Binance is willing to go big in the world of DeFi and is investing heavily in promoting its own ecosystem in a clear attempt to take some of the spotlights off Ethereum.
During an online panel at The World of DeFi summit, Changpeng Zhao (CZ), the CEO of the world’s largest crypto exchange by trading volume, announced the creation of a $100 million fund to promote DeFi projects running on the Binance Smart Chain.
“To bootstrap or to kick off the Binance Smart Chain, and to invite all the ecosystem players to start developing on Binance Smart Chain, we are launching a $100 fund for the Binance Smart Chain ecosystem and community.”
The Binance Smart Chain is a blockchain platform developed by Binance to support smart contracts. The main difference between this and the original Binance blockchain on which BNB runs, is that one is focused primarily on the rapid processing of payments.
In contrast, the new Smart Chain seeks to be the framework on which a broader set of applications are developed thanks to its support for more complex programs.
Nevertheless, even though they are very different products, Binance is making sure there is compatibility between the two blockchains, so users can transfer BNB or any other token from one chain to another with no problems or difficulties.
Binance Smart Chain Already Has the Attention of The Devs
Binance’s CEO explained that there is already a growing group of developers working on Binance Smart Chain, and commented that they are hosting a competition next week in which they expect “a few hundred DEXs, swaps, etc. to participate in order to receive funding.”
CZ explained that the first five DeFi projects on Binance Smart Chain would be launched before the coming weekend – Saturday, September 12. Of these, two are proposals for decentralized lending, two are automated market makers (Spartan Swap and Bakery Swap) and the last project corresponds to a protocol for decentralized auctions (Bounce.finance)
Given the huge announcements, Binance does not want to miss this new crypto world fever; however, CZ assured that his team is aware of the risks involved in DeFi:
“It feels like September of 2017 (…) The sentiment in the market is similar, and people’s reaction is similar (…) and I think that’s unhealthy.”