Bridges are possible between the DeFi and the CeFi. And Binance intends to support its economic development thanks to the growth of decentralized finance. To this end, the exchange announced in September the creation of a seed fund of 100 million dollars.
It didn’t take long for Binance to write its first cheques for DeFi start-ups. The cryptomoney exchange in fact signals a first round of financing of 350,000 dollars to Decrypt.
180 candidate projects, but 6 DeFi projects financed
The company is investing in six separate DeFi projects. AnySwap, Arkane Network, BakerySwap, Bitquery, PancakeSwap and Proxima, therefore, have in common to operate on Binance’s blockchain, namely Smart Chain (BSC).
“We launched the $100 million 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,” says Binance CEO Changpeng Zhao.
But even if it mobilizes a significant amount of funds for these financings, Binance wishes to remind that it will be very demanding in its selection. Thus, more than 180 projects under development on BSC applied for this funding. Only 6 of them will benefit from it, at this stage.
96% of DeFi transactions carried out on Ethereum
The nature of the selected projects is heterogeneous, our colleagues note. Among them are AMM (automated market makers), data platforms or technologies for the gaming sector.
The selection of PancakeSwap will undoubtedly not come as a surprise to those who are familiar with the Binance ecosystem. With more than 218 million dollars managed through its smart contracts, the project is to date the leading liquidity provider on the Binance Smart Chain.
This is a nice size and a potential growth vector for the DeFi exchange. However, the step to be taken to compete with Ethereum remains high, very high even. Indeed, Ethereum today represents 96% of the total volume of transactions in the DeFi.
For the third quarter, DappRadar estimates this global amount at 125 billion dollars. In addition, the total value of funds blocked in Ethereum smart contracts exceeds 10 billion dollars. The total value of all DeFi smart contracts is 10.82 billion dollars.