Binance Academy

On May 22, 2010, a programmer named Laszlo Hanyecz paid 10,000 BTC for two pizzas. At today’s prices, that’s over $1 billion—making it the most expensive pizza in history!
Why it matters:
1️⃣ Bitcoin Pizza Day marks the first real-world transaction using Bitcoin.
2️⃣ It proved BTC could function as money—even if it was for pizza.
3️⃣ It’s a reminder of how far crypto adoption has come since 2010.
💡 Did you know? Bitcoin was worth less than $0.01 when Laszlo made that order. Learn more about Bitcoin and its early history here.

🍕 Learn & Discuss: Win $BTC on Bitcoin Pizza Day 🍕
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Create an Article on Binance Square about one of these trending Bitcoin Pizza Day angles:What Bitcoin Pizza Day tells us about early adoption and risk-takingHow crypto could reshape everyday spending in the next 10 yearsIf you had 10,000 BTC today—would you ever spend it?What it will take to make Bitcoin a real medium of exchange, not just a store of valueUse the hashtag #LearnAndDiscuss to qualify.The articles with the highest engagement (likes, comments, and shares) will be reviewed by Binance Academy to select the 10 best ones for reposting!
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Pro Tip:
High engagement helps, but quality matters too! Share original insights, make your post educational, and encourage meaningful discussions in the comments.
Terms and Conditions
By entering or participating, each entrant or participant (“Entrant”) agrees to these terms and conditions (“Terms and Conditions”) and the decisions of Binance, which are final and binding in all respects.Products, and services and offerings referred to here may not be available in your region.10 winners will be selected by the Binance Academy team at their sole discretion, based on a user’s response.Winners will be announced in a Binance Academy post on Binance Square on 2025-05-30 09:00 (UTC). In this regard, you consent to and agree that Binance Academy may make a public announcement, announcing the winners on either the Binance website, through the Binance app, or in any manner (including, without limitation, social media (e.g. X)), which Binance Academy deems appropriate. BTC rewards will be distributed within 21 working days after the Winners are announced. Users may check their rewards on Rewards Hub. The validity period for the token voucher is set at 14 days from the day of distribution. Learn how to redeem a voucher.The actual value of the reward received is subject to change due to market fluctuation.Binance Academy reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms without prior notice, including but not limited to canceling, extending, terminating or suspending this campaign, its eligibility terms and criteria, the selection and number of winners (as well as judging criteria), and the timing of any act to be done, and all Entrants shall be bound by these amendments. For clarity, Binance Academy’s decisions with respect to all aspects of this campaign are final and non-appealable.Binance Academy reserves the right to disqualify any participants immediately for any improper behavior.Additional terms and conditions that apply to this campaign are accessible here. 
Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

In March 2025, World Liberty Financial Inc. (WLFI) introduced USD1 as a new stablecoin pegged to the US dollar. 

World Liberty Financial Inc. (WLFI) is a decentralized finance (DeFi) platform inspired by President Donald J. Trump.

Designed to appeal to both institutional and retail investors, USD1 aims to bridge traditional finance with DeFi by offering a stable digital asset backed by reliable reserves.

What Is USD1?

USD1 is a fiat-backed stablecoin designed to maintain a 1:1 peg with the US dollar, meaning each USD1 token is intended to be redeemable for one US dollar. Launched by World Liberty Financial Inc., USD1 is presented as an "institutional-ready" stablecoin designed to offer seamless and secure cross-border transactions for institutions, investors, and retail users. The project operates on the Ethereum and BNB Chain networks, with plans to expand to additional blockchains in the future.

What Is World Liberty Financial (WLFI)?

World Liberty Financial Inc. (WLFI) is a decentralized finance (DeFi) protocol and governance platform inspired by President Donald J. Trump. As the issuer of USD1, WLFI oversees its operations, reserve management, and strategic partnerships, positioning USD1 as a key component of its mission to bridge traditional finance with DeFi.

How USD1 Works

The stablecoin’s reserves are fully backed by a portfolio of short-term US government treasuries, US dollar deposits, and other cash equivalents. These assets are custodied by BitGo, a prominent digital asset security and custody provider known for serving thousands of institutional clients globally. BitGo Prime, the company’s prime brokerage service, also supports USD1 by offering deep liquidity and trading capabilities within a regulated framework.

Fiat-backed stability mechanism

USD1 operates as a fiat-backed stablecoin, a category that includes established players like Tether (USDT) and Circle (USDC). This model relies on a reserve of real-world assets to maintain the token’s value as close as possible to $1. 

For USD1, these assets include short-term US government treasuries, cash deposits, and cash equivalents, which provide a conservative foundation to ensure stability. Unlike algorithmic stablecoins, which use complex mechanisms to maintain their peg, USD1’s design prioritizes simplicity to minimize risk.

The 1:1 peg allows users to redeem USD1 tokens for US dollars directly with the issuer, creating an arbitrage opportunity that helps maintain price stability. For example, if USD1’s market value dips below $1, traders can purchase it at a discount and redeem it for $1, profiting from the difference. This mechanism mirrors the operational model of USDC and USDT, ensuring the token’s value remains closely aligned with the US dollar.

Blockchain integration and custody

USD1 is initially minted on Ethereum and BNB Chain. These platforms enable fast, secure, and transparent transactions, making USD1 accessible to a broad range of users. WLFI has indicated plans to expand to other blockchains, potentially increasing the token’s interoperability and reach within the DeFi ecosystem.

BitGo, the custodian for USD1’s reserves, plays an important role in ensuring security. As a leader in digital asset custody, BitGo provides insured and regulated storage for the stablecoin’s backing assets.

Market Performance

Since its launch in March 2025, USD1 has achieved a market capitalization of $2.1 billion within just over a month. This rapid rise has positioned USD1 as the fastest-growing stablecoin in history, largely driven by a significant institutional deal.

At the Token2049 conference in Dubai in April 2025, WLFI co-founder Zach Witkoff announced that USD1 was selected to facilitate a $2 billion investment deal between Abu Dhabi’s MGX and Binance. This exclusivity deal underscored USD1’s institutional appeal and contributed to its market cap surge.

Things to Keep in Mind

Lack of reserve transparency

Established stablecoins like USDC and USDT provide regular attestations detailing their assets and liabilities. As of May 2025, there is no publicly available information about USD1’s reserve composition. WLFI has committed to regular third-party audits to verify that USD1 is 100% backed, but the absence of current reserve breakdowns may raise concerns for some investors.

Political associations

USD1’s connection to President Donald J. Trump and his family, through WLFI, may create perceptions of political partisanship. While WLFI emphasizes that USD1’s success is tied to the broader US economy rather than individual political figures, this association could impact adoption, particularly among users or institutions wary of perceived political bias.

USD1 in the Stablecoin Ecosystem

USD1 enters a competitive stablecoin market dominated by USDT and USDC, which together hold significant market share due to their established track records and widespread retail use. USD1 differentiates itself by targeting institutional investors, leveraging high-profile deals like the Binance-MGX partnership to build credibility. Its conservative reserve strategy, avoiding complex yield-generating mechanisms, aligns with institutional demands for stability and security.

USD1 Listing on Binance

On May 22, 2025, Binance announced the listing of USD1. Soon after the announcement, the USD1 stablecoin was listed on the Binance Spot market and made available for trading against USDT.

Closing Thoughts

USD1, launched by World Liberty Financial in March 2025, is a fiat-backed stablecoin designed to maintain a 1:1 peg with the US dollar. Backed by short-term US government treasuries and custodied by BitGo, it operates on Ethereum and BNB Smart Chain, with plans to expand to other chains in the near future.

Unlike USDT and USDC, which have strong retail adoption, USD1 appears to prioritize institutional use cases. The Binance-MGX deal highlights WLFI’s strategy of securing high-profile partnerships to drive adoption among major financial players.

Further Reading

What Is a Stablecoin?

What Is Tether (USDT)?

What Is the Official Trump Meme Coin (TRUMP)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Huma Finance is a decentralized protocol that unlocks real-world DeFi by leveraging income and receivables as collateral.

The platform supports lending and borrowing through a novel PayFi model, enabling access to credit without traditional collateral.

HUMA is the utility and governance token powering the Huma Finance ecosystem.

Huma facilitates programmable payments, on-chain underwriting, and real-time liquidity for institutions and developers.

Introduction

Not everyone has crypto or assets to use as collateral—but almost everyone has income. Huma Finance is building a new kind of decentralized finance (DeFi), one where your paycheck, invoices, or future payments can help you access credit.

By turning income into usable collateral, Huma opens financial doors for people and businesses who might otherwise be left out. It's a practical, forward-thinking approach that brings real-world value to the blockchain space.

What Is Huma Finance?

Huma Finance is a decentralized protocol designed to bring real-world income and receivables onto the blockchain. It enables users to secure credit based on projected income rather than crypto assets, which is particularly beneficial for individuals, small businesses, and emerging market users.

Key pillars of Huma's architecture include:

Income-based collateralization: Borrowers can use future payments such as payroll, invoices, or remittances as collateral.

On-chain underwriting: The protocol allows issuers to assess credit risk using on-chain and off-chain data, ensuring transparency and automation.

Programmable payments: Lending agreements and payment flows are encoded into smart contracts, enabling efficient and secure settlement.

How Does Huma Finance Work?

Huma’s PayFi model creates a modular ecosystem with four main participants: credit issuers, receivables originators, liquidity providers, and borrowers. Credit issuers assess creditworthiness and offer financing. Receivables originators convert future income into on-chain assets that serve as collateral. Liquidity providers supply the funds, and borrowers receive credit in return.

These roles interact through smart contracts that automate underwriting, disbursement, and repayment. The system reduces reliance on traditional intermediaries and enhances accessibility for underbanked populations.

Pros & Cons of Huma Finance

Pros

Expands DeFi access without needing crypto collateral.

Bridges blockchain and real-world finance.

Enables automation through smart contracts.

Cons

Relies on income verification.

Regulatory uncertainties.

Requires trust in data accuracy and integration.

Real World Use Cases

Huma Finance can be applied in various contexts. In emerging markets, cross-border lending based on remittances can offer affordable credit options. Small businesses can convert unpaid invoices into liquidity, helping them manage cash flow and grow operations. Employees may access early wage advances through tokenized payrolls, while healthcare or education services can be delivered through deferred payment models enabled by Huma’s infrastructure.

These examples show the protocol’s versatility and its potential to support a broad range of financial scenarios where traditional credit systems fall short.

HUMA on Binance Launchpool

On May 22, 2025, Binance announced Huma Finance (HUMA) as the 70th project on Binance Launchpool.

Users who stake BNB, FDUSD, and USDC from May 23 to May 25, 2025, are eligible to receive HUMA airdrops. A total of 250 million HUMA tokens were allocated for Launchpool rewards, representing 2.5% of the total supply.

Additional distributions include 50 million HUMA allocated to marketing campaigns immediately after listing and another 40 million HUMA set aside for marketing campaigns three months post-listing.

HUMA was listed with the Seed Tag applied and will be available for trading from May 26 at 13:00 (UTC) against the USDT, USDC, BNB, FDUSD, and TRY pairs.

HUMA is supported on both BNB Smart Chain and Solana.

Future Outlook

Huma Finance can be applied in various contexts. In emerging markets, cross-border lending based on remittances can offer affordable credit options. Small businesses can convert unpaid invoices into liquidity, helping them manage cash flow and grow operations. Employees may access early wage advances through tokenized payrolls, while healthcare or education services can be delivered through deferred payment models enabled by Huma’s infrastructure.

Closing Thoughts

Huma Finance takes a familiar concept—getting paid—and uses it to reshape how people access credit. By tapping into future income instead of relying on traditional collateral, Huma makes DeFi more relevant and accessible to everyday users.

Further Reading

What Are Real World Assets (RWA)?

How Does Tokenization Work?

What Are Smart Contracts?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Haedal is a liquid staking protocol built on the Sui network. It allows users to stake their SUI tokens and contribute to the governance and decentralization of the Sui blockchain.

After staking their assets, users receive liquid staking tokens (LST) called haSUI, which they can use in other DeFi services and activities.

Haedal merges native liquid staking and yield strategies with an intuitive user experience, making it an important pillar of the Sui DeFi ecosystem.

Introduction

The Haedal Protocol is a decentralized finance (DeFi) platform built on the Sui blockchain. It focuses on liquid staking and liquidity provision through a market maker model called Haedal Market Maker (HMM).

By blending staking with DeFi, Haedal aims to optimize capital use and yield potential for users. Let’s take a closer look at the Haedal Protocol, its structure, liquid staking system, the Haedal Market Maker, and their roles within the Sui ecosystem.

What Is Haedal?

The Haedal Protocol is a liquid staking platform designed to support the Sui blockchain, a layer 1 blockchain known for its scalability and low transaction costs.

Haedal allows users to stake SUI tokens, the native cryptocurrency of the Sui network, to help secure the blockchain. In return, they receive a liquid staking token (LST) called haSUI. This token enables users to effectively unlock their liquidity and participate in DeFi activities without sacrificing staking rewards, addressing the trade-offs found in traditional staking models.

Liquid Staking with Haedal

How liquid staking works

Liquid staking allows users to stake assets while retaining liquidity, unlike traditional staking, where assets are locked. In Haedal, users stake SUI tokens to support Sui’s validator network, which secures the blockchain. In return, they receive haSUI, a yield-bearing token that represents their staked SUI and accrues validator rewards.

Haedal offers two staking modes:

Automated Staking: The protocol selects efficient validators, simplifying the process for users with a one-click experience.

Manual Staking: Users choose specific validators based on their annual percentage yield (APY), offering more control.

Once staked, haSUI is minted and deposited into the user’s wallet.

Utility of haSUI

The haSUI token is designed to integrate seamlessly into Sui’s DeFi ecosystem. It can be used in:

Decentralized exchanges (DEXs): For trading or providing liquidity in pools (e.g., haSUI/SUI on Cetus DEX).

Lending protocols: As collateral or for borrowing.

NFT marketplaces: For purchasing or trading NFTs.

Stablecoin protocols: For stablecoin-related DeFi activities.

This flexibility allows users to earn staking rewards while participating in yield-generating DeFi strategies, enhancing capital efficiency.

The Haedal Market Maker (HMM)

The Haedal Market Maker (HMM) is an automated market maker (AMM) designed to optimize liquidity for haSUI and other assets on Sui. Unlike traditional AMMs, HMM uses protocol-owned liquidity, initially funded by Haedal, to provide efficient trading and enhance yields for haSUI holders. 

As of May 2025, Haedal is among the largest AMM Sui by daily trading volume, with over $900 million in total volume and a TVL of roughly $1 million, according to DefiLlama. HMM charges a 0.04% trading fee, with 50% allocated to incentives, such as boosting haSUI yields.

Key mechanisms of HMM

1. Dynamic liquidity concentration: Unlike traditional AMMs that distribute liquidity across an infinite price range using the constant-product formula (x * y = k), HMM concentrates liquidity within specific price ranges likely to see trading activity. It uses a non-linear leverage factor to adjust liquidity dynamically, aligning with real market conditions to minimize slippage and optimize capital use.

2. Oracle-based Pricing: HMM integrates high-frequency oracle price feeds (e.g., Pyth Network) to align liquidity with real-time market prices. This reduces impermanent loss risk for liquidity providers and can even generate “impermanent profit” by capitalizing on price movements, complementing other AMMs and order books on Sui.

3. Inventory management: HMM maintains pool balance by adjusting asset prices dynamically. If one asset in a pool (e.g., SUI in a SUI-USDC pair) depletes, HMM increases its price to encourage selling and discourage buying, which helps restore the equilibrium.

Capital efficiency and risk management

HMM leverages Sui’s high transaction-per-second (TPS) capacity to adjust liquidity in volatile pairs, minimizing drawdowns caused by market fluctuations. Additionally, HMM is resistant to Miner Extractable Value (MEV) attacks, such as front-running and sandwich attacks, ensuring stable yields for users.

Funding and profit distribution

HMM operates using Haedal’s protocol-owned liquidity, eliminating the need for external liquidity providers in the early stages of the protocol. According to the official documentation, the initial funds will be provided by the Haedal team, with profits reinvested continuously to scale liquidity:

40% to the haSUI Treasury (in SUI), enhancing haSUI’s APR.

50% for HAEDAL token buybacks, distributed as rewards to veHAEDAL stakers.

10% to Haedal’s protocol treasury for long-term sustainability.

HAEDAL and veHAEDAL

HAEDAL is the native governance token of the Haedal Protocol. It has a total supply of 1 billion units and a 7-year release schedule.

Haedal introduced veHAEDAL as a vote-escrowed token for governance and staking rewards. Users can lock HAEDAL tokens for 1 to 52 weeks to receive veHAEDAL. Longer lockups yield more veHAEDAL. Benefits include:

Weekly staking rewards.

Amplified yields in Haedal’s farm modules.

Voting power in Haedal DAO proposals.

HAEDAL on Binance HODLer Airdrops

On May 21, 2025, Binance announced HAEDAL as the 19th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simpler Earn and/or On-Chain Yields products from May 10 to 13 were eligible to receive HAEDAL airdrops. A total of 30 million HAEDAL tokens were allocated to the program, accounting for 3% of the total token supply.

HAEDAL was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

The Haedal Protocol offers a blend of liquid staking and liquidity management through its Haedal Market Maker (HMM). By enabling users to stake SUI tokens and receive haSUI, Haedal provides a flexible solution that combines staking rewards with DeFi opportunities, such as trading, lending, and liquidity provision.

Further Reading

What Is Liquid Staking?

What Is Front Running?

What Is Sui (SUI)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

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Key Takeaways

The Secured Overnight Financing Rate (SOFR) is an important benchmark for pricing loans, derivatives, and other financial instruments.

As the replacement for the London Interbank Offered Rate (LIBOR), SOFR offers a more transparent alternative that reflects the cost of borrowing in the US financial system.

Following LIBOR’s vulnerabilities, which were exposed during the 2008 financial crisis, SOFR has become the preferred benchmark for US dollar-based financial contracts.

Traded on the Chicago Mercantile Exchange (CME), SOFR futures let investors hedge or speculate on future rates.

What Is SOFR?

SOFR stands for Secured Overnight Financing Rate. It’s basically a number that shows how much it costs to borrow money overnight when the loan is backed by safe US Treasury securities. Think of it like a daily snapshot of borrowing costs in a huge market where banks and other big players swap cash and Treasuries.

Administered by the Federal Reserve Bank of New York in collaboration with the US Treasury’s Office of Financial Research (OFR), SOFR is calculated using actual transactions in the repurchase agreement (repo) market, where institutions borrow and lend cash secured against Treasuries.

How Does SOFR Work?

Unlike LIBOR, which was based on what banks guessed they’d charge each other, SOFR uses real deals from the “repo” market (short for repurchase agreements). 

Published daily at 8 a.m. ET, SOFR reflects data from the prior business day, providing a reliable snapshot of overnight borrowing costs. Its transaction-based nature and the link to a market with over $1 trillion in daily volume made SOFR a more trustworthy benchmark.

By 2023, LIBOR was mostly phased out, and SOFR stepped up as the go-to rate for all sorts of financial stuff, from business loans to sophisticated Wall Street trades.

Where do the numbers come from?

SOFR is built on actual trades in the repo market, where people borrow cash and promise to pay it back the next day, using Treasuries as collateral. The data comes from three main types of deals:

Third-party repos: An intermediary, like a bank, handles the cash and collateral swap.

General Collateral Financing (GCF) repos: These go through a clearinghouse called the Fixed Income Clearing Corporation (FICC).

Bilateral repos: Direct deals between two parties, also cleared by FICC.

The New York Fed takes all these trades, looks at the interest rates, and picks the middle value (called a volume-weighted median) to set SOFR. With over $1 trillion in daily trades, this methodology reflects the tendency of borrowing costs and provides a robust rate that is less susceptible to outliers or market distortions. 

In addition, they also share extra details, like how much money was traded and where the rates fell (like the top and bottom 10%). You can check all this on their website, along with data from previous years.

SOFR Averages and Index

Since SOFR is an overnight rate, it doesn’t work very well for longer-term stuff like loans or bonds. That’s where SOFR Averages and the SOFR Index come in. The averages (for 30, 90, or 180 days) add up daily SOFR rates to give a smoother number for things like mortgages. The SOFR Index, which started in 2018, tracks how SOFR compounds over time, making it easier to figure out payments for complex deals.

The SOFR Averages and the SOFR Index are tools that facilitate the use of SOFR in applications beyond overnight lending, such as adjustable-rate mortgages and corporate debt.

Why SOFR Matters in Finance

Switching from LIBOR to SOFR was a big deal. It took a lot of work to update contracts and systems, but SOFR’s clear approach and alignment with global standards have solidified its position as a trusted benchmark.

SOFR serves as the backbone for a wide range of financial products, including:

Loans: Think business loans or mortgages where the interest rate changes over time.

Derivatives: Fancy contracts like swaps or futures that speculate on interest rates.

Bonds and securities: Things like mortgage-backed securities often use SOFR as a benchmark.

Everyday stuff: Even some adjustable-rate mortgages or student loans use SOFR.

Advantages of SOFR

No fudging: It’s based on real trades, not guesses, so it’s hard to fake.

Stability: With tons of trades every day, it stays steady even when markets get wild.

Safe: Backed by Treasuries, it’s about as low-risk as you can get.

Broad support: Backed by the Alternative Reference Rates Committee (ARRC) and aligned with international standards.

Challenges of SOFR

Overnight nature: It’s just an overnight rate, so you need to do some math for longer deals.

Transition costs: Shifting from LIBOR involved updating contracts and systems, a complex process for market participants.

Volatility: It can spike when markets are stressed, but it’s still safer than other rates.

SOFR Futures

SOFR futures are derivative contracts that allow investors to hedge or speculate on future changes in the SOFR rate. Traded primarily on the Chicago Mercantile Exchange (CME), these futures have become a handy tool for managing interest rate risk or trying to make a profit.

What are SOFR futures?

SOFR futures are standardized contracts based on the expected average SOFR rate over a specific period. In other words, they let you lock in or speculate on what the SOFR rate will be in the future. The two primary types are:

1-Month SOFR Futures: Based on the average SOFR over a month, with a value of $25 per basis point (a tiny rate change).

3-Month SOFR Futures: Based on a three-month average, worth $12.50 per basis point.

These contracts are cash-settled, meaning you don’t swap actual money or Treasuries at the end. They are settled based on the SOFR rate during the contract period, as published by the New York Fed.

How do they work?

Imagine you’re a bank worried that SOFR might shoot up, making your loans more expensive. You could buy SOFR futures to lock in today’s rate, so you’re protected if rates climb. Or, if you’re an investor who thinks rates will drop, you might sell futures to cash in when they do.

The futures are priced as 100 minus the expected SOFR rate, and their value shifts as people’s predictions change. The CME handles daily updates to keep everything fair, so you’re not stuck if the market moves against you.

Why use SOFR futures?

Risk management: Financial institutions use SOFR futures to hedge exposure to SOFR-based loans, swaps, or other instruments.

Market insight: Futures prices reflect market expectations of future SOFR rates, providing valuable information for monetary policy analysis.

Term rate development: SOFR futures data contribute to the creation of forward-looking SOFR term rates, which are used in some LIBOR-replacement contracts.

Comparing SOFR to Other Benchmarks

SOFR isn’t the only rate out there, so let’s see how it compares:

Vs. LIBOR: SOFR uses real trades and is very safe, while LIBOR was based on estimates and is riskier. LIBOR had rates for months ahead; SOFR needs some math for that.

Vs. Federal Funds Rate: SOFR covers more repo deals, while the federal funds rate is about unsecured bank lending. SOFR is broader and safer.

Vs. Global Rates: Like the Euro Short-Term Rate (€STR) or the Sterling Overnight Index Average (SONIA), SOFR is a risk-free rate, but it is unique in its reliance on the US repo market.

These differences make SOFR perfect for dollar-based deals, especially since it’s tied to secure Treasuries.

Does SOFR Impact Crypto Markets?

SOFR doesn’t directly move the needle in crypto markets, but it can still give some insights into market sentiment. As a benchmark tied to overnight borrowing costs, SOFR reflects what’s happening with interest rates and liquidity in traditional finance. 

When SOFR climbs, it often means borrowing is getting more expensive, which can make investors think twice about riskier assets like cryptocurrencies. For example, if the Federal Reserve tightens policy and SOFR spikes, crypto prices might dip as people shift to safer assets like bonds.

On the flip side, a low SOFR may relate to higher demand for speculative assets like crypto. SOFR futures, traded on the CME, also play a role by showing what big players expect from future rates, which could indirectly affect broader market sentiment and crypto trading.

Closing Thoughts

SOFR, the Secured Overnight Financing Rate, is a game-changer in finance. It’s a transparent, reliable number that replaced LIBOR, guiding everything from loans to derivatives. SOFR futures add a layer of flexibility, letting people hedge risks or speculate on where rates are going. With its roots in real trades and a safety net of Treasuries, SOFT will likely be around for a long time.

For those seeking to explore SOFR further, resources from the New York Fed and CME offer detailed data and market insights.

Further Reading

What Is a Yield Curve and How to Use It? 

What Are Bonds and How Do They Work?

Interest Rates Explained

The 2008 Financial Crisis Explained

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Nexpace, developed by a Nexon subsidiary, is a blockchain-based project that transforms the MapleStory franchise into a decentralized gaming ecosystem called the MapleStory Universe.

By integrating blockchain technology and non-fungible tokens (NFTs), Nexpace allows players to own and trade in-game assets, moving away from the publisher-controlled model of traditional games.

Nexpace features a dual-token system with NXPC and NESO. NXPC, the primary utility token, handles transaction fees, NFT trading, and acts as a reserve for the NESO token, which players use inside the game. 

Introduction

Nexpace is a blockchain project developed by a subsidiary of Nexon, a gaming company known for the MapleStory franchise. The Nexpace project aims to create a decentralized, player-driven gaming ecosystem by integrating blockchain technology and non-fungible tokens (NFTs) into the MapleStory Universe. 

The NXPC token is a utility token that powers transactions, incentivizes community participation, and supports the creation and trading of digital assets within the MapleStory Universe. Launched with a vision to expand the MapleStory intellectual property (IP), Nexpace wants to redefine how players and creators interact in a virtual gaming multiverse.

What Is Nexpace?

Nexpace serves as the backbone of the MapleStory Universe, a digital ecosystem where players, creators, and developers interact through a shared economy powered by the NXPC token. Through the use of blockchain, Nexpace enables a collaborative environment where creators can contribute content, such as cosmetic items, plugins, and tools.

How Does Nexpace Work?

Unlike traditional gaming models where assets are controlled by the game publisher, Nexpace empowers users to own, trade, and monetize digital assets, including characters, equipment, and consumables, represented as NFTs.

Nexpace operates as a layered ecosystem that combines blockchain infrastructure, tokenized assets, and a dual-token system to facilitate interactions within the MapleStory Universe. As of May 2025, the protocol is built on two blockchain networks: BNB Chain and Avalanche C-Chain.

The MapleStory Universe includes the MapleStory N PC game and many other products and services, such as the MSU Marketplace, Swap&Warp, MSU Explorer, and more.

Source: docs.nexpace.io

MapleStory N

Source: docs.maplestoryn.io

MapleStory N is a new PC MMORPG that keeps the fun, old-school 2D side-scrolling vibe of MapleStory but adds some cool blockchain twists and new ways to play. It’s a big piece of the MapleStory Universe, offering players a blend of nostalgia and innovation.

The game has a setup where key items, like characters or gear, are NFTs or tokens with limited amounts, so they’re often rare and special. You can swap these items using NXPC, the main token of the ecosystem, which connects your in-game stuff to the bigger blockchain world and racks up your “RX” points (Reward Experience that represents your achievements).

MapleStory N introduces dynamic rewards that adjust based on player activity. For example, busy hunting spots will give you less loot, while quieter areas have boosted rewards, pushing players to explore new places.

Additionally, a dynamic pricing system applies real-world economic principles to item upgrades—high-demand items cost more to enhance, while less popular ones stay affordable, adding strategic depth as players have to balance cost and value.

Blockchain infrastructure

The Nexpace protocol leverages the BNB Chain for its high throughput and low transaction costs, making it suitable for in-game purchases and NFT trading. The Avalanche C-Chain complements this by offering fast finality and compatibility with Ethereum-based tools. The openness of blockchain networks enables transparent tracking of asset ownership and transaction history, which helps build and maintain trust in the ecosystem.

NXPC token

The NXPC token is the primary utility token of the MapleStory Universe. It serves multiple functions, such as:

Transaction fees: NXPC is used to pay for transaction fees on the Layer 1 network.

Trading: Players use NXPC to trade NFT item baskets in the marketplace, which may include in-game assets like equipment or cosmetic items.

Reserve asset: NXPC acts as a reserve for the in-game NESO token, keeping the economy stable.

NXPC has a total supply of 1 billion tokens, with an initial circulating supply of 169,040,000 (16.9%) as of its listing on Binance on May 15, 2025.

NESO token

NESO is the in-game currency for MapleStory N, which is an MMORPG game of the MapleStory Universe. NESO is tied to NXPC at a steady exchange rate, so players can swap NXPC for NESO to buy stuff like NFT characters, gear, or upgrades in the game. It’s designed for in-game use with simple mechanics, letting them focus on gaming without the complexities of blockchain.

MSU Marketplace

Source: msu.io/marketplace

The Nexpace ecosystem includes a marketplace where players can trade NFTs representing in-game assets. These NFTs are categorized by utility and rarity, contributing to a player’s RX or Reward Experience (which represents their achievements).

The marketplace supports the trading of item baskets, which are collections of NFTs, using NXPC as the medium of exchange. The protocol carefully manages item supply to maintain scarcity and value, with periodic updates to keep the economy dynamic.

Community and creator participation

Nexpace emphasizes community engagement by rewarding both players and creators. Players earn RX through gameplay, such as acquiring rare items or completing challenges, which enhances their status in the ecosystem. 

Creators, including artists, developers, and builders, can contribute content like cosmetic NFTs, plugins, or tools, earning NXPC as rewards. This incentivizes innovation and ensures the ecosystem can continue to evolve through user-generated content.

Key Features of Nexpace

In summary, Nexpace offers multiple features that distinguish it from traditional gaming platforms:

Asset ownership: Players have true ownership of in-game assets as NFTs, which can be traded or monetized outside the game.

Decentralized economy: The dual-token system (NXPC and NESO) helps create a more balanced economy where both players and creators share value.

Scalable infrastructure: Integration with BNB Chain and Avalanche C-Chain ensures efficient and secure transactions.

Community-driven content: Creators are empowered to build and monetize content, making the gaming ecosystem more dynamic and collaborative.

Interoperability: In the future, the MapleStory Universe plans to link multiple intellectual properties (IPs), creating a multiverse of interconnected experiences.

Nexpace (NXPC) on Binance HODLer Airdrops

On May 15, 2025, Binance announced Nexpace (NXPC) as the 18th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn or On-Chain Yields products from May 6 to 9 are eligible to receive the airdrops. A total of 30 million NXPC tokens were allocated to the program, accounting for 3% of the total token supply.

NXPC was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Nexpace is a bold step forward for MapleStory, blending blockchain with gaming to create a player-owned, community-focused universe. With NXPC and NESO tokens, an NFT marketplace, and a setup that rewards creativity, Nexpace is offering a dynamic framework for players and creators to engage, trade, and have fun.

Further Reading

What Is An NFT?

What Are NFT Games and How Do They Work?

What Is GameFi and How Does It Work?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Maple Finance is a lending marketplace built on blockchain technology. It connects businesses needing loans with investors looking to earn returns.

Launched in 2019, Maple Finance aims to make lending simpler and more accessible through decentralized finance (DeFi).

Unlike many DeFi platforms that demand heavy collateral, Maple enables undercollateralized loans by leveraging the reputation of borrowers. Simply put, it focuses on loans that require less upfront security.

What Is Maple Finance?

Maple Finance is a lending marketplace built on blockchain technology, primarily Ethereum. The marketplace can serve institutions (like crypto firms or financial entities) and accredited individual investors.

The platform tackles a common DeFi issue: the need for borrowers to lock up more assets than they borrow. By using borrowers’ reputations to secure loans, Maple offers a more flexible approach, blending traditional financial checks with blockchain’s transparency.

How Does Maple Finance Work?

Maple Finance acts like a bridge between those who want to lend money and those who need to borrow it. Lenders pool their funds in what’s called Liquidity Pools, which are overseen by Pool Delegates. These pools then fund loans to businesses, with blockchain ensuring everything is secure and trackable.

Liquidity pools and lending

Liquidity Pools are the backbone of Maple’s lending system. Lenders, including institutions and accredited individuals, deposit digital assets (such as USDC or other stablecoins) into these pools to earn interest.

Pool Delegates manage the pools, deciding who gets loans and on what terms. Lenders gain access to a range of high-quality borrowers, earning steady returns from short-term, overcollateralized loans.

You don’t need to own Maple’s token, SYRUP, to lend. Through the Maple WebApp, lenders can add funds, keep an eye on their investments, and withdraw money following the guidelines. This setup is designed to prioritize reliable returns and easy access to funds, with all loans backed by collateral to reduce risks.

Borrowing money

Borrowers on Maple are mainly businesses, such as crypto companies or financial institutions, looking for flexible financing. To get a loan, they sign up on the Maple WebApp and go through a review process run by Pool Delegates. This involves checking their financial health and reputation, allowing Maple to offer loans with less collateral than typical DeFi platforms.

Loans are usually fixed-rate, short-term, and backed by some collateral, which lowers the chance of sudden liquidations. Borrowers can benefit from flexible terms and access to on-chain financing, which tends to be more efficient than traditional banking services. The platform’s openness ensures everyone understands the loan terms upfront.

The role of Pool Delegates

Pool Delegates are the ones who keep things running smoothly. They evaluate borrowers, set loan conditions, and manage the pools, acting like credit managers. Their work is to ensure that loans are secure and aligned with lenders’ interests. They are responsible for managing risk (e.g., handling defaults, margin calls, and liquidations) and earn fees for their work.

Pool Delegates are selected for their expertise in credit underwriting, making them a key component of the platform’s operations. However, Maple’s official documentation mentions potential challenges in aligning third-party delegates with the platform’s goals, which suggests that there is still room for improvement.

Key Features of Maple Finance

Maple Finance has several features that set it apart in the DeFi space:

Less collateral needed: By leveraging borrowers’ reputations, Maple reduces collateral requirements, making financing more capital-efficient for institutions.

Professional standards: It combines blockchain efficiency with rigorous financial checks, appealing to institutional players.

Blockchain transparency: Running on Ethereum and other networks, Maple uses smart contracts for automation, transparency, and real-time monitoring.

Product offerings: Products like the Cash Management Pool, which invests in US Treasury bills, or Maple Direct for custom loans, can cater to different user needs.

Partnerships: Maple Finance made collaborations with entities like Circle (for USDC adoption) and Ethena Labs (for real-world asset scaling).

SYRUP Token

Maple’s operations are guided by its token, SYRUP, which replaced an earlier token called MPL in 2023 after a community vote. SYRUP holders can participate in share fee revenues, help make decisions about the platform governance, and stake tokens to help protect liquidity pools against losses.

SYRUP on Binance

On May 6, 2025, Binance announced the listing of Maple Finance (SYRUP) with the Seed Tag applied. The SYRUP token was made available for trading against USDT and USDC trading pairs on the same day.

SYRUP smart contracts

Ethereum: 0x643C4E15d7d62Ad0aBeC4a9BD4b001aA3Ef52d66

Base: 0x688AEe022AA544f150678B8E5720b6b96a9E9a2F

Maple Finance Security

Security is a big focus for Maple. Its smart contracts, which power the platform, are open-source on GitHub, with 76 repositories detailing their code. The platform passed multiple audits (three in December 2022 and two in June 2023), allowing developers to fix issues before going live.

Things to Keep in Mind

As with other DeFi projects, using the Maple Finance protocol and services carries risks, like losing assets due to market swings or smart contract vulnerabilities. In addition, relying on Pool Delegates can lead to coordination issues, as noted in the project’s official documentation. It’s important to do your own research and understand the products well before taking risks.

Closing Thoughts

Maple Finance is a decentralized platform that makes lending and borrowing more accessible for businesses and investors. By offering loans with lower collateral requirements, using the SYRUP token for community governance, and maintaining high compliance standards, the project experienced significant growth in the DeFi space. For those exploring institutional DeFi, Maple Finance can offer an interesting blockchain-driven approach to capital markets.

Further Reading

What Is USDC?

What Is Ethena (ENA)?

What Is Decentralized Finance (DeFi)?

Collateral

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

The Travel Rule is a regulatory standard that requires crypto platforms to collect and share certain details about crypto transactions. The goal is to comply with international anti-money laundering regulations.

Binance users may be required to verify the ownership of wallet addresses before sending crypto to (or receiving crypto from) certain platforms. 

The Satoshi Test is a verification method that simplifies Travel Rule compliance through a small cryptocurrency transfer. Once completed, it removes the need to repeatedly verify a wallet address for every deposit or withdrawal.

Introduction

The Travel Rule is an international regulatory requirement that affects how crypto is sent between platforms. It obligates crypto service providers to share specific transaction details to prevent money laundering and terrorism financing. While the rule promotes financial security, it can add complexity to everyday crypto transactions.

The Satoshi Test is a feature that simplifies how users comply with the Travel Rule when making cryptocurrency transactions. By allowing a small test transfer of BTC or other crypto to confirm recipient wallet ownership, the Satoshi Test makes the user experience more efficient and secure, especially when used in combination with Binance’s Address Management feature.

What Is the Travel Rule?

The Travel Rule, officially known as the Financial Action Task Force (FATF) Recommendation 16, is a global standard that applies to Virtual Asset Service Providers (VASPs). It mandates that when users transfer crypto assets above a certain threshold between VASPs, both the sender’s and recipient’s information must be collected and exchanged.

This includes:

Sender’s name and wallet address.

Recipient’s name and wallet address.

Account numbers or unique transaction identifiers.

As a result, when users attempt to send funds from Binance to another VASP that also complies with the Travel Rule, the platform must verify the recipient’s address — often requiring manual steps, delays, or address verifications.

What Is the Satoshi Test?

The Satoshi Test is a feature designed to simplify the address verification process when sending crypto assets to another platform that is compliant to the Travel Rule. It allows users to verify a recipient’s wallet by first sending a small amount of cryptocurrency to ensure the recipient controls the wallet.

How it works

Initiate a withdrawal: When a user attempts to withdraw crypto to an unverified address, the system may prompt them to complete a Satoshi Test.

Send a small test amount: The user sends a very small amount of crypto (e.g., 0.00001 BTC) to the recipient.

Recipient confirms receipt: The recipient confirms the amount and the transaction ID on their platform.

Address verified: Once confirmed, the full withdrawal can proceed, and the address is marked as verified for future use.

This verification method is especially useful for first-time transfers and avoids the need for manual document uploads or back-and-forth verifications.

Why the Satoshi Test Matters

The Satoshi Test significantly improves user experience by:

Reducing friction: Simplifies the process of verifying recipient wallets.

Enhancing security: Ensures users are sending crypto to the correct wallet address.

Faster transactions: Once an address is verified, it’s much faster and easier for users to make new transfers.

Improving compliance: Helps Binance and its users stay aligned with regulatory requirements and expectations.

The Address Management Feature on Binance

The Address Management is a tool that allows Binance users to store and label wallet addresses, making future withdrawals much easier. Whitelisting addresses can also provide more security, reducing the risks of sending to the wrong recipient or typing the wrong address.

Depending on the case, Binance users can use the Address Management feature to verify wallet addresses via the Satoshi Test.

How to add a new address to the Address Management list

Log in to your Binance account and go to the Address Management page. You can also find it by navigating to [Account] → [Security] → [Withdrawal Whitelist].

Click [Add Address] to add a new withdrawal wallet address.

Add a label name to the address and fill in the information.

Depending on the case, you might be required to verify the address.

 Follow the instructions and complete the Satoshi Test (if requested).

For more information, please refer to the Binance FAQ.

Use Case Example

Imagine a user wants to send BTC from Binance to another exchange for the first time. Under Travel Rule compliance, the platform needs to verify the recipient’s wallet. Instead of going through a lengthy process, the user opts for the Satoshi Test, sending a tiny amount of BTC. Once the recipient confirms, the user completes the full transfer and adds the address to their Address Management for future use. The process will be seamless the next time they send BTC to the same address.

Closing Thoughts

The Satoshi Test is a practical and efficient solution that allows Binance users to comply with the Travel Rule and other international AML regulations. By verifying wallet ownership through a small crypto transfer, the Satoshi Test can help reduce delays while providing more convenience and security.

Further Reading

What Is Satoshi Test and Travel Rule Address Book Feature?

What Is Anti-Money Laundering (AML)?

Who Is Satoshi Nakamoto?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Space and Time (SXT) is a decentralized protocol for verifiable data processing using zero-knowledge (ZK) cryptography.

It enables smart contracts and AI agents to access tamperproof, SQL-based data without relying on centralized services.

The core innovation, Proof of SQL, allows off-chain query results to be proven on-chain using zero-knowledge proofs.

SXT is the governance and utility token that powers the ecosystem and rewards node operators.

Introduction

Access to accurate, tamperproof data is essential for decentralized applications (DApps), smart contracts, and AI agents operating in trustless environments. Traditional data systems often rely on centralized sources, which can limit transparency and introduce vulnerabilities. To address this challenge, new decentralized data infrastructure is emerging to bridge the gap between Web2-scale systems and blockchain networks.

What Is Space and Time?

Space and Time is a decentralized data platform that enables verifiable off-chain data processing for on-chain applications. It allows developers to execute SQL queries on external datasets and validate those results on-chain using Proof of SQL, a zero-knowledge protocol that ensures cryptographic integrity.

The platform supports use cases across DeFi, AI, and enterprise applications by allowing DApps and AI agents to securely access and act on large volumes of data. Built with support from Microsoft, Space and Time is designed for multichain compatibility and currently supports networks such as Ethereum and Base.

Key components include:

Proof of SQL: A ZK-proof system for off-chain SQL computation.

Decentralized data warehouse: For ingesting and storing structured data.

Multichain compatibility: Supporting Ethereum, Base, and other networks.

Node infrastructure: For decentralized query processing and validation.

How Space and Time Works

Proof of SQL

Proof of SQL is the cryptographic engine that powers Space and Time’s verifiable compute layer. It generates zero-knowledge proofs that confirm a SQL query was run against a specific dataset without altering or fabricating the result. These proofs can then be submitted to a blockchain, where they can trigger smart contract logic based on verified external data.

This design allows developers to execute complex data queries off-chain while preserving full transparency and auditability on-chain.

Decentralized data warehouse

Space and Time supports data ingestion from blockchain networks, off-chain APIs, and enterprise sources. The data is structured and indexed within a decentralized SQL engine, accessible via familiar querying interfaces and developer tools. Users can define access permissions or expose data publicly, depending on application needs.

Blockchain interoperability

The protocol is blockchain-agnostic, supporting multichain verification via contracts deployed on Ethereum and Base:

Ethereum smart contract: 0xE6Bfd33F52d82Ccb5b37E16D3dD81f9FFDAbB195

Base smart contract: 0xA2c22252cDc8b7cDdEe1B0b2E242818509fCf7b8

This interoperability allows any DApp to verify query results on-chain, regardless of where the data was processed.

Use cases

DeFi protocols: Querying and verifying TVL, trading volumes, or liquidity data.

AI agents: Receiving cryptographically proven inputs for decision-making.

Enterprise reporting: Auditable compliance and analytics with ZK verification.

The SXT Token

SXT is the native utility and governance token of the Space and Time ecosystem. It plays a key role in incentivizing validators, securing the network, and enabling community governance.

Tokenomics

Total supply: 5,000,000,000 SXT

Initial circulating supply: 1,400,000,000 SXT (28% of total supply)

Launchpool rewards: 125,000,000 SXT (2.5% of total supply)

Marketing allocations:

25,000,000 SXT in campaigns following listing

50,000,000 SXT in campaigns 6 months post-listing

Use cases

Data access: SXT is used to pay for query processing and verification

Staking: Validators stake SXT to participate in query validation

Governance: SXT holders can vote on ecosystem decisions

Rewards: SXT is distributed to node operators and contributors

SXT on Binance Launchpool

On May 5, 2025, Binance announced SXT as the 69th project on the Binance Launchpool. Users who locked their BNB, FDUSD, and USDC during the farming period were eligible to receive SXT rewards. A total of 125 million SXT tokens were allocated to the program, accounting for 2.5% of the total token supply.

After the farming period, SXT will be listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Space and Time delivers a decentralized infrastructure for verifiable computation and zero-knowledge data processing, addressing critical challenges in trustless data access for smart contracts and AI. With support from Microsoft, multichain integration, and an incentivized node network, the protocol enables scalable and transparent data flows across the Web3 landscape. The SXT token serves as the core mechanism to govern, secure, and expand the protocol.

Further Reading

What Is Zero-Knowledge Proof?

How Does Blockchain Work?

What Is Cross-Chain Interoperability?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

StakeStone is a decentralized protocol designed to improve how liquidity moves across different blockchain networks. 

StakeStone enables seamless cross-chain liquidity by using omnichain infrastructure and LayerZero technology.

It focuses on making assets like ether (ETH) and bitcoin (BTC) more usable in decentralized finance (DeFi) by addressing issues like fragmented liquidity, inefficient yield generation, and complex cross-chain operations.

What Is StakeStone?

StakeStone is a blockchain protocol that creates an "omnichain" liquidity infrastructure. This means it helps assets flow smoothly between different blockchains. The protocol aims to solve common problems in DeFi, where assets are often stuck in isolated networks, making it hard for users to move them or earn rewards efficiently.

The project introduces multiple services and tools, including:

STONE: A token that represents staked ETH and earns yields while remaining usable in DeFi.

SBTC and STONEBTC: Tokens that allow users to make their BTC liquid and yield-generating across multiple chains.

LiquidityPad: A platform that helps new blockchains attract and manage liquidity.

STO Token: A governance token that lets users vote on how the protocol operates.

How StakeStone Works

StakeStone operates through a combination of technical components and governance mechanisms. Below are some of its main features and how they function.

STONE: yield-bearing ETH

STONE is a token that represents staked ETH. When users deposit ETH into StakeStone, they receive STONE, which earns staking rewards while remaining usable in DeFi applications like lending or trading. This solves the problem of ETH holders having to choose between staking and DeFi participation.

STONE is designed as an Omnichain Fungible Token (OFT) using LayerZero, a technology that enables seamless movement across blockchains. Its price is set by the protocol’s smart contract, not decentralized exchanges (DEXs), which can create arbitrage opportunities if DEX prices differ.

SBTC and STONEBTC: liquid and yield-bearing BTC

StakeStone introduced two tokens to address the limited functionality of Bitcoin smart contracts:

SBTC (liquid BTC): Combines various BTC derivatives (e.g., WBTC, BTCB) into a single, liquid token that can be used across chains like Ethereum, BNB Chain, and others. Users deposit BTC derivatives into a vault, and the Minter issues SBTC, which supports DeFi activities like trading or lending.

STONEBTC (yield-bearing BTC): Builds on SBTC by generating yields through strategies in DeFi, centralized-decentralized finance (CeDeFi), and real-world assets (RWA). Users deposit SBTC or other BTC derivatives, and STONEBTC automatically allocates assets to optimize returns.

These tokens make Bitcoin more versatile in DeFi, reducing fragmentation and improving capital efficiency. StakeStone integrates with networks like Mantle, Linea, and Zircuit to ensure SBTC and STONEBTC are widely usable.

LiquidityPad

LiquidityPad is a platform that helps emerging blockchains attract and manage liquidity. It acts as a bridge between Ethereum’s established DeFi ecosystem and newer networks. Users deposit assets like ETH, BTC derivatives, or stablecoins into ecosystem-specific vaults, receiving LP tokens in return. These tokens can be used in both Ethereum DeFi and the emerging chain’s ecosystem, capturing yields from both.

This bidirectional flow allows new blockchains to access Ethereum’s deep liquidity while enabling Ethereum users to benefit from yield opportunities in growing ecosystems. LiquidityPad reduces reliance on unsustainable token incentives, promoting long-term growth.

Omnichain liquidity infrastructure

StakeStone’s core innovation is its omnichain liquidity system, which eliminates the need for traditional bridges that are slow and risky. Instead, it uses a Credit Margin Engine (CME), a market-making system that:

Maintains consistent liquidity across chains.

Optimizes prices to reduce slippage and ensure fairness.

Enables one-click cross-chain transactions, unlike the multi-step processes of traditional bridges.

The CME works with Native’s infrastructure, which includes automated market-making and a universal compatibility engine. As of May 2025, StakeStone supports over 20 chains and 100 protocols.

Governance and the STO Token

The STO token is central to StakeStone’s governance. Users can lock STO to receive veSTO, which grants voting power. For example, veSTO holders decide how to allocate liquidity incentives across STONE-Fi, BTC-Fi, and LiquidityPad pools. They also receive yield boosts based on their locked tokens.

The governance system includes:

Bribe system: Protocols deposit STO or partner tokens to attract liquidity. STO bribes are partially burned, reducing token supply, while partner token bribes diversify the protocol’s treasury.

Swap mechanism: STO holders can exchange tokens for treasury assets (e.g., partner tokens) when arbitrage opportunities arise, creating value and maintaining deflationary pressure.

Vesting: Converting veSTO back to STO requires a 30-day vesting period, encouraging long-term commitment.

StakeStone’s Vision

StakeStone aims to be the foundational infrastructure for omnichain liquidity, similar to how TCP/IP enables the internet. It envisions a blockchain ecosystem where:

Liquidity flows seamlessly between chains.

Capital is used efficiently without high costs or delays.

New blockchains can innovate without struggling to attract liquidity.

The protocol plans to achieve this through ongoing technical improvements, partnerships with chains like Scroll and Mantle, and a focus on transparency and sustainability.

STO on Binance HODLer Airdrops

On May 2, 2025, Binance announced STO as the 17th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simpler Earn and/or On-Chain Yields products from April 27 to 29 were eligible to receive STO airdrops. A total of 15 million STO tokens were allocated to the program, accounting for 1.5% of the total token supply.

STO was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

StakeStone is a decentralized protocol that tackles liquidity challenges in DeFi by offering tools like STONE, SBTC, STONEBTC, and LiquidityPad. It uses an omnichain infrastructure to connect blockchains, optimize yields, and simplify asset movement. With a governance system driven by the STO token and a focus on security, StakeStone aims to create a more interconnected and efficient blockchain ecosystem.

Further Reading

What Is Blockchain and How Does It Work?

What Is Layer 1 in Blockchain?

What Is Cross-Chain Interoperability?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Sign allows users to create and verify digital attestations across multiple blockchains. 

It uses encryption and zero-knowledge proofs to ensure that claims about identity, ownership, or agreements are secure and easily verifiable across different networks.

Users can prove ownership, identity, or eligibility without revealing unnecessary personal information.

TokenTable gives projects a range of options for managing token distributions, such as airdrops, vesting schedules, or token unlocks.

Introduction

In today’s digital world, proving who you are online matters more than ever. The Sign project was built to make it easier for people and businesses to verify identities and share credentials securely, using blockchain technology. It also helps projects distribute tokens in a smarter and more flexible way.

What Is the Sign Project?

The Sign project addresses the need for secure, verifiable, and accessible credentials in the digital world. Combining blockchain technology, smart contracts, and privacy measures, Sign offers a decentralized approach to verifying identity, ownership, and contracts across multiple blockchain networks.

How Does Sign Work?

The Sign ecosystem is made up of four key products:

Sign Protocol: Facilitates the creation and verification of attestations across multiple chains.

TokenTable: A platform for distributing tokens via methods like airdrops, vesting, and unlock schedules.

EthSign: A decentralized application (DApp) for executing digital agreements on-chain.

SignPass: A system for on-chain identity registration and verification. It helps users prove their identity online.

Sign Protocol

Sign Protocol is like a digital notary. It lets users issue and verify claims about things like identity, ownership, or agreements. It works across many blockchains and has built-in privacy features using encryption and zero-knowledge proofs. Some of its key features include:

Omni-chain capability: Supports attestations across different blockchains.

Data structure: Attestations are built around key-value pairs, making them highly adaptable to different data formats.

Privacy features: Data can be encrypted or hidden using zero-knowledge proofs, ensuring that users can prove claims without revealing underlying data.

Developer incentives: Encourages innovation through funding and support for developers that integrate the Sign protocol.

Data security: Fallback mechanisms (such as Arweave storage) ensure data doesn’t get lost, even if blockchain networks face disruptions.

TokenTable

TokenTable addresses the complexities of token distribution. Through the use of smart contracts, TokenTable can provide different distribution models:

Unlocker: Fully on-chain token unlock schedules.

Merkle-based distributions: Efficient distribution using Merkle trees.

Signature-based distributions: Lightweight, cost-effective token-claiming processes.

Through TokenTable, projects can manage token vesting schedules, conduct airdrops, and handle token unlocks with minimal manual intervention. Distribution models are designed to balance cost-efficiency with on-chain verifiability and can be customized based on a project's needs.

EthSign

EthSign provides a decentralized alternative to traditional e-signature platforms. Instead of relying on traditional online signature services, users can sign contracts and agreements directly on blockchain networks.

SignPass

SignPass allows users to register and verify their identities on-chain. It connects real-world credentials with decentralized identities, helping users prove their status or qualifications without exposing unnecessary private information.

Creating and Verifying Attestations

Attestations in the Sign ecosystem involve three parties:

Attester: The entity that makes a statement about another entity (e.g., "this wallet belongs to Alice").

Subject: The entity referred to in the attestation.

Verifier: The entity that verifies if the attestation is legit.

Using the Sign Protocol, attesters generate signed statements about a subject. These attestations can then be verified by any third party, depending on access permissions and privacy settings.

The SIGN Token

The SIGN token serves as the utility and governance token for the ecosystem:

Total supply: 10 billion SIGN tokens.

Initial circulating supply: 1.2 billion SIGN (12% of total supply).

Use cases: Transaction fees, governance participation, staking incentives, and community rewards.

Sign's token distribution includes airdrops to early adopters and community members, with a focus on promoting decentralized ownership.

SIGN on Binance HODLer Airdrop

On April 25, 2025, Binance announced SIGN as the 16th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn or On-Chain Yields products from April 15 to 19 are eligible to receive the airdrops. A total of 200 million SIGN tokens were allocated to the program, accounting for 2% of the total token supply.

SIGN was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Sign is laying the foundation for how verifiable claims and secure token distribution can work in the crypto space. By focusing on privacy and supporting multiple blockchains, it can offer a flexible system that suits the needs of users, developers, and institutions alike. The goal is to make it easy to verify digital interactions while still protecting sensitive information, helping build a more trustworthy digital space.

Further Reading

What Is Initia (INIT)?

 What Is Hyperlane (HYPER)?

What Is Cross-Chain Interoperability?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

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📖 Binance Academy Knowledge
What Is Hyperlane (HYPER)?What Is Initia (INIT)?What Is the Price-to-Earnings (P/E) Ratio?How Can Tariffs Impact the Crypto Markets?

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Key Takeaways

The P/E ratio shows how much investors are willing to pay for each dollar a company earns, making it a quick way to evaluate whether an asset may be overvalued or undervalued.

There are different types of P/E ratios—like trailing, forward, absolute, and relative—which offer various perspectives, but all require context such as industry norms and company growth potential.

The P/E ratio doesn’t work well for cryptocurrencies because most don’t generate earnings and reports in the same way companies do. However, there are similar valuation methods being tested in some areas of decentralized finance (DeFi).

Introduction

If you’ve ever looked into buying stocks, chances are you’ve come across the term P/E ratio. It’s short for the Price-to-Earnings ratio and is one of the most common tools investors use to figure out if a stock might be worth buying. But what does it actually mean, and how do you use it?

What Is the P/E Ratio?

The P/E ratio compares a company’s stock price to how much money the company earns. It helps investors determine whether a stock is overvalued, undervalued, or fairly priced by comparing the company's current share price to its earnings per share (EPS). 

In other words, it shows how much investors are willing to pay for each dollar of a company’s earnings.

P/E formula

P/E Ratio = (Share Price / Earnings Per Share)

We can calculate the Earnings Per Share (EPS) by taking the company’s total profit (after taxes and preferred dividends) and dividing it by the weighted average number of common shares that people can buy during a specific period.

Types of P/E Ratios

There’s more than one way to look at the P/E ratio. Each version gives you a slightly different view:

Trailing P/E: Based on the company’s earnings over the past 12 months. This is the most commonly reported figure and reflects actual performance.

Forward P/E: Uses predicted earnings for the upcoming 12 months. It’s based on what analysts estimate and expectations.

Absolute P/E: This is just the basic P/E calculation—current price divided by the latest EPS—without comparing it to anything else.

Relative P/E: Compares a company's P/E ratio to a benchmark, such as its industry average or historical performance.

Interpreting the P/E Ratio

Understanding what a P/E ratio means requires context. A high P/E ratio might suggest that investors expect high earnings growth in the future and are willing to pay a premium for those expected profits. On the other hand, a low P/E ratio might indicate that the stock is undervalued or that the company is facing challenges.

However, a "high" or "low" P/E ratio can differ depending on the sector or industry. For example, tech companies often have higher P/E ratios compared to utility companies due to their growth potential.

Why the P/E Ratio Matters

The P/E ratio is a quick way for investors to gauge a stock's valuation. It's especially useful for comparing companies within the same industry. For instance, if two companies are in the same sector but one has a much higher P/E ratio, investors may investigate whether the premium is justified by stronger growth expectations or other factors.

The P/E ratio also plays a role in:

Screening: Investors may use the P/E ratio to filter stocks that are potentially undervalued.

Evaluating historical trends: Comparing a company’s current P/E ratio with its past can indicate how the market’s view has changed over time in relation to that company.

Benchmarking: Comparing the P/E ratio to industry averages or the broader market can help provide context for whether a stock is reasonably priced.

Limitations of the P/E Ratio

As useful as the P/E ratio is, it’s not perfect and should not be used in isolation. There are a few limitations to keep in mind:

It doesn’t work if earnings are negative. If a company is losing money, the P/E ratio doesn’t really apply.

It doesn’t show growth differences. A higher P/E might be acceptable for a high-growth company, whereas a lower one might be suitable for a mature company with steady earnings. Context matters.

It can be manipulated. Companies can sometimes change the way they report earnings to make things look better than they are.

It ignores other factors. The P/E ratio does not consider debt levels, cash flow, or other fundamental factors.

So, while it’s useful, you should always look at other numbers as well, like revenue, profit margins, and how much debt the company has.

Comparing P/E Ratios Across Industries

P/E ratios can vary a lot depending on what kind of company you’re looking at. That’s why it’s important to compare businesses within the same industry. For instance:

Technology sector: These often have higher P/E ratios because they’re expected to grow quickly.

Utilities sector: These usually have lower P/E ratios because they have steady, predictable earnings.

If you compare a tech company to a utility company just by looking at their P/E ratios, you might get the wrong idea.

P/E Ratios and Cryptocurrency

You might wonder if the P/E ratio works for things like Bitcoin or other cryptocurrencies. The short answer is: not really. P/E ratios are meant for companies that produce clear profit reports because you need earnings to calculate the ratio. Most cryptocurrencies don’t produce earnings reports in the way businesses do. 

However, in some areas of crypto—like decentralized finance (DeFi) platforms that earn fees—analysts sometimes use similar ideas. For instance, they could evaluate the cryptocurrency price in relation to how much the platform earns from fees. These are still experimental and not widely used yet, but they show how people are trying to bring familiar finance concepts into the crypto world.

Closing Thoughts

The Price-to-Earnings (P/E) ratio is a widely used metric that offers insight into a stock’s valuation by comparing its current price to its earnings. It helps investors understand whether a stock is priced fairly based on its earnings potential. While the P/E ratio is not perfect—and shouldn’t be used alone—it’s a great starting point for those who want to evaluate stocks.

Further Reading

What Is a Yield Curve and How to Use It? 

What Is Basis Trading and How Does It Work?

What Is Technical Analysis?

How to Read the Most Popular Candlestick Patterns

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Initia combines Layer 1 and Layer 2. It offers a base blockchain (Initia L1) and a network of customizable rollups, making it easier to build and manage blockchain apps.

The Interwoven Stack provides developer-friendly tools out of the box. These include solutions for bridging, governance, liquidity, and more.

InitiaDEX powers liquidity across the network, while the VIP program and INIT token rewards active users and projects.

Introduction

Initia is a blockchain project that brings together a Layer 1 blockchain and a network of customizable Layer 2 rollups. The idea is to make it easier for developers to build their own blockchains and apps — without having to deal with all the technical headaches that usually come with it. With built-in tools and infrastructure, Initia helps create a connected, scalable, and easy-to-use multichain ecosystem.

Why Initia?

A lot of blockchain projects leave every decision up to developers, which can slow things down or lead to messy setups. Initia takes a different approach. It makes some of those tough infrastructure choices ahead of time — like how data is stored, how blockchains talk to each other, and how oracles are used — so developers can focus on building great apps.

The result is something called the Interwoven Stack — a set of tools and systems that make it much easier to launch and manage custom blockchains (also known as rollups).

How Initia Works

Initia has three main parts:

Initia L1: The Layer 1 blockchain that everything else connects to.

Interwoven Rollups: Custom Layer 2 chains that run on top of Initia L1.

Interwoven Stack: A development framework that provides tools, standards, and infrastructure for building and operating rollups and applications.

Initia L1: the base layer

Initia L1 is built using the Cosmos SDK and acts as the main coordination and liquidity layer. As the base layer, it’s involved in various functions, including:

Security: Rollups plug into L1 for security features like bridging tokens, verifying data, and catching fraud.

Liquidity: It has a built-in DEX called InitiaDEX, which makes it easy for users and rollups to swap tokens and share liquidity.

Communication: L1 helps different rollups talk to each other. It can also help them connect with other blockchain ecosystems.

Incentives: The L1 powers reward programs like the VIP (Vested Interest Program) and Enshrined Liquidity.

Interwoven Rollups

Rollups are like mini blockchains built on top of Initia L1. What’s cool about them is how flexible they are. Developers can customize key aspects of their rollup, including:

Virtual machine: You can pick between EVM (for Ethereum compatibility), MoveVM, or WasmVM.

Gas and fees: Want to use INIT, stablecoins, your own token, or a combination of assets? Each rollup can set its own fee systems.

Transaction ordering: Developers have the option to implement custom methods of transaction ordering, which can be useful for more specific requirements.

Basically, you get to customize your own Layer 2 blockchain without starting from scratch.

The Interwoven Stack

The Interwoven Stack is a suite of tools that simplifies the development and operation of rollups. It gives you the tools you need to launch and manage your rollup from day one. The Interwoven Stack includes:

Prebuilt SDKs for creating rollups and integrating with Initia L1.

Native solutions for tasks like bridging, messaging, governance, and liquidity management.

A set of standards and templates that help ensure compatibility across the ecosystem.

InitiaDEX

InitiaDEX is the built-in decentralized exchange on Initia L1. It supports Weighted Pools (like Balancer) for trading different assets and StableSwap Pools for trading assets with similar values (like stablecoins).

The DEX is designed to be the main place for rollups to access and share liquidity. It enables both routine and advanced cross-rollup swaps, and serves as a foundation for applications that depend on deep, accessible liquidity.

The DEX also supports Enshrined Liquidity, where certain liquidity pools are approved by governance to serve as staking assets. This helps align network security and economic incentives with market activity.

Ecosystem Rewards

To keep users and developers engaged, Initia runs the Vested Interest Program (VIP). It distributes INIT tokens to rollups and users based on things like:

Total Value Locked (TVL) in a rollup.

On-chain activity (like number of transactions).

Participation in governance.

This system is designed to reward the projects and users who help grow the network.

Other Tools in the Ecosystem

Initia also includes:

Initia app: A dashboard to explore the ecosystem

Initia scan: A block explorer

Initia usernames: A name service that works across rollups

Initia multisig: A tool for managing wallets with multiple signers

All of these are built to make the ecosystem easier to use for both developers and end users.

The INIT Token

INIT is the native token of the Initia ecosystem. Here’s what it does:

Gas fees: Used to pay for transactions on both L1 and eligible rollups

Staking: Helps secure the network when users delegate their INIT

Governance: Lets holders vote on how the network evolves

Rewards: Used in reward programs like VIP to incentivize activity

INIT has a total supply of 1 billion tokens. Some of it goes to staking, some to developers, and some to users through programs like Binance Launchpool.

INIT on Binance Launchpool

On April 17, 2025, Binance announced INIT as the 68th project on the Binance Launchpool. Users who locked their BNB, FDUSD, and USDC during the farming period were eligible to receive INIT rewards. A total of 30 million INIT tokens were allocated to the program, accounting for 3% of the total token supply.

After the farming period, INIT was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Initia presents a modular, developer-friendly approach to building scalable blockchain applications. It combines a Layer 1 blockchain with customizable rollups and a full toolkit for developers. Initia wants to make it easier to build apps in Web3 without the typical roadblocks that come with multichain setups.

Further Reading

What Is Blockchain and How Does It Work?

What Is Layer 1 in Blockchain?

What Is Cross-Chain Interoperability?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Hyperlane is an open, permissionless protocol that lets developers connect different blockchains. It supports sending data, tokens, and smart contract calls across networks without relying on a central authority.

Using Interchain Security Modules (ISMs), developers can tailor Hyperlane’s security to fit their app. Options range from default settings to fully custom configurations.

Hyperlane includes flexible token bridges called Warp Routes, which support multiple token types and transfer methods. Each route can be customized with its own security setup, giving developers full control over how assets move between chains.

Introduction

With more blockchains popping up every year, one big challenge has been making them talk to each other. Hyperlane is a project that helps solve this problem by making it easier for blockchains to connect and share information — without the need to rely on a central authority or intermediary. 

Whether it’s sending data or transferring tokens, Hyperlane makes cross-chain communication easier, faster, and more flexible.

How Does Hyperlane Work?

At its core, Hyperlane is an interoperability protocol — a system that helps different blockchains interact. Hyperlane lets developers send messages, move assets, and even trigger smart contracts across different chains.

What makes Hyperlane stand out is its permissionless and modular design. You can deploy it on any blockchain (a Layer 1, rollup, or app-chain) and customize the security settings to fit your app. No gatekeepers. No approvals.

Key Features of Hyperlane

1. Permissionless

You don’t need permission to use Hyperlane. Developers can set it up on any blockchain they want and start building cross-chain apps right away.

2. Interchain messaging (Mailbox)

Hyperlane lets developers send any kind of data between blockchains — from tokens to function calls. These messages are handled by a smart contract called the Mailbox, which exists on every supported chain. Think of it as a blockchain version of an inbox and outbox.

In other words, the Mailbox is the main hub for sending and receiving messages between chains. It’s the interface developers use to plug into the Hyperlane network.

When a message is sent, it goes through the Mailbox on the source chain, gets verified by a security module on the destination chain, and then is processed on the receiving end.

3. Modular security with ISMs

Hyperlane doesn’t force you to stick to one way of securing your app. Instead, it uses Interchain Security Modules (ISMs) — building blocks that let you choose (or create) how you want your cross-chain messages to be verified.

ISMs are like security filters that check if a message really came from the chain it says it did. They’re a key part of Hyperlane’s design, and they’re fully customizable.

Developers can use ISMs in a few different ways:

Default: Use the built-in ISM that comes with the Mailbox.

Configured: Pick a pre-built ISM and tweak it with your own settings.

Composed: Mix and match multiple ISMs to build a layered security model.

Custom: Write your own ISM from scratch if you need something totally unique.

For example, if you're building a high-value app (like a governance platform), you might want stronger security — even if it costs more gas or takes longer. For simpler use cases, you might prefer faster, cheaper ISMs.

4. Support for multiple blockchains and VMs

Hyperlane supports a wide range of virtual machines, like EVM (used by Ethereum), SVM (used by Solana), and CosmWasm. It even supports communication between them, like sending assets from an EVM chain to an SVM chain.

5. Cross-chain token transfers (Warp Routes)

Need to move tokens between chains? Hyperlane offers Warp Routes — modular bridges that let users send assets like ETH, ERC-20 tokens, NFTs, or even native chain tokens across different networks.

Here are some ways that Warp Routes can be set up:

Collateral to Synthetic: Lock the original token on the source chain and mint a wrapped version on the destination chain.

Native to Synthetic: Lock a native token (like ETH) and mint a synthetic one elsewhere.

Native to Collateral: Lock a native token and unlock a different collateral token on another chain.

Each Warp Route can have its own security setup using ISMs, so developers can decide how much trust or verification is needed.

The HYPER Token

The HYPER token serves as the native currency of the Hyperlane ecosystem. It was created to align incentives, encourage community involvement, and help secure cross-chain operations. Participants and validators can stake HYPER and earn rewards based on their contributions.

Staking HYPER is a key part of how the protocol ensures message security. Validators are chosen based partly on the amount of HYPER they have staked, making them responsible for helping verify interchain communication.

Hyperlane on Binance HODLer Airdrops

On April 22, 2025, Binance announced HYPER as the 15th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn or On-Chain Yields products from April 14 to 17 are eligible to receive the airdrops. A total of 20 million HYPER tokens were allocated to the program, accounting for 2.49% of the total token supply.

HYPER was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Hyperlane offers a flexible and open way to build apps that work across multiple blockchains. It’s permissionless, so developers don’t need to ask anyone to get started. It’s modular, so you can set up the kind of security your app really needs. And with features like Warp Routes there’s a lot of potential for building complex, interconnected systems.

That said, using Hyperlane (like any cross-chain protocol) comes with its own set of risks and trade-offs. How you configure security, choose validator sets, and handle asset transfers can all impact how safe and efficient your app is. Do your own research and make sure you understand the product before taking risks.

Further Reading

What Is Blockchain and How Does It Work?

What Is Layer 1 in Blockchain?

What Is Cross-Chain Interoperability?

This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

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Key Takeaways

WalletConnect makes it easy to connect crypto wallets to decentralized apps using QR codes or deep links, keeping users in control without exposing private keys or relying on browser extensions.

The protocol supports a wide range of blockchain networks, including Ethereum, Solana, Polkadot, Cosmos, and Bitcoin.

The WalletConnect ecosystem has WCT as its utility token, which can be used for staking, governance, and to receive rewards.

What Is WalletConnect?

WalletConnect is an open-source protocol that makes it easy for crypto wallets to connect with decentralized apps (DApps). Instead of relying on browser extensions or copy-pasting wallet addresses, WalletConnect lets you link your wallet to a DApp with a quick QR code scan or deep link. WalletConnect works across many blockchains, and aims to make Web3 more user-friendly and secure.

Originally created to address fragmented and vulnerable DApp-wallet interactions, WalletConnect has grown into a protocol and a network that supports millions of users and thousands of applications.

How WalletConnect Works 

At its foundation, WalletConnect acts as a communication layer that enables wallet applications to interact with DApps without exposing sensitive information, such as private keys. 

The protocol supports encrypted messaging through a session established by scanning a QR code or clicking a deep link. Once connected, users can approve or reject transactions directly from their wallets, which remain in their full control throughout the session.

WalletConnect supports multiple blockchain networks, including Ethereum, Solana, Cosmos, Polkadot, and Bitcoin. 

WalletConnect is built on three key pieces:

Network: This is the system of nodes that pass messages between your wallet and the app you're using. These nodes are run by different groups to keep things decentralized.

SDKs: Developers use WalletConnect SDKs to add the connection feature to their wallets and DApps. The SDKs handle all the technical stuff behind the scenes.

Standards: WalletConnect uses standard rules for how messages are sent and received, which makes it easier for apps and wallets to work together smoothly.

The WCT Token

WalletConnect has its own token called WCT. It is an ERC-20 token with a total supply of 1 billion tokens. WCT was launched on the Optimism network and is used for multiple purposes within the WalletConnect ecosystem:

Governance: WCT holders can help decide how the network evolves, from protocol upgrades to fee structures.

Staking: Users can stake WCT tokens to help secure the network and earn rewards. Staking durations range from one week to two years, with incentives increasing with the length of the commitment.

Performance-based rewards: Node operators and wallet providers are rewarded in WCT based on metrics such as uptime, latency, and the number of successful connections they facilitate.

Future fees: While WalletConnect doesn’t charge fees yet, WCT might be used for transaction fees later on if the community votes for it.

WCT is an ERC-20 token with a total supply of 1 billion tokens.

WCT on Binance Launchpool

On April 10, 2025, Binance announced WCT as the 67th project on the Binance Launchpool. Users who locked their BNB, FDUSD, and USDC during the farming period were eligible to receive WCT rewards. A total of 40 million WCT were allocated to the program, accounting for 4% of the total token supply.

After the farming period, WCT was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

WalletGuide and Certification 

The WalletConnect team also runs WalletGuide, a project that reviews and lists wallets that meet certain quality and security standards. Wallets can earn certification, which makes them more trustworthy in the eyes of users and developers.

Adoption and Growth 

WalletConnect has seen significant adoption since its launch. According to their website, the project has made over 240 million connections to serve more than 38 million unique active wallets. Over 57,000 decentralized applications have integrated the protocol, which illustrates its utility and interoperability within the Web3 space.

Funding and Development 

The WalletConnect Foundation has raised $10 million from four consecutive oversubscribed token sales. The funds will enable the WalletConnect Foundation to expand operations, grow its team and support ecosystem initiatives — benefiting developers, node operators and strategic partners.

Closing Thoughts 

WalletConnect started as a simple way to connect wallets to DApps, but it’s grown into a whole ecosystem with its own token, governance system, and network infrastructure. With support for multiple blockchains and a strong user base, the project is enabling secure and efficient communication across multiple Web3 platforms.

Further Reading

Your Guide to Binance Launchpad and Launchpool 

How to Set Up a Crypto Wallet

What Are Decentralized Applications (DApps)?

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