Binance has announced the DeFi projects would be the first beneficiaries of the $100 million fund to help the DeFi ecosystem on the Binance smart chain.
In its official statement, the digital assets exchange company said that six projects would benefit from the first finding that will be carried out. The exchange in previous weeks announced a $100 million accelerator fund that would be disbursed to projects on the Binance smart chain in a bid to help the platform.
The projects that would be receiving the $350,000 funding are BakerySwap, PancakeSwap, Bitquery, Anyswap amongst others. PancakeSwap is the largest project in terms of volume that would receive the grant. According to DappRadar, PancakeSwap recorded a massive $27.5 million in market value in the last 24 hours.
Binance says the accelerator funds would benefit the smart chain extensively
The new Binance Accelerator Fund is targeting new startups on the outfits Binance smart chain blockchain platform. According to Binance, after the announcement of the finding was made, about 180 firms registered to be eligible for the funding.
Furthermore, Binance has said that they will not compel any project to receive the funds as the funds are subject to projects accepting them. In the announcement, Binance also said that the projects chosen were selected based on some factors such as overall vision, team and product viability, execution ability and their contribution to the blockchain in general.
Giving his take on the $100 million accelerator fund, Binance CEO, Changpeng Zhao said that the program was launched to help projects and to unlock the potential of the DeFi sector. We launched the $100 million accelerator fund to support further the development of high-quality DeFi projects that contribute to building the industry’s infrastructure and technologies to unlock DeFi’s potential better,” the CEO said.
Binance smart chain promises cheaper and faster transactions
One significant edge that the Binance smart chain has over the Ethereum blockchain is that it provides the client with cheaper and faster transactions. The Binance smart chain is also compatible with the Ethereum virtual machine, which means that developers can easily transition from Ethereum blockchain.
However, the Binance smart chain is a little bit disadvantaged when it comes to decentralization as it makes use of 21 nodes to validate transactions. Due to this slight disadvantage, the smart chain can carry out transactions seamlessly.
Binance is trying to make its mark in the decentralized finance sector through the establishment of the Binance smart chain, it is still dominating significant centralized digital assets investments across the world. Binance announced that it accumulated a spot volume of $2.02 billion in spot trading volume in the space of 24 hours.
This success is little compared to what Binance Futures recorded as witnessed a 24-hour trading volume of $4.17 billion. Binance also said that Token Canal, its new project will allow developers to connect the Binance smart chain to other blockchains. DeFi projects Aave, 1inch and dforce has signalled their interest to develop on the Binance smart chain