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DeFi adoption on the Binance Smart Chain reaches new highs

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DeFi projects running on Binance’s smart chain (BSC) have seen a surge in protocol activity and token prices over the past week.

The following three projects showed an increase in activity:

Venus (XVS) momentum and price activity of the project increased after the announcement of the release of Venus Reward Token (VRT) and Venus nonfungible token (NFT);

PancakeSwap (CAKE) CAKE price activity has grown steadily over the past week following the launch of V2 farms on April 23rd and the successful completion of the token migration on April 24th;

Linear Finance (LINA) interest in the protocol was sparked by the prospect of using LINA in the Polkadot network, as well as BSC and the Ethereum network.

The price activity of these assets has been growing steadily over the past week. Some of them have gone up to 100% in the last week. The total value captured in DeFi protocols continues to skyrocket.

Thus, we see that after a short break, decentralized finance (DeFi) is gaining momentum again. DeFi was one of the hottest sectors in early 2021, and interest in the sector is returning. Definitely, BSC’s DeFi protocols are well positioned to generate significant results thanks to low fees and high yield opportunities.

Experts believe that the DeFi sector is now just the tip of the iceberg, with massive adoption ahead. Since staking in DeFi will allow users to participate in resolving various issues by voting on a Proof-of-Stake model. Staking takes place using smart contracts and also allows users to receive passive rewards for blocking their cryptocurrency.

Optimism for the future of DeFi

DeFi is an independent financial system without government control, protectionism, corruption and unnecessary intermediaries. It is on the basis of decentralized applications that replace the usual financial institutions. The incentive for development is free competition: the best products that have proven their reliability and managed to attract the largest number of users achieve success.

Well-known personalities have already begun to shift their attention to the DeFi market. Decentralized finance offers some pretty promising use cases, redefining traditional financial systems and creating more transparent and efficient systems.

DeFi is a truly innovative space. Binance has taken a number of initiatives in this new area. In addition, the exchange is also working on its own DeFi projects.

Advantages

The secret of DeFi’s success lies on the surface. Everyone, regardless of citizenship and place of residence, can participate in the creation and use of DeFi products. Service protocols and economic models are open to inspection and audit.

You don’t need to be a millionaire and open a brokerage account to invest in DeFi. Most platforms have virtually no bottom line – you can start with a few dollars by installing the necessary applications on your computer or smartphone. At the same time, the investor does not lose control over his money and can get it back at any time.

DeFi regulation

There is no specific regulation for the DeFi sphere yet in any country. Since even the status of cryptocurrencies is still very little defined. In countries where there is regulation and taxation of crypto assets, for example, Japan, Australia, the USA, some EU countries, etc., the proceeds from DeFi will obviously be considered under the current legislation.

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