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In the cryptocurrency world, only a few assets have had a significant impact on decentralized finances (Defi) as Binance Coin (BNB). BNB, launched in 2017 by the popular cryptocurrency exchange binance, has become platforms the most widely traded cryptocurrency with market capitalization, which significantly exceeds the initial price. But what role BNB plays in the defi world, and why is it so influential?
What are decentralized finances?
Decentralized finance (DEFI) is a new financial services ecosystem based on blockchain technology. It provides users a platform to lend, occupy and invest cryptocurrencies without the need for intermediaries or traditional financial institutions. Defi allows uniform loans, loans, trade and other financial activities that have previously restricted centralized systems.
How Binance Coin (BNB) revolutionizes Defi
BNB has become an essential part of the defi ecosystem due to its usefulness on the Binance platform. Here are some ways BNB revolutionizes Defi:
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Loans: BNB allows users to lend their cryptocurrencies to others by interest rates, providing a new source of income for investors and borrowers.
- Staking: BNB can be determined to earn reward using harvest agricultural platforms, such as binance’s own AAAE loan protocol.
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Insurance: BNB is used to create insurance programs that protect users’ assets against possible losses due to market fluctuations or hacking attempts.
- Forecasting markets: BNB is used as a marker to predict future events in decentralized forecasting markets, providing a new way to measure uncertainty and risk.
Binance coins (BNB) main features
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The utility marker: BNB is designed by keeping in mind the utility, allowing users to earn rewards through laying and loans.
- Decentralized Management: BNB holders have the opportunity to participate in management decisions on the binance platform, ensuring their interests.
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The Integration of the Smart Agreement: BNB can be used as a sign of smart contracts on Binance’s smart chain (BSC), allowing for a seamlessly integrated defi protocol.
Defi Market increase
Defi growth in recent years has been meteorical, which is facilitated by increasing adoption and investment in cryptocurrencies. According to CoinMarketcap, the total value of defi protocols has increased from $ 1 billion in 2020 to more than $ 20 billion.
Conclusion
Binance Coin (BNB) has become the basic component of the DEFI Ecosystem, providing a platform for users to participate in lending, rate and other financial activities. With its performance marker features, decentralized management and intelligence of smart contracts, BNB is well placed to continue growth in defi market.
As the cryptocurrency space continues to evolve, BNB may have an increasingly important role in the future defi. Regardless of whether you are an experienced investor or just starting a job, BNB offers a convincing opportunity for users to participate in this exciting new financial services world.
Disclaimer:
This article is only for informational purposes and should not be considered as an investment in tips. Always do your research before making any investment decision and consult a financial advisor.