Binance Smart Chain Accelerator Fund Launches $10,000,000 Liquidity Support

We all know the stock market soars on hopes of stimulus, so why would crypto markets fail to follow?

By
Rich
on
November 12, 2020
Category:
BSC News

Accelerator Fund

As most Binance Smart Chain (BSC) users have probably heard, Binance has launched it's $100 Million accelerator fund on October 14th of this year. The purpose of this fund is to help support existing and new projects which build on the BSC ecosystem. The support that comes for projects that join the accelerator fund is excellent. It offers projects opportunities to:

−      Listing on Binance.com

−      Receive further investment from BinanceX and Binance Labs

−      Launch on Binance Launchpad.

−      Liquidity support for projects that pass security audit

−      Fast-track security audit provided by Ceritk

The accelerator fund adds even more incentive for developers to build their projects on the BSC, on top of the previous benefits the chain also provides:

−      A rich and growing digital asset ecosystem

−      High-performance network

−      Cheap transaction fees

−      Cross-chain decentralized finance (De-Fi) mechanisms

-      Millions of users across Binance.com and Binance DEX

https://www.bscscan.com/chart

Funded Projects

As of October 29th, the following projects have received funding from the accelerator fund:

 Bounce- A decentralized auction platform revolving around non-fungible tokens (NFT) that incorporate liquidity mining, decentralized governance, and staking incentive mechanisms. It provides over the counter (OTC) trading, token sales, and NFT auctions on-chain.

DeFiStation- A De-Fi chart & analytics board for projects building on the BSC.

Gitcoin- A developer-focused platform that supports open-source blockchain projects via crowd funding and foundation grants.  All activities on Gitcoin are tracked on the blockchain.

JustLiquity- A project that aims to create a liquidity protocol mechanism to protect token holders. It aims to protect users from low liquidity and team liquidity exit by instituting token unlocking schedules and single side liquidity in the smart contract.  

PARSIQ- A provider of IF This Then That (IFTTT) programmability for BSC, made possible by allowing actions to be triggered by smart contract data and events.

Anyswap- A cross-chain swap protocol with an automated pricing and liquidity system that enables swaps between BNB, BTC, ETH, USDT, XRP, LTC, etc.

Arkane Network- Allows game developers and other dApps to easily integrate the BSC and their tokens into their applications.

BakerySwap -An automated market maker (AMM) pool on the BSC and the creator of BakeryCombo, the first NFTfi platform built on BakerySwap and running on the BSC.

Bitquery- A project that indexes and provides a unified data interface for 20+blockchains, making it easy to run queries and get business intelligence from dApps running on the BSC.

Pancake Swap- The #1 AMM pool on BSC, focusing on gamified yield-farming mechanics and a mechanism that brings more substantial incentives for user participation and token use-cases. 

Proxima- A fast, decentralized, and highly scalable trustless data query protocol based on Merkle proofs that supports authentication.

 

10% of The Accelerator Fund ($10 million) to Provide liquidity

Binance's first phase for the accelerator fund will provide Liquidity to AMM projects. Providing liquidity gives stability to the trading platform and minimizes volatility due to low liquidity. Having enough liquidity will make more significant trades possible with a lower price impact. Binance has stated that, " [They] will provide liquidity support for De-Fi projects that pass security audits and the due diligence process. " Binance is sure to require a security audit as well as their own due diligence process to reduce risks for users across the BSC. So far, four projects have been chosen by Binance to receive liquidity support from the fund. The following are:

PancakeSwap

BurgerSwap

BakerySwap

and lending provider Fortube

On October 14th, Binance announced that "The projects may decide on their own whether to accept such support. Binance will then gradually add liquidity within 1-2 weeks after this public announcement." At the time of writing, I could not find exact numbers on the fund's addition to the various projects' liquidity. It is safe to assume liquidity has already been provided to some of these platforms at this point.

 

Closing Thoughts

One thing that is for sure is that the BSC is here to stay, as it allows De-Fi projects to build on a fast and reliable network backed by Binance. To further promote growth on their chain, Binance is providing stimulus and aid to the ecosystem. This makes it very attractive for start-ups and well-known crypto projects as they do not want to miss out on this new market. As the future nears, there will be many more cross-chain projects coming and possible migrations from one chain to another. Mostly De-Fi Farms may see a migration as they need to be harvested and compounded, which requires many transactions. During the De-Fi boom on the Ethereum network, we observed that those transactions' costs could out way the profits. In short, the low fees on the BSC will be a significant factor for such De-Fi projects.

 

The accelerator fund is still relatively untapped, so many more projects can still tap into the provided liquidity, which will result in a flourishing De-Fi ecosystem.

 

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Rich

Richard is a multilingual writer, located in the Netherlands, husband and father, cryptocurrency and tech enthousiast enjoys long walks and bicycle rides. Fervent Binance Smart Chain projects promotor.

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