Binance CEO Changpeng Zhao, known under the pseudonym CZ, announced that he would like to see more DeFi protocols on the Binance Smart Chain (BSC) platform. CZ attracted the attention of the public with this open invitation.
Responding to the words of another user on Twitter, Zhao said that while the overload in the Ethereum network should be reduced, it will also lower gas fees. According to CZ, Binance Smart Chain has won the hearts of smart contract creators with the extra options it provides:
BSC never tries to replace ETH. BSC is only ETH compatible. Smart projects give users more options. These options are less expensive.
Binance Smart Chain, launched on September 1 with a $100 million investment fund, is the latest product of the world’s most popular crypto exchange Binance.
Binance joined the DeFi space with “AMM”
This is not the first time that Binance has shown a high interest in the DeFi space. On September 4, the platform announced it has launched a “central” pool of automated market makers (AMM) that allows liquidity providers to earn interest and income from trading fees. The AMM pool, called Binance Liquid Swap, has different liquidity pools with instant token swap functionality. Binance says the AMM pricing model helps it provide “more stable prices and lower fees” compared to the order book model.
AMM exchanges use different algorithms or predefined formulas and combine liquidity to make markets. That’s why AMM exchanges help provide liquidity regardless of order size. Binance Liquid Swap will support three trading pairs for liquidity providers at launch: USDT/BUSD, BUSD/DAI and USDT/ DAI. Interest and transaction fee income is unknown.
Binance CEO Changpeng “CZ” Zhao said:
We hope to further the growth of the DeFi market through a centralized AMM pool. We look forward to providing liquidity in instant swaps as decentralized finance products attract more volume and participants.