August is DeFi Month: 8 Things We Did in the DeFi Space

Decentralized finance (DeFi) are financial services created through the use of smart contracts. DeFi is an important part of the blockchain industry. While it has existed for a few years, DeFi services have picked up momentum in recent months. The meteoric rise of DeFi this past August, proves that decentralized technologies are playing a central role in the blockchain and crypto space. 

As we play an active role in the blockchain industry, we’re always looking for opportunities to push the DeFi space forward. Here are some of the DeFi-related initiatives that we have taken this past month.

Investing in DeFi Startups

We started by announcing Binance Labs’ leadership in a $2.8 million funding round for decentralized exchange (DEX) aggregator 1inch, which uses smart contract technology to split a single trade transaction across multiple DEX platforms. We also shared that Binance Labs has been backing at least five DeFi startups since 2019 (Dune Analysis, Injective Protocol, Tellor, Terra, and Strike Protocol, among others), while Binance Launchpad hosted token sales for Band Protocol and Kava, which are both making waves right now in the DeFi scene.

Sponsoring BNB Smart Chain’s Testnet Competition

The BNB Chain community launched Binance DEX in April 2019. Just one year later, they proposed the creation of BNB Smart Chain, which is a smart contract blockchain running alongside BNB Chain. And after a few months of significant work, they came up with a robust testnet that was already being utilized by severalDeFi solutions. To test the blockchain’s performance and give the industry a glimpse of how BNB staking will work, we sponsored a 3,000 BNB prize pool for Stake Wars, a major competition that spotlights how efficient developers can stake and earn BNB by completing blockchain tasks. 

DeFi Staking on Binance

Binance Staking has been a significant value-added service for all of our users, as a free-of-charge reward system for trusting your crypto funds with us. We want you to reap the benefits of DeFi as well, so we started with a batch of stablecoin savings products that featured DeFi token bonuses. Shortly after, we formally launched DeFi staking, allowing everyone to use their cryptocurrencies such as DAI and BNB (the options currently on offer) to participate in stalking for DeFi protocols and earn from those, all from the comfort of your Binance account.

Binance Futures Launches DeFi Index Perpetual Contracts

A major factor in DeFi’s momentum is its popularity within exchanges. With so many DeFi projects emerging, this has inspired the Binance Futures team to come up with the DeFi Composite Index Futures contract, our first composite index product. It is designed to allow you to track and participate in the fast-growing DeFi market, all from a single contract.

In addition, Binance Futures offers 12 USDT-margined futures contracts for DeFi tokens, including the DeFi futures contract we just discussed, plus three coin-margined ones. This way, whether you want to trade on DeFi as a whole, or if you have a couple of DeFi tokens you’re following, Binance Futures has you covered.

Binance Lists Several DeFi Tokens

Of course, the Binance Spot exchange is also in on the DeFi action. In August, Binance listed 15 DeFi tokens, to satisfy our users’ demands in gaining access to more of these projects. (Between the end of August and today, we listed four more DeFi tokens.) Several of the trading pairs we launched for these DeFi listings are also available on Binance Margin trading.

BNB Chain Initiates DeFi Hackathon in India

Meanwhile, BNB Chain worked with one of the biggest names in the tech world, plus a formidable lineup of blockchain and DeFi projects, to create Build for Bharat, a twofold program with hackathon and acceleration opportunities. This program aims to bridge the gap between blockchain and mass adoption in India. Special thanks to Google Cloud, Matic Network, Marlin Protocol, Band Protocol, and Ankr for helping us establish this initiative.

Swipe Becomes Major Player in DeFi

When we acquired Swipe in July 2020, many people saw value in their compelling multi-asset digital wallet and Visa debit card platform. This month, Swipe went even further, announcing plans for Swipe network staking, plus a DeFi lending and earning application built on the BNB Smart Chain. They have since moved quickly, partnering with Band Protocol and Kava to strengthen their DeFi solutions and launching a massive $16 million airdrop program for BNB holders on Binance.

BNB Smart Chain Makes Case for DeFi Use Ahead of Launch

Speaking of BNB Smart Chain, just a few days before its launch on September 1, the BNB Chain community shared the results from Stake Wars. They found that throughout the 10-day competition, blocks were being created every few seconds. Nearly 200,000 transactions were executed, yet BSC can handle much, much more. This bodes well for the blockchain when it comes to hosting smart contract solutions, including DeFi, with high performance, compatibility with several platforms and solutions, and lower transaction costs. 

Looking back, while a lot has happened on the DeFi front, it looks like it’s premature on our part to call this past August the month of DeFi. We look forward to seeing how this fast-growing space develops and, more importantly, how we can maximize its potential.