What is Binance Launchpool?
Launchpool is a product that allows users to use their tokens to farm (earn) a new token for free. The amount of tokens you earn daily is equivalent to the number of tokens you subscribed to the pool vs the total number of tokens subscribed to the pool. The Binance launchpool is a new project which focuses on bringing the Defi experience closer to Binance users. It is a project which allows traders to earn a token reward in exchange for staking BNB, BUSD, and other tokens. The Bella Protocol (BEL) was the first project to be hosted on Binance launchpool.
The Binance launchpool is beneficial to all BNB/BUSD holders. Holders of those tokens had the option of staking their Binance (BNB), Binance USD (BUSD) into different pools to earn different tokens for a duration of 30 days.
For instance, from the data from Binance, users got between 4,500,000 BEL (90%), 450,000 BEL (9%), and 50,000 BEL (1%) when they staked BNB, BUSD, and ARPA. However, it is not only these tokens that benefit from launchpool; there are still other altcoins like DOT, CHZ, KAVA, etc.
Furthermore, users of the launchpool can earn the new token for a duration of 30 days. They have the option of trading any tokens they have earned. However, the tokens earned within the first seven days can’t be traded until the project has been listed on Binance.com. After the seventh day, Binance will then list the farmed token on their platform and open trading of it versus BTC, BNB, BUSD, and USDT trading pairs. At this point, being the 8th day when the trading is live, users now have the option of trading any token they wish.
At any time, users also have the option to un-stake their funds with no delay and participate in any other available pools instantly.
This process is often compared to Defi yield farming but on an exchange. In yield farming, users are rewarded for locking up cryptocurrencies, and these rewards can be deposited to various liquidity pools to earn a reward. However, in launchpool, it is occurring in a cryptocurrency exchange, Binance. Users get rewarded in the exchange with new project tokens for farming BNB/BUSD, etc.
It is like centralized finance (CeFi), which allows all orders in the crypto trade to be channeled through a central exchange. Here, the central exchange is Binance, which manages the funds that are earned in the exchange.
But in the Binance launchpool, it is only tokens that are in your spot wallet that can be used in launchpool staking. And for those staking BNB they will have more benefits for holding BNB, such as airdrops, Launchpad eligibility, and VIP benefits.
Above all, the Binance launchpool is a nice way of earning passive income on crypto. It is stress-free and doesn’t require market analysis or research.
How to Start with Launchpool
It is very easy to start in launchpool. Follow the process below to start your Launchpool;
- The first step is to go to Binance and Sign up for an account.
- If you already have a Binance account, login to your account with your email ID, password, and 2 FA details (if applicable).
- Click on “Buy Crypto” to purchase BNB. However, if you have BTC, you can trade BTC/BNB.
- Scroll to the top of the page and locate the icon beside “Binance Logo.”
- Scroll down and click on “Launchpad” in the drop-down menu that appears.
- You will see three (3) different launchpools available – BNB, BUSD, etc. Select the token you wish to stake (we are using BNB as an example) and click “stake Now.”
- You will then see the staking details for BNB- Launchpool, including the total amount of BNB staked, the daily yield rewards, and the annual yield percentage.
- You will also see the total BNB you have staked so far and the available BNB for staking. Click on the “Stake” button to continue.
- However, if there is no BNB token in your account or you wish to stake more than what you have on your wallet, then you can click “Buy BNB” to purchase more tokens to stake.
- After you have clicked on the stake button, a pop-up window appears. Enter the amount you wish to stake again and click the stake button again.
- If you wish to stake your entire balance, click “MAX.”
That’s it; you have successfully staked your BNB in launchpool. However, if you want to un-stake your token, click on “Redeem” and follow the same step you did when staking. Also, if you want to stake in BUSD or DOT, select the pool and follow the same process and start earning passive income.
Top 10 Projects on Launchpool
It is a platform dedicated to researching and innovating in the Defi space. Its goal includes onboarding the general masses to Defi through an ecosystem of alpha products that restructures the traditional finance in a decentralized manner.
REEF finance is a multi-chain smart yield engine and liquidity aggregator used for any Defi protocol to integrate with. It gives investors access to the Defi landscape with less technical entry issues while also augmenting the decision-making process via the user’s risk level. The native token of reef finance is REEF.
Unifi protocol DAO (UNFI) is a multi-chain smart contract based on the Defi solution with the goal of providing the tools for Defi product development. The native governance token for Unifi Protocol DAO is UNFI, and uTrade, a decentralized Automated market maker (AMM) and token exchange, is the first product that was built on the UNFI smart contracts.
Bitcoin Standard Hashrate Token’s goal is to address the issues of “limited exit options” by offering “exchange grade” liquidity to BTC mining. But during the secondary trading, BTCST will function as a leveraged BTC token free from liquidation risk. BTCST is the native traditional token for Bitcoin Standard Hashrate Token.
It is a money market and stablecoin decentralized finance platform on Binace smart chain with the aim of enabling digital asset lending and generation of synthetic stablecoins supported by loads of various BEP-20 assets. The native BEP – 20 governance token of the platform is the XVS token, which is used for voting in governance decisions like product improvement, etc.
CertiK is a cross-chain protocol with security scoring and decentralized reimbursements for creating secure blockchains and dApps. It acts as the figurehead where blockchain infrastructures and decentralized apps can be built securely. The native token for CertiK is the CTK token, which is used for, staking, gas consumption, rewards, etc.
The HARD protocol is a permissionless and decentralized cross-chain money market built on the Kava. It allows for the lending and borrowing of cross-chain assets. The HARD token is the native traditional token of the platform which is used in; governance voting and liquidity mining rewards.
Built on the NEO blockchain, Flamingo is an interoperable, full-stack Defi protocol that comprises six main parts; Swap, vault, FUSD, DAO, Perp, Wrapper. The native governance token for Flamingo is the FLM token, and it can be used to vote for changes in the platform parameters, issuance of new FLM tokens, etc.
A Litentry is a decentralized identity aggregation protocol that cuts across multiple networks and features a decentralized identifier (DID) indexing mechanism and a substrate-based credit computation network. The protocol issues a decentralized, interoperable identity aggregation service, which lightens the problems of resolving agnostic DID mechanisms.
The native traditional token for Litentry is LIT. It is used in the DID aggregation protocol as; a reward for indexed identity databases, staking, fee for credit/reputation computation, etc.
Juventus Fan Token is a utility token that gives Juventus football club fans a tokenized share of influence on the club’s decisions through the use of the Socios app and services. Socios application is a blockchain-based fan engagement and rewards platform for sports and entertainment. The utility token for the Juventus Fan Token is JUV, and it is mainly used for; rewards, staking, and governance.
Written by: Narender Charan