The crypto-exchange takes $ 350,000 from its 100 million fund to finance 6 decentralized finance projects and their development on its Binance Smart Chain blockchain.

Between DeFi and CeFi, bridges are possible. And Binance intends to support its economic development through the growth of decentralized finance. To do this, the exchange announced in September the creation of a seed fund of $ 100 million.

It didn't take long for Binance to write their first checks to DeFi startups. The crypto-currency exchange signals to Decrypt a first round of funding of $ 350,000.

180 candidate projects, but 6 DeFi projects funded

The company is investing in six separate DeFi projects. AnySwap, Arkane Network, BakerySwap, Bitquery, PancakeSwap and Proxima therefore have in common that they operate on Binance's blockchain, namely Smart Chain (BSC).

"We launched the $ 100 million accelerator fund to further support the development of high-quality DeFi projects that help build industry infrastructure and technologies to better unleash the potential of DeFi" said the CEO, Changpeng Zhao.

But even if it mobilizes a substantial envelope for this funding, Binance would like to point out that it will be very demanding in its selection. Thus, more than 180 projects under development on BSC applied for this funding. Only 6 of them will benefit from it at this stage.

96% of DeFi transactions carried out on Ethereum

The nature of the projects selected is heterogeneous, point out our colleagues. Among these, AMMs (automated market makers), data platforms and technologies for the gaming sector.

The selection of PancakeSwap will probably come as no surprise to those familiar with the Binance ecosystem. With more than $ 218 million managed through its smart contracts, the project is to date the leading provider of liquidity on the Binance Smart Chain.

This is a nice size and a potential growth driver for the exchange in DeFi. However, the step to be taken to compete with Ethereum remains high, very high even. Indeed, Ethereum now represents 96% of the total volume of transactions in DeFi.

For the third quarter, DappRadar estimates this total amount at 125 billion dollars. In addition, the total value of funds blocked in Ethereum smart contracts exceeds $ 10 billion. However, all of DeFi's smart contracts weigh 10.82 billion.


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