Binance, the famous crypto exchange, has just launched a new product called BNB Vault which allows daily income from the BNB ecosystem.
#Binance Launches BNB Vault – Earn Daily Income from the $BNB Ecosystem
— Binance (@binance) November 3, 2020
In detail, we can see that this product provides a guaranteed return on deposits. Deposits must be made with the Binance token, i.e. BNB.
All those who put these tokens into the Vault will get a passive income.
The interest is calculated from the sum of Launchpool tokens, BNB flexible savings and DeFi products, so the user’s balance will always have a positive value that will increase over time on a daily basis.
BNB Vault, Binance combines CeFi and DeFi
This product can be considered as a yield aggregator: depending on the amount of BNB tokens deposited in the Vault users will obtain interesting returns, even though the percentage is variable and will change daily, ranging from 1% up to 10%.
That’s why Binance’s press release states that BNB Vault is a combination of DeFi and CeFi, since the platform is centralized but the concepts are the same as in decentralized finance.
Obviously, these tokens will have to be staked and locked in order to obtain the relevant rewards.
Considering the trading volumes that Binance has, many customers could start using this new form of staking.
Binance is CeFi
It is certainly an interesting novelty, but we must point out that this is not a decentralized product or platform, but rather everything is centralized with all the risks that this entails, since the conditions could be changed or there could be external attacks or technical problems on the platform.
The latest news at Binance
The exchange also recently announced the first six projects that will be part of its Accelerator Fund.
These six startups will receive $350,000 each, along with access to the resources of the Binance ecosystem, such as Launchpad, Launchpool, incubation, training and more.
Finally, the blockchain game Axie Infinity has recently launched its token sale on Binance Launchpad.