On October 14, 2020, Binance exchange unveiled six decentralized finance (DeFi) projects on Binance Smart Chain that will receive funds from its $100M Accelerator Fund.
Binance explained that blockchain projects AnySwap, Arkane Network, BakerySwap, Bitquery, PancakeSwap, and Proxima would be granted $ 350,000 via the exchange’s $100M in funding project.
Since the accelerator fund launched last month, more than 180 projects have applied for grants. The successful applicants range from Automatic Market Maker protocols to data and gaming solution providers.
These companies were selected based on strict selection criteria that examined the project’s team, product, vision and contribution to the blockchain infrastructure.
One of the selected projects, PancakeSwap, has contributed massively to the Binance ecosystem and is currently the number one liquidity provider on Binance Smart Chain
The Binance funding initiative aims to accelerate the development of DeFi projects and link centralized finance (CeFi) with DeFi.
Building a New Decentralized Financial Ecosystem
Binance has ramped up efforts to integrate DeFi products into its mainnet in the past few weeks.
The exchange rolled out the Binance Smart Chain (BSC) that supports smart contracts optimized for DeFi. The new chain is fully compatible with Ethereum’s Virtual Machine (EVM) and offers faster transactions (about 3 seconds per block) at lower costs.
As per a tweet from Binance, top DeFi projects such as Aave, dForce, and SwipeWallet are already looking to start creating new products on BSC.
Today’s funding initiative gives priority to blockchain developers focused on building infrastructural and functional apps on Binance’s new chain.
The malta-based exchange’s CEO Changpeng CZ Zhao emphasized the need to create a new decentralized financial ecosystem that provides users with financial freedom.
“We launched the $100M Accelerator Fund to further support the development of high-quality DeFi projects that contribute to building the industry’s infrastructure and technologies to better unlock DeFi’s potential”, he stated.
This latest development comes as Binance demonstrated its commitment to DeFi with the launch of a new automated market maker (AMM) pool.
As earlier reported, the exchange rolled out the “Binance Liquid Swap” to counter Uniswap by offering liquidity providers a new means to earn interest on their tokens.
Binance Focuses on Connecting CeFi to DeFi
Besides funding blockchain projects to accelerate DeFi development and enhance the blockchain ecosystem, Binance also has other initiatives geared toward connecting CeFi to DeFi.
For instance, the exchange recently rolled out the Token Canal project, which helps developers connect BSC to several top blockchains. This project will facilitate the transfer of various tokens such as ETH and XRP to and from the Binance Smart Chain.