By
Steve Muchoki
May 13th, 2024
Binance’s staking platform for DeFi will allow users to participate in different events by voting through a Proof-of-Stake model. Through staking, users get to earn passive rewards for locking their crypto.
Crypto exchange Binance announced that its Decentralized Finance (DeFi) staking platform is now live for trading. On Wednesday, the Binance staking platform announced support for DAI, the stablecoin generated through loans on the DeFi platform MakerDao.
Later on Thursday, Binance announced support for the second asset Kava to its staking product. Kava is basically a staking platform backed by Huobi, Binance and OKEx. It also has a native crypto token with the same name. With this development, Kava users no longer need to interface with the Kava app. Instead, the users can directly go through Binance’s DeFi staking platform.
Speaking to CoinDesk about the new DeFi platform, Binance CEO Changpeng Zhao said:
“Our users have been requesting Binance.com giving them access to DeFi. Binance prioritizes user experience and in the spirit of the community, Binance.com now offers direct integration into these DeFi products allowing the products’ value to flow out to Binance.com users and that’s happening with KAVA and BNB to name a few.”
Kava’s CEO and co-founder, Brian Kerr, said that the current DeFi sector is just “tip of the iceberg” when it comes to adoption. Staking in DeFi would allow users to participate in different issues by voting through a Proof-of-Stake model. The staking happens using smart contracts and also allows users to earn passive rewards for locking their crypto.
Binance and Other Crypto Heavyweights Remain Optimistic on Future of DeFi
Famous crypto personalities have already started shifting their attention towards the DeFi market. DeFi offers quite promising uses cases by overhauling the traditional financial systems and establishing more transparent and efficient systems in place.
Recently in an interview with the Boxmining YouTube channel, Binance CEO Changpeng Zhao expressed his confidence in DeFi. “I think DeFi is a really innovative space and I think that’s really good. Initially, when people talk about DeFi they think about lending so you can lend your coins but now, you lend the coins to provide liquidity,” he said.
CZ also admitted that Binance has taken up a number of Defi initiatives at its ends. Besides, it is also working on diverse DeFi projects. TRON founder Justin Sun also spoke about the upcoming DeFi revolution at the 2020 Global blockchain Eco-Conference hosted by Alchemy Pay.
Sun said that Tron Foundation has already been working on DeFi since the beginning of 2020. “The next DeFi industry opportunity lies in TRON. I believe that by the end of this year, TRON will advance to become one of the top protocols for DeFi and stand toe-to-toe with Ethereum,” Justin Sun said.