Binance just awarded Anyswap and five other projects grants worth $350,000 from its $100M Accelerator fund.
Crypto exchange giant Binance has provided funding for six DeFi protocols building on the Binance Smart Chain. It was announced on October 14 in a statement released by the company. The projects that will receive the grants are Anyswap, Pancakeswap, Arkane Network, Proxima, Bitquery, and Bakeryswap. Over 180 projects applied for the accelerator funds, which was announced in September. The projects that were chosen were based on the contribution of the projects to the blockchain network then the teams behind it as well as the products on offer by the projects.
The motive behind the accelerator fund
According to the words of CEO Changpeng Zhao, the $100M accelerator fund was intended to provide the necessary support for top-notch DeFi protocols, which are contributing to the development of the infrastructure in the blockchain industry.
There are strict criteria used during the qualification and evaluation of DeFi projects that applied for the accelerator fund. The first is that the projects must be built on the Binance Smart Chain. This is seen by many as an attempt to actively attract top-quality DeFi protocols to the Binance Smart Chain. The money will serve several purposes, which include projects’ seed funding, and it is targeted at projects in the early startup stage. Additional funding could be provided down the line through established mediums such as Binance Labs, Binance X, etc.
Furthermore, part of the fund will be geared towards liquidity for protocols that are audited and certified. The accelerator fund is aimed at helping to link the exchanges and centralized finance ecosystem. As mentioned earlier, a total of six projects have been selected as the take-off projects that will have the first taste of the accelerator funds. These include projects ranging from gaming solution providers, swap protocols, data platforms, to automated market makers.
A peep into the Binance Smart Chain
The Binance Smart Chain is built as a dual-chain architecture to facilitate the development of DApps and other digital assets on a blockchain while enabling cross-chain trading. The main aim is to enable decentralized and swift transaction and trading. As you will expect, the Binance DEX is featured on the Binance Smart Chain as well as other interesting projects like Anyswap now joining the blockchain.
The Binance chain offers certain benefits that several DeFi protocols may find appealing such as increased DeFi interoperability through cross-chain mechanisms, cheap transaction fees, quality network performance, etc.
Anyswap’s win: a step in the right direction
Anyswap counts itself among the first six successful projects to be selected for the Binance accelerator fund. The cross-chain swap protocol is fully decentralized and allows the swapping of cryptos on the blockchain that utilize EdDSA or ECDSA as its signature algorithm. That includes coins like USDT, FSN, BNB, LTC, BTC, UNI, ETH, etc.
The selection of Anyswap in the first round of the accelerator funding bodes well for the future of the project and it shows how far the project has come since it was launched.
DeFi is taking a new turn
After being on the fringes in 2019, the DeFi ecosystem has changed and evolved in a multi-billion dollar market due to astronomical yield as well as trading and lending. Many DeFi protocols use Ethereum and as a result, many DeFi transactions occur on the blockchain. This has created some serious issues for users such as high gas prices and the incapacity to scale. This has ledlead to the creation of new blockchains such as the Fusion chain and the Binance Smart Chain to provide capable alternatives.
Blockchain like the Binance chain offers more scalability and some level of interoperability across several chains. Blockchain offerings from firms like Binance and Fusion are willing to take DeFi towards a new turn. These firms are ready to spend big to achieve this aim, which we can see in concepts like Binance Accelerator Fund.
Since launching the Binance Smart Chian, several projects like Aave, dForce have shown willingness to come on board. Additionally, several more projects such as Bakeryswap, Burgerswap have launched their protocols on the Smart Chain.
The projection for DeFi is bright and it has been hailed as the future due to the potentials it holds. DeFi has been boosted by the hype around yield farming, which is not expected to die down anytime soon. Yield farming keeps pulling in new farmers, and as a result, attracting DeFi attracting for DeFi developers to the DeFi market. The take-off of the Binance accelerator fund is sure to even increase the hype around DeFi more, which is good for the development of the DeFi ecosystem.