The world’s largest cryptocurrency exchange by trading volume, Binance, has announced the addition of four new liquidity pools to its swap platform, which included Dogecoin, Shiba Inu, Chainlink, and Litecoin.
The implication of this upgrade is that it would increase the number of trading pits available to users interested in the liquidity pool.
This would give Dogecoin and Shiba Inu investors the opportunity to earn more from their holdings.
Previously, the platform had only three trading pairs available for users. These pairs include: USDT/BUSD, USDT/DAI, and BUSD/DAI
What Are Liquidity Pools?
Generally, smart contract-based liquidity pools refer to a pair of cryptocurrencies that users can decide to swap between.
When tokens are paired, users can deposit into such pools allowing them to earn rewards for acting as liquidity providers.
A major factor that attracts new users to liquidity pools is that it requires the payment of cheaper transaction fees.
Binance Liquidity Swap
In 2020, Binance launched its automated market maker (AMM) liquidity swap platform as part of its services to compete with the fast-growing decentralized exchange Uniswap.
The crypto exchange offered liquidity providers financial rewards in its native BNB tokens and also allowed users to earn a portion of the trading fees.
Dogecoin, Shiba Inu Growth Continues
Dogecoin and Shiba Inu are the two most popular meme coins in the crypto industry and have continued to witness massive adoption.
The growth has prompted recent revelations by the Doge team warning the community to be wary of scam projects that would claim to be connected to the meme coun or its Dogechain.info explorer.
According to Mishaboar, “Dogechain,” a project that says it brings NFT and DeFi utility to Dogecoin is not in any way affiliated with the token ecosystem.
On the other hand, Shiba Inu has continued to record high demand from whales despite the bear market. Gimli, an Ethereum whale, recently made a $3.5 million purchase of the meme coin.