Thanks to its relatively low transaction fees, the Binance Smart Network (BSC) enabled the widespread use of DEFI protocols developed on the Ethereum infrastructure. Today, the Pancakeswap application, which operates on the BSC network, is by far the leader in this field with its daily users approaching 400k. There are also many other innovative DEFI applications on BSC. You can access the full list of applications on this link.

In this article, I would like to draw attention to some points about DEFI applications.

Non-Custodial Wallets

To transact in the DEFI world, it is necessary to have a non-custodial wallet. We can download these wallets, which are mostly in the form of applications on mobile, and as a browser add-on on desktop computers, from the internet for free. Their main advantage over wallets on centralized exchanges is that funds in these wallets cannot be moved without our approval. When we have a wallet like Metamask, we also have the opportunity to use all applications in networks such as BSC, Ethereum, Polygon, etc., without KYC or being a member.

We pay a fee in BNB for the transactions we make with our Metamask wallet on the BSC network. Since transaction fees vary according to the density of the network, it is cheaper to transact at certain times of the day.

Using Swap Apps

The biggest innovation brought by DEFI swap applications is that any individual can generate income by providing liquidity to a decentralized exchange. Cryptocurrencies are deposited in pairs into swap app pools. As a result of this investment, the crypto of the application is earned. Thus, while investors benefit from the increase in the value of the cryptocurrency pair they add to the pools, they also gain the project's crypto.

Impermanent Loss Risk

Users face losses when the value of the cryptocurrency pair they invest in differs greatly from each other. For example, if the value of one of the invested cryptocurrencies remains the same and the value of the other decreases by half, an additional loss of 5.72% occurs. We can use this calculator to test different scenarios.

Security Risks

Hack risk of protocols is the most common security risk in the DEFI world. To minimize this risk, it is necessary to use applications that have passed the security check.

An even more important risk is to link our wallets to a fake site created by hackers. Thus, we can send our crypto money to hackers while we think we are converting the funds airdropped to our wallets.

Best Swap Prices

Since there are many swap applications on BSC, it is possible to choose the most affordable application when trading crypto. For this, I use the Token Swap menu of the https://debank.com/ application. Thus, aside from paying commissions during trading, I usually end up making a profit.

The Launch of Robinia Swap

For a long time, I wanted Steem to be the subject of DEFI applications. A new method will have emerged where existing Steem owners can earn income, and the additional Steem demand that will arise will support the price.

Robinia Swap, scheduled to launch on October 1, is an exciting project. Because after the Steem BSC bridge is activated, a wrapped version of Steem will be available on the BSC network thanks to the project.

We can follow the announcements about the project via the @robinia account. We can also access all the information about the project on https://robiniaswap.gitbook.io/robiniaswap/.

Thank you for reading.

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