Binance Labs, the investment arm of Binance, announced in its December 2 announcement that it has allocated $ 4.5 million to a DeFi-focused cryptocurrency project.
Binance Labs continues to power its cryptocurrency projects
The leading exchange announced that it has made a $4.5 million strategic investment in Ambit Finance, a DeFi project. The investment will also enable Binance Labs and Ambit to collaborate to launch future DeFi applications. However, it will allow it to partner with projects within the BNB Chain ecosystem and beyond.
Welcome @ambitfinance to the Binance Labs family! We continue to accelerate development of trustless Defi in BNB Chain ecosystem and SECURITY is always at at core for all Defi protocols. 🔝https://t.co/vmAv5LrvaC
— Binance Labs Fund (@BinanceLabs) December 2, 2022
Ambit Finance is a DeFi lending and yield protocol covering the legacy Anchor team. According to the announcement, the stablecoin will bring several benefits to the BUSD and BNB Chain ecosystem:
Ambit Finance is a sustainable, comprehensive and easy-to-use suite of fintech apps (superapp) that will combine lending, borrowing and yield optimization strategies to increase the utility of BUSD and DApps in the broader BNB Chain ecosystem and leverage Binance.com’s availability on DeFi. There will be a launchpad for a “decentralized Binance” that will combine it with the latest innovations.
Investment accelerates preparations for a new ‘DeFi Superapp’
Ambit Finance provides new use cases for BNB Chain users. It will, however, create a yielding BUSD-based stablecoin. This helps users to generate sustainable income in all market conditions. As part of its multi-phase roadmap, Ambit will present the DeFi Superapp while combining existing DeFi functions such as “innovative solutions for areas such as secured lending and under-collateralized margin lending, and structured products for financial institutions.” Speaking about the development, Sphere CM, Ambit Finance Co-Founder and CEO, says:
The Ambit team has unprecedented experience scaling mass adoption protocols. The product will draw on the lessons learned over the past year and make safety and sustainability its management principles. We will work closely with BNB Chain to make Ambit the cornerstone of the ecosystem’s on-chain strategy and a magnet for financial institutions entering the crypto space, along with Binance’s trusted brand and market power.
As we reported as Kriptokoin.com, Binance launched a token sale for Hooked Protocol (HOOK), the 29th project of the Binance Launchpad program, on December 1.
Stablecoin BUSD will be the focus of studies
As part of the investment, both Ambit Finance and Binance Labs will work to increase the utility of BUSD. Published by Paxos, BUSD is overseen by the New York State Department of Financial Services (NYDFS). Specifically, it offers a transparent product that will “verify, protect and ensure” reserves while maintaining the dollar stability. In accordance with NYDFS standards, Paxos reports monthly for reserves of BUSD. Yi He, Binance Co-Founder and President of Binance Labs, commented on this development:
Binance Labs is always trying to nurture and invest in promising DeFi projects. We believe there are solutions and teams to develop products that can contribute to building a reliable DeFi industry even in a turbulent market.
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