Binance cryptocurrency exchange launched a $ 100 million investment fund to attract developers to create DeFi projects based on the Binance Smart Chain blockchain.
This was announced by Binance CEO Changpeng Zhao at the World of DeFi Summit. The fund will be used for various purposes, including seed funding for projects built on the Binance Smart Chain. The main network of this blockchain was launched on September 1st.
The Binance CEO said that the maximum investment will be $ 100,000. However, projects will be able to receive further funding through the Binance X platform and the Binance Labs incubator, which are focused on developing the Binance ecosystem. Part of the fund’s funds will also be used to increase the liquidity of projects that have passed the audit and due diligence. The audit will be carried out by Certik, a smart contract security firm.
According to Zhao, one of the goals of the foundation is to combine centralized and decentralized finance. Developers will be able to interact directly with Binance’s vast audience, and exchange clients will be able to access various DeFi projects powered by Binance Smart Chain using their account. The exchange also plans to roll out DeFi to its centralized marketplace using the Launchpool pharming platform .
Users will be able to block certain digital assets in order to receive rewards in the tokens of other projects. Binance is actively pursuing other projects aimed at developing DeFi: Binance Liquid Swap and DeFi Staking. Binance Liquid Swap is a centralized automated market maker and DeFi Staking is a tool for automated revenue management.
What’s more, Binance plans to create a centralized “bridge” to the Binance Smart Chain that will move BTC, LTC and Ethereum-based cryptocurrencies into the DeFi environment. This “bridge” will be fully controlled by Binance. Zhao noted that by combining all of these solutions, DeFi projects supported by Binance will be able to become serious competitors to the existing Ethereum ecosystem, despite the high level of centralization.