Binance Smart Chain (BSC) Is Gradually Changing DeFi On-Ramp Dynamics
Binance, the leading crypto exchange, is gradually challenging the DeFi space with its newly launched Binance Smart Chain (BSC) and yield farming launch pool. BSC was launched at the beginning of this month as the CZ headed crypto exchange looks to onboard more people to the DeFi world. It has since gained traction despite strong criticisms at its debut; latest stats show that the transactional volume on Binance Smart Chain (BSC) is 14% of ETH while the platform’s native token ‘BNB’ market cap is 10% of ETH.
In a recent tweet, the CEO of Binance, Chao Zhao, welcomed more DApp developers to leverage BSC given it is Ethereum compatible.
Of course, love to see moe DeFi projects migrating over, and lessen the load on ETH, and hopefully, reduce the gas fees there a little too.
— CZ Binance (@cz_binance) September 13, 2020
According to CZ, high transaction fees and congestion on Ethereum will only make users flee projects built on the platform as opposed to mainstream adoption.
“If you are a DApp developer, do you think you will get more or fewer users/adoption when the transactions fees are 20x higher? #BNB100% EVM compatible, no extra work – for developers 20x lower fees, no congestion – for your users.”
CZ has, however, stressed in the past that BSC is not a competitor of Ethereum but an avenue to scale DeFi on-ramping. So far, the Binance launch pool features BNB, BUSD, and ARPA as the digital assets where users can earn income from staking within BSC.
The latest innovations by Binance are now disputing what most thought would be a short-lived future for centralized crypto exchanges when the Uniswap DEX came up. With Binance ahead of the pack, CZ had expressed confidence in an earlier tweet where he noted that ‘CeFi is about to give DeFi a run for its money.’ Well, a conclusive review of the progress would be a bit too early. Still, it seems the Binance founder might have hinted the future of DeFi adoption with the introduction of ‘CeDeFi.’