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Binance Eyes Uniswap’s Lunch With Launch of Centralized ‘Swaps’ Platform
The exchange giant is hoping to capitalize further on the DeFi boom with a new centralized trading platform that makes it a rival of the likes of Uniswap.
By Paddy Baker
Updated Sep 14, 2021, 9:52 a.m. Published Sep 4, 2020, 1:00 p.m. 2 min read
Exchange giant Binance is hoping to capitalize further on the DeFi boom with a new centralized trading platform that makes it a rival of the likes of Uniswap.
- Binance said Friday users would be able to provide liquidity and make trades, or "swaps," initially with three trading pairs from their exchange accounts.
- Called Binance Liquid Swap, the platform is in effect an automated market maker (AMM) exchange where smart contract-based liquidity pools set spot prices and facilitate swaps.
- In AMM exchanges, users become liquidity providers by depositing digital assets into the pools, receiving in return interest and a cut of transaction fees.
- This is the same model used by Uniswap and SushiSwap – two decentralized exchanges (DEXs) now at the center of the white-hot decentralized finance space.
- In a blog post, Binance said Liquid Swap is the first AMM platform to be launched on top of a centralized exchange.
- When asked if Binance was moving into direct competition with the likes of Uniswap and SushiSwap, a company spokesperson told CoinDesk that Liquid Swap was aimed at an audience more at home on centralized exchanges.
- "The crypto industry is still in its early stages, and there is still a barrier of entry for decentralized products," they said.
- With the new platform, Binance aims to offer users "a more secure and seamless product while allowing them to earn as on decentralized AMM pools," according to the spokesperson.
- The three initial trading pairs will be USDT/BUSD, BUSD/DAI, and USDT/DAI.
- Binance first ventured into DeFi with its decentralized exchange in April 2019, built on top of its native Binance Chain.
See also: Blockchain Bites: How SushiSwap Drove Uniswap to DeFi’s Top Spot
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What to know:
- A $1.26 billion block sale of BlackRock’s IBIT shares was likely a rapid exit by a large investor, not an arbitrage unwind, according to NYDIG.
- The seller of the $1.26 billion IBIT block accepted a 2.3% discount ($29.5 million loss), signaling a priority on speed and certainty over maximizing price.
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