Binance Adds 1:1 Ontology-Pegged Asset to Binance Chain

Binance has launched a new crypto asset pegged 1:1 to Ontology called ONT-33D on its DEX using its new BEP2 standard. Binance plans to issue about 1.5 million ONT-pegged tokens and will continue to mint more in response to market demands.

Binance’s Focus On Increasing Wrapped Assets

Binance has recently focused on its DEX as one of the main core use cases of its Binance chain. The DEX currently boasts a trading volume of $400,730 over the past 24 hours. Binance could be taking a page out of Ethereum’s playbook, which sees DEX’s as among the blockchain’s top five use cases with Uniswap and Kyber having $10M of ETH in daily volume combined with a 4K+ combined user base.

When DEXs based on Ethereum s first took off, wrapped assets such as Wrapped Bitcoin (WBTC) saw an increase in popularity as users wanted ERC20 tokens while still having market exposure to BTC. Binance, similarly, issued BTCB, the BTC-pegged token on Binance Chain in July 2019, followed by the issuance of BEP2 assets pegged to other major cryptocurrencies including ETH and LTC.

Blockchain projects are encouraged to issue BEP2 assets on Binance Chain and list them on the DEX, offering their users with decentralized exchange services. As the market capitalization of these wrapped assets on Binance Chain grows, the amount of the underlying asset frozen will increase, hypothetically decreasing supply for the asset.

Binance will also add a node staking feature soon with the intent of integrating it with the Binance DEX, providing better DEX services for ONT users, and making it easier for them to have full control over their assets while participating in ecosystem governance. The ONT-33D token will initially be available on Binance or on the Trust Wallet app for iOS or Android.

Ontology’s Previous Collaborations

Ontology is a high-performance public blockchain and distributed collaboration platform with Layer 2 scalability. Ontology previously announced that PAX was chosen as the exclusive stablecoin to launch on their platform using atomic swaps and a bridge between Ethereum and Ontology.

Ontology, according to Dappradar currently mostly has games, marketplaces, and DEX’s featured as its core use cases. It remains to be seen whether listing on the Binance DEX will prompt more transactions on the Ontology blockchain fostering further use cases. With Ontology active addresses hovering around the 2K mark for the past two weeks, The effectiveness of Ontology’s bet on collaboration with other blockchains remains a venture that will have to prove the test of time. However, the venture may pave the way for future blockchain projects to collaborate to help usher in mainstream adoption.

This article was first published on: Apr 20, 2020