Binance Smart Chain has already beenlive for more than two months.Thanks to its growing ecosystem of decentralized applications, a lot of use cases have started to emerge.
Curious about it but don’t want to sell your BTC? We understand. Bitcoinjust reached $18,000, a 1000+ day record! Thankfully, there are ways to use BTCs and try the new Binance Smart Chain without necessarily having to sell your bitcoins!
Binance Smart Chain supports BTCB, a 1-1 pegged version of BTC that you can withdraw from your wallet on Binance.com or through theBinance Bridge, a decentralized system for cross-chain transfers across Bitcoin andBinance Smart Chain.
⚠️ ⚠️ ⚠️ The official and unique address of BTCB on BSC is0x7130d2a12b9bcbfae4f2634d864a1ee1ce3ead9c. Do not trust any other address! ??
This article discusses 4 innovative ways to use your bitcoins on the Binance Smart Chain. Whether you are a BTC maximalist or just curious about Binance Smart Chain, it is time for you tostart upgrading your Bitcoin game.
1. Earn interest on your bitcoins
What could be better than hodl-ing BTC when the price moons? Getting rewarded for it!
With platforms likeCREAMandForTube, you can deposit your BTCB and start earning an interest rate immediately! Nothing else is asked. Just validate a single transaction from your wallet to deposit your BTCB and start seeing interest accrues immediately after.
If you are a true farmer, you can also start earning interest using platforms likeBeefy,Fry.World, andco*kE. For instance, Beefy allows you to put BTCB in vaults to earn interest with dedicated yield-farming strategies.
If you even have a higher risk tolerance (i.e. beware of theimpermanent loss), you can also farm assets like CAKE or BAKE on new exchange platforms, likePancakeSwap, by depositing BTC on a pool to collect these new tokens. Easy and delicious!
2. Decentralized trading with your bitcoins
You probably know it is possible to trade on Binance (if not, who are you?). It is fast and the liquidity is good for most cryptos. Yet, it is sometimes complicated, and the selection of tradable assets is quite limited.
Here come…BakerySwap,PancakeSwap, andBurgerSwap. They allow you to trade any new asset, 1 minute after they get created on the blockchain. The cherry on the pancake (or the croissant!) is: it isvery fast.Press the buy button, input the BTC quantity you wish to trade, and swap it to the desired asset. With a block time of 3 seconds, your trade will be confirmed faster on BSC than it took you to read this sentence. All on the blockchain!
3. Taking a loan with your bitcoins
With bitcoin trading at $18k, it could seem like a good time to cash out. But what will happen if BTC goes higher? Do you want to bethat guy?
Thanks to Binance Smart Chain, you can deposit BTCB (i.e. the Bitcoin token on BSC) on protocols likeCREAMandForTube. These platforms allow youto borrow assets by collateralizing other assets. For instance, they support stablecoins like USDT & BUSD, plus all the most popular assets (like BTC, ETH, ATOM, ADA). Users should not forget to manage their risk exposure not to get their collateral liquidated.
By paying an interest rate, you can borrow assets like BUSD to pay for your ice creams to your lover. Fun and yummy! But if you don’t have one, you can also buy yourself two ice creams. ??
4. Minting stablecoins with your bitcoins
Stablecoinsare the opposite of fun: they are boring since their price is stable against fiat currencies. Protocols likeQIANandVenusare what is commonly defined ascrypto-backed stablecoins(a model pioneered byMakerDAOon Ethereum). These allow you to deposit assets and mint a new token that is backed by these assets. Once again, it is crucial that youmanage your risk exposureproperly not to lose these precious bitcoins.
With these protocols, you can deposit BTCB to mint stablecoins by maintaining a collateralized position. You all knew central banks could print money. Now, you can become your own money printer.Brrr. Brrr.Print these stablecoins and start buying more bitcoins: it isleverage and it is fully decentralized.
Final words
Time to step up your Bitcoin game with Binance Smart Chain. As usual, it is important todo your own researchandmonitor the risks associatedwith using decentralized protocols. If something looks too good to be true, it probably is.
However, next time your friends tell you that BTC is boring, reply to them:“Not on Binance Smart Chain”.
Risk Warning:BTCB and other wrapped “BTokens” can be used in high-risk investments with increased volatility and risk of loss. Always do your own research (DYOR) before using BTCB or any other DeFi products.
