DeFi is an abbreviation of the phrase decentralized finance which generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum. In simpler terms, it’s financial software built on the blockchain that can be pieced together like Money Legos.
Top Reasons for Building DeFi on Binance Smart Chain
The vision of Binance is to improve the freedom of money. The Binance team believes that by spreading this freedom, it can significantly improve lives around the world. Thus, the team has built the holistic Binance ecosystem to empower entrepreneurs and users. Through the lens of DeFi, Binance Smart Chain, the community-driven public blockchain built by Binance and global developers, aims to improve the freedom of assets. The team behind it envisions The Internet of Value to be composed of an internet of blockchains where interoperable DeFi money legos are blockchain agnostic, and assets and users flow freely based on the needs and choices of users with the Ethereum mainnet serving as a global settlement layer. Binance Smart Chain provides several benefits to DeFi protocols and their users:
**** High Performance ***
The consensus mechanism used in Binance Smart Chain, Proof of Staked Authority (PoSA), combines features from Delegated Proof-of-Stake (DPoS), and Proof-of-Authority (PoA). This consensus algorithm is built on a network of 21 validators, and can produce a block every 3 seconds based on current testnet testing, which will provide a high speed infrastructure for DeFi protocols. At the same time, the validators will get BNB rewards for executing tasks on the blockchain, which ensures stability and incentive without sacrificing transaction speed.
*** Cheap Transaction Fees**
Ethereum transaction fees have been a major point of friction over the past few weeks, crossing 200 gwei at a point, which introduces a serious threat to the increasing adoption of DeFi with numerous projects actively exploring Layer 2 solutions to help pacify the issue.
** EVM Compatibility**
Binance Smart Chain is fully EVM (Ethereum Virtual Machine)-compatible and can support all of the existing Ethereum toolings such as Metamask, Remix, Truffle, etc. At the same time, critical infrastructures like oracles (ChainLink and Band Protocol) are already integrated onto the Binance Smart Chain.
Ethereum developers can use most of the existing Ethereum developer tooling to implement DeFi dApps, and existing DeFi Smart Contracts can easily port to Binance Smart Chain with zero or minimal effort, which will significantly reduce the development overhead for projects to build on multiple chains.
** BEST DEFI WALLET **
|Name |Platform| Supported Assets|
|Trust Wallet |Mobile iOS / Android |Binance CEX
supported asse (BTC,
ETH, ERC-20,
ERC-721)|
How to use TWT for DeFi on PancakeSwap
Since TWT is now available on Binance Smart Chain, this enables the token to be utilized in smart contracts. Trust Wallet Token has officially joined the BSC DeFi ecosystem!
There are 3 ways you can get some TWT BEP20
- [Swap TWT BEP2 to TWT BEP20
- [Staking SYRUP on PancakeSwap ]
- [Exchange Tokens on PancakeSwap]
The first option requires a PC or Mac computer in order to swap your TWT BEP2 tokens to BEP20.
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