BNB Chain Boosts Stablecoin Retention with Innovative Programs and Integrations

DeFi and Stablecoin are the two essential components of BNB Chain’s vision - DeFi to build an On-chain Economy and Stablecoin to move towards mass adoption and onboard the next billion web3 users. 

Stablecoins provide a stable and lower-risk entry point for new users, making them an essential component of BNB Chain's strategy to drive mass adoption of Web3.

In this blog, we will learn the various measures and incentive mechanisms BNB Chain has taken to integrate various stablecoins within its ecosystem. 

The Importance of Stablecoins

Stablecoins play a crucial role in the cryptocurrency ecosystem by offering stability in a market known for its volatility. Unlike traditional cryptocurrencies like Bitcoin or Ethereum, whose prices can fluctuate dramatically within short periods, stablecoins are designed to maintain a consistent value. This is achieved by pegging their worth to more stable assets, such as fiat currencies or commodities like gold. 

This price stability makes stablecoins highly practical for everyday use, facilitating smoother transactions and providing a reliable store of value without the risks of rapid price swings.

The importance of stablecoins extends to their versatile use cases. 

• They are increasingly popular in trading and DeFi as they provide a stable base for trading pairs and yield-generating activities without the volatility risks typical of other cryptocurrencies. 
• For new entrants to the crypto market, stablecoins offer a safer and less volatile way to explore digital assets and engage in the crypto space. 
• Stablecoins enhance the efficiency of payments and remittances by enabling near-instant, low-cost transfers across borders. 
• They serve as a bridge between traditional finance and the crypto world, making it easier for individuals and businesses to adopt digital currencies for various financial needs.

Why BNB Chain is Perfect For Stablecoins

Here are some of the reasons why BNB Chain is the ideal platform for stablecoins.

• High Daily Active Users: BNB Smart Chain (BSC) and BNB Chain's Layer 2 solution, opBNB, each boast over a million daily active users, making them the most used Layer 1 and Layer 2 chains in the market.
• Enhanced Transaction Capacity: BSC and opBNB offer outstanding transaction capabilities. In 2023, BSC expanded its gas limit to 140 million, exceeding Ethereum’s capacity by 4.6x. This boost allows BSC to handle surges in demand without high gas fees. opBNB has also raised its block gas limit to 200 million, enabling over 10,000 transactions per second.
• Ultra-Low Fees: BSC maintains gas fees below $0.01, while opBNB offers even lower fees at around $0.001, making both chains highly cost-effective.
• Mature Ecosystem: The BNB Chain ecosystem is highly developed, with thriving DeFi, Web3 gaming, and memecoin communities, providing maximum utility and engagement for users.

Stablecoin Integration in BNB Chain

Here are some ways that BNB Chain has integrated and incentivized stablecoins within its ecosystem.

• Gas-Free Carnival
• TVL incentive growth
• DeFi integration
• Payment gateways

Gas-Free Carnival

As part of its “Gasless Carnival Season,” BNB Chain is making stablecoin transfers more affordable by eliminating gas fees for users transferring or withdrawing popular stablecoins such as USDT, FDUSD, and USDC on both BNB Smart Chain (BSC) and opBNB. 

The campaign, which launched on September 19, 2024, provides users with cost-effective stablecoin transactions across major platforms like Binance, Bitget, Gate.io, and MEXC, as well as wallets like Bitget Wallet and SafePal.

Additionally, the Gas-Free Campaign extends to stablecoin transfers via Celer cBridge, making cross-platform transactions smoother and cheaper. This zero-fee initiative is expected to boost stablecoin usage across BNB Chain’s ecosystem and provide users with a more seamless experience.

Encouraging TVL Growth

BNB Chain’s TVL Incentive Program is designed to encourage DeFi projects to grow their Total Value Locked (TVL) on the network, with a special focus on stablecoin and BNB staking. Offering a total prize pool of up to $300,000, the program rewards projects for increasing their TVL, with a particular emphasis on stablecoins (FDUSD, USDT, USDC) and BNB.

Running from September 12 to October 11, 2024, the program features two main challenges: 

• BNB Staking Challenge: $100,000 prize pool for DeFi platforms supporting BNB staking. Rankings are 80% based on total increase in locked BNB (collateral, liquidity pools, liquid staking) and 20% on liquid staking BNB (e.g., slisBNB, BNBx). Top 3 receive $50K, $30K, and $20K.
• TVL Challenge: $200,000 prize pool for DeFi projects on opBNB or BSC (after Jan 1, 2023) with a security audit. Rankings are 50% on TVL increase, 30% on stablecoins locked (FDUSD/USDT/USDC), and 20% on BNB locked. Top 5 receive 40%, 30%, 20%, 7%, and 3% of the prize pool based on performance.

DeFi Integration: High APY Opportunities for Stablecoin Holders

In addition to the TVL program, BNB Chain is deepening the utility of stablecoins through integration with top DeFi platforms like Venus and PancakeSwap. 

Users can now stake stablecoins and provide liquidity with attractive APY, giving them the opportunity to earn competitive returns on their holdings while contributing to the liquidity of BSC’s DeFi ecosystem.

Here is the APY users can earn from stablecoin staking on BSC compared to Ethereum and Solana.

As you can see, BSC offers higher and more versatile yield opportunities.

Expanding Stablecoin Adoption for Real-World Use

BNB Chain has also taken stablecoin adoption a step further by partnering with payment gateways to enable real-world transactions using stablecoins. 

By bridging the gap between digital and traditional financial systems, these partnerships aim to make stablecoins a practical option for everyday payments. Currently, BNB Chain-powered stablecoin payments are available in Alchemy Pay, Oobit, Lunu, MugglePay, and Now Payment.

This initiative aligns with BNB Chain’s broader strategy to drive the mass adoption of DeFi by making stablecoins as accessible and practical as traditional money.

Conclusion

BNB Chain's focus on stablecoin adoption underscores its commitment to making cryptocurrency as accessible as traditional finance. By simplifying access to decentralized finance, BNB Chain encourages more users to explore its benefits. These efforts bring the platform closer to its goal of onboarding the next billion users to Web3.

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