New Dogecoin and Shiba Inu Pools Added to Binance’s Liquidity Swap Platform

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alex dovbanya

Binance Expands Its Liquidity Swap Platform Adds Four New Liquidity Pools

Binance’s liquidity swap platform has announced the addition of four new liquidity pools: DOGE/BUSD, SHIB/BUSD, LINK/BUSD, and LTC/BUSD.

A smart contract-based liquidity pool refers to two cryptocurrencies that users can swap. Users can deposit digital tokens in such pools to be able to earn rewards for acting as liquidity providers. Traders are attracted to liquidity pools because they usually have to pay lower fees than on centralized exchanges.

The cryptocurrency giant launched its Automated Market Maker (AMM) liquidity swap platform on top of a centralized exchange in October 2020. The move was prompted by the rapid rise of decentralized exchange Uniswap. On top of earning a portion of the trading fees, Binance also offers rewards to liquidity providers in its native BNB token.

Initially, USDT/BUSD, USDT/DAI, BUSD/DAI were the only trading pairs available. Now, Binance offers a wide selection of different liquidity pools, with bitcoin, stablecoin and altcoin pairs, risk-averse users potentially earning double-digit APYs if they opt for the mysterious options from Binance’s “Innovation Pools” category. go with.

Last May, Binance opened the DOGE/USDT and DOGE/BTC liquidity pools after the meme cryptocurrency gained popularity in early 2021. In June 2021, the exchange also offered USDT liquidity pool alongside the SHIB cryptocurrency.

Uniswap remains the number one decentralized token swapping protocol in the world. As reported by U.Today, the decentralized cryptocurrency exchange crossed $1 trillion in total trading volume.

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