Binance Unveils Its First On-chain Yield Offering with Babylon Staking

by

As a seasoned crypto investor with years of experience navigating the ever-evolving landscape of digital currencies, I find myself intrigued by Binance’s latest move into on-chain yield offerings. The world’s largest exchange is not only leveraging its market dominance but also providing users with an entry point into the promising realm of decentralized finance (DeFi).

Binance, the globally recognized leader in cryptocurrency exchanges by market cap, has introduced its inaugural on-chain yield program. This innovative service, available via Binance user accounts, offers a gateway for users to engage with the decentralized finance (DeFi) sector.

Introduced through Binance Earn, their initial product is Babylon BTC Staking, which serves as the flagship item. As mentioned in a press release sent to Coinspeaker, Binance aims to broaden this program by incorporating more projects in the future, some of which are already being prepared.

Exploring High-Yield Opportunities

In simpler terms, using the on-chain yield service on Binance lets you deposit your assets there, which then generates returns in the form of tokens and points – all without leaving the Binance platform!

Starting December 10 at 10:00 UTC, I’m excited to announce that users will be able to participate in staking Bitcoin on the Babylon Protocol. Please note, however, that this opportunity is available on a first-come, first-served basis due to a limited supply of Bitcoin (BTC). The exchange has only set aside 1,000 BTC for this new offering.

The exchange notified us that those who get an early start can expect a 12% increase in rewards linked to the development of Babylon Cap-3.

Binance’s Growing Ecosystem

Introducing on-chain staking is an essential aspect of Binance’s wider plan to diversify their services and further establish their leadership within the cryptocurrency market. Even with a strong presence in the crypto world, Binance consistently works on introducing fresh offerings to maintain user interest.

As a researcher, I embarked upon an exciting journey in November when Binance introduced a unified mining function on their Binance Pool for Fractal Bitcoin (FT). This innovative feature enables me, as well as other miners, to reap rewards not only in Bitcoin but also additional cryptocurrencies, all while carrying out the primary task of mining Bitcoin.

At the stated period, Binance requested users to establish a Binance Pool account to join the offering. Noteworthily, FT, unlike many other offerings, is not available for trading on Binance and holds no intention of listing the asset.

In September, Binance launched a pre-sale trading feature for cryptocurrencies, enabling users to purchase tokens ahead of their official market debut. This service sets Binance apart from competitors such as Bybit and Coinbase, as it provides direct access to the actual tokens, not just placeholders or proxies.

Binance is unique among crypto exchanges, as it allows pre-market trading of tokens, meaning that tokens are specifically reserved and produced for users to hold and trade before the market officially opens on the Binance platform.

For example, while Bybit offers pre-market spot trading services, it uses a different model that involves offering users access to derivatives instead of the actual tokens, such as Binance. Coinbase, on the other hand, adopted a different strategy that involves trading perpetual futures contracts for the tokens scheduled to launch on its “pre-launch market” before their eventual rollout.

Read More

2024-12-05 15:16