Several decentralized finance (DeFi) protocols running on Binance Smart Chain (BSC) have fallen victim to major exploits in recent months as the sector continues to see substantial growth in 2021.
Binance’s very own smart contract blockchain platform has seen a surge in demand since its launch in September 2021, due to its low fees and high throughput. This has allowed the Binance Smart Chain to appropriate a percentage of the DeFi market as platforms looked for an alternative to Ethereum’s high gas fees.
While Ethereum still commands the lion’s share of the DeFi network’s transaction volume due to the number of major platforms running on its blockchain, BSC is an attractive alternative that has enjoyed real success, spurred on by its interoperability with the larger Binance ecosystem.
Given that Binance is the largest cryptocurrency exchange by volume in the world, its ecosystem drives a significant amount of cryptocurrency transactions and trading. Nascent DeFi platforms running on BSC have attracted large user bases,