The world’s largest crypto exchange Binance announced on Friday that it is removing select liquidity pools on Binance Liquid Swap. The crypto exchange is destroying some major liquidity pools including Bitcoin (BTC), ether (ETH), BNB, Cardano (ADA), Polygon (MATIC), Solana (SOL), Shiba Inu (SHIB) and Dogecoin (DOGE).
Binance Liquid Swap allows users to provide liquidity in the pools to become liquidity providers and earn transaction fees and BNB rewards while easily swapping crypto tokens.
Binance is removing key liquidity pools in BUSD pairs
Crypto exchange Binance announced in an official announcement on October 20 that it plans to decommission certain liquidity pools on its Binance Liquid Swap. Binance will remove some key liquidity pools such as BTC/BUSD, ETH/BUSD, BNB/BUSD, ADA/BUSD, MATIC/BUSD, SOL/BUSD, SHIB/BUSD and DOGE/BUSD. The move is part of the strategy to completely withdraw BUSD stablecoin support by February 2024.
Other liquidity pools include BUSD/DAI, BUSD/USDT, FIL/BUSD, GMT/BUSD, HOOK/BUSD, LINK/BUSD, LTC/BUSD, POND/BUSD and UNI/BUSD.
As of October 23rd at 04:00 UTC, users will no longer be able to add liquidity to the above liquidity pools. Additionally, users who hold positions in the aforementioned liquidity pools will automatically receive their deposited crypto assets in their spot wallets on October 27th.
“Users can redeem their assets from the above-mentioned liquidity pools beforehand Oct 27, 2023 04:00 (UTC). Thereafter, deposits in the liquidity pools will be calculated based on the prevailing composition ratios of the corresponding pool and automatically redeemed into users’ spot wallets,” the announcement said.
Binance said it regularly reviews listed liquidity pools to concentrate liquidity, reduce slippage and provide its users with better transaction prices. This ensures an optimized trading experience on the crypto exchange.
Binance eliminates BUSD support
Binance continues to reduce BUSD support by delisting currency pairs, removing liquidity pools, and discontinuing BUSD-related products and services. BUSD’s market cap drops to $2 billion from $22.50 billion this year.
CoinGape Media previously reported that the exchange removed some key liquidity pools such as XRP/BUSD, FTM/BUSD, MANA/BUSD and OP/BUSD last week.
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