Binance Lunches Onto DeFi With Lending System

 

 Binance Lunches Onto DeFi With Lending System

 

• Binance continues its interest in DeFi with a lending platform supported by the Binance Smart Chain.
• The platform introduces Venus (XVS) governance tokens and VAI, a dollar-pegged token.
• Pre-mining will begin on Sept. 28, 2020 for the XVS token on the launchpad.

 

Binance has expanded on its goal to integrate DeFi by launching a Decentralized Finance Lending/Borrowing system.

 The Venus Protocol will feature Binance Smart Chain “v” tokens to compete with market protocols like Compound and Aave.

 

On Sept. 28, 2020, the corporate announced the VenusProtocol, a market protocol for its Smart Chain. The project will debut through the exchange giant’s Launchpad, a well-liked platform for brand spanking new tokens.

“@VenusProtocol’s money market and stablecoin issuance platform can bring DeFi access and yield to CeFi users to a larger extent.

We are glad to welcome Venus with its meaningful goals on #Binance Launchpool” - @cz_binance https://t.co/4IzTwjsOYK

— Binance (@binance) September 28, 2020

 

Decentralized Finance by Centralized Exchange

Though Binance is primarily known for its centralized exchange, it's also committed to participating within the DeFi space. Its DEXhas existed for over a year now. And consistent with Coingecko, it's the 26th hottest of such an exchange.

Top Reasons for Building DeFi on Binance Smart Chain https://t.co/Fd3D7HDxhu

— CZ Binance (@cz_binance) August 26, 2020

 

However, things have changed since the Binance Smart Chain went survive Sept. 1, 2020. This remake of Binance’s chain looks and feels tons like Ethereum, and came with opportune timing. The DeFi craze was full swing at the time, and users were handling high Ethereum transaction fees.

 

What’s more, Binance’s Panama system will eventually leave crossover and pegging of Binance assets to both the Ethereum and Tron networks.

.@PancakeSwap (not endorsement) is killing it on #BinanceSmartChain (endorsement). pic.twitter.com/OfCOukuX7y

— CZ Binance (@cz_binance) September 28, 2020

 

Since Sept. 1, some Binance Smart Chain Uniswap clones like Pancake Swap, Burgerswap, and Bakery Swap, have seen an honest deal of traffic (BurgerSwap is that the #11 hottest DEX consistent with Coingecko).

 

Binance Smart Chain offers an identical interface to ERC-20 and Ethereum-based tokens, including compatibility with wallets like Metamask and familiar 0x* addresses. Plus, the fees are low compared to the outrageous Ethereum fees seen during the DeFi craze.

 

Now, Binance is dipping its toes into the full-on decentralized finance lending and borrowing space.

 

While Binance’s explanation of the new protocol makes it sound almost like established DeFi lenders, there are some peculiarities with the tokens.

 

Similar to Compound’s ‘c’ tokens or Aave’s ‘a’ tokens, there'll be ‘v’ versions of tokens like vBTC which will fuel the platform. this enables users to integrate with the protocol while keeping their assets safe in their wallets.

 

However, Venus comes with a few of the latest tokens also, the primary is VAI, which may be a US-dollar pegged stable coin. consistent with Binance’s blog, users are going to be ready to mint VAI worth up to 50% of the collateral they hold on the platform.

 

As for governance, Binance is launching the XVS token. Since the success (and less extreme pullbacks) of YFI, LEND, and COMP governance tokens, it’s no surprise Binance is looking to stimulate their growth. XVS will keep the system decently decentralized as users will have the facility to vote on protocol changes.

 

Users will reportedly be ready to borrow and lend cryptocurrencies and stable coins over the protocol during a decentralized manner.

 

A start

While the project is analogous to competitors, users can get a start by mining XVS on the Binance Launchpad. Mining begins Sept. 29, 2020, at 0:00 UTC and can last 30 days. BNB, BUSD, and SXP are often staked on the platform (in fact, the launch is being operated by the Swipe (SXP) team).

 

On Oct. 6, 2020, the Venus (XVS) tokens are going to be available for exchange. Binance likely hopes this pre-market mining will attract users to the new platform.

 

While it’s the 8th largest centralized crypto exchange consistent with Cryptocompare, the company’s products (like Venus and therefore the DEX) are huddling on the brink of popular DeFi protocols.

 

Whether this is often merely a marketing strategy or will really catch on remains to be seen. Binance’s CEO CZ tweeted last year that within the end, the market will decide which protocols are best.

 

A few guys seem to be bent out of shape, take it easy. Don’t call it a DEX. Call it an exchange where users control their own funds, runs on a fast blockchain maintained by a number of nodes, plus a fast and easy UI. That’s it.

— CZ Binance (@cz_binance) February 22, 2019