Binance Introducing Bitcoin-Pegged Token To Boost DEX Utility

The world’s main cryptocurrency alternate doesn’t appear to point out any indicators of slowing down. Just in the present day, it introduced that it’ll problem a variety of cryptocurrency-pegged tokens on its decentralized alternate beginning with BTCB – a BEP2 token pegged to BTC.

BTC-Pegged Token on Binance Chain

Earlier in the present day, the CEO at Binance, Changpeng Zhao got here up with a tweet saying that 9001 BTC will quickly be transferred for a “good thing.” Naturally, this brought about instant curiosity amongst members of the neighborhood, most of which praised the CEO for his transparency, because it’s at all times the case.

It wasn’t lengthy after Zhao’s tweet the explanation grew to become evident. The world’s main cryptocurrency alternate has introduced its very first cryptocurrency-pegged token – BTCB.

Introducing: #Bitcoin-Pegged Token on #Binance Chain

Binance will problem a variety of crypto-pegged tokens on Binance Chain within the coming days, beginning with $BTCB, a BEP2 token pegged to $BTC.

Which different tokens would you want pegged on Binance chain?

— Binance (@binance) June 17, 2019

It is a BEP2-based one which shall be pegged to BTC. Immediately after the announcement, the alternate additionally defined that that is the explanation for the switch of the 9001 BTC earlier in the present day. It was additionally clarified that 9001 BTCB tokens had been already minted.

BTCB shall be 100% backed by Bitcoin and the reserve handle might be discovered here. The announcement additionally outlines that giant buy orders shall be maintained on the trading pair on and that there shall be a price unfold of about 0.1%, therefore offering a simple manner for anybody to transform from the pegged token to the native one on the principle alternate.

What’s The Point of a BTC-Pegged Token on Binance Chain?

As detailed within the official announcement, cryptocurrency-pegged tokens on Binance Chain convey just a few distinct benefits.

For as soon as, it permits merchants on the DEX to obtain publicity to cash which have their very personal blockchains and are usually not native on Binance Chain. This ought to, in concept, additionally enhance the amount and the liquidty, therefore considerably bettering the general utility worth of Binance DEX.

The announcement particulars that this could additionally present a better diploma of transparency in comparison with fiat tethering as is the case of USDT, for instance, as a result of anybody can publicly audit the reserves at any time they need.

However, the put up additionally says that Binance hasn’t excluded decentralized options corresponding to cross-chain atomic swaps and that such are already being developed on the time of publishing the announcement.

Finally, Binance revealed that the BTCB/BTC trading pair shall be introduced inside a “day or so” on the principle alternate whereas issuing a proposal for DEX itemizing as nicely.

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