The world’s largest cryptocurrency exchange by trading volume, Binance, has announced the addition of four new liquidity pools to the swap platform, including: DogecoinShiba Inu, Chainlink and Litecoin.
The implication of this upgrade is that the number of trading puts available to users interested in the liquidity pool would increase.
This would be Dogecoin and Shiba Inu investors the opportunity to earn more from their holdings.
Previously, the platform had only three trading pairs available to users. These pairs include: USDT/BUSD, USDT/DAI and BUSD/DAI
What are liquidity pools?
In general, smart contract-based liquidity pools refer to a few cryptocurrencies that users can switch between.
When tokens are linked, users can deposit into such pools, earning rewards for acting as liquidity providers.
A major factor that attracts new users to liquidity pools is that cheaper transaction fees have to be paid.
Binance Liquidity Swap
In 2020, Binance launched its automated market maker (AMM) liquidity swap platform as part of its services to compete with the fast-growing decentralized exchange Uniswap.
The crypto exchange offered liquidity providers financial rewards in its own BNB tokens and also allowed users to earn a share of the trading fees.
Dogecoin, Shiba Inu Growth Continues
Dogecoin and Shiba Inu are the two most popular meme coins in the crypto industry and have continued mass adoption.
The growth has led to recent revelations by the Doge team warning the community to be wary of scam projects that would claim to be connected to the memecoun or its Dogechain.info explorer.
According to Mishaboar, “Dogechain,” a project that says it will bring NFT and DeFi utilities to Dogecoin, is in no way affiliated with the token ecosystem.
On the other hand, despite the bear market, Shiba Inu continued to absorb a high demand from whales. Gimli, an Ethereum whale, recently bought a $3.5 million meme coin.