Binance has today launched Binance Launchpool, a platform that allows users to farm new assets, as part of the cryptocurrency exchange’s pivot to DeFi products.
DeFi, short for decentralized finance, is the talk of the town in the cryptocurrency industry. DeFi revolves around recreating traditional financial assets in a decentralized environment further afield from government control. With crypto assets tied to fiat currencies currently embroiled in litigation, DeFi is gaining new momentum.
“The potential of DeFi is accelerating at an outstanding rate, along with its adoption among the crypto ecosystem,” said Changpeng Zhao, CEO and founder of Binance.
Launchpool’s first project is Bella Protocol, which allows users to stake BNB, BUSD, and ARPA tokens into three pools to farm BEL tokens. This initiative lasts for 30 days and begins on September 9, 2020.
The Bella Protocol will aim to offer crypto users greater access to DeFi products by using automation and “1-Click” design, as well as subsidizing gas fees.
“A majority of crypto holders cannot participate in DeFi due to high cost and poor user experience,” said Bella co-founder and CEO Felix Xu. “With Bella, users can save gas fees and time, enjoy high yield from sophisticated strategies, and leave all the heavy-lifting to us.”
BEL token holders will also be able to earn revenue within the Bella Protocol ecosystem. Users will receive fee discounts and rewards, as well as having the opportunity to vote for network improvements.
Bella Protocol’s product lineups currently include Bella Liquidity Mining, Flex Savings, One-Click Portal, and Lending.
The nascent DeFi ecosystem has had its fair share of false starts in its short lifespan, between the YAM boom-and-bust and SushiSwap’s founder cashing out. Binance, though, clearly sees potential in the space—and is enthusiastically leaping aboard the DeFi bandwagon.
“DeFi is a fast-moving space within crypto. Binance, it seems, moves even faster to integrate all the latest trends within their ecosystem,” Charles Storry, co-founder of PhutureDAO, told Decrypt.