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Smart Chain Supports Five More DeFi Projects, Zhao Changpeng Reiterates Not an Ethereum Killer: BSC More Like Ethereum 1.8

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Smart Chain Supports Five More DeFi Projects, Zhao Changpeng Reiterates Not an Ethereum Killer: BSC More Like Ethereum 1.8

Binance exchange has been strategically positioning itself in the DeFi space over the past two months. After announcing investments in six DeFi projects in mid-October, Binance revealed on the 29th that five more blockchain projects including Bounce will receive funding from its accelerator fund.

Actively Building the Smart Chain Ecosystem

Binance announced on September 10 the establishment of a $100 million accelerator fund to support DeFi projects built on Binance Smart Chain (BSC). On October 14, they announced support for the following 6 projects, each receiving an average of $350,000 in development funding:

  • Anyswap: Cross-chain token exchange protocol for BNB, BTC, ETH, USDT, XRP, and LTC tokens
  • Arkane Network: DApp development platform
  • BakerySwap: Token exchange protocol on Binance Smart Chain
  • Bitquery: DApp-related data and unified access platform
  • Pancake Swap: Gamified token exchange protocol
  • Proxima: Data platform based on Merkle verification

On the 29th, they announced the second batch of blockchain projects:

  • Bounce: NFT auction platform with liquidity mining
  • DeFiStation: Data platform providing DeFi-related charts based on smart chain
  • Gitcoin: Fundraising platform based on Quadratic Funding
  • JustLiquity: Liquidity protocol development platform
  • PARSIQ: Similar to the web automation service IFTTT, enabling interaction with smart contracts on BSC
(Source: binance)

So far, the fund has supported 11 projects built on the smart chain. The announcement mentioned that over 180 projects applied for the accelerator fund, but only 6 were selected. Binance also openly welcomes more innovative projects to apply for the fund.

CZ: BSC is not an Ethereum Killer

Given the recent push for smart chain development, Binance CEO Changpeng Zhao (CZ) reiterated the competitive relationship with Ethereum on the 29th on Twitter, stating:

The smart chain is not meant to replace Ethereum, nor is it an Ethereum killer. I believe "Ethereum 2.0" will be great, and currently, the smart chain seems more like "Ethereum 1.8," with 100% backward compatibility, faster and cheaper.

(Source: @cz_binance)

According to DappRadar data, there are a total of 24 DApps on the smart chain, with the following growth in October:

  • Daily active wallets increased by 45%
  • Total transaction volume increased by 40% to $853 million
  • Active DApps include PancakeSwap, BakerySwap, and BSCSwap

In reality, apart from Gitcoin being more acclaimed, the projects supported by the smart chain do not offer much innovation. The market does not need so many token exchange protocols, and liquidity mining projects seem to be just another way of issuing coins. Additionally, Bakeryswap's liquidity mining collapsed shortly after its launch, dropping from 60 to 0.21 on September 15, and now only worth $0.014. Investors must ensure proper risk management.