One of the world’s leading crypto exchanges, Binance, has launched a “centralized” automated market maker (AMM) pool, which would allow liquidity providers to earn interest and income from trading fees. The AMM pool, called Binance Liquid Swap, will have different liquidity pools with the instant token swap functionality. The crypto exchange giant says that the AMM pricing model helps provide “more stable prices and lower fees” as compared to the order book model.
“AMA exchanges help provide liquidity regardless of the order size.”
Order book exchanges allow submitting two types of orders, a market order (buy or sell a token immediately for available price) and a limit order (buy or sell a token at a specified price while your order sits on the order book). The automated market maker exchanges, on the other hand, use different algorithms or predefined formulae and pool liquidity together to make markets. AMM exchanges, therefore, help provide liquidity regardless of the order size. Initially, Binance Liquid Swap will support three trading pairs for liquidity providers: USDT/BUSD, BUSD/DAI, and USDT/DAI. However, the interest and trading fee income is not known.
Binance joins Europe for the blockchain industry.
As reported previously, the crypto exchange giant Binance announced that it is joining Blockchain for Europe, the European membership association representing international blockchain industry participants at the EU-level. The exchange had joined the association whose members include major US blockchain payments firm, Ripple. Blockchain for Europe advocates for “balanced policy and regulatory governance” for the distributed ledger technology, the crypto exchange noted. As the report stated, the European Union is looking at creating rules for cryptocurrencies such as bitcoin, and related technologies such as blockchain-based digital contracts, Sahil Kohli reported.
Binance also revealed earlier that its UK subsidiary joined the self-regulating industry association CryptoUK. The Australian entity has become a part of the local fintech industry advocacy body Fintech Australia.