Binance launches automated market maker Liquid Swap

The cryptocurrency exchange Binance announced the launch of the automatic market maker Binance Liquid Swap.

The new trading feature will allow users to pool tokens to gain instant liquidity and earn yields.

“Users contribute funds to liquidity pools, after which they begin to receive interest and income from trading fees generated by trades executed with Binance Liquid Swap funds,” ForkLog representatives said.

Binance Liquid Swap is based on a variety of liquidity pools that allow exchanging crypto assets using, instead of an order book, an automated market maker (AMM) pricing algorithm. This guarantees price stability and lower transaction fees.

“The instant swap feature will provide trading pairs and pool funds with corresponding annual percentage yields: USDT/BUSD (15%), BUSD/DAI (14%), and USDT/DAI (12%). When using the AMM, funds will be automatically converted into two cryptocurrencies from the pool,” the developers note.

The transaction fee and the price between the two crypto assets available in each pool on Binance Liquid Swap are determined by the amount of assets in the liquidity pool. Traders influence the prices of the crypto assets by swapping or adding funds to the liquidity pool.

Earlier, the Binance Chain launched the Binance Smart Chain mainnet, which enables the creation of smart contracts and earning rewards from staking the BNB token.

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