A new platform has been launched by giant cryptocurrency exchange Binance to let its customers benefit largely from the DeFi services as DeFi continues to boom in the world crypto ecosystem.
Today, September 4, Binance declared to focus more on the DeFi sector with the release of a centralized trading platform christened Binance Liquidi Swap, a release has said.
Binance Liquid Swap, a platform dubbed as a competitor of Uniswap, lets users earn interest and enjoy instant liquidity as well as a reduced trading fee for pools. The platform is described as an automated market maker (AMM) pool product.
The Binance Liquid Swap is incorporated into the Binance exchange platform; hence users can pool their token on the exchange platform. When users pool their tokens on the Binance Liquid Swap, they earn reward via AMM pricing module approach, and this helps reduce transaction fees and stabilize prices.
However, the quantity of a user’s asset in the liquidity pool will determine the prices and transaction fees, thus, transaction fees and prices are subject to changes with swap, removal, or addition of assets in the pool.
According to the announcement, the maiden AMM pool product on a centralized exchange will focus on trading pairs USDT/BUSD, BUSD/DAI, and USDT/DAI for liquidity services.
A 7-day annual percentage yield (APY) is used to calculate users’ earning and users get their reward exchanged into their assets.
Binance said DeFi users will enjoy the sophisticated experiences on its platform in a more advanced way than the myriads of benefits they get from DeFi platforms.
According to the CEO of the colossal cryptocurrency exchange, Chanpeng Zhoa, users can now begin to enjoy a credible, safe and secure DeFi services provided by Binance via the AMM pool product. He said the new project will help Binance attract more users and volume in the crypto ecosystem.
The launch of the Binance Liquid Swap platform is coming about one year after it invested in DeFi protocols. Also, DeFi players such as Kava and Band Protocol have enjoyed benefits from Binance by launching their token sales on the Binance Launchpad.
Aside from the launch of the AMM pool product, Binance has also achieved a number of great things in the crypto industry lately.
In the last few weeks, over 20 DeFi tokens have been listed on the exchange and a DeFi Composite Index Futures contract was also released. Not less than 15 futures contracts have been offered on the Binance Futures, and DeFi earning opportunities have been given to users via the DeFi Staking.