Offering high throughput and relatively low transaction costs, BNB Chain provides an optimal environment for DeFi projects. As of end-August, BNB Chain has the third highest TVL in the DeFi ecosystem with a 9.1% market share, representing an increase of approximately 37% from the 6.6% market share it had at the start of the year.
In this report, we cover Decentralized Exchanges (PancakeSwap), Lending (Venus), Asset Management (Tranchess), and Liquid Staking (pSTAKE).
PancakeSwap is the largest DEX on the BNB Chain by TVL, accounting for over 55% of TVL on the chain. Over the past few months, the team has made several changes to its tokenomics model to cap the maximum supply of CAKE, and to improve the utility of CAKE. Looking ahead, the team has reaffirmed plans to go multichain.
Venus is the leading lending protocol on BNB Chain. Compared to other lending protocols, Venus commands the lion’s share of lending TVL, with approximately 84% market share. Venus is working to launch a Soulbound Token and is exploring isolated lending.
Tranchess is a yield-enhancing asset-tracker that offers users an array of tokens to suit the needs of investors with different risk and return profiles. The team has recently introduced liquidity pools for the protocol’s tokens and has also unveiled plans to expand multichain, starting with Ethereum.
pSTAKE launched liquid staking services for BNB chain in August 2022, offering the BNB community an option to unlock liquidity for their staked BNB. The team has been actively partnering with different DeFi protocols to increase use cases of the liquid-staked BNB token and is looking to do even more on this front.
Overall, our conversations with founders reveal that there is a general consensus that projects that have managed to withstand the downturn remain focused on improving their platform and are using this time to deliberate on how to grow in a more sustainable manner. While the bull market days of sky-high yields are gone, the current market environment is arguably a better set-up for a more sustainable future.
DeFi on BNB Chain
Binance Research (JieXuan Chua, CFA)
Sep 30th, 2022