One of the best exchanges of cryptocurrencies Binance has launched a new parallel blockchain to Binance Chain – called Binance Smart Chain (BSC) – to provide an alternative blockchain network for DeFi and Web 3.0 applications.
In this guide, you will learn about Binance Smart Chain (BSC) and discover a list of the top five DApps on BSC.
What is Binance Smart Chain?
Binance Smart Chain is a parallel blockchain to Binance Chain, the original Binance blockchain.
BSC is different from Binance Chain in that it supports smart contracts, decentralized applications (DApps), and is compatible with the Ethereum Virtual Machine (EVM). DApp support means that people can launch decentralized finance (DeFi) projects on BSC. Additionally, BSC is cross-chain compatible, allowing users to transfer assets between Binance Chain and Binance Smart Chain.
O BSC usa um mecanismo de consenso chamado Proof of Staked Authority (PoSA) e tem um tempo de bloqueio de cerca de três segundos. Os participantes precisam fazer staking no BNB, a criptomoeda nativa, para se tornarem validadores. Os validadores são recompensados na forma de taxas de transação.
Since BSC launched in September 2020, the platform has grown substantially. The blockchain’s daily transaction volumes have increased by 300 percent year-to-date as of February 10, 2021, surpassing Ethereum’s daily transaction volumes by 30 percent.
The early success of Binance Smart Chain can be attributed to its low transaction fees, fast processing speeds, and compatibility with the Ethereum Virtual Machine, which makes it easier for developers to switch from Ethereum to BSC.
Top Binance Smart Chain DApps
BSC is becoming a popular Ethereum alternative for launching DeFi protocols and deploying decentralized applications. Below is a list of the top five DApps on BSC based on dollar amounts locked in smart contracts, according to data provided by DApp Radar.
PancakeSwap
PancakeSwap é um criador de mercado automatizado (AMM) construído no BSC que permite aos usuários negociar ativos digitais executados no BSC. Além disso, o PancakeSwap permite que os investidores do DeFi fazer staking e participar de lucros de ativos e ganhar altos APYs em seus ativos virtuais.
A Binance Smart Chain-compatible wallet, such as Trust Wallet or MetaMask, is required to use PancakeSwap. The blockchain architecture allows the Ethereum MetaMask wallet to interact with BSC DApps. You then go to the website and connect your wallet.
At this point, you can start using the platform to swap Binance Smart Chain (BEP20) assets, provide liquidity to trading pools to earn trading fee revenue, and liquidity provider tokens to earn yield farming rewards.
You can also play lotteries on PancakeSwap to earn rewards and register to win a special NFT. The platform has an Initial Farm Offering (IFO) page where users can access new tokens that have been released.
PancakeSwap é o melhor criador de mercado automatizado (AMM) no BSC e foi lançado por desenvolvedores anônimos. O protocolo foi auditado pela CertiK – uma empresa que oferece auditorias de segurança para projetos de blockchain.
The total value locked on this platform was $11 billion at the time of writing.
Venus
Venus is a DeFi lending platform on BSC that allows users to borrow against collateral without having to go through a credit check. On the other hand, lenders can deposit funds into a lending pool to receive an above-average variable APY on their digital assets.
A plataforma tem dois tokens baseados em BEP-20: VAI e XVS. VAI é uma Stablecoin atrelada ao dólar americano, enquanto a comunidade usa XVS para governança e votação. Os usuários podem cunhar VAI sob demanda após liberar um mínimo de 200 por cento de garantia e receber XVS como um incentivo para contribuir com liquidez para grupos de empréstimos.
To earn interest on your digital assets using Venus, you need to connect a Binance Smart Chain wallet to the DApp. Next, you need to choose which asset you want to deposit and confirm the amount you want to borrow. To complete the process, you will need to sign the transaction using your BSC wallet. You will start earning interest as soon as the next Binance Smart Chain block is found.
A comunidade Venus controla a governança do protocolo, enquanto Swipe é o projeto por trás do protocolo. Atualmente, venus possui um valor total bloqueado de $ 2.7 + bilhões.
Rede Autofarm
Autofarm Network is a DeFi platform that provides DEX and yield aggregator. The platform offers vaults that “automate the best yield farming opportunities.” They perform automated actions, such as using assets as liquidity and collateral, and automatically compound yields.
O Autofarm também oferece um recurso de swap automática que permite aos usuários trocar de um token para outro. Esse recurso está no estágio alfa público de desenvolvimento.
Como todas as outras plataformas DeFi, você precisa primeiro conectar sua carteira. Autofarm suporta MetaMask, Wallet Connect e Binance Chain Wallet. A plataforma oferece produtos de cadeia cruzada em BSC e HTX ECO Chain (HECO).
The total value locked in the smart contract of this platform is over $1.8 billion.
ApeSwap Finance é um Automated Market Maker (AMM) desenvolvido com base na Binance Smart Chain para produção agrícola e implantação. É uma corretora descentralizada que dá aos usuários acesso a diferentes mercados financeiros para empréstimos, pagamentos, apostas e derivativos. Além disso, por meio de economias alternativas, os usuários podem obter ativos tokenizados.
The protocol aims to decentralize most aspects of the traditional financial sector, such as credit, insurance, and others. Most of these services remain inaccessible to the majority of society, especially those at the base of the pyramid and in underdeveloped countries.
Using blockchain services and crypto tokens, ApeSwap Finance provides solutions to the challenges of centralized finance. Some of these issues include mismanagement and third-party influence, hacking risks, arbitrary fees, and more. Thus, the protocol works as a replacement for centralized institutions in lending, insurance, and derivatives.
Ellipsis Finance
Ellipsis Finance é um fork autorizado da Curve Finance que funciona na Rede Binance Smart chain. Assim como o Curve, o Ellipsis Finance permite a swap de stablecoins. A plataforma foi lançada em março de 2021 e contará com o suporte da equipe da Curve Finance como seu fork-pai.
Ellipsis Finance will maintain the core value of Curve Finance. This means that users will not incur any fees on deposits and withdrawals. Additionally, there will be highly efficient stablecoin swaps and no liquidity lock-ups.
A taxa de swap no Ellipsis Finance é muito atraente para os usuários, sendo fixada em 0,04%. Além disso, por meio do fornecimento de liquidez, os traders podem cultivar os tokens do protocolo.
Conclusion
Investing your digital assets in DeFi protocols is considered a high-risk cryptocurrency investment practice.
DeFi protocols on Binance Smart Chain are still relatively new and may have code vulnerabilities that are yet unknown and that hackers can exploit. Additionally, many DeFi applications were built by anonymous teams, meaning there is almost no legal recourse if funds are lost due to operational errors or theft.
To avoid these risks, users should only invest what they can afford to lose. Furthermore, investors are encouraged to conduct their own research before depositing funds into any DeFi protocol.