DeFi is driving the development of cutting-edge Web3 use cases such as non-fungible tokens (NFTs), gaming, and Metaverse. With Binance Bridge 2.0, DeFi can be brought to a wider global audience while maintaining the same smooth user experience as CeFi.
Most of the “DeFi” ecosystem relies on centralized services for convenience, which allows us to understand where the traditional world of centralized banking and the new world of decentralized money might intersect to benefit everyone.
Binance has made it possible to connect assets listed on Binance.com with other blockchains through its first bridge. To integrate CeFi and DeFi, Binance Bridge 2.0 can help you wrap ERC20 tokens into BEP20 BTokens and immediately start staking your Ethereum or other supported assets using DeFi protocols running on the BNB Smart Chain.
Binance has also implemented a new automatic token circulation control system. Apart from the buffer size in the hot wallet, the exchange does not keep excess peg tokens, i.e. packaged assets. Conversely, when the user withdraws the pegged tokens to the BNB smart chain, it will print more tokens.
Binance Bridge 2.0 is a trusted bridge running on the BNB Smart Chain with transaction fees as low as a few cents and transaction speeds as fast as three seconds. It is protected by Binance’s highest security standards and runs on the BNB Smart Chain.
Almost all Ethereum-based tokens will be supported via Binance Bridge 2.0, allowing direct access to BNB Smart Chain DApps. This cross-chain bridge improves interoperability between multiple blockchains, giving you direct access to the DeFi world of the BNB Smart Chain.
Related: What is a DApp?A Beginner’s Guide to Decentralized Applications