARPA.
“If you think CeFi farming yield won't be higher than DeFi, think again,” said Binance CEO Changpeng “CZ” Zhao.
In decentralized finance, however, it can be much higher.