DeFi on Binance Chain: Getting Closer Through Stake Wars and Use Cases
This week, the Binance Chain community concluded Stake Wars, giving us a glimpse of how the soon-to-launch Binance Smart Chain can bring forth BNB staking and further strengthen DeFi.
We have recently concluded Stake Wars, a promo that exhibited how staking will work for BNB via Binance Smart Chain (BSC). We sponsored the competition to the tune of 3,000 BNB in total prizes, and we are happy with what the Binance Chain community has shown during the event.
Aside from the immediate implications of BNB staking on how Binance Chain will advance, the Binance Chain community also recently shared the many ways that Binance Chain can benefit DeFi (decentralized finance).
These recent developments show how close we are to the full launch of Binance Smart Chain.
Stake Wars Results: Showing Binance Smart Chain’s Capabilities
The Stake Wars promo provided an opportunity for the broader Binance Chain community to practice how BNB staking works via cross-chain communication between Binance Chain and Binance Smart Chain (BSC). Stake Wars lasted for ten days and yielded amazing results.
More than 2,000 new addresses were created on the Binance Chain testnet.
2,000,000 testnet BNB + 1,000 testnet BTCB airdropped.
More than 2,000,000 testnet BNB bonded for the competition.
193,428 transactions executed between 2,000 activated addresses.
More than 30,000 staking transactions.
Forty-one validators were generating blocks every few seconds.
What’s amazing is that even with all this activity, the community assessed that there’s still plenty of room for BSC to handle more transactions. This bodes well for the blockchain’s performance when it launches live.
By the way, congratulations to the winners of Stake Wars. Read more about the results here.
How Binance Smart Chain Enhances DeFi
Stake Wars was just a sneak peek on the evolution of DeFi. As the Binance Chain community said, “The future launch of the BSC mainnet will allow communities to participate in DeFi building by using BNB and earn more values and benefits while helping people to understand BNB staking and how they can do it.”
DeFi has been a hot topic in the crypto world this year, and for a good reason. There is a growing demand for alternative peer-to-peer financial systems that are transparent, open-source, and permissionless. Powered by blockchain, the DeFi ecosystem is showing how financial services can be composable, open-source, programmable, and accessible worldwide, with significantly lower fees and remarkably high yields. To emphasize how big DeFi has become, the total amount of assets locked into DeFi smart contracts rose dramatically from $680 million to start this year to $6.2 billion in August 2020.
However, this growth comes with its own set of challenges. Right now, the DeFi ecosystem is facing high blockchain fees and some amount of congestion. This is where Binance Smart Chain (BSC) can contribute to help solve the problem. As an Ethereum Virtual Machine-compatible blockchain that runs parallel to Binance Chain, BSC provides an alternative platform where many DeFi solutions can focus on innovating while getting access to the benefits that Binance Chain already offers. Leverage BSC’s many advantages, including:
A rich and growing digital asset ecosystem powered by Binance DEX, the leading decentralized exchange
Cheap transaction fees that reach as low as 1 cent
High performance with a network capable of producing a block every 3 seconds
Cross-chain DeFi mechanisms that increase DeFi interoperability
A supportive Binance ecosystem that funds and bootstraps many DeFi projects
A growing ecosystem of millions of users across Binance.com and Binance DEX
A network of major crypto projects already collaborating with BSC
To know more about these advantages, read here.