World’s top crypto exchange Binance announced plans to launch a DeFi staking service supporting three tokens on Sunday.
On Sept. 9, Binance’s new “Launchpool” service will allow users to earn newly launched tokens by staking the exchange’s crypto asset Binance Coin (BNB), its stablecoin Binance USD (BUSD) or the token of data renting protocol Arpa Chain (ARPA).
Binance users can now stake the supported crypto assets by going to the savings section of the exchange and selecting the flexible savings offers marked with the Launchpool label. Users can un-stake funds with no delay at any time and participate in any other pool immediately thereafter.
The first offering is the token of a DeFi protocol
The first token that will be distributed through Launchpool will be the DeFi ecosystem Bella Protocol (BEL). Binance plans to list this asset on Sept. 9 at 2:00 AM ET.
The promotion will last 30 days, with 3.3% of the five million BEL tokens on offer distributed each day to stakers. Rewards will be allocated based on the amount staked as a percentage of the total amount staked that day.
The rewards won’t be equally distributed among the stakers of the three supported crypto assets. Binance Coin stakers will see 90% of the token pool be distributed among them, and Binance USD stakers will receive 9% of the rewards. Lastly, Binance only allocated 1% of the total Bella Protocol token pool to the users staking ARPA Chain tokens.
So, 150,000 BEL tokens will be distributed to BNB stakers every day, with each participant earning a cut of the rewards based on their percentage of the overall amount staked that day. BUSD stakers will share 15,000 BEL tokens per day, and ARPA token stakers will split 1,666.6 BEL per day.
Binance is not the only crypto exchange that is trying to capitalize on the recent DeFi craze. As Modern Consensus reported on August 31, Binance competitor OKEx listed eight DeFi tokens in a single day right after the crypto asset of decentralized finance protocol Yearn.Finance (YFI) hit a market cap of $1 billion.
YFI is the first token that ever eclipsed the price of Bitcoin, and even its all-time high. It currently worth $21,451, but it broke $39,000 on the first day of September, according to CoinMarketCap. No wonder many suggest that the decentralized finance protocol’s tokens are currently massively overvalued.