Binance Smart Chain Gateway

An unofficial blog about Decentralized Finance on Binance Smart Chain. Not financial advice!

1. Learn about DeFi

DeFi is Freedom of Financial Choice

High Interest Savings on Cryptocurrency
Cryptocurrency Loans
Automatic Cryptocurrency Investing
Reward Tokens
Liquidity Pools
Money Transfers

Blockchain technology offers powerful money movement and investment tools to everybody. Decentralized Finance, also known as "DeFi," is a new cryptocurrency development that may interest all investors.

Decentralized finance is the world's first permissionless money system. That means money sending, saving, investing, lending, and trading without any barriers to entry. These services are available to you via decentralized blockchains every day of the year, offering better rates and terms than traditional banks and brokerages. If you have assets like Bitcoin, Binance Coin, or Ether you can use Binance Smart Chain for DeFi.

Whether you're a pro at using Ethereum or new to cryptocurrencies, this blog offers a place to learn more about Decentralized Finance with a special focus on the new Binance Smart Chain (BSC).

Binance Smart Chain is the only blockchain with investment options for ALL of the following major coins:
BTC, ETH, BNB, BCH, LTC, ADA, DOT,
XRP, USDC, DAI, BUSD, USDT, & LINK

A look into DeFI on Binance Smart Chain: Use CAKE tokens on Binance Smart Chain to pick your rate and cash out at any time at https://pancakeswap.finance/pools. For example, earn UST tokens by staking CAKE.

DeFi is available with an internet browser and Binance Chain Wallet. The way to access it is by first withdrawing coins from Binance into your Binance Chain Wallet, and then placing one or more cryptocurrency assets into a DeFi smart contract which offers you a return on your investment. This means you don't ever have to sell your cryptocurrency to make more money with it.

The benefits of the Binance Smart Chain are speed and low fees: 12 times faster and cheaper than Ethereum. The reason blockchains get expensive is because of limited capacity. There is far more capacity on Binance Smart Chain than Ethereum, so it can run DeFi applications at a more affordable price point. This is revolutionary because of the options it opens up: compound your interest and collect rewards every single day or once a week, for less than a dollar per transaction.

The appeal of decentralized finance is you can pick the savings rate, savings term, and risk level you want. The door is always open!

Currently, yields in decentralized finance are high, ranging from 5% to over 100% APR. On Binance Smart Chain, dollar-pegged assets can earn as much as 50% a year. The current state of decentralized finance is very practical for early adopters. It will be exciting to follow the new developments in permissionless money. Banking, insurance, exchanges, and money itself will be revolutionized by decentralized alternatives. There are not many sources of information on such an innovative space.
Binance Smart Chain Gateway strives to be the place where you can get the best information about real opportunities in DeFi.

Benefits of Binance Smart Chain

The only blockchain with DeFi options for every major coin:
BTC, ETH, BNB, BCH, LTC, ADA, DOT,
XRP, USDC, DAI, BUSD, USDT, LINK

Low transaction fees, from $0.10-$4
Fast transaction speed: 3 second block times
High yield rewards from major projects

Binance is the largest cryptocurrency exchange in the world. It offers low-fee trading of a large number of coins, including BTC, ETH, LTC, BNB, ADA and more. It is a major fiat gateway, a way to buy cryptocurrency with your bank or credit card. Here is an affiliate link to get started on Binance.US:

Next, learn more about how to get to Binance Smart Chain from Binance!

2. How to Access Binance Smart Chain

Cryptocurrency is really easy to move around and invest. It comes with a new set of tools that you need to learn to use. Once you have a Binance account, you need a wallet to use crypto on the blockchain.

Best Wallets for Binance Smart Chain

How to Use Binance Smart Chain and Move Money

  • Move money onto Binance Smart Chain
  • Getting off and Deposit back to Binance
  • Sending Tokens
  • Using Smart Contracts
  • Bridges to Ethereum

Biggest Investment Projects on Binance Smart Chain

Savings and Lending "Crypto Banks"

Use blockchain savings and lending dapps to earn interest and borrow stablecoins.

3. Stablecoins on Binance Smart Chain

What are stablecoins?

This section introduces stablecoin currencies. This article does not constitute financial advice and you should continue do your own research before investing.

Stablecoins are special cryptocurrencies which peg themselves to the value of another currency or commodity. The US dollar is the most popular peg, however pegs to Euros, gold, and other currencies are also used. With stablecoins, a dollar sent is received as a dollar. As a stablecoin user, you can send money across the world and it will retain its value over the transaction. In this article, we will present our recommended stablecoins as well as stablecoins to avoid.

Stablecoins are a lower risk way to get started with earning in DeFi, and typically earn the highest interest rates.

Top Stablecoins on BSC

BUSD - Binance USD is the official and most liquid stablecoin on BSC. It is backed one for one by dollars
USDC - USD Coin offers coins backed one for one by dollars
DAI - Multi-Collateral DAI is a battle tested and decentralized stablecoin from Ethereum

When you purchase a stablecoin, it will “live” as tokens on a blockchain. Blockchains are verifiable and publicly accessible ledgers for transactions between holders of blockchain addresses. Blockchains have two unique advantages - it’s secure yet the payment infrastructure is accessible anywhere there is internet. To “send” money on a blockchain, you broadcast your intention to send money to another address and also the fee you’re willing to pay. If the fee is high enough, the transaction is accepted by the blockchain and published to everyone. Transaction costs are one of the most important things to keep in mind for any stablecoin user. Typically the cost will range from a few cents to a few dollars.

Stablecoins rely on other blockchains to maintain accurate transaction ledgers and security. They require a separate coin such as Bitcoin or Ether for the purposes of enabling transactions and paying fees. Typically to use a stablecoin, you need to buy it on an exchange and then also buy the same network coin, such as Bitcoin, Ether, Stellar, or Terra, to pay the sending fees to your wallet or someone else’s wallet. Many exchanges such as Binance and Coinbase now enable paying fees in stablecoins themselves. They can be *cross chain* tokens meaning they are not tied to a particular blockchain and operate on several at the same time.

Stablecoins enable trading, credit, saving, and spending on the blockchain. Because of stablecoins, you can easily keep a secured interest-earning account on the blockchain. They reduce the volatility of using cryptocurrencies directly as a unit of account and provide predictability in transaction value.

Stablecoins are a rapidly growing area of cryptocurrencies. The top 3 stablecoins represent over $31 billion dollars in market value. Stablecoins are only 3% of the total crypto market cap value. Despite their relatively small size, they are some of the most useful and most sought after tokens.

The largest stablecoins are all “backed” by some assets. The top 3 by size are Tether, USD Coin, and Binance USD. Stablecoins themselves also don’t appreciate, so changes in the supply must be produced by an issuer using some type of backing asset.

Stablecoins to use with caution on BSC

These coins can generally be relied on to keep their peg, but aren't as bulletproof as the recommended coins.

USDT - Tether USD is large and liquid but it's account and fiat backing are opaque.
UST - TerraUSD's stability is very promising but it is new and has a short track record.

Could we use anything worth $1 as a stablecoin or as collateral? Say, Dollar menu items? Not quite, since sandwiches are perishable. On a day-to-day level, stablecoins generally keep their value by being traded on cryptocurrency exchanges. Traders are incentivized to treat stablecoins as worth $1 by market forces. Breaks from peg of up to 44% have occurred, but coins with a sufficiently strong stability mechanism will return to $1 after undergoing market corrections lasting up to two weeks. Certain coins like DAI and USDC have additional stability mechanisms built in.

"Stablecoins" to avoid on BSC. Not Recommended!

Don't use these coins unless you're experienced in trading volatile coins- they have poorly designed value retention mechanisms, or aren't built for that purpose.

Ditto - Though it targets a $1 value, Ditto is not a stablecoin. It is a rebase coin and doesn't retain its value.
BDO - BDO is a promising algorithmic stablecoin, however it is trading consistently off peg. Though time may prove that it's ecosystem is viable, it's stability mechanism is not strong enough to be considered a true stablecoin.
VAI - VAI is trading far off peg. Their stability mechanism is not strong enough, as they mostly rely on market forces to restore peg.
USDX - USDX is trading far off peg. Their stability mechanism is not strong enough.
QUSD - This project seems abandoned and has no remaining value. Please avoid it.