The bitcoin and cryptocurrency exchange Binance incorporates today, April 29, the Swipe (SXP) token to its DeFi Staking platform. After knowing the news, the cryptoactive had an increase in its price of 21% in a few hours, in which it went from USD 4.01 to USD 4.85.
By depositing SXP in DeFi Staking, within Binance, you get an annual return of 5.45%, paid in the same currency.
Swipe, developed on the Binance Smart Chain, is the token of the SwipeSwap ecosystem. This suite includes a cryptocurrency custody platform, a debit card, and a decentralized exchange. SXP is used to pay transaction fees, or to make fiat money payments using the card. SXP is also one of the tokens supported on the Binance Card and is used for the governance of the aforementioned DEX.
It can be seen on Binance that this is the highest performing token in DeFi Staking. The others that are currently active are ether (ETH), which provides an annual return of 1.73% and chainlink (LINK), with which you can earn 2.39% in the same period.
DeFi Staking: decentralized investments from the Binance platform
The characteristic of DeFi Staking on Binance is that assets can be withdrawn from staking at any time without suffering any penalty for it, although the withdrawal is not instantaneous, but can take between 24 and 48 hours.
In DeFi Staking, unlike what happens with other Binance investment products, the exchange only acts as an intermediary between the user and the decentralized finance platforms where the tokens are deposited.
For SXP, LINK and ETH, the DeFi protocol used is Venus. It is a decentralized platform specialized in loans that issues the VAI stablecoin, through a mechanism that bears some similarity to DAI, from MakerDAO, on Ethereum.
The Venus development team is led by Filipino Joselito Lizarondo, also responsible for SwipeSwap.
Because Binance does not control the crypto assets deposited in DeFi Staking, it classifies it as a “risk product”. “Binance is not responsible for losses incurred by the vulnerability of the contract of said project in the corresponding chain,” reads a warning for all those interested in staking using this method.
Other investment products on Binance
In addition to DeFI Staking, Binance offers other options for users who are not satisfied with holding their cryptocurrencies.
Among them are “Blocked Savings”: for a period of 7, 14, 30 or 90 days, the user can block tether (USDT), USD Coin (USDC) or Binance USD (BUSD) and receive interest in the same currency between 5.31% and 7% annualized.
Binance also offers “Flexible Savings”: the user can deposit 58 cryptocurrencies there, including bitcoin (BTC), 1INCH and cardano (ADA) and receive interest. Unlike “Blocked Savings”, there is no blocking time in this option. The interests are lower and vary according to each crypto asset.
In addition to these investment products, the exchange run by Changpeng Zhao recently innovated with the incorporation of tokenized shares. CriptoNoticias reported that it is now possible to buy and sell on Binance, tokens whose price is equivalent to that of the shares of Tesla, Apple, Microsoft and Microstrategy.
The exchange reports that an advantage of these “tradable share tokens” is that, unlike the original shares, they can be divided into fractions, without having to purchase the entire share. In the case of Tesla (TSLA), for example, each share is trading at USD 679.
Although investors may find benefits, the company still has to deal with regulators. Specifically in the European Union, there have already been warnings by financial supervisory authorities about the possible breach of financial market laws by the exchange, when launching these tokens.