Binance CEO Changpeng Zhao has sent an invitation for Ethereum-based decentralized finance (DeFi) projects to migrate to the recently-launched Binance Smart Chain to drastically reduce Ethereum’s load and gas fees.
In a tweet, CZ emphasized that he, together with the company, are eager to embrace several DeFi-like products as well as decentralized exchanges (DEX) on their platform.
Of course, love to see moe DeFi projects migrating over, and lessen the load on ETH, and hopefully, reduce the gas fees there a little too.
— CZ Binance (@cz_binance) September 13, 2020
Changpeng disclaimed by proving that the Binance Smart Chain was not built to literally be in a race with Ethereum. Otherwise, it is mandated with additional options to be compatible with Ethereum striving to offer smart contract creators with more options.
He said in a reply that this move is just to “share the load,” and that “$76 fee per transaction is not what blockchains are designed for.”
Another view is to just share the load. $76 fee per transaction is not what blockchains are designed for. Let’s lower the fees.
— CZ Binance (@cz_binance) September 14, 2020
CZ remarked that,
BSC never aimed to replace ETH, BSC is just ETH-compatible. Smart projects are giving their users more options. Option for cheaper fees.
At the moment, Cream Finance, Burger Swap, Bakery Swap, For Tube, Stake Cow, and more DeFi projects are already operating via the Binance Smart Chain platform.
CZ added also that he will be mentioning these DeFi projects on the Binance Smart Chain projects to give them proper exposure. However, he clarified that he wasn’t necessarily endorsing them.
He maintains his beliefs that some DeFi projects are speculative, while others also provide short term gains with high risk.