First Mover: Binance CEO Sees Future in DeFi While Bitcoin Volatility Turns Minuscule Read full article Muyao Shen, Omkar Godbole and Bradley Keoun September 29, 2020, 4:02 PM · 4 mins read
It might be part of every job in crypto to anticipate and react to fast-moving developments that seemingly change the industry’s direction overnight.
And apparently not even Changpeng “CZ” Zhao, the high-profile leader of Binance, the world’s largest cryptocurrency exchange, is immune to the industry’s capricious shifts.
In a video interview with CoinDesk’s Muyao Shen, Zhao acknowledged that the emerging blockchain sector of decentralized finance, known as DeFi, could eventually upend the business that Binance has grown to dominate: running a centralized cryptocurrency exchange.
Related: BitcoinACKs Lets You Track Bitcoin Development and Pay Coders for Their Work
“Our mission is not to build a CeFi exchange,” Zhao said in the interview, using a shorthand term for centralized finance.“Right now it is one of our larger businesses that support our growth.But over the long term, we want to push decentralization.”
The company’s new foray into DeFi, Binance Smart Chain, attempts to replicate some of the features of the Ethereum blockchain that have proven fertile for developers building decentralized, blockchain-based trading and lending applications that theoretically could one day challenge traditional lenders and Wall Street trading firms.
Like rival cryptocurrency exchanges OKEx, Huobi and Coinbase, Binance is trying to hold on to its central role in digital-asset markets as upstart DeFi projects like Uniswap, Curve, Balancer and SushiSwap attract a bigger share of industry trading volumes.Zhao says he’s open to the idea that Binance may have to adapt its business model to stay relevant, especially with total collateral locked into DeFi protocols surging 16-fold this year to $11 billion .
In designing Binance Smart Chain, the company had to sacrifice elements of decentralization to compete against Ethereum and protect the company’s brand.Binance Smart Chain is controlled by 21 node operators, which are elected by Binance Coin (BNB) holders.
But because the company is one of the largest holders of the BNB tokens , it retains significant control over the project’s direction.
Story continues
Read More: Binance CEO Says He Fully Expects DeFi to Cannibalize His Crypto Exchange Bitcoin Watch
With the U.S.elections just five weeks away, the market focus looks to be shifting back to bitcoin from ether.
The spread between the six-month implied volatility (IV) for ether (ETH) and bitcoin (BTC), a measure of expected relative volatility between the two, fell to a 2.5-month low of 4% over the weekend, according to data source Skew.
The IV spread peaked at 21% in mid-August and has been declining ever since.
“The decline could signal a change in market leadership back to bitcoin after a couple of months focus on the Ethereum complex,” Skew’s CEO Emmanuel Goh told CoinDesk.
The impending U.S.elections could be the most contentious in modern history and have a significant impact on traditional markets.As such, bitcoin, which some investors argue has evolved into a macro asset over the past six months, could lead the price action in the crypto markets in the near term.
– Omkar Godbole Token Watch
Filecoin IOU (FIL): Three years after $257 million initial coin offering, blockchain-based data-storage provider says main network is set to launch around mid-October .
Ocean Protocol (OCEAN): Artificial intelligence and data service suspends old contract on Ethereum blockchain and hard-forks project to help thwart $150 million KuCoin hack.What’s Hot Five Republican congressmen vote against bill committing to peaceful transfer of power after election 2.
The PRV V6 made a guest appearance in the 505 sedan, but it couldn’t save Peugeot sales.
Motorsport Craig Breen will rejoin Hyundai for the World Rally Championship’s first visit to Belgium in November.
Motorsport Red Bull Racing’s spending fell slightly in 2019 compared to the previous year, but the Formula 1 team still faces a difficult task in scaling back to meet the FIA budget cap that will be imposed in 2021.Motorsport Frederic Makowiecki says it would be “difficult” to return to SUPER GT next season following the end of Porsche’s factory IMSA WeatherTech SportsCar Championship programme.Motorsport Honda says it is steeling itself for a Toyota GR Supra comeback in the latter half of the 2020 SUPER GT season.Car and Driver
We suss out the key differences between automakers’ Certified Pre-Owned Vehicle warranties for you.
Car and Driver
Acura’s much-improved TLX is a set of summer tires away from realizing its full potential.
Autoweek
“The other (tracks), we’re really happy with in terms of the high downforce package.”
Car and Driver Want to get all of the clutter in your trunk or back seat sorted? These organizers will get the job done.From Car and Driver Autoweek
Short tracks, road and street courses could supplant intermediate tracks over the next decade.
Motorsport Honda Performance Development president Ted Klaus suggests that more technical commonality at U.S.motorsport’s pinnacle would encourage manufacturers to diversify.Motorsport In our latest Formula 1 technical video looking back at the Russian Grand Prix, we use our 3D model of Ferrari’s SF1000 to explain the intricate solutions employed in Sochi to improve its pace relative to the opposition.Car and Driver
A silhouette of Zora Duntov and a slick “Team Corvette” logo have appeared on the latest round of production C8s.
Car and Driver
The F Sport treatment is now offered only with the top engine, while the IS300 continues to offer four-cylinder RWD and V-6 AWD configurations.
Motorious The story of this actor’s tribute to his grandfather will bring tears to your eyes.Motorsport Honda Performance Development has announced David Salters will become its seventh president, succeeding Ted Klaus, who will retire after 30 years with Honda.
Car and Driver
2020 models of the Ford Escape, Explorer, F-150, Mustang, and others are affected by the problem, which could leave the rearview camera’s screen blank or distorted.
Motorious There’s only one other in the world like it! Motorsport Texas Motor Speedway will hold two NTT IndyCar Series races next year, and the event has been brought forward to the first weekend of May.Motorsport Mick Schumacher, Callum Ilott and Robert Shwartzman enjoyed an “unforgettable” Ferrari Formula 1 test on Wednesday at Fiorano, stepping up preparations ahead of their grand prix weekend debuts.More Stories .