New Dogecoin and Shiba Inu Pools Added to Binance's Liquidity Swap Platform
Binance’s liquidity swap platform has announced the addition of four new liquidity pools: DOGE/BUSD, SHIB/BUSD, LINK/BUSD, and LTC/BUSD.
Smart contract-based liquidity pools refer to two cryptocurrencies users can swap between. Users can deposit digital tokens into such pools in order to be able to earn rewards for acting as liquidity providers. Traders are attracted to liquidity pools since they typically have to pay smaller fees compared to centralized exchanges.
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The cryptocurrency giant launched its automated market maker (AMM) liquidity swap platform back in October 2020 on top of the centralized exchange. The move was prompted by the rapid rise of decentralized exchange Uniswap. On top of earnings a portion of trading fees, Binance also offers liquidity providers rewards in its native BNB tokens.
Initially, USDT/BUSD, USDT/DAI, BUSD/DAI were the only available trading pairs. Now, Binance offers a wide selection of various liquidity pools with Bitcoin, stablecoin, and altcoin pairs, Risk-taking users can potentially earn double-digit APYs if they go with arcane choices from Binance’s “Innovation Pools” category.
Last May, Binance opened DOGE/USDT and DOGE/BTC liquidity pools after the popularity of the meme cryptocurrency skyrocketed in early 2021. In June 2021, the exchange also offered a USDT liquidity pool with the SHIB cryptocurrency.
Uniswap remains the number one decentralized token swapping protocol in the world. As reported by U.Today, the decentralized cryptocurrency exchange surpassed $1 trillion in total trading volume.