Binance Labs Makes a Strategic Investment in OpenLeverage
- Binance will be getting more into lending while some related DeFi protocols are closing businesses.
The largest cryptocurrency exchange by daily traded volume, Binance, has announced that it has made a strategic investment in OpenLeverage. Notably, the exchange has made its investment via its Binance Labs Fund. The fund will be used to strengthen OpenLeverage’s presence in the BNB chain ecosystem.
“The fund will be used to strengthen OpenLeverage’s presence on the BNB chain and develop a multi-chain ecosystem with planned expansions to other EVM-compatible chains like Polygon, Avalanche in the second half of 2022, and Ethereum Layer 2 solutions, Arbitrum, and Optimism,” Binance noted in a series of tweets.
Role of OpenLeverage on the Binance Ecosystem
Multi-network has been described as the future of blockchain technology. While the crypto market is trending down, blockchain-related firms with healthy balance sheets are making strategic acquisitions and investments. Binance is a perfect example of a crypto company that has successfully penetrated the global market significantly.
Notably, OpenLeverage is a permissionless lending and margin trading protocol. Binance will be getting more into lending while some related DeFi protocols are closing businesses. Indeed, Binance is flexing its muscles as a major Bitcoin investor.
Remember, the same company has recently announced a hiring spree whilst a huge number of crypto companies are either dormant or dismissing employees.
Historically, huge tech companies have swallowed smaller and more competitive similar companies. Facebook, WhatsApp, and Instagram are perfect examples. For sure, Binance could have developed its lending protocol as soon as possible. But with the investment, the company has maneuvered major crypto regulations.
As a result, the rate of cryptocurrency adoption is accelerated.
OpenLeverage utilizes a price reference mechanism dubbed ‘OnDemand Oracle’ to protect lender and trader positions. This is because crypto lending protocols are notorious for going bankrupt due to improper management.
The lending and trading protocol was one of the 14 projects on the m Binance Labs Incubation Program Season 4.
Takeaway Points
Binance is a major investor in the cryptocurrency market with minimal discrimination. Consequently, its native token has seen major adoption threatening even the Ethereum ecosystem. Nonetheless, they have coexisted peacefully so far so good.
According to statistics provided by OpenLeverage Finance, the protocol has over $8.5 million in total value locked (TVL). The lending platform is audited by three firms including Certik, Code4rena, and PerkShield.
The lending protocol is powered by the $OLE token. Whereby, 55 percent of the OLE genesis supply is allocated to the community members.
Notably, the $OLE token has a total supply of one billion and will be distributed over the next four years.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
