World’s largest crypto exchange, Binance, has awarded grants to six DeFi projects worth approximately $350,000 from its recently launched $100 million accelerator fund.
In a press statement shared with Bitcoin Exchange Guide, Binance revealed blockchain startups Proxima, AnySwap, PacakeSwap, Arkane Network, Bitquery, and BakerySwap had been awarded $350,000 as grants. The exchange also revealed that over 180 projects had submitted their applications for grants from September after the fund’s launch.
According to Binance, the six projects were selected through a process that involved the examination of the teams, the expected input or impact to the blockchain sphere as well as the products.
Changpeng Zhao, Binance CEO, expounded that the Accelerator Fund was launched to enhance the improvement or building of high-grade DeFi projects, which will play a role in enhancing the sector’s infrastructure.
A notable project that will benefit from the grant is PancakeSwap, which is an automated market maker, a peer-to-peer exchange that uses mathematical algorithms to get the value of a given token. According to Binance, PancakeSwap was ranked as the top project when it comes to liquidity. The project was also ranked high when it comes to the number of clients and gas fees. PancakeSwap also holds more than $218 million worth of smart contracts.
The funded projects are developed on top of Binance’s blockchain network Binance Smart Chain (BSC), which comes with low network fees.
The DeFi industry has witnessed a magnificent growth since 2019 to become a multibillion sector in the recent past due to high-interest products and the launching of non-custodial trading and lending.
Although almost 96% of the entire DeFi transactions take place on Ethereum, the platform has faced challenges due to its inability to scale and high fees. This has seen various firms enter the market to offer alternative solutions to Ethereum.
Binance Smart Chain (BSC) is highly scalable compared to Ethereum. Still, it comes with various centralized features leading to the firm developing centralized-decentralized finance (CeDeFi) for its offering.