The world’s most popular centralized crypto exchange is expanding its influence on DeFi with BNB Chain, an addition to the existing Binance Chain that offers smart contracts and Ethereum compatibility.
What BNB Chain Stands For?
The Main Features of BNB Chain
Most Used Binance Coin (BNB) Wallets
How to connect the Binance Smart Chain using Metamask
Which Wallet to Choose?
De.Fi FOR BNB CHAIN
Highest TVL Projects on BNB Chain
BNB Chain Ecosystem
Binance Bridge
How can US users access BNB Chain?
Yield Farming on BNB Chain
Should I use BNB Chain for Staking and Yield Farming?
BNB Chain, launched in September 2020 (originally as BSC or Binance Smart Chain), is a blockchain service that allows developers to build their own decentralized apps using smart contracts.
Binance Chain was not able to provide this functionality, and BNB Chain was designed to provide the same fast transactions as well as significantly expand the available features and capabilities.
BNB Chain enables developers to build decentralized applications (DApps) in the Binance Chain ecosystem, unlocking the possibilities for building DeFi products and solutions.
The blockchain has a cross-chain infrastructure that connects Binance Chain for fast DEX and other popular crypto assets. It also has compatibility with the Ethereum Virtual Machine, which provides support and integration of tools and solutions built on top of Ethereum.
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Another key feature of the BNB Chain is the emergence of BNB staking. With the introduction of the Proof of Staked Authority (PoSA) consensus mechanism, BNB Chain validators will be rewarded in BNB for completing tasks on the blockchain, thus incentivizing network participants and ensuring stability without compromising transaction speed.
Note: If you’re looking for a quick overview of BNB Chain yield farming opportunities, check out this video from our De.Fi YouTube channel:
Gas fees on BNB Chain are about 20 times cheaper than on Ethereum. Ethereum’s rise in transaction fees has caused significant friction and costs for DeFi users. BNB fees significantly reduce overhead costs, allowing a wider range of investors from different countries and economies to participate. With an average gas price of 20 gwei, a transfer of 10 BNB worth $300 will cost you about $0.01.
BNB Chain uses the consensus mechanism that is similar to the one planned for Ethereum 2.0. This means it does not rely on mining and transactions are faster than in other networks.
Both Binance Chain and BNB Chain have built-in cross-chain transaction capabilities. Trust Wallet users can switch between BEP2 (a token standard on Binance Chain) and BEP20 (a token standard on BNB Chain) without leaving their wallets.
BNB Chain is a powerful blockchain developer base that supports multiple integrations including Chainlink, Band Protocol, Swipe, Ontology, Trust Wallet and at least 25 other projects. Many other Internet protocols are in the process of being built or deployed on BNB Chain. This will open up Ethereum assets to, among others, BNB Chain DeFi investors.
However, there are also risks as BNB Chain is centred upon 21 validators who staked BNB in order to validate the BNB Chain network. Meanwhile, Ethereum has thousands of miners validating transactions, which makes BNB Chain more centralized.
As Binance Coin (BNB) is the key of BNB Chain, customers should store it somewhere.
MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to interact with decentralized applications. Metamask is one of the commonly used wallets that supports majorority of the EVM-compatible chains.
It is the official wallet of the Binance exchange. One can also use it to earn interest on cryptocurrency, play blockchain games and access the latest DApps and DeFi platforms. In addition to BNB, Trust Wallet allows managing dozens of assets operating on 40 blockchains. A number of coins are available for staking without leaving the app.
Atomic Wallet is a decentralized cryptocurrency wallet that supports over 500 coins and tokens with a fairly simple and user-friendly interface. Anonymous exchange of more than 60 crypto-assets among themselves with cashback for each operation is available. You can stake different coins and make a profit once a week, once a month or once a year.
In addition to staking coins such as Tezos, Cosmos, etc., each wallet user can stake native AWC tokens, earning a profit of up to 23% per annum. The ecosystem of the project is designed in such a way that it is convenient for everyone — both a beginner in the field of cryptocurrencies and a professional.
To create a BNB wallet using Atomic, you just need to install the application on your phone or computer, and also come up with a password.
The wallet supports over 45 coins and 10 thousand tokens. Allows you to buy cryptocurrencies with a debit or credit card directly through your wallet (Simplex payment service). There is a built-in exchanger for instant exchange between your cryptocurrencies. Possibility of staking 10+ coins with a yield of up to 25% per annum. Guarda collaborates with projects such as Binance, Zcash, Bitcoin Gold, Ethereum Classic.
A multi-platform wallet for BNB Coin and over 100 other popular coins. You can exchange one asset for another without registration in a few seconds with built-in wallet tools. Disadvantages of Exodus include closed source code. However, over the years of existence, no incidents with loss of funds or other problems have been identified.
6. Binance Wallet Extension
A Crypto Wallet for Binance Chain, BNB Chain and Ethereum.
With the Binance Chain browser extension you can send and receive funds on Binance Chain, BNB Chain and Ethereum, and cross-chain transfers between both of Binance’s blockchains.
The extension can also integrate with other Binance Chain products for authentication and transaction signing without providing access to your private keys, which are stored securely within the extension’s storage space and encrypted with your password.
You can find links to download it here.
It is the mobile application version of the Binance Wallet. It is in the stage of development and is not released yet.
Initially, one needs to access settings of the networks in the upper menu to make nodes of BNB Chain available for the wallet.
The main network
Test network
The best wallet for any cryptocurrency is considered a non-custodial one — one that does not store private keys. This can be a cold hardware wallet such as Ledger or a software wallet that is more convenient but less secure. The software service must necessarily support account security functions: multi-signature, two-factor authentication, biometric login (for mobile services).
However, if one wants a wallet for BNB Chain, Trust wallet is the only option from our list that deals with BSC.
Now you can track your balances, assets, deposits and staking on https://de.fi/dashboard.
To check your BSC assets, simply click on “Dashboard” and choose BNB Chain network.
Or, use a customization bar to configure networks.
Some of the largest projects by TVL on the BNB Chain are PancakeSwap, Venus and more.
The BNB Chain Ecosystem contains a large variety of dApps, exchanges, NFTs and more. This includes but is not limited to the presented projects in the infographics.
Recently, BNB Chain partnered with Animoca Brands in $200 Million Crypto Gaming Incubation Fund — news.bitcoin.com.
BNB Chain, one of the leading smart contract platforms in the blockchain market, has partnered with Animoca Brands, operator and investor of several NFT based games, to launch a joint $200 million gamefi (financialization of gaming) incubation program. The two institutions will invest $100 million each to fund and ease the development of new gaming experiences on top of the BNB Chain.
Currently a small problem in the crypto space. Different blockchains cannot deal with each other. If you make a Bitcoin transaction, the Ethereum blockchain will not be able to find it out. Looking to the future, this problem is likely to be solved in some way with new technologies. However, a much faster solution that is already available is wrapped coins and tokens.
Wrapped tokens allow the use of coins and tokens inherent in other blockchains, such as BNB Chain. We’ve already seen how this can work with tokenized BTC on Ethereum. The Binance Bridge project presents this concept for Binance Chain and BNB Chain.
Using the Binance Bridge portal, you can access cross-liquidity on Binance Chain and BNB Chain in just a few clicks.
How Does Binance Bridge Work?
Converting a coin or token to the Binance Chain version is actually quite simple. Using the Binance Bridge service, you can convert crypto-assets between a native blockchain and Binance Chain / BNB Chain. For example, if you transfer USDT from Ethereum to BNB Chain, Binance Bridge will support cross-chain conversion of Ethereum ERC-20 to Binance BEP-2 or BEP-20. It is worth noting that these wrapped coins are supported by real coins and tokens at public addresses.
Currently, the Binance Bridge project supports cross-chain transfers of ERC-20 and TRC-20. You may already know that ERC-20 is a widely popular token standard on Ethereum. TRC-20 is a token standard for the TRON network.
Some of the bridges are:
What are “Peg-in” and “Peg-out”?
The Peg-in function allows you to convert tokens of native blockchains into Binance Chain / BNB Chain tokens. Conversely, Peg-out means converting Binance Chain / BNB Chain tokens into native blockchain tokens.
To implement Peg-in, you will first need a compatible wallet, such as Binance Chain Wallet or MetaMask.
Select a network you want to convert from and enter a necessary amount. Binance Bridge will generate for you an address you can make a deposit to. You will have time to make the deposit at this address. If you send funds to the address within this time, Binance Bridge will send you the equivalent number of wrapped tokens to your Binance Chain or BNB Chain address.
Once the transaction is complete, Binance Bridge will block the tokens and the binding to BNB Chain will be completed. Here’s how you can start using your pegged tokens.
As American citizens can enter Binance via binance.us, they can purchase BNB and use BSC with no restrictions. Besides Binance, BNB can be bought on other platforms such as FTX and MXC.
Let’s get acquainted with Autofarm. It aggregates the best vaults on BSC and implements the most optimal strategies to maximize users’ yields. The AUTO token is the platform’s native token, with a max supply of 80,000. AUTO holders benefit from a small fee on profits from Autofarm vaults. AUTO holders will benefit from the expansion of the Autofarm ecosystem. Expansion plans include a highly efficient DEX aggregator.
According to our research, BNB Chain is an already well-developed decentralized ecosystem. That is why BSC is one of the main focuses of De.Fi. There are a lot of perspective projects on BNB Chain that can attract attention of our community.
One of the main pros of the BNB Chain remains to be low gas fees. But also a large ecosystem and ease usage of the network are staggering advantages for any Yield Farmer.
As Changpeng Zhao, CEO of Binance said:
Doing things has risks.
Not doing things is usually a bigger risk.
— CZ 🔶 Binance (@cz_binance) November 20, 2021
As always, DYOR, stay safe, farm yield.
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