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Binance Launching $100M Fund to Support DeFi Projects on Binance Smart Chain

One of the fastest-growing crypto exchanges Binance has announced the launch of a new $100 million fund. According to Binance, the fund will support emerging projects and drive collaboration between centralized finance (CeFi) and decentralized finance (DeFi).

Binance’s CEO Changpeng Zhao made the announcement during its summit “The World of DeFi” held on September 10. As Binance believes, DeFi promises to revolutionize financial technology from the ground up, by introducing decentralized technologies to traditional financial applications. Besides, in recent months, the impressive growth within the DeFi space has made the promise of decentralization seem closer than ever.

As Binance has explained, the fund will support DeFi projects that pass security audits and the due diligence process. They will be able to get up to $100,000 in funding as well as receive liquidity support. In addition, some beneficiaries will receive support from the resources across the Binance ecosystem. In particular, they will enjoy access to the customer database, media information in the ecosystem, knowledge education, incubation financing, derivatives, financial management, as well as financial support. What is more, Binance may even list up-and-coming projects of the highest quality.

The ultimate goal of the fund is to bridge CeFi and DeFi in the Binance ecosystem. The exchange aims to show how to integrate between DeFi and CeFi to offer the best of both worlds. To build out this bridge, Binance offers its users CeFi services and DeFi products on Binance Smart Chain. They include Spot, Margin, and Futures Trading, Savings, DeFi Staking, DeFi Pooling, Lending, AMM, Liquidity Mining, Yield Farming, and more.

On September 1, Binance announced another initiative in a push towards DeFi development. It launched Binance Smart Chain that would run in parallel with Binance Chain enabling smart contracts and allowing users to stake the native cryptocurrency BNB.

Binance Smart Chain is connected to tokens on other public chains, including BTC, ETH, and other ERC20 tokens (LINK, USDT, DAI, and more), as well as XRP, BCH, LTC, ADA, EOS, ONT, etc. It has some centralized elements that help it to run faster and with a higher capacity. It runs using the Proof of Staked Authority (PoSA) consensus algorithm.

The next step of Binance on the way to bridging DeFi and CeFi will be introducing various programs DeFi-inspired programs. For example, Binance is planning to introduce “DeFi experience”, Liquid Swap, and DeFi Staking. Besides, Binance is planning to develop a centralized bridge to the Binance Smart Chain to port coins like BTC into the DeFi environment.

Binance Launching $100M Fund to Support DeFi Projects on Binance Smart Chain

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