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Binance Coin (BNB) Gains 20% in Three Hours as Binance Launches BNB-Based "Yield Farming"

Now all Binance Coin (BNB) stakers can farm BEL, the utility token of Bella Protocol, an integral DeFi product. BNB responded to this announcement immediately

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Binance, the leading cryptocurrencies exchange ecosystem, has announced its new product, Binance Launchpool. Stakers of its native utility asset, Binance Coin (BNB), can now take part in the "farming" of coins prior to their listing on Binance. Though it is not "yield farming" introduced by DeFi liquidity protocols, it allows BNB holders to receive new tokens for free.

First Launchpad, then Launchpool

Binance Launchpad is the most popular initial exchange offering (IEO) ecosystem globally. Now Binance launches one more instrument for the basic offering of new tokens, Binance Launchpool.

Over 30 days starting from Sept. 9, Binance Launchpool will distribute Bella Protocol tokens (BEL) among the stakers of Binance Coin (BNB), Binance USD (BUSD) and ARPA Chain Coin (ARPA).

Bella Protocol decided to allocate 5 percent of the total token supply, or 5 mln BEL, to this activity. Ninety percent of this amount will be distributed between BNB stakers.

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Binance (BNB) users can join new activity on the Binance Savings page. The exchange team stresses that all stakers should stake an additional non-zero amount within the campaign period, even if they already staked some coins on Binance.

Is Binance increasing its bet on DeFi?

The accurate sum that one BNB staker can earn will be calculated considering the number of participants in the campaign and the total period of staking. Given a 30-day campaign timeline, almost 167,000 BEL will be distributed daily.

This approach closely resembles the airdrops of tokens during the 2017 ICO craze. Additionally, it will increase the interest in Binance Coin (BNB). This fact has already resulted in a double-digit spike witnessed by BNB immediately after this announcement.

Binance Coin (BNB) surges 20% in three hours on Binance Launchpool announcement
Image by Binance

Despite the terminology of "secure token farming," it actually has very little in common with sophisticated strategies of "yield farming" on Yearn.Finance or YAM Protocol. The new release confirms that Binance is interested in the DeFi segment, as Bella Protocol rests in this field.

Bella Protocol simplifies the DeFi experience and provides custodial services for all users of digital banking products. Binance introduces Bella Protocol as "both DeFi and CeFi."

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Vladislav Sopov

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)