Binance Launchpool is a new initiative to help you safely farm new coins from existing assets for free. What is it about? The famous crypto exchange has launched a new platform to farm virtual currencies in the DeFi market called Launchpool.
What is Launchpool on Binance?
Binance Launchpool allows its users to use their tokens to farm or earn a new token without any effort. Absolutely for free. Sounds too good to be true. What would a top exchange like Binance introduce this new project?
The answer is pretty simple. This initiative would further boost the demand for the exchange itself and for its native coins that are participating in the project.
You can earn free tokens only if you have a stake in their coins — BNB or in BUSD or in other related altcoins. By this initiative, there are greater chances that the value of the Binance coins will go up at stake.
How does it work?
This project will last 30 days only starting from the 9th of September 2020. (09.09.2020).
The first seven of those days are before the token is actually listed on the exchange, at which point you can immediately trade any tokens you have earned.
The tokens you earn are distributed to you daily, and you can add or remove tokens you’ve subscribed to the eligible pools at any time.
Basically, you get to accumulate a brand new coin, prior to (and after) a guaranteed listing on Binance.com, for free.
After farming considerable BEL tokens, Binance will list the tokens in their exchange and create a trading pair of BEL tokens with their crypto coins. This also helps the users to implement the new Defi protocols and earn tokens in exchange for their cryptocurrencies. Defi is the most demanded protocol at present as the entire cryptocurrency industry is pushing itself to move towards Decentralised Finance. So Binance had taken a step forward in that direction to promote the tokens in an effective way.
The digital currency will be traded in the following trading pairs:
The first project to be hosted on Launchpool is Bella Protocol (BEL). The Bella Protocol offers a suite of DeFi products for a streamlined experience, with the goal of making yield farming more accessible.
Bella will diversify users’ funds based on the preferred risk type (conservatively / balanced / aggressively) and will allocate the funds among different yield farming strategies. For example, the USDT Balanced strategy includes farming up to 40% with COMP, 40% with CRV, and 20% with more recent protocols.
- According to Binance, 50 lakh BEL tokens will be rewarded for 5 percent of the token supply.
- The total token value of BEL tokens to be rewarded is 100 crores.
- The value of the BEL token determined is 0.75 USD for one token.
- Stake BNB: 4,500,000 BEL in rewards (90%)
- Stake BUSD: 450,000 BEL in rewards (9%)
- Stake ARPA: 50,000 BEL in rewards (1%)
- There is no staking limit for the BEl tokens to be pooled or invested. Also, there is no requirement for the KYC verification if you want to pool your coins for BEL tokens.
Who can participate?
Any Binance user can take part in this new initiative. You will need to deposit your funds on the Binance exchange and go to the Binance Savings page. After it, you will have to select BNB, BUSD, or ARPA flexible savings with the label “Launchpool.” This will be shown in the description and users will be able to stake their coins in just a few seconds.
There are no upper limits, meaning you can stake as many tokens as you like. The minimum you can stake for each token is 0.1 (for example 0.1 BNB).
If you already have a stake in BNB or BUSD or ARPA tokens, then you have to improve your stake above zero after the 8th of September 2020 to get considered for the Launchpool option. Only then the Launchpool balance will be upgraded in your trading account. That means you have to stake an additional amount above 0 to trade in Launchpool balance. If you did not do so within the staking period, then you will not get the Launchpool rewards Binance provides you for the crypto coins.
How to start (Web Version)?
2. Fund your account to buy one of the participating tokens (crypto and fiat transactions are available.)
3. Go to the Savings page.
4. Click “Transfer” (right-hand side) for the token you want to use to subscribe.
5. Input the number of tokens you’d like to subscribe to.
6. Click “Transfer Confirmed” (located at the bottom right of your screen).
How to start (Mobile App)?
Assuming you already have a Binance account.
1. Go to “Savings”.
2. Click “Subscribe” on the token you want to subscribe to.
3. Input the number of tokens you’d like to subscribe to. (Note! The app hasn’t been updated to show “Launchpool” on the UI yet, but your tokens still count).
4. Tick the “Binance Savings Service Agreement”.
5. Click “Confirm Purchase”.
How do I calculate my BEL rewards?
Staked BNB, BUSD, and ARPA balances will be recorded each hour for 30 days after the staking period begins to get an average daily staking balance for each day. Rewards allocated to each pool will be split evenly every day over the 30 day period. For example, the BNB pool will reward a total of 5,000,000 x 90% / 30 = 150,000 BEL tokens per day to BNB stakers.
Each participant’s rewards will then be calculated every day based on their ratio of BNB staked compared to all BNB staked in each pool. For example, User A stakes 5,000 BNB for 12 hours during the 1st day of staking. The average amount of BNB staked across 24 hours from all participating users during the same day was 100,000 BNB. User A will receive ((5,000 x 12 / 24 ) / 100,000) x 150,000 = 3,750 BEL tokens for the first day.
Things to consider before entering the Launchpool
- You will be able to un-stake your funds at any time with no delay and participate in any other available pools immediately.
- Rewards are calculated and distributed daily on the following day to user spot wallets between 0 AM and 1 AM (UTC).
- You will also receive interest from the standard flexible savings products by depositing tokens into each product. Distributions will be made at the same time as above.
- Only tokens in your spot wallet will be able to be staked into Launchpool.
- BNB staked into Launchpool will still provide users with the standard benefits for holding BNB, such as airdrops, Launchpad eligibility, and VIP benefits.
Binance is a great exchange and never stops adding new features in order to attract more users. This time they would also add a new use case for their native tokens in order to boost their prices. And maybe, who knows, we’ll soon see BNB in the top-3 cryptocurrencies of the world.
And here is a quick review of the new project. Don’t miss the opportunity that only lasts for a month.
- Token Name: Bella Protocol (BEL)
- Launchpool token rewards: 5,000,000 BEL (5% of Total Token Supply)
- Total Token Supply: 100,000,000 BEL
- Private Sale Token Price: 1 BEL = 0.75 USD
- Staking Period: 2020/09/09 0:00 AM (UTC) to 2020/10/09 0:00 AM (UTC).
- Staking Terms: No upper limit. No KYC required.