A Guide to the Top 5 Projects on the Binance Blockchain

BNB blockchain has gone through various rebrandings. It is now made up of two blockchains: BNB Smart Chain (formerly known as Binance Smart Chain) and BNB Beacon Chain (BC).

To enable short block times and cheaper costs, BNB Chain employs a proof of staked authority (PoSA) consensus process supported by 50 validators. The most-bonded validators are promoted to block producers, ensuring chain security, stability, and finality. BNB Chain is Ethereum virtual machine (EVM) compatible and allows for cross-chain transactions and communications.

Through its validators, BNB Chain provides security and safety. It supports Ethereum tools, allowing for speedier completion and lower transaction fees. The native token, BNB, is used for smart contract execution and staking. It is also the fourth-biggest cryptocurrency, with a market valuation of more than $47 billion.

Below are the Top 5 Projects on the Binance Blockchain by TVL (Total Value Locked).

PancakeSwap

PancakeSwap is a BNB blockchain-based decentralized exchange (DEX). It allows users to seamlessly exchange Binance’s BEP-20 tokens. PancakeSwap uses an automated market maker (AMM) system, eliminating the need for a centralized order book or facilitator. It borrows components from Ethereum-based Uniswap and SushiSwap. This means that instead of trading directly with counterparties, users trade against liquidity pools sponsored by other users.

PancakeSwap accounts for around 44% of the total value locked (TVL) on BNB Chain, putting it comfortably in the top ten largest DeFi protocols.

Venus

Venus is a BNB-specific DeFi lending platform. Its goal is to enable secure and decentralized crypto lending and borrowing. Anyone with compatible wallets, like MetaMask, can have access to this algorithm-based money market.

The protocol on Venus sets interest rates and responds to market demands, although the minimum and maximum values are defined by the governance process.

The Swipe team established the protocol in 2020. The team’s mission was to build a bridge between traditional finance and DeFi on the BNB blockchain. Venus is the second-largest DeFi protocol on BSC, with a TVL of $800 million.

Biswap

Launched in May 2021, Biswap is a DEX that offers token switching on BSC with trading fees as low as 0.1%. Biswap, in addition to providing a trading, farming, and staking platform, offers a novel three-type referral scheme that rewards users for the activity of their referees in farming, launch pools, and swaps.

There is also an NFT marketplace and an NFT game in the ecosystem. Biswap uses an AMM architecture to ensure quick transactions while maintaining user control over cash. Its native cryptocurrency (BSW) enables incentivization throughout the platform. Biswap expands its revolutionary DEX services thanks to a strategic investment from Binance Labs.

Radiant V2

Radiant is an omni-chain money market protocol that runs on Arbitrum and is also supported by BSC. It attempts to make cross-chain deposits and borrowing of large assets easier.

The new release of Radiant V2 fixes several of the concerns found in V1, such as initial emissions, liquidity provision, and fixed unlock timings. Tokenomics have been refined, usefulness has increased, inter-blockchain capabilities have been integrated, launches on numerous new EVM chains have occurred, and the LayerZero Omnifungible Token (OFT) has been implemented. V2 is also intended to generate fair value for the DAO, establishing Radiant as the top fee-generating mechanism in DeFi. Peckshield, Zokyo, and BlockSec performed extensive security audits on the upgrade, confirming its strong security framework.

Alpaca Finance

Alpaca Finance is a DeFi platform that will be introduced on BSC in early 2021. It provides leveraged yield farming and undercollateralized loans for improved yield farming positions, thereby enhancing capital efficiency.

It has developed significantly since its inception, amassing over $300 million in TVL and branching into single-asset staking, LP staking vaults, and experimental synthetics while actively cooperating with other protocols.

Alpaca’s lending mechanism allows users to earn returns in Alpaca tokens as well as major cryptos such as BTC, ETH, and BNB.

Conclusion

While BNB is one of the top five largest cryptos by market capitalization, investor interest and confidence in the BNB ecosystem have declined as a result of the SEC lawsuit against Binance and its creator and CEO, Changpeng Zhao. Given the uncertainties surrounding the exchange, it is prudent to exercise caution when investing in BNB or any startup developing within the Binance ecosystem.