Binance has its own smart contract platform and it is currently booming on a large scale. In particular, applications from the field of decentralized finance (DeFi) use the Binance Smart Chain (BSC). We take a close look at five of the most promising BSC projects.
The fact is that the Binance Smart Chain has the second largest DeFi sector in the crypto space after Ethereum (ETH).
The BSC’s DeFi protocols already manage over US $ 4.2 billion.
The Binance Smart Chain has grown enormously, especially in the last few weeks.
The BSC basically works exactly like the Ethereum Blockchain and is also compatible with it. However, transactions can be carried out much faster and cheaper on the Binance Smart Chain. In view of the fact that Ethereum is unable to accommodate the large volume of transactions that the DeFi boom has brought to the blockchain, both users and operators of DeFi protocols are looking for alternative solutions – this is exactly the alternative they want the BSC offer.
In the following we take a look at the five most promising projects of the BSC.
1. PancakeSwap (CAKE): Decentralized exchange
PancakeSwap (CAKE) is a decentralized exchange (DEX) which, in terms of its functionality, is almost identical to UniSwap (UNI) and SushiSwap (SUSHI). In addition, PancakeSwap also offers other DeFi services.
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Some of the functions that are supported, for example, are simple token swaps, lending and yield farming as well as the so-called PancakeSwap lottery. In this, users can purchase tickets and have the chance to make big crypto profits.
The main difference between PancakeSwap and Ethereum DEXs is that transactions on PancakeSwap can be executed much faster and cheaper thanks to the BSC.
The disadvantage is that the Binance Smart Chain is not nearly as decentralized as Ethereum and therefore not quite as secure as ETH.
Still, PancakeSwap had a trading volume of over $ 500 million in the past 24 hours.
The protocol manages over $ 1 billion in capital.
2. Venus (XVS): decentralized money market
Venus (XVS) is a decentralized money market that aims to build a decentralized credit and lending system on top of the BSC. With the help of the Venus Protocol, users can have loans paid out or make liquidity available on the platform to earn interest.
It is also possible to generate VAI. VAI is a stablecoin that is pegged to the US dollar at a 1: 1 ratio. Thus, Venus is very similar to the MakerDAO protocol, which is based on the Ethereum blockchain. MakerDAO (MKR) is also a decentralized money market from which users can take out loans or receive interest for providing liquidity. Overall, Venus is similar to many of the Ethereum sector’s crypto lending projects.
Venus is currently one of the largest projects of the BSC and manages a total of almost two billion US dollars.
3. Auto (AUTO): DEX and interest aggregator
AutoFarm (AUTO) Network aims to be a DEX and interest rate aggregator. This means that the AutoFarm protocol automatically uses paid-in capital with the highest efficiency in the DeFi sector and generates interest for users. So AutoFarm is essentially the BSC’s Yearn Finance (YFI).
In addition, you can use the DEX aggregator from Autofarm to exchange tokens at the best available rates in the BSC ecosystem.
The DEX aggregator automatically compares the various decentralized exchanges on the BSC and then executes trades at the best conditions.
The DEX aggregator from AutoFarm can therefore be compared to the DEX aggregator 1inch (1INCH), which is based on the Ethereum blockchain.
The auto log has only been live for a few days. But it already manages more than $ 400 million in assets.
4. BakerySwap (BAKE): Decentralized exchange for tokens and NFTs
BakerySwap is another popular token on the Binance Smart Chain. Like PancakeSwap, the project is a decentralized exchange, but it also offers the option of trading non-fungible tokens (NFTs). Compared to UniSwap, BakerySwap wants to represent a further development that wants to offer better services more cheaply and efficiently.
At the center of the platform is the BAKE token, which can be used for governance votes and also to receive transaction fee dividends. This means that token holders can stake their BAKE and receive part of the turnover from BakerySwap.
Additionally, BAKE tokens can be used to create unique NFTs that can be used as collectibles and as a farming toll for BAKE.
In total, the BakerySwap protocol manages just under $ 50 million and the daily trading volume has regularly exceeded $ 10 million a day recently.
5. Spartan Protocol (SPARTA):
Spartan Protocol wants to build a decentralized exchange that uses the same technology as UniSwap. In addition, it should be possible in the future to generate synthetic assets on the Spartan Protocol platform. This means that by depositing crypto currencies, users can generate synthetic assets that, for example, represent other tokens, stocks or the like. For this reason, SPARTA can be compared with some DeFi derivative platforms of the Ethereum sector
The SPARTA token is at the center of the platform. On the one hand, it serves as a reward for those who provide liquidity on the Sparta Protocol and, on the other hand, it is used for governance votes in the Sparta Protocol.
The project is still in its infancy, but according to defistation.io it already manages over $ 20 million.
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Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my email@example.com 1-800-268-7116