Everyone wants a piece of decentralized finance (DeFi), which is growing like crazy. Crypto exchanges, especially, are taking a special interest in the sector.
This week, OKEx announced that with the latest upgrade of its OKxChain network, it had become the most decentralized exchange powered public chain. Huobi also jumped in and added ten more members to its DeFi team, which is “a consortium of centralized and decentralized financial services providers.”
Binance has already been going deeper in DeFi, announcing a $100 million fund and launching Binance Smart Chain (BSC).
In this growing competition of CEXs in DeFi, OKEx CEO Jay Hao recently called out Binance Smart Chain for not being decentralized.
“Built on BSC, BakerySwap caused huge losses for many retail investors <12h after mining began, which led to protests against BSC in China & elsewhere,” said Hao adding, “Those financial losses are a result of blind trust in Binance.”
“I strongly condemn Binance’s irresponsible behavior, which damaged the crypto community’s trust and caused DeFi to regress. Trust is hard to build but easy to tear down. For the sake of users’ interests & Crypto development, pls stop these tricks and BUILD the real DeFi,” said Hao.
Binance Marching Ahead
The leading spot exchange ERC20-based stablecoin has been gaining traction lately, seeing its volume surpassing Circle and Coinbase’s USDC Coin (USDC). In the past week, over $100 million worth of Binance USD (BUSD) has flowed into the exchange.
But it was actually USDC whose supply has doubled since the beginning of August. In just two months, USDC’s supply went from 1 billion to 2 billion, while it took two years for its supply to go from zero to 1 billion.
Binance has also taken the road to yield farming, the heart of DeFi mania, which helped its BNB token return to life.
“This is a good way to participate in the yield farming craze in a relatively low risk way,” said a researcher from Crypto fund The Spartan Group. For BNB, it means a constant demand for staking/holding making it an attractive asset to own, he said.
The exchange also introduced Binance Launchpool, which attracted many DeFi projects and away from Ethereum, the center of the DeFi world on which most of the projects are built on.
Binance CEO Changpeng Zhao noted that while BNB’s market cap is still 10% of ETH, the transaction volume of BSC is 40% of the Ethereum network. Recently, he also noted that while BSC is 100% EVM compatible, it also has 20x lower fees and no congestion, to attract more developers and projects.
“Did a quarter of users move already? Or is this just demand that was curbed due to high fees? Looks like the later as ETH tx count didn’t drop much. Growing, not taking, the pie,” he said.