Binance, the largest crypto exchange in the world, has just launched the centralized-AMM pool Binance Liquid Swap, making it the first pool launched by a centralized platform. This new trading feature, available on Binance.com, will allow users to group tokens and get instant liquidity and profits. Users deposit funds into liquidity pools, after which they start to receive interest on trading fees generated by transactions executed with the funds available at Binance Liquid Swap.
The AMM will use a pricing module instead of an order book in order to provide more stable prices as well as lower transaction fees. The exchange is giving priority to the liquidity of its own tokens, which is the reason why the first funds offered at the launch will be for the USDT/BUSD, BUSD/DAI and USDT/DAI pairs.
The profits, which will be accumulated with the corresponding seven-day annual percentage yield (APY), will be automatically converted into the assets of the respective pools. Binance CEO Changpeng Zhao said:
"We hope to further the growth of the DeFi marketplace through a centralized AMM pool. We are looking forward to provide liquidity in instant swaps as DeFi products attract more volume and participants. And, with an incentivized pool design that benefits our community, from the community."
Transaction fees and prices are determined by the amount of assets in the liquidity pools.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.