Binance Rolled Out Automated Market Maker, Setting Deeper Foot In DeFi

By Emily Rys | September 7, 2020

Major crypto exchange platform Binance is expanding its footprints across the DeFi sector, via releasing its new token swapping liquidity platform – dubbed Binance Liquid Swap.

Specifically, with direct target to Uniswap and its clones, Binance will reportedly be releasing an AMM liquidity pool, which enables clients to provide liquidity, via tokens depositing activities. 

With features similar to Binance, its Binance Liquid Swap project will reportedly also make interest earning available, apart from an elimination of trading fee for the pool. 

The project will be the first AMM pool product, based on a centralized exchange, with its integration into the Binance.com exchange to be finalized, enabling users to pool tokens in their wallets, in exchange for rewards. 

The AMM will reportedly employ a pricing module, not an order book, to offer prices with a higher level of stability and lower transaction. Liquidity for its self-developed token will be the first priority, hence USDT/BUSD, BUSD/DAI and USDT/DAI will reportedly be the first pool available upon the project release.

Earnings will be accumulated with a corresponding annual percentage yield (APY) available for 7 days, with returns converted into the assets in the respective pools.

The number of assets available within the liquidity pool will reportedly be the deciding factor for transaction fees and prices.

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