Just a mere week removed from the launch of the Binance Smart Chain, the world’s largest crypto exchange is back at it again with their efforts to capitalize on the ongoing DeFi sector boom. As announced on the Binance “World of DeFi” summit last Thursday, the prominent chain is set to commit over $100M of investment fund towards the development of several projects revolving around the aforementioned Smart Chain platform.
Changpeng Zhao, the company’s CEO, stated that this initiative would serve as the bridge connecting centralized finance (CeFi) with the red-hot decentralized finance (DeFi). Its users will have the chance to take advantage of both sectors’ benefits, such as CeFi’s savings, futures, margins, and DeFi’s automated market makers (AMM), yield farming, liquidity farming, etc. Basically, Binance intends to introduce DeFi elements to its users without forcing them to migrate from their comfort zone, the centralized sector.
According to the announcement, BNB holders will have more freedom towards the BSC decentralized supervision, which notably utilizes the Proof of Stake Authority (PoSA) unanimity framework, whenever they stake tokens into the new platform.
The stated $100M fund above would be distributed on multiple fronts. That being said, Binance confirmed that the investment fund would heavily focus on the scaling elevation of its early startups.