Established in 2017 by Changpeng “CZ” Zhao, Binance has emerged as one of the largest cryptocurrency exchanges globally, offering a diverse range of products and services for the trading of digital assets.
Despite its notable success, Binance remains under continuous regulatory scrutiny as authorities assess its adherence to global financial regulations. Recent regulatory developments have compelled Binance to make significant investments in ensuring compliance with regulatory bodies worldwide.
Nevertheless, Binance’s technological expertise, global presence, and forward-thinking leadership make it a leading force in the cryptocurrency space. In addition to its traditional CEX offerings, Binance introduced an innovative product, Binance Launchpool. Notably, projects supported by the Binance Launchpad often achieve long-term success, benefiting from exposure to the extensive Binance user base.
This series of articles will focus on projects launched on the Binance Launchpool. Let’s dive in!
What Is Binance Launchpool?
The Binance Launchpool is a platform enabling users to stake specific crypto tokens and, in return, earn new tokens over a defined period, typically spanning 30 days. This platform seamlessly combines the security and user-friendly management of crypto assets associated with CEXs with the yield-oriented features of DeFi.
Engaging with the launch pool empowers users to generate passive income from their web3 portfolios.
Launched amid the peak of the so-called DeFi craze in late 2020, the inception of Launchpool was influenced, in part, by the enthusiasm surrounding yield farming.
But what is yield farming?
Yield farming involves contributing crypto assets to a liquidity pool, enabling others to exchange different cryptocurrencies without the involvement of intermediaries. As a reward for supplying liquidity to the pool, participants earn interest.
Essentially, the Binance Launchpool functions as a centralized yield farming service.
How Does Launchpool Work?
Launchpool calculates rewards hourly from the moment users stake their tokens. The amount of tokens accrued depends on factors such as the quantity of crypto staked, the advertised return (APR), and the overall crypto commitment to the pool by users and other investors.
After seven days of a new project’s farming period, Binance lists its token on the spot market. At this juncture, users and fellow investors can trade the tokens earned. Subsequently, users can increase their investment, withdraw their tokens, or trade rewards at their convenience.
Moreover, $BNB is consistently a stakable asset in Launchpool, though the availability of other tokens may vary. Currently, users can stake $BNB, $TUSD, and $FDUSD in separate pools to farm new tokens.
Besides, projects featured on Launchpool receive comprehensive support from Binance, including advisory services, marketing assistance, and access to its extensive investor community. Upon the token launch of a Launchpool project, Binance establishes multiple trading pairs for its spot market, allowing every Binance user to engage in trading the project’s tokens.
Notably, Launchpool has witnessed numerous success stories. Six months after its introduction in September 2020, 15 projects secured nearly $5 billion in value and distributed $529 million in tokens to over 400,000 Binance users.
How To Use Launchpool?
To generate earnings through Binance Launchpool, all you need is a Binance account. Once you’ve set up an account, log in and navigate to the Launchpool page. Choose the pool you wish to stake in, specify the number of tokens you want to commit, and then click “Stake.” It’s that simple!
There are no stringent criteria to meet when farming through Launchpool. However, you must have a minimum of 0.1 of the token you intend to farm.
For a current list of projects available for farming, visit Binance’s page here.
Found value in the insights shared here? Check out our YouTube and Twitter, loaded with content meant to educate and entertain.
Follow our Telegram for a sneak peek at alpha; for an even deeper dive, join our Patreon community, where we share exclusive alpha for you to be the ‘early bird.’
Follow us today, and let’s explore Web3 together!
