Leading cryptocurrency exchange Binance has announced a $100 million fund support for upcoming DeFi projects that intend to launch on the Binance Smart Chain. This is coming as part of the company’s effort to bridge the gap between Decentralized Finance (DeFi) and Centralized Finance (CeFi).
Changpeng Zhao, founder and CEO at Binance, revealed this at the World of DeFi Summit, pointing to the fund as a seed that hopes to grow into a robust support system mainly to create a collaboration between the CeFi and DeFi ecosystems.
While the world sees the insurgence of DeFi as an unexpected barrier to the services provided by Binance, the exchange instead finds new opportunities in the booming DeFi sector to offer enhanced solutions to the world of blockchain.
Per the announcement, the Binance Smart Chain community will be the first group of investors and govern the $100 million seed funding. However, other DeFi projects will be invited for tender proposals as beneficiaries of the seed funding in no distance time.
DeFi projects that successfully scale through the due diligence and audit scrutiny process will enjoy liquidity support alongside support from other resources obtainable around the Binance ecosystem. In addition, the company would grant listing to high performing projects on the Binance exchange.
More than bridging DeFi and CeFi via the $100 million funding, Binance hopes to pioneer the connectivity between both ecosystems through other avenues like assisting developers in bridging the gap between Binance smart Chain and other public chains.
As Binance works hard to close the gap between DeFi and CeFi, users stand a chance to enjoy benefits from Binance Smart Chain products like yield farming and liquidity mining, as well as from Binance CeFi services like savings and future trading.
Just recently, the exchange pulled over $250 million worth of BNB in less than three days via its new Launchpool service that allows users to stake BNB for yield farming.