Binance, the world’s largest cryptocurrency exchange by trading volume, has announced the addition of four new liquidity pools to its swap platform, including 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, only three trading pairs were available to users on the platform. These pairs include: USDT/BUSD, USDT/DAI, and BUSD/DAI
What are liquidity pools?
In general, smart contract-based liquidity pools refer to a pair of cryptocurrencies that users can switch between.
When tokens are paired, users can contribute to such pools, which allows them to earn rewards for their activity as liquidity providers.
A major factor that attracts new users to liquidity pools is paying cheaper transaction fees.
Binance Liquidity Swap
In 2020, Binance introduced its automated market-maker Liquidity Swap (AMM) platform as part of its services to compete with fast-growing decentralized exchange Uniswap.
The crypto exchange offered liquidity providers financial rewards in their native BNB tokens and also allowed users to earn a portion of trading fees.
Dogecoin and Shiba Inu growth continues
Dogecoin and Shiba Inu are the two most popular meme coins in the crypto industry and continue to see massive adoption.
The growth has led to recent revelations from the Doge team warning the community to beware of scam projects claiming to be affiliated with Meme-Coun or its Dogechain.info explorer.
NOTE: This “dogechain” thing has nothing to do with the good old https://t.co/2xY4sDuQzY explorer.
In fact, it hijacks the reputation of a well-known service, making this even more confusing for the distracted Shibe. #dogecoin
— Mischabeber (@mischabeber) July 28, 2022
According to Mishaboar, Dogechain, a project that claims to bring NFT and DeFi utilities to Dogecoin, is not affiliated with the token ecosystem in any way.
On the other hand, Shiba Inu continues to see high demand from whales despite the bear market. Gimli, an Ethereum whale, recently bought the meme coin for $3.5 million.
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