This year has seen the restructuring of the crypto sector in many different ways. The growth of the DeFi and NFT sectors has put a large strain on older blockchains, such as Ethereum. These networks were built in a way that is designed to increase their fee structure based on the blockchain’s congestion. Unfortunately, this design flaw has created record-high gas fees for users. These fees have left many in the market searching for viable alternatives.
One option that has seen considerable growth due to these factors and more is the Binance Smart Chain (BSC). BSC is now the fastest-growing Ethereum competitor in the DeFi and NFT markets. This growth has been fueled by a variety of new and exciting projects. Here are 6 BSC projects to watch in 2021.
Lendefi introduces a secure P2P lending protocol to the BSC. Uniquely, users gain access to undercollateralized lending options when they participate in this platform. Undercollateralized lenders don’t require you to provide full collateral on your loan. In this way, they enable more users to leverage their systems and secure funding.
Lendefi Finance accomplishes this task through the integration of a unique liquidity pool security mechanism. The network leverages large liquidity pools on the popular BSC-based DEX, PancakeSwap to enable lenders and borrowers to connect in a trustless manner. This strategy eliminates the middleman and provides both parties with more flexibility.
DeFi Yield Protocol (DYP)
The Defi Yield Protocol is another exciting project that has helped to garner more attention to the benefits of the BSC. This platform integrates all the top DeFi functionalities into one easy-to-navigate interface. Users gain access to powerful staking, farming, and mining pools. All of these features make it easy for new users to secure reliable ROIs with no previous experience in the market.
Notably, DYP also leverages some deflationary protocols to better control the platform's native token value as time progresses. Best of all, DYP users can currently utilize all of these services at a fraction of the cost of conducting the same activities on Ethereum. Additionally, the network leverages a community governance mechanism to provide its users with more control over the project's direction moving forward.
PancakeSwap is a Binance Smart Chain-powered DEX and AMM. The network provides users with an easy way to swap BEP-20 tokens in a secure and efficient manner. PancakeSwap was built to directly compete against the world's top DEX, Uniswap. To that extent, it has seen considerable advancements. Notably, PancakeSwap is much cheaper and more responsive than Uniswap.
Like Uniswap, PancakeSwap leverages large liquidity pools to allow new projects to launch in an efficient way. Users can find a lot of tokens that are exclusive to the network alongside all of their ETH-based favorites. For example, the network has an average transaction time of around 5-seconds and lower fees. Currently, PancakeSwap is the largest Dapp on the BSC. Best of all, it doesn't require any KYC/AML registration to use.
Ren is an open protocol that seeks to tackle one of the most pressing issues facing the DeFi sector, a lack of decentralized interoperability. The developers behind Ren have sought to create a platform that embodies the core aspects of DeFi. Specifically, the platform provides a trustless, permissionless, decentralized, and private user experience. Specifically, Ren enables developers to create smart contracts on any blockchain that can control tokens on other blockchains.
The network launched in 2017. Originally it operated as a "dark pool" meaning that it allowed traders to open orders privately. In 2018, the network opened its dark pool programming capabilities to all developers. Today, the network offers a truly private UX through the integration of end-to-end encryption technologies. In this way, Ren introduces a new level of privacy and interoperability to the entire DeFi sector.
Autofarm is a cross-chain yield aggregator. Yield aggregators automatically switch your investment to the most profitable liquidity pools. The network has seen considerable adoption due to its capabilities. Notably, the network recently climbed to second place on the DappRadar rankings after generating over $40 billion in volume. The network is unique in many ways. Primarily, it is not a hardfork of Uniswap like many competitors including PancakeSwap.
Autofarm was the first cross-chain yield optimizer to successfully launch on BSC. As part of its strategy, the platform integrates Vaults, Swaps, and a powerful DEX protocol. The DEX splits your trades across multiple DEXs to provide users with the best pricing and avoid slippage. Currently, the yield optimizing protocol operates on both the BSC and Huobi ECO chains. Part of this growth can be attributed to a recent interface revamp.
Pancake Bunny is another popular DeFi yield aggregator. This protocol was built to provide PancakeSwap users with higher ROIs and a more streamlined approach. Pancake Bunny automatically offers its services to all PancakeSwap LP pairs. Also, users enjoy access to auto compounding features to further enhance profits.
Pancake Bunny has seen growing adoption in the market since its launch this year. The network boasts a $156,424,664 market cap at the time of writing with $1,410,739,138 in total deposits. The combination of higher rewards, lower fees, and a more responsive farming experience has helped to drive interest in this platform upwards recently. Currently, Pancake Bunny offers BUNNY, CAKE, BUNNY-BNB, CAKE-BNB BUSD-BNB, USDT-BNB, DAI-BNB, USDC-BNB, VAI-BUSD, and USDT-BUSD Pools.
Top 6 BSC Projects to Watch in 2021
As the BSC continues to expand in its capabilities and user base, it pays to stay up-to-date on these developments. This unique blockchain is now more crucial than ever as many investors are hungry for Ethereum alternatives. BSC appears to be the best option at this time. For these reasons, these projects are set to see continued adoption in the coming months.