Reading time for the article: 2 minutes Compact: The funds are to be used for development. Projects that rely on the Smart Chain are funded. The aim is to grow your own ecosystem. The success of DeFi forces the major global players to act . As the CEO of Binance aptly pointed out, the large centralized exchanges only have the opportunity to adapt to the market or to be overwhelmed by developments, but since it is difficult to build a competitor product to the DeFi ecosystem on Ethereum without one little help, Binance wants to provide its own “smart chain” with a jump start. A whopping 100 million US dollars are to be reserved to give developers and companies an incentive to develop their solutions for the Binance Smart Chain, so anyone can apply for a grant. However, you don’t just think of DeFi, you want to promote holistic projects that take into account the entire Binance ecosystem.
Bridge between CeFi and DeFi
What is meant is the bridge between DeFi and CeFi. Binance not only wants to promote its own DeFi products, but also directly connect them to all of its centralized services. The focus of these efforts is, among other things, “Token Canal”. The project aims to provide DeFi tokens with more liquidity and to switch between different chains, so that more DeFi projects can ultimately be connected to the Binance Smart Chain.
Governance and Funding
The allocation of funds and other funding measures should be monitored by members of the community and investors. However, this probably fulfills the function of a quality control rather than a form of democratization. The funding per project is up to 100,000 US dollars, which can be secured after a successful application. It remains to be seen whether this incentive can develop the necessary momentum to secure a noticeable market share for Binance, as other market participants will eventually compete. Including the FTX exchange, which is partnered with Binance. With the start of Serum and the takeover of Sushi Swap, FTX also wants to position itself more strongly.