The Binance chief CZ is in the latest cryptocurrency news for remaining skeptical about Ethereum 2.0’s features. As he said, the decentralized finance space is in full swing, and one of its biggest supporters appears to be exactly the exchange Binance. The platform and its United States branch recently joined the Chicago DeFi Alliance, with a main aim to further develop the US DeFi industry.
Additionally, the Binance news show that support for new DeFi projects continues to grow. Most recently, the exchange has demonstrated its close ties with BurgerSwap, which is a new decentralized exchange that aims to improve upon the Uniswap project.
The Binance chief CZ has been bullish on DeFi for a while. In a recent interview, he expanded on his opinion and said more about why this sector has started taking off, as well as what we can expect from it moving forward. When asked about why DeFi is hot right now, the Binance chief CZ said:
“The automated market makers use a pricing mechanism that follows a curve. So, they hold a constant ratio of different assets in the liquidity pool. This type of curve with automated market making has a strong advantage, being that is very transparent. If I lose money, I know why. So, there is potential for users to lose money, but they know exactly why. There’s not a lot of cheating going on.”
Zhao also attributed Binance’s involvement with DeFi and said that the exchange lists DeFi tokens fairly aggressively. He also said that right now on Binance.com, there is a liquidity swap product and the target users are more so the novice users who don’t want to hold their own keys because they are afraid of losing them.
When it comes to the decentralized side of things, the Binance chief CZ mentioned that they have been working on Binance Smart Chain for over a year, describing it as “an Ethereum-compatible smart contract.”
“Feature-wise, it’s 100% compatible with Ethereum. But speedwise, it is actually much faster, which helps reduce the high gas fees and traffic congestion problem on Ethereum, given the increased traffic that DeFi has brought. Binance Smart Chain is another offering we were putting out there to allow developers to launch their DeFi projects very easily.”
When asked about Ethereum 2.0, CZ said:
“I think Ethereum 2.0 is really hard to deliver. It’s just one of those things that need full features and very high flexibility. Also, this has to run on a laptop with high speed, and you want it to be decentralized. Those problems are hard to solve.”
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