BEP2 is a token management process with a set of rules and pre-defined criteria which is implemented to launch on-chain assets on the Binance Chain. Even Bitcoin, which Binance released a pegged BEP2 version will be able to benefit from the speed, security, transactional efficiency of this new blockchain platform.
For clarity, BTCB is a BEP2 token that is 100% backed by Bitcoin (BTC). The reserve addresses are published for anyone to audit. A trading pair will be created on Binance.com between the pegged token and the native coin, e.g., BTCB/BTC.
There are some exchanges like Coinbase who do not support the Bitcoin BEP2. For clarity, BTCB is a BEP2/BEP20 asset wrapped on Binance Chain and Binance Smart Chain with a 1:1 peg to BTC which is locked on the Bitcoin blockchain.
It is important to note that BTCB is not a substitute for BNB. However, BTCB has played a greater role in making possible a greater selection of trading options, higher trading volumes and increased liquidity.
BTCB can be used with DeFi Apps and this token is a strategic creation of Binance to penetrate in to the DeFi market which is already dominated by Ethereum-only applications.
BEPSwap, decentralized finance application provides for cross-chain liquidity network, THOR Chain, making decentralized trading possible for all the BEP2 tokens. Using BEPSwap, Binance Chain Token Holders will be able to convert one BEP2 token for another to further stake their assets to earn the trading fees which is required to provide liquidity to the market.
When compared to Uniswap on Ethereum, BEPSwap provides for seamless and secure conversion of digital assets. The major difference being that BEPSwap is exclusively facilitated for Binance Chain tokens.
The major advantage of BEPSwap is instant asset swapping, BNB and BEP2 token staking in liquidity pools to earn trading fees, pool price monitoring via API or interface to earn by trading the pools to correct prices, and to connect BEPSwap to swap tokens for DApps and staking treasury for deep liquidity.
It has been established that Binance Chain’s low transaction fees and fast confirmations has made BEPSwap to be able to provide for superior decentralized trading experience when compared to several other DApps like on Ethereum.
A wide variety of BEP2 assets not limited to just the Binance Coin (BNB) can be swapped like the Binance USD (BUSD), Binance Coin (BNB), Travala.com Token (AVA), ETH BEP2 (ETH), Bitcoin BEP2 (BTCB), and Trust Wallet Token (TWT).
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