Binance Smart Chain continues to push DeFi forward
ApeSwap, a decentralized finance application running on Binance Smart Chain has exploded in both user activity and transaction volume just 4-days after its official launch. The project went live on the 13th February 2021 and has since gathered over $33 million in transaction volume and achieved a daily average of over 2,500 users.
ApeSwap is an automated market maker, similar to Uniswap, offering users a yield farming and staking platform on Binance Smart Chain. The project is a fork from PancakeSwap.
BANANA is the native currency and users can stake, pool, and earn BANANA directly on ApeSwap.
What triggered the surge?
The major driving force behind the surge in both users and volume has been the ‘BANANA frenzy’ information published on Medium. In essence, the BANANA frenzy is just a liquidity mining and staking program that incentivizes users to participate. ApeSwap has also designed a BANANA burn map to allow the community to work together to hit milestones and trigger a BANANA burn.
Also, the naming of the platform ties in closely with popular internet memes existing in the DeFi space. People who jump into DeFi projects, often refer to their bold moves as ‘aping in’. ApeSwap cleverly ties in with this particular meme.
Whilst the incentivization methods utilized by ApeSwap are now quite commonplace in the decentralized finance space it has been quite surprising to see the rate at which users are adopting BSC and its dapps.
In-Summary
In 2021 increasing gas costs continue to hamper the Ethereum DeFi ecosystem and show no sign of slowing down. Binance Smart Chain has positioned itself to take advantage of the situation offering lower fees and faster transactions. As a result, several BSC DeFi dapps have shown impressive results both independently and when compared to their Ethereum counterparts in the early stages of 2021.
