Binance DEFI is a world of fluffy pancakes and lots of sweet syrup it seems. The (DEFI) decentralized Finance space is the fire of the crypto innovation. Much like the hype of ICOs of a few years ago. Though this time with actual teeth and real-world use behind it. Firstly let us decern the Binance ecosystem which we wish to focus on here.
- Binance Smart Chain (BSC)
- Pancake
- BNB
With Binance’s own DEFI ecosystem of smart contracts, we want to note the differences between it and the Ethereum universe that it competes with. There are some key advantages that make it a bit more centralized but also cheaper and more rewarding which has garnered popularity with these perceptions.
BSC Binance Smart Chain how it works
Astounding how well thought out the (BSC) binance smart chain is. Sudo decentralized/centralized with Binance’s own flair. At the same time giving reduced costs and greater flexibility in many respects than their competition.
In layman’s terms, the Binance Smart Chain (BSC) is a blockchain that runs parallel to the Binance chain, different in the sense that BSC has smart contract functionality and is compatible with the Ethereum Virtual Machine (EVM). This is an independent blockchain that could run even if Binance Chain went offline.
Simply put the Binance DEFI ecosystem is a very well-thought-out plan to conquer the space. The slight sudo centralized nature of Binance is the only limiting factor here. Everything else they are doing to leverage this to a powerful DEFI future is just superb!
Binance DEFI Cornerstone of BSC = BUIDL
Binance has in a very smart fashion once again leveraged their BNB tokens along with helping BUIDL, another misspelling done intentionally. Back in October of 2020 Binance invested $5 million of BNB tokens into the BUIDL reward program for developers. So those developers who produced dApps onto the Binance Smart Chain had extra help from the start.
All part of Binance’s larger DEFI accelerator fund where they were committing $100 million. This support super accelerated the growth and competition to the ETH DEFI ecosystem. The idea behind this again is to bridge the DEFI and (CEFI) centralized finance solutions, thus promoting more options for the free flow of money in the space.
All the gas fees are paid from transactions in BNB. So Binance basically leveraged their own tokens which as you likely have seen was really another way to pump BNB which was in the $20-$30 range at the time, which now at the time of reporting BNB is in the upper $400 range. Binance once again creates its own marketplace and pumps it to the moon!
Binance’s low cost/high reward model is outcompeting other DEFI solutions in the space, thus explains the popularity of their Binance DEFI ecosystem. Again with BSC, it is looking to rule the space completely it seems.
Pancakeswap is super HOT!
Binance DEFI has FLIPPED the pancakes! If you want to see one of the primary drivers of Binance’s success look no further than PancakeSwap.
PancakeSwap is a BSC DEX that was launched anonymously by some devs who seem to love breakfast foods and bunny wabbits 🙂 Seemingly it is very much like Ethereum’s SushiSwap, just with a different food catagory lol. Like Ethereum’s SushiSwap it has built-in governance, reward earning features & liquidity provider token farming.
Built again on the (BSC) Binance Smart Chain. Thus again PancakeSwap is a fast and less expensive alternative to Ethereum with its through-the-roof GAS FEES.
Binance Defi “Know your PancakeSwap”
In addition to Binance DEFI, PancakeSwap has become one of the most popular in their market place. Users can easily swap between crypto asssets. With a few clicks. Hence, BliP BlaM woosh your ETH is no some obscure token or BNB ect ect.
The Binance DEFI or I should say the Binance Academy is a good resource for more in-depth knowledge of PancakeSwap and all its functionality, along with just taking a test drive of the platform. The best way to learn something new is to dive in and use it!
So please explore the functionality of the platform to see the amazing collection of abilities it gives cryptocurrency traders. From pools, farms, NFTs, Lotteries, and the list goes on and on with the PancakeSwap platform.
Firstly, Binance and the DEFI space is the future and bankers, traditional fintech is left in the dust by the shock and awe of how fast and creatively it moves. Lastly, it is attracting capital at a rapid pace as we can see by many of the DEFI price charts in the space, this should spur even more innovation in the future.
Binance DEFI with the BNB coin
To think (BNB) Binance Coin was in the $30.00 range in October, with now threatening to trade @ or above $500 at the time of writing. Simply amazing!
BNB coin was designed to pay for services in the Binance exchange ecosystem. I am sure nobody could see what was coming or how large this would expand and at such a lightning speed. Binance coin made trading on Binance even cheaper than it already was. Now it is propelling Binance into the stratosphere with no signs of stopping.
It has levered itself to the moon and beyond, BNB is to Binance what the Golden Eagle was to Rome. Thus a symbol of their promance and success.
BNB coin is now standing only behind Bitcoin and Ethereum themselves in terms of market cap. To think BNB coin is #3 in market capitalization for cryptocurrencies.
Furthermore it seems BNB is not stopping, with Binance DEFI taking over. Using their speed and reduced costs to solidify their strength in the space. All with leveraging what they already own and have.
A WARNING! Though all of this is good for the future of crypto and decentralized finance I can see we have flown too close to the sun and a burning smell has appeared short term. Regulators are going to start to scrutinize this space imo at some point. Values are too like the ICO HYPE of 2018 of which I was against because of the grift of untalented scammers who only looked to sell fake ideas in order to be paid. Was a sad cautionary time. But a dirty pool breeds the best fish as an old Chinese tale once said…
FAT PIGS All in on DEFI!
Fat Pig Signals deserves a mention here as they were ahead of the game on the DEFI space. They saw early where the space was going. So if you are in the market for a DEFI centric signal provider look no further then Fat Pig Signals!
Their returns are like the DEFI space in general, simply insane! More than that they really dive deep into the DEFI be it Binance DEFI or the Ethereum ecosystem. They will educate you on the ins and outs of the DEFI space thoroughly.
The DEFI education they provide with their reports are real gems imo. Giving you both technical analysis competence, along with the fundamentals written into their reports.
My final thoughts on Binance DEFI and wrapping it all together
The Binance DEFI space has taken over in a big way, but short term it seems a bit too full of HYPE and many traders are risking silly amounts currently in this space. On the flip flop side of things, well the space is growing by leaps and bounds and shows no signs of stopping.
Still it is short term too much like the ICO hype traders have allowed themselves to get caught in back in early 2018. A very costly mistake imo for many. I wonder will we repeat this? Only to find out that most of all of it is built on just HYPE!? Well time will tell.
To me, there is a fundamental change and it showcases just how backwards and slow our traditional finance and banking systems are. The banking systems of old are nothing but dust collectors. Binance DEFI, along with the whole DEFI space, is showing the absolute decrepitude of our financial systems, that have ruled our world for so long.
Without a doubt, we cannot unsee what we have seen. The future is bright and engineers are creating it as we speak and all without any of the old guard’s inputs or controls in a decentralized manner. The bankers and their centralized world is being left in an old world hegemony of the brick and mortar museums they now are…
Love this article – the BSC is an amazing project, and although many risky coins exist and scams.. some incredible projects are coming from this. (edited)