

The Beginner's Handbook to Decentralized Finance on BNB Chain



It's been a long search for a blockchain protocol that will enable scalability while still upholding decentralization and security integrity. The BNB ChaiN has brought just that, scalability alongside quick and cheap transactions.
What Exactly is the DeFi Ecosystem?
The Decentralized Finance (DeFi) market’s growth has been exponential. The total value locked (TVL) in DeFi contracts grew from just $2.1 million in September 2017 to a present $41.34 Billion. There has been a massive increase in the market capitalization of almost all decentralized applications (dApps).

However, the question is - what exactly are DeFi coins? The term DeFi stands for Decentralized Finance. The DeFi market is built on the blockchain and is a decentralized ecosystem. These markets offer traditional financial services in a decentralized manner. One category of dApps is decentralized exchanges (Dex) that allow direct peer-to-smart contract trading without identification. DeFi platforms also offer more than just crypto exchanges; they allow for the borrowing and lending of cryptocurrency, derivatives, and various yield farming mechanics.
What is BNB Chain?

Most DeFi projects are built on the Ethereum blockchain. The network usually is swamped with transactions. Users are laden with high transaction fees and slow transaction times. Hence, the need for a solution; the BNB Chain (BSC) launched in September 2020. BSC is a blockchain protocol that runs parallel with Binance Chain (a blockchain software developed by Binance and its community). The Binance Chain was created to facilitate fast trading and deal with large transaction loads. Unlike Binance Chain, the BNB Chain uses the proof of stake authority consensus algorithm and focuses on powering smart contracts. With the proof of stake authority algorithm, 21 validator stake BNB to secure the network. In turn, they receive transaction fees as a reward for securing the network.
BSC is also compatible with the functionality of the Ethereum Virtual Machine (EVM). The EVM allows for Ethereuem dApps to be easily migrated or built on BSC. More than 60+ DApps are operating on BSC. Applications such as MetatMask have been configured to work with BSC. Even TrustWallet offers BSC compatibility, supporting multiple BEP-20 tokens, the native BSC token standard.
With the BNB Chain, any user can access a plethora of dApps. You can also explore blocks on the chain via BscScan, allowing you to check your transaction history. On the other hand, developers can issue new tokens, migrate across existing Dapps, develop wallets, and even become validators of BSC.
Navigating the BNB Chain Ecosystem
When trading on Binance DEX using the Binance Chain, you’ll need to use BEP2. However, BSC supports the BEP-20 token standard, boasting smart contract capability. To receive BEP-20 tokens, users can use TrustWallet, the Binance Bridge, or withdraw from the Binance exchange. Using the Binance Bridge, users can convert tokens between TRC-20, ERC-20, and BEP-20 token standards.

There is a ton of dApps on BSC, but the main categories consist of Dexs, yield optimizers, synthetics, NFTs, and etc. Some popular Dapps on BSC include Pancake, BurgerSwap, Spartan Protocol, and Autofarm. A great place to dive into projects is through our yield farming and project page.
How to use BNB Chain on Trust Wallet

Now that we have established what BSC is all about and how we can navigate its ecosystem. Let’s take a look at how to use Dapps through third-party wallets. Trust wallet is one of the best cryptocurrency wallets to store your BEP-2, BEP-20, ERC-20 and ERC721, tokens. The TrustWallet dApps integration allows you to access DeFi projects and swap tokens with ease while using the wallet to store them. In the following tutorial, usage of TrustWallet and how to interact with the PancakeSwap dApp is explained.
Conclusion
BSC offers innovation in the DeFi ecosystem, providing faster and cheaper transactions. Also, it is easy to build on, and migration is not complicated. DeFi is currently taking over the financial landscape, and having a more reliable protocol to handle transactions is a welcomed development. DeFi provides more returns, and getting onboard is hassle-free when compared to traditional finance. The possibilities are endless, and DeFi growth is just beginning to spur; don’t miss the train! Overall, BSC offers users an efficient gateway into the DeFi sector.
For those who wish to learn more about the BNB Chain and DeFi, browse through the following articles:
Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for BNB Chain and crypto! Check out the DeFi Direct Linktree for all the access links!
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
If you need tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, cryptonomics explainers, and Trading Tool Kits from BSC News.
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Related News


Digital Asset Infrastructure Provider Taurus Partners with Polygon: Revolutionizing Decentralized Finance?

This partnership aims to enhance Taurus' capabilities by incorporating staking and decentralized finance (DeFi) support into its offerings.
Taurus Embrace Polygon Blockchain
Taurus, a leading provider of digital asset infrastructure backed by Credit Suisse and Deutsche Bank, has partnered with Polygon to provide staking and decentralized finance (DeFi) support to its capabilities.
Enabling banks and brands to issue and custody any tokenized asset using @0xpolygon@taurus_hq, the European digital asset infrastructure leader is now fully integrated and automated #onPolygon 😎
— Polygon (Labs) (@0xPolygonLabs) June 2, 2023
More: https://t.co/U2tT0azjkG pic.twitter.com/urFCzXN8eg
Taurus offers a range of services, including custody, tokenization, and trading of digital assets. Taurus recently secured $65 million in funding through a round led by Credit Suisse and Deutsche Bank in February, highlighting the growing interest from traditional financial institutions in blockchain technology and tokenization.
Tokenization, the process of representing an asset as tradable units in a digital format, is increasingly drawing the attention of mainstream financial institutions.
Taurus emphasized that most Tier 1 financial institutions are entering the tokenization space and seeking a blockchain-agnostic and token-agnostic infrastructure. Additionally, Bank of America published a report last April stating that the tokenized gold market had surpassed $1 billion the previous month.
Polygon aims to evolve into an "internet of blockchains," connecting various Ethereum-compatible networks while continuing to enhance transaction efficiency and speed.
As blockchain technology adoption accelerates, collaborations between established major institutions and Polygon continues. In addition to the recent collaboration Polygon has also partnered with Franklin Templeton, Google Cloud, and Deutsche Telekom in recent months.
Polygon ($MATIC) is trading at $0.9, up 0.4% in 24 hours, according to CoinMarketCap.
What is Polygon:
Polygon is a “sidechain” scaling solution that runs alongside the Ethereum blockchain — allowing for speedy transactions and low fees. MATIC is the network’s native cryptocurrency, which is used for fees, staking, and more. The effectiveness of Polygon as an alternative to Ethereum has seen existing projects such as Aave and Curve adopting its chain.
For more about Polygon:
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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