Cryptocurrencies

Launch of Binance Liquid Swap, the Uniswap Killer? – Cryptocurrencies

September 4, 2020 (press release) – Binance, the international company behind the world’s largest crypto exchange in terms of transaction volume, today announced the launch of Binance Liquid Swap, the first associated Automated Market Maker (AMM) to a centralized exchange. The brand new trading feature on Binance.com will now allow users to pool tokens in a way that provides instant liquidity (faster transactions) and greater earning potential.

Binance dives into the Pools

Users who deposit funds into Binance liquidity pools will be able to earn both interest and income from trading fees generated by transactions that will take place on Binance Liquid Swap.

Binance Liquid Swap is built from different liquidity pools that allow its users to trade cryptoassets, using a pricing module AMM instead of an order book to provide more stable prices and lower tariffs whether for small or large transactions, where users can become liquidity providers by adding funds to the pool.

Upon launch, the instant swap feature will provide trading pairs with lots of liquidity and the possibility of depositing in the pool several currencies: USDT / BUSD, BUSD / DAI and USDT / DAI with a return APY (Annual Percentage Yield) over 7 days where the funds will automatically convert into two crypto assets in the pool.

“We hope to promote the growth of the Decentralized Finance (DeFi) market and offer our users more earning potential but also more liquidity thanks to a centralized pool endowed with an MA, with credibility, security and security provided by Binance. We look forward to fostering the growth of the DeFi market with Binance Liquid Swap, by allowing traders to provide liquidity in the form of instant swaps, as DeFi products are generating more and more volume and attracting many participants. In addition, our community pool design will benefit our community ”

Changpeng Zhao (CZ), CEO of Binance

Uniswap-Killer?

The transaction fee and price between the two cryptoassets available in each pool on Binance Liquid Swap will be determined by the number of assets in the liquidity pool. Operators who exchange or add funds to the liquidity pool will affect the price of their crypto assets, in the same way that operators who add and withdraw funds from a liquidity pool participate in building the market.

To learn more about how to trade and how Binance Liquid Swap works, please visit the site.

Seeing Binance plunge into the deep end of Decentralized Finance and Uniswap-type platforms is not surprising as the platform has perfectly grasped the scale that this branch of the crypto ecosystem is about to take. And if you are new to DeFi and want to better understand its challenges, perspectives, and specific vocabulary, the Decentralized Finance Tribune is for you.

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