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Binance DEX

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Satoshi&Co Daily Crypto Newsletter

June 10 · Issue #192 · View online
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Check out past issues of the newsletter along with more interesting crypto content as well as our recently-launched podcast series with leading crypto industry participants at our newly-launched website

As was promised a few months ago, popular centralized exchange Binance has launched a decentralized version of its exchange (Binance DEX) in the last week of April. The DEX version of Binance is expected to solve a majority of hurdles faced by current DEXs by offering high throughput and almost instant settlement, without compromising on the features of permissionlessness, anonymity and non-custodial trading facilitated by DEXs in general.
The DEX runs on a proprietary BNB blockchain, which reportedly is managed by a distributed network of nodes that maintain the BNB ledger. As seen from the screenshot below, Binance DEX closely replicates its centralized counterpart’s trading UI/UX.  
Initially touted to be cross chain compatible, the Binance DEX currently supports only BEP2 standard tokens, a standard that is native to the Binance chain much like how ERC20 standard is native to the Ethereum blockchain. However, Binance has teamed up with Fantom to improve the interoperability between the Binance and Ethereum blockchains.
Constrained by the lack of cross chain compatibility, the current list of tokens listed on the DEX predominantly includes lesser known names, with BNB being the only token with more than one billion dollar market cap. Moreover, the liquidity for trading remains obtrusively thin when compared to the centralized version for the same token pairs (160k BNB in 24-hour volume for ONE/BNB pair on the centralized exchange vs. 1.6k BNB 24-hour volume on Binance DEX).
One can’t help wonder if this is just a diversionary tactic, or a token gesture from Binance. A number of the core crypto believers that only trade on DEXs do not really trust that a Binance DEX will be truly decentralized. The core DEX audience will continue to stay on 0x, Bancor etc. Folks that trade on Binance do so because it is convenient for them to do so. The Binance DEX, at least in its current avatar is neither pulling folks from other centralized exchanges, and nor is it converting folks from other DEXs. It remains to be seen what Binance’s play book here is with the DEX. Could security tokens be something that could be exchanged on a DEX with minimal attribution to the venue provider, thus lowering his regulatory burden, especially in non-US geographies, which is where most of Binance traders come from?
Meanwhile in Crypto Wonderland....
“Polish Crypto Exchange Shuts Down”
A cryptocurrency exchange in Poland called Coinroom abruptly ended operations on the 2nd of April, 2019. At the time of the shut down, the estimated sum of $15,000 in customer funds was lost. The website is still down as at this time and users and the general public have no way of getting in touch with the founders. The exit scam was first discovered by a Polish news website on the 31st of May.
“Crypto Startup That Allows Employers To Pay Salaries in Ether”
Bitwage, a startup that helps companies pay their employees in cryptocurrency, has added ether as a payroll option. Announced Monday, companies that want to offer tax and HR-compliant ether benefits can sign up to offer it as a benefit to employees. The company has been providing direct deposits of bitcoin since 2014, and serves over 30,000 workers. Employees, freelancers and independent contractors can receive from their clients or employers any percentage of their fiat obligations due to them in crypto.
“Zilliqa Launches Smart Contracts”
Blockchain platform Zilliqa has announced the launch of smart contracts on its platform, President and chief scientific officer Amrit Kumar told TokenPost in an email. The launch will enable developers to write and deploy smart contracts on the Zilliqa blockchain with its functional smart contract language, Scilla. He further listed the core features of Zilliqa smart contracts. This includes amenability to formal verification. Kumar explained that Scilla has been designed to achieve both expressivity and tractability simultaneously while enabling formal reasoning about contract behavior.
“XRP Ledger Wallets Hacked”
Another day, another cryptocurrency heist. Hackers have breached over 100 Ripple (XRP) Ledger wallets managed by service provider GateHub. If that wasn’t bad enough, additional reports suggest the attackers have siphoned off more than $10 million worth of XRP. GateHub say it’s in the process of reviewing the suspicious activity, but no official conclusions have been posted at the time of writing.

Tweet of the Day
Balaji S. Srinivasan
Technologies like email, GPS, online maps, smartphones, streaming video, etc are no longer new. They are the new normal. Like living through the early 20th century when electricity, landlines, automobiles became popular.
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