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🗞️ In The News
Bitcoin rebounded from a weekly low of $98K to reach $107K.U.S. President Donald Trump announced a full ceasefire between Israel and Iran.Michael Saylor’s Strategy has acquired 245 BTC for ~$26 million at ~$105,856 per bitcoin.Metaplanet purchased 1,234 BTC, bringing its total holdings to 12,345 BTC and making it the fifth-largest corporate holder.Hong Kong unveiled new stablecoin regulations and plans for tokenized bonds.Invesco became the ninth firm to file for a spot Solana ETF.Trump-backed World Liberty plans to release a stablecoin audit and enable token transfers for its WLFI token.Mastercard expands stablecoin push with Paxos, Fiserv and Paypal integrations.Tether CEO Paolo Ardoino says the firm will become the biggest bitcoin miner by the end of 2025.
📖 Binance Academy Knowledge
Who Is Michael Saylor?What Is a Stablecoin?What Is a Bitcoin Treasury Strategy?What Is World Liberty Financial USD (USD1)?What Is Sahara AI (SAHARA)?What Is Newton Protocol (NEWT)?
🔥 Binance Blog Highlights
Binance Assists Ahmedabad Police in Dismantling a $200K Scam Active Across South and Southeast AsiaA Beginner’s Guide: How to Get Started on Binance MarketplaceWeb3 Security – SAFU Trading on Decentralized ExchangesHow Binance Is Training the Next Generation of Cyber CopsWeb3 Wallet Security – Best Practices of On-Chain Transactions for Staying SafeHow Corporate Users Can Buy & Sell Crypto with Binance: A TradFi Onboarding Guide

Key Takeaways

Sahara AI (SAHARA) is a decentralized platform that makes AI development, ownership, and usage accessible to everyone.

The project provides an accessible and transparent way to build, share, and monetize AI tools and data.

By using blockchain, Sahara ensures fair rewards for contributors and permissionless use of AI assets.

Introduction

Most of the AI we interact with today is developed and controlled by a small number of tech giants. While this is convenient, it also comes with trade-offs such as limited access, lack of transparency, and fewer opportunities for others to build or benefit. Projects like Sahara AI aim to change that by creating decentralized platforms that are open, fair, and designed to let anyone build, use, or contribute to AI in a meaningful way.

What Is Sahara AI?

Sahara AI is a decentralized platform designed to make working with artificial intelligence easier, fairer, and more open. Instead of relying on a few major tech companies, Sahara lets anyone, from solo developers to global teams, build, use, and earn from AI tools in a transparent, permissionless way. 

Whether you’re creating an AI model, sharing valuable data, or simply exploring what’s available, Sahara gives you the tools and freedom to participate. Everything is recorded on the blockchain, meaning your contributions are protected, and your rewards are handled automatically through smart contracts.

How Does Sahara AI Work?

Sahara AI is made up of five key parts, each helping users build, manage, and share AI tools and resources:

1. Sahara Blockchain

The Sahara Blockchain is the foundation that records all transactions, model ownerships, and contributions in a way that’s transparent and tamper-proof. Big datasets and models are stored off-chain to keep things fast and efficient, but important details such as ownership and transaction history are saved on-chain.

2. AI infrastructure

Training AI models takes a lot of power and coordination. Sahara provides a shared system where users can pitch in their computing power or collaborate on model development. This lets anyone, from a solo developer to a large team, train and deploy models efficiently.

3. Sahara AI Marketplace

Think of this as an app store for AI. Here, people can buy, sell, or share AI models, datasets, and agents. It’s powered by smart contracts that handle licensing and payments, so transactions are transparent and automatic. If you’ve built something useful, you can use the Sahara AI Marketplace to monetize it.

4. Development tools

Whether you're a coder or not, Sahara gives you the tools to create. Developers can use the Sahara Software Development Kit (SDK) and API to build powerful AI products, while non-technical users can use drag-and-drop interfaces and templates to launch AI tools without writing code.

5. Secure storage

Sahara includes secure vaults where you can store your models and data safely. Encryption and access controls ensure that only you or the people you choose can access what you’ve built or uploaded.

The Architecture of Sahara AI

Sahara AI is built on four interconnected layers that work together behind the scenes to power the platform:

Application layer

This is where you interact with Sahara AI through dashboards, apps, or no-code tools. It includes:

Sahara ID: Your identity and reputation on the platform.

Sahara Vaults: Your secure storage for models and data.

Sahara Agent: AI agents you can build and deploy.

Toolkits: For coding or no-code creation.

Marketplace: Where you can buy, sell, or share AI assets.

Transaction layer

This is the part of the system that keeps track of who owns what and what happens when someone buys, licenses, or uses an AI asset. It’s powered by:

Sahara Blockchain with the Tendermint algorithm for Byzantine Fault-Tolerant consensus.

Smart contracts that handle licensing, payments, and rewards.

Precompiles and protocols that make AI tasks more efficient and cost-effective.

Data layer

AI needs lots of data. This layer handles the storage and management of that data:

Metadata and key records are saved on-chain.

Large files are stored off-chain for efficiency.

Security features protect sensitive data.

Execution layer

This is where the real work happens. It runs AI training and inference tasks using the following:

High-performance infrastructure.

Coordinated task execution.

Abstractions for datasets, models, and computations.

Decentralized Governance

Sahara AI is governed by its community through the Sahara DAO. That means major decisions like protocol upgrades or funding allocations are made by the people who use and contribute to the platform. A supporting group, the Sahara Foundation, helps manage the transition to full decentralization and supports ecosystem growth, research, and long-term development.

SAHARA Token

The SAHARA token is the native utility token of the Sahara AI ecosystem. The token is used for a variety of purposes, including:

Access or license AI training data: You can use the token to obtain datasets needed to train AI models.

Use existing AI models: Rather than building a model from the ground up, you can pay to access AI models created by others.

Tap into computing power: Developing or running AI models takes a lot of resources. You can instead rent the computational infrastructure needed for training, deploying, or running inferences.

Pay per usage: With a pay-as-you-go pricing model, you are charged per interaction or inference.

Sahara AI (SAHARA) on Binance HODLer Airdrops

On June 24, 2025, Binance announced SAHARA as the 25th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from June 18 to 21 were eligible to receive SAHARA airdrops. A total of 125 million SAHARA tokens were allocated to the program, accounting for 1.25% of the total token supply.

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

Closing Thoughts

Sahara AI offers a fresh approach to how AI is developed and distributed. Instead of concentrating control in the hands of a few, it opens the door for anyone to participate. Whether it’s by creating models, contributing data, offering compute resources, or simply using AI in practical ways.

Further Reading

What Are AI Agents?

What Is Newton Protocol (NEWT)?

What Is a Decentralized Autonomous Organization (DAO)?

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

Newton Protocol (NEWT) is a decentralized protocol designed to provide an open, permissionless, and programmable compute layer for the Internet.

The project introduces a global registry of computing services, allowing users and developers to discover, access, and compose computational resources in a trustless manner.

Its architecture enables a variety of use cases, including decentralized finance (DeFi), AI, batch computing, privacy-preserving workflows, and more.

Newton Protocol aims to make accessible computation a public utility, much like how blockchain democratized public data infrastructure.

Introduction

Most of the computing services we use today, like cloud storage, are controlled by a few big companies. This works, but it can also mean more risks for users: things like restrictions, lack of choice, data leaks, and sometimes censorship. Projects like the Newton Protocol are looking for better ways to provide these services, with a focus on being open to everyone and easy to use.

What Is Newton Protocol?

Newton Protocol is a decentralized protocol that creates a public compute layer for the Internet. It provides an on-chain service registry that standardizes how computational tasks and services are published, discovered, and composed. 

This registry is open to anyone: individuals, organizations, and developers can all list, discover, and use compute services in a transparent and permissionless environment.

The goal is to create a system where anyone can offer or use things like cloud computing, AI, or special data processing in a way that’s transparent and doesn’t require trusting a single company.

Why Was Newton Protocol Created?

The problem with centralized clouds

Most cloud computing today is highly centralized and dominated by a small group of providers. While these services offer flexibility and scalability, they also raise some issues, such as:

Trust: Users must trust the provider’s integrity, security, and operational reliability.

Restrictions: Providers can restrict access, censor services, or revoke offerings at their discretion.

Vendor lock-in: Migrating services or data across providers can be complex and costly.

Fragmentation: Even new, decentralized solutions are usually hard to combine with each other.

Newton Protocol’s solution

Newton Protocol addresses these issues by creating an open, on-chain registry of compute services. Rather than just offering a peer-to-peer marketplace for raw compute resources, Newton structures its system to:

Enable discovery of compute services using blockchain registries.

Support interoperability through standardized APIs and interfaces, making it easier for developers to create and match services.

Incentivize honest behavior among providers and users through on-chain proofs and transparent metrics.

Allow anyone to join, either as a provider or a user.

How Does Newton Protocol Work?

1. On-chain service registry

Newton Protocol’s registry serves as a public, tamper-resistant catalog of available compute services. Each entry may include things like:

Service metadata (name, description, supported interfaces)

Provider details

Pricing information

Usage terms and conditions

API specifications

Performance and reliability metrics

Anyone can check this list to find services that fit their needs.

2. Standardized interfaces and APIs

Compute services in Newton Protocol follow open standards that encourage everyone to use the same types of interfaces. So, even if you build something to work with a specific service, it can still interact with other services later if you wish.

3. Service discovery and composition

You can find a service and use it right away, or link it with other services to create more advanced processes. Newton’s focus on composability means that individual services can be integrated into larger workflows. For example, this could enable a chain of automated actions that span multiple providers in different locations.

4. On-chain verification and incentives

Newton leverages cryptographic proofs and on-chain mechanisms to verify service execution and maintain integrity. This incentivizes honest behavior from compute providers and helps establish trust without central authorities.

Potential Use Cases

DeFi operations: Automate trading or price updates using different services.

Decentralized AI: Tap into public AI services or combine them with other computation for more advanced apps.

Privacy: Leverage providers that implement secure computation or confidential computing.

Multi-chain data processing: Use Newton’s services to combine data or processing across multiple blockchains.

Scientific research: Link up specialized compute providers for big data analysis or simulations.

Example

Let’s say a developer wants to build a new DeFi app that needs both complex math calculations and AI-powered analysis. Instead of building everything from scratch, they could use Newton Protocol’s registry to find a provider that does number crunching and another that offers AI. They can combine these into a single workflow—saving time and resources.

NEWT Token

The NEWT token is the native utility token of the Newton Protocol ecosystem. It’s used mainly for payments to access compute services, including gas fees, registry operations, rewards to providers, and more. NEWT will also be used in staking (to help secure the network) and governance (giving holders a say in protocol decisions).

Newton Protocol (NEWT) on Binance HODLer Airdrops

On June 23, 2025, Binance announced NEWT as the 24th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from June 14 to 17 were eligible to receive NEWT airdrops. A total of 12.5 million NEWT tokens were allocated to the program, accounting for 1.25% of the total token supply.

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

Closing Thoughts

Newton Protocol (NWT) is trying to change the way people access cloud computing, making it more open and less dependent on big companies. By creating a public registry of computing services and focusing on easy connections between them, Newton gives developers and users new options for building and using web applications. 

Further Reading

What Are AI Agents?

What Is Defi App (HOME)?

What Is a Decentralized Autonomous Organization (DAO)?

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

SKY and USDS are the native tokens of the decentralized Sky Protocol, representing upgraded versions of MakerDAO’s MKR and DAI.

USDS is a soft-pegged, collateral-backed stablecoin designed to maintain a value equal to or close to one US dollar.

You can trade, save, upgrade tokens, stake SKY, and earn rewards while retaining full control over their funds.

Sky.money is the non-custodial gateway providing 24/7 access to the Sky Protocol’s trading, saving, staking, and governance features.

What Is Sky?

Formerly known as MakerDAO, Sky is a decentralized finance (DeFi) platform that has evolved to offer a more scalable, user-friendly, and community-governed alternative. Sky builds upon MakerDAO’s legacy by introducing upgraded native tokens, new features, and a streamlined governance system focused on resilience and simplicity.

At its core, the protocol revolves around two key tokens: USDS, a stablecoin pegged to the US dollar and SKY, the governance token. Sky.money is the main gateway for you to interact with the protocol while maintaining full control of their assets. 

How Sky Works

Sky Protocol provides you with a range of financial services, including trading, saving, and rewards accumulation, built on an open and transparent infrastructure. The protocol runs on permissionless liquidity pools and a stablecoin system combined with decentralized governance, meaning there’s no middleman controlling your money or decisions.

SKY and USDS are the two native tokens of the Sky Protocol:

USDS: The stablecoin of the decentralized Sky Protocol and the upgraded version of DAI. It is supported by excess collateral and is soft-pegged to the U.S. dollar, aiming to maintain a value equal or close to one dollar. 

SKY: The native governance token of the Sky Protocol and ecosystem, upgraded from MakerDAO’s MKR token. It plays an important role in decentralized governance, staking, and rewarding active participation within the ecosystem.

Accessing the Sky Protocol With Sky.money

Sky.money is the non-custodial gateway that connects you to the Sky Protocol. It allows trading between popular tokens and Sky ecosystem tokens. You can upgrade DAI to USDS and MKR to SKY and access to savings and rewards features through the platform. You can also participate in the Sky Savings Rate (SSR) to earn additional USDS or access Sky Token Rewards in the form of SKY tokens through the Sky.money app.

Through the app, you can:

Upgrade MKR tokens to SKY at a ratio of 1 MKR to 24,000 SKY.

Trade USDC, USDT, ETH, or USDS for SKY directly.

Earn SKY rewards by supplying USDS to the Sky Token Rewards module.

Stake SKY tokens in the Sky Protocol’s Staking Engine to earn rewards.

Borrow USDS by staking SKY tokens.

Alternatively, you can also buy SKY on cryptocurrency exchanges like Binance.

Sky Savings Rate (SSR)

The Sky Savings Rate is an automated system that lets you earn compounded USDS over time. When you deposit USDS into the SSR module, they receive sUSDS tokens that represent their stake and any earned value. USDS tokens are added to the pool every few seconds according to the current SSR rate, causing the value of their sUSDS to grow.

You can redeem sUSDS anytime for the original USDS plus any accumulated rewards. The SSR rate fluctuates based on decisions made through decentralized on-chain voting by the Sky Ecosystem Governance community. Smart contracts automatically handle the conversion between USDS and sUSDS, ensuring they maintain equal dollar value with no fees when redeeming.

Sky Token Rewards (STRs)

USDS holders can take part in the Sky Token Rewards module to earn SKY governance tokens as rewards. Both the supplied USDS and the rewards earned are secured in non-custodial smart contracts, ensuring that no third party has custody of the assets. Rewards are distributed based on each user’s share of the total USDS held in the rewards pool and may vary according to changes in pool size and issuance rates. By holding USDS and earning SKY rewards, you can support the Sky ecosystem projects while retaining full control over their funds.

Skylink

SkyLink is the bridging system that connects Sky with multiple Layer-2 networks such as Base, Arbitrum, Optimism, and Unichain. It enables you to move your Sky tokens like USDS and SKY, and use features like the Sky Savings Rate, without paying high gas fees or waiting long for transactions to complete. For everyday users, SkyLink makes interacting with the Sky ecosystem smoother and cheaper, so you can save, trade, and earn rewards more efficiently across multiple blockchains.

The Sky Ecosystem and Sky Stars

The Sky ecosystem is a community-driven network of decentralized projects known as Sky Stars. These independent projects foster rapid innovation and growth within the larger Sky framework. Each Sky Star may have its own governance tokens, treasury, and community governance, while aligning with the overall goals of the Sky ecosystem. Spark, an on-chain asset allocator that deploys stablecoin liquidity across DeFi, CeFi, and real-world assets, is the first official Sky Star and will integrate closely within the Sky ecosystem. 

Closing Thoughts

The Sky Protocol represents a meaningful step forward in decentralized finance by evolving the widely known MakerDAO ecosystem into a more scalable, user-friendly, and community-governed platform. Through its native tokens SKY and USDS, alongside innovative features like Sky.money, SkyLink, and Sky Stars, the protocol aims to broaden DeFi participation and create more reliable, non-custodial financial tools.

Further Reading

What Is a Stablecoin?

What Is the Stablecoin Trilemma?

What Is Spark (SPK)?

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.

🗞️ In The News
Bitcoin price tests $109k resistance before dropping back to the $105k range.US Senate passes stablecoin bill in milestone for the crypto industry.The US Federal Reserve keeps interest rates unchanged but expects 2 cuts this year.Michael Saylor’s Strategy has acquired 10,100 BTC for ~$1.05 billion at ~$104,080 per bitcoin.The Swiss National Bank cuts interest rates to zero as inflation falls.Trump Media & Technology Group files to launch a Bitcoin & Ethereum ETF listed on NYSE Arca.Tron looks to go public in the US, forming Strategy-Like TRX Holding Firm.Pakistan engages Michael Saylor in bold push toward Bitcoin-backed economy. 

📖 Binance Academy Knowledge
Who Is Michael Saylor?What Is a Stablecoin?What Is a Bitcoin ETF?What Is an Ethereum ETF?What Is Defi App (HOME)?What Is Resolv (RESOLV)?

🔥 Binance Blog Highlights
Fan-First Drops: What Past Holders Say About The CR7 x Binance Collections GENIUS Act Clears Senate – A Historic Leap Toward Stablecoin Clarity in the U.S. And BeyondInside Binance UI Refined: A Smarter InterfaceBinance UI Refined: Personalize Your Homepage With Real-Time InsightsBinance UI Refined: Explore the New Flexible Layout SystemUSDC Hits Wall Street – What Circle’s Debut Means for CryptoEmpower Your Business With Binance Connect – Fiat-to-Crypto Onramp for Web3 Platforms Boosting Altcoin Liquidity on BinanceWhy Binance Pool Is the Smart Choice for Bitcoin MinersWeb3 Wallet Security – Stay SAFU with Binance MPC WalletEaster Eggs You Might Have Missed in Cristiano’s Forever To The Moon Video — and What They Really MeanStablecoins Explained – How They Work, Why They Matter, and How to Use Them on BinanceStablecoins and The Future of Online Payments

Key Takeaways

Spark is an on-chain asset allocator that deploys stablecoin liquidity across decentralized finance (DeFi), centralized finance (CeFi), and real-world assets (RWAs).

It lets users and protocols access deep, scalable liquidity by routing capital across multiple chains and platforms like Aave, Curve, and tokenized RWA protocols.

The platform’s native token, SPK, enables governance participation, staking for protocol security, and reward accumulation through Spark Points.

Spark operates across several blockchain networks, manages stablecoin liquidity, and generates yield through efficient capital deployment.

Introduction

In the DeFi space, liquidity fragmentation and inconsistent yields continue to be common challenges. Multiple protocols, chains, and asset types have created complex environments where accessing reliable capital can be difficult for users and developers. 

Spark (SPK) is a project designed to address these challenges through an intelligent on-chain capital allocation system that spans DeFi, CeFi, and RWAs. 

Inefficiencies Within DeFi

Fragmented liquidity: DeFi liquidity is dispersed across multiple blockchains and protocols, making it hard for users to access substantial and reliable pools of capital.

Unstable yields: Interest rates in DeFi frequently fluctuate due to changing supply and demand, often leading to unpredictable returns for users.

Idle stablecoin capital: Large amounts of stablecoins remain inactive in wallets or exchanges, leading to missed opportunities for users to earn yield through active deployment.

What Is Spark (SPK)?

Spark is an on-chain capital allocator whose goal is to optimize the deployment of stablecoin liquidity efficiently and at scale. Instead of competing with other finance projects, Spark works behind the scenes to support them by providing steady liquidity and yield.

The Spark ecosystem

The Spark platform has three primary components that distribute capital intelligently across DeFi platforms, centralized exchanges, and real-world assets.

1. SparkLend

SparkLend is a decentralized stablecoin lending protocol that benefits from direct liquidity provided by Sky. Sky, formerly known as MakerDAO, is a protocol that issues USDS, a stablecoin pegged to the US dollar and updated from DAI. SparkLend lets users borrow USDS with clear, stable interest rates that don’t change based on loan size or usage. 

The platform is non-custodial, where lenders earn passive income by providing liquidity, and borrowers take over-collateralized loans. Users can also earn yields by holding sUSDS, a yield-bearing version of USDS that grows the Sky Savings Rate. To borrow, users must deposit collateral such as ETH or cbBTC, which can generate interest if lent out, or deposit assets to earn interest without borrowing.

2. Spark Savings

Spark enables users to deposit stablecoins into Savings Vaults and receive Savings Tokens that represent their portion of the deposits. These tokens gradually increase in value as interest accumulates on the underlying assets. The main Savings Vaults support stablecoins like USDS, USDC, and DAI, which are invested in the Sky Savings Rate (SSR) or DAI Savings Rate (DSR) to generate returns. 

With Spark Savings you can convert stablecoins into yield-generating tokens such as sUSDC or sUSDS. These tokens are fully compatible with other DeFi protocols, allowing you to earn income while making a more effective use of your capital.

3. Spark Liquidity Layer (SLL)

The SLL is a cross-chain capital allocator that consolidates liquidity from multiple sources, including over $6.5 billion in stablecoins managed by the Sky protocol. It automatically directs and balances funds across platforms such as Aave, Maple, Ethena, Curve, and tokenized real-world asset services like BlackRock’s BUIDL and Centrifuge.

SLL operates across several Layer-2 chains and Ethereum-compatible networks (including Ethereum mainnet, Base, Arbitrum, Optimism, and Unichain). It’s responsible for redistributing capital to areas where it is most effective. The goal is to optimize yield while minimizing risks related to fragmented liquidity.

The SLL serves as both an infrastructure backbone and a product. Beyond allocating capital, it supports other Spark offerings and connects with many external protocols to deepen liquidity and reduce volatility in borrowing rates.

SPK Token 

The SPK token is the native utility token within the Spark ecosystem and supports the project’s long-term goals of decentralization, sustainability, and aligning stakeholders’ interests.

Governance

SPK token holders can participate in network governance decisions, primarily through snapshot voting in the initial phases. As the platform’s governance evolves and decentralizes, the governance role of SPK is expected to expand accordingly.

Staking and Protocol Security

The SPK token can be staked to earn rewards known as Spark Points. Staking SPK helps secure the system, particularly by protecting token bridges that form part of the Spark Liquidity Layer. Staked SPK tokens are represented by stSPK, which users must keep to withdraw their initial stake.

Moreover, staking not only increases security but may extend to securing future Spark ecosystem products. Importantly, users retain full voting rights over their SPK tokens even while staked, enabling continual participation in governance.

Spark (SPK) on Binance HODLer Airdrops

On June 16, 2025, Binance announced SPK as the 23rd project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from June 10 to 13 were eligible to receive SPK airdrops. A total of 200 million SPK tokens were allocated to the program, accounting for 2% of the total token supply.

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

Closing Thoughts

Spark tackles key challenges in DeFi such as fragmented liquidity and fluctuating yields. Its platform aims to provide consistent returns and simplify the process for users to allocate stablecoins across DeFi, CeFi, and real-world asset platforms.

Further Reading

What Are Real World Assets (RWA) in DeFi and Crypto?

What Is a Stablecoin?

What Is Liquidity and Why Does It Matter?

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

Defi App is a modular decentralized finance (DeFi) platform designed to simplify the DeFi experience for both beginners and advanced users.

It lets users manage wallets, make swaps, and use different blockchains without needing to worry about gas fees or complicated setups.

The platform’s native token, HOME, powers its ecosystem, offering transaction fee abstraction, governance rights, and user rewards.

Defi App works across multiple networks like Solana, Ethereum, and other EVM-compatible chains.

Introduction

While DeFi products can offer financial services without intermediaries, the space is often inaccessible to average users due to complicated interfaces, technical barriers, and fragmented ecosystems.

Defi App was built to make DeFi easier and less stressful, especially for new users. The app handles a lot of the hard stuff behind the scenes, so you can focus on what you want to do—whether that’s swapping tokens, earning yield, or just learning how it all works.

The Challenges in DeFi

DeFi has come a long way, but it still has problems that stop more people from using it:

Complex user experience: Many DeFi platforms require users to manage crypto wallets, gas tokens, and bridges, which can be overwhelming (especially for beginners).

Fragmentation: Users often have to jump between different networks, apps, and platforms to complete their transactions and achieve their goals.

Risk of user error: Common user mistakes such as losing seed phrases, sending a token to the wrong address, or incorrect token swaps can lead to permanent losses.

Centralized exchange risks: Using centralized platforms often means relinquishing control over one's assets, which contradicts the decentralization ethos.

Defi App aims to solve these challenges through a more integrated and abstracted user experience.

What Is Defi App?

Defi App is a DeFi platform that tries to make crypto easier and less confusing for everyone, from total beginners to advanced users. The app helps you create wallets, move money between different blockchains, and make trades—all in one place.

How Defi App Works

At its core, Defi App is powered by smart contracts and account abstraction, which enable features like non-custodial wallet creation, delegated transaction execution, and gas payment with HOME tokens.

1. Easy wallet setup

When you sign up, Defi App automatically creates two wallets for you—one for EVM chains and one for Solana. That means you can get started right away, without installing extensions or writing down seed phrases. You can also manage multiple wallets under one roof, so switching between them is easy.

2. Cross-chain compatibility

Defi App lets you move and swap tokens across different blockchains without needing to understand how bridges or wrapped tokens work. The app handles all the behind-the-scenes stuff, so you don’t have to worry about technical steps.

3. No gas fees

One of the major barriers in DeFi is the need to maintain balances in various gas tokens (e.g., ETH for Ethereum, SOL for Solana) to complete transactions. Defi App addresses this through gas abstraction. 

Users can execute transactions using only the platform’s native token, HOME, while the protocol handles gas payments in the background.

4. Fiat integration

Defi App makes it easier to get money in and out of the crypto world. You can buy crypto with regular money or cash out to your bank account directly through the app. This helps bridge the gap between traditional finance and DeFi.

HOME Token

The HOME token is the native utility token within the Defi App ecosystem. It serves multiple functions:

1. Gas abstraction

Instead of using ETH or SOL to pay transaction fees, Defi App uses HOME. If you only have HOME in your wallet, the app handles everything in the background to make sure your transaction goes through.

2. XP system

The app has a kind of points system called XP. When you take actions like swapping tokens or depositing funds, you earn XP. This XP might be used to decide future airdrops or unlock other rewards.

3. Staking and rewards

Users who stake HOME tokens become eligible for platform rewards, including bonus tokens and XP multipliers. The longer you stake, the more XP you can earn.

4. Governance

Staked HOME tokens confer governance rights, allowing users to vote on:

Staking rewards or other revenue distribution models

Feature development priorities

Protocol integrations

Protocols themselves can also buy and stake HOME tokens to accelerate integration and gain visibility within the platform.

Defi App (HOME) on Binance HODLer Airdrops

On June 12, 2025, Binance announced HOME as the 22nd project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from June 6 to 9 were eligible to receive HOME airdrops. A total of 200 million HOME tokens were allocated to the program, accounting for 2% of the total token supply.

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

Closing Thoughts

Defi App is trying to make DeFi less confusing and more usable for everyone. By handling things like gas fees, wallet setup, and cross-chain swaps in the background, it lowers the barrier for getting started with crypto.

As with any crypto project, users should do their own research and consider associated risks before engaging with the platform or its native token.

Further Reading

What Is ERC-4337, or Account Abstraction for Ethereum?

What Is Decentralized Finance (DeFi)?

What Is a Crypto Wallet and How to Choose the Right One?

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

Resolv is a decentralized finance (DeFi) protocol that maintains a stablecoin known as USR. It is pegged to the US dollar and backed by ether (ETH) and bitcoin (BTC).

Resolv uses a market-neutral strategy by hedging ETH and BTC with perpetual futures to maintain price stability.

The protocol also features the RLP and the RESOLV tokens. RLP serves as an insurance layer to protect USR's peg and absorbs systemic risk, while RESOLV is a governance token.

The Resolv system distributes profits daily from staking and hedging activities to RLP holders and users who stake USR.

Introduction

When dealing with decentralized finance (DeFi) services, stablecoins are often an essential part of the experience. Whether you are a developer or a user, stability, collateral security, and resistance to centralized risk are key factors to consider when using DeFi products..

Resolv is a protocol designed to offer a unique stablecoin system for the growing DeFi space. According to the official documentation, its native stablecoin, USR, is backed by crypto assets (like ETH and BTC), overcollateralized, and designed to hold its dollar peg through smart collateral management and market-neutral strategies.

How Resolv Works

USR stablecoin

USR is a stablecoin pegged to the US dollar and backed by on-chain ETH, staked ETH (stETH), and BTC. Users can mint or redeem USR on a 1:1 basis with supported collateral.

Key characteristics of USR:

Collateralized with a 100%+ reserve of ETH and BTC.

Overcollateralized via an insurance layer (RLP token).

Can be staked to create stUSR, a yield-bearing version of USR.

Designed to maintain its peg through arbitrage and redemption mechanisms.

Market neutrality via hedging

One of Resolv's defining features is its so-called delta-neutral strategy. The protocol maintains its dollar peg by hedging ETH and BTC price fluctuations using perpetual futures contracts. By using short positions, the gains or losses in the spot price of the collateral are offset by the futures positions.

In other words, if the spot price goes up, the profit is offset by the losses of the short positions, and if the spot price goes down the losses are offset by the shorts’ profit. This dynamic helps keep the USR value relatively stable in USD terms.

In addition, hedging takes place across both centralized (CEX) and decentralized exchanges (DEX) to reduce platform-specific risk. Exposure to centralized entities is carefully managed with dynamic collateral limits, custodial solutions, and a dedicated Protection Layer (RLP).

The RLP Token

What Is RLP?

RLP (Resolv Liquidity Pool) acts as a second-layer buffer and insurance mechanism for USR. It holds surplus ETH and BTC collateral above the amount required to back USR directly. 

RLP is designed to:

Absorb market risk and counterparty risk from centralized exchanges.

Protect USR’s peg during volatile or stressed market conditions.

Offer higher yield potential to compensate for taking on risk. 

RLP can be minted and redeemed by users using collateral, but unlike USR, its price fluctuates depending on the protocol’s collateral ratio and profitability.

Even if the Protection Layer (RLP) becomes depleted, USR’s backing remains fully intact and redeemable. In such cases, the system auto-balances: a thinner RLP pool means higher yields, which attracts more collateral and re-strengthens the insurance buffer.

Profit Generation and Distribution

Resolv’s model is not only about stability—it’s also structured to generate sustainable, predictable returns through a mix of ETH staking rewards, funding fees from perpetual futures, and optimized collateral management.

These profits are distributed daily across three main streams:

Base reward: Paid to both staked USR (stUSR) holders and RLP holders.

Risk premium: Exclusive rewards to RLP holders for assuming greater systemic risk.

Protocol fees: Allocated to the Resolv treasury for future development and operations.

If losses are incurred, such as from negative funding rates in futures, RLP absorbs those losses, not USR. This separation helps preserve USR’s peg and ensure user confidence in its stability.

Governance and Utility: RESOLV Token

What Is RESOLV?

The RESOLV token is the native utility and governance token of the Resolv ecosystem. It plays a role in protocol governance, reward distribution, and community participation.

Token supply and allocation:

Total supply: 1 billion RESOLV

10% allocated to early airdrop campaigns.

40.9% for ecosystem and community incentives.

26.7% for team and contributors (with vesting).

22.4% for investors (with vesting).

stRESOLV and Governance

RESOLV holders can stake their tokens to receive stRESOLV, which unlocks voting rights on governance proposals, staking rewards from protocol profits, Points Boosts in Resolv Points campaigns (similar to user incentives in other DeFi protocols).

Long-term stakers benefit from reward multipliers, with the highest boost (2x) reserved for users who maintain staked positions for over a year.

RESOLV on Binance HODLer Airdrops

On June 11, 2025, Binance announced RESOLV as the 21st project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from May 28 to 31 were eligible to receive RESOLV airdrops. A total of 20 million RESOLV tokens were allocated to the program, accounting for 2% of the total token supply.

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

Closing Thoughts

Resolv presents an alternative approach to stablecoin architecture, one that leans on crypto-native collateral, market-neutral strategies, and a layered defense system to manage systemic risk. With hedging, staking, and insurance built into its core, Resolv aims to offer a more sustainable stablecoin model without relying on fiat reserves or centralized issuers.

Further Reading

What Is a Stablecoin?

What Are Funding Rates in Crypto Markets?

What Is Short Selling?

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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An Overview of Bitcoin's Price HistoryWhat Is a Stablecoin?Who Is Michael Saylor?What Is Scalp Trading?What Is a Bear Market?

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📖 Binance Academy Knowledge
What Is a Bitcoin Treasury Strategy?What Is a Bitcoin ETF?What Is a Bear Market?How Can Tariffs Impact the Crypto Markets?What Is a Credit Spread?What Is Proof of Reserves (PoR)?8 Trading Strategies for Binance Options RFQ

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Key Takeaways

Binance Options RFQ offers different trading strategies to fit many kinds of market views and risk levels.

Strategies range from simple ones like single calls and puts to more complex ones like spreads, straddles, and strangles.

These strategies help you take advantage of price changes, reduce risk, and save on costs.

Whether you’re a big institutional trader or an experienced retail user, knowing these strategies can improve your options trading on Binance.

Introduction

Binance Options RFQ is a platform that lets you trade options easily and quickly, especially for big or complicated trades. Along with giving you access to good prices and big liquidity, it offers several trading strategies called multi-leg strategies.

These strategies let you make trades based on what you think will happen in the market and how much risk you want to take. In this article, we’ll explain eight popular trading strategies you can use on Binance Options RFQ.

1. Single Call

A Single Call gives you the right (but not the obligation) to buy an asset at a fixed price (strike price) by a certain date. If the market price goes above that fixed price, you can use the option to make a profit. If not, the option expires worthless and you lose what you paid for it.

When the option is in-the-money at expiry, it will automatically be exercised and you earn the difference between the market price and strike price, minus any premiums and fees paid. If the market price stays below the strike price (called out-of-the-money), the option expires and you lose the premium you paid for the contract.

When to use: You expect prices to go up before the contract expires.

2. Single Put

A Single Put works the opposite way. It gives you the right (but not the obligation) to sell an asset at a fixed price by a certain date. If the market price falls below that fixed price, you can use the contract to make a profit. If not, the option expires worthless and you lose the premium paid for the contract.

When to use: You expect prices to go down before the contract expires.

3. Call Spread

A Call Spread strategy involves buying a call option at one strike price and simultaneously selling another call option with a higher strike price, both having the same expiration date. This creates a limited risk and limited reward position. 

By selling the higher strike call, you collect a premium that helps offset the cost of buying the lower strike call, reducing your upfront expense. However, your maximum profit is capped and realized if the underlying price finishes at or above the higher strike at expiry. If the price doesn’t rise enough, the spread may expire worthless or with limited profit.

When to use: You expect the price to go up moderately and want to reduce upfront costs.

4. Put Spread

The Put Spread strategy is the put equivalent of the Call Spread. You buy a put option at a higher strike price and sell a put option at a lower strike price, both expiring on the same date. This limits your downside risk and potential profit. 

The premium received from selling the lower strike put helps reduce the cost of your long put. The maximum profit occurs if the asset price falls to or below the lower strike price at expiry. If the price doesn’t decline enough, your profit is limited or you could face a partial loss.

When to use: You expect prices to fall and want to reduce upfront costs.

5. Calendar Spread

A Calendar Spread is a strategy where you buy and sell options that have the same strike price but different expiration dates. Usually, you sell an option that expires soon (near-term) and buy an option with a later expiration date (long-term). For example, you might sell a call option that expires in one week and buy another call option with the same strike price that expires in one month.

This strategy benefits from how options lose value over time, a process called time decay. The option you sell (short-term) will lose value faster than the option you buy (long-term), letting you potentially profit if the price of the underlying asset stays near the strike price. It’s useful if you expect the price to stay relatively stable in the short term but move later on.

When to use: If you have a view on both short-term and long-term price movements or want to take advantage of time decay differences between options.

6. Diagonal Spread

A Diagonal Spread is similar to a Calendar Spread but with one key difference—you buy and sell options with different strike prices and different expiration dates. For example, you might sell a near-term call option with a higher strike price and buy a longer-term call option with a lower strike price.

This setup gives you more flexibility because you’re not only choosing different expiration dates but also different strike prices. The goal is to benefit from both time decay and potential price movement. The short-term option you sell decays faster, while the longer-term option you buy gives you exposure to price changes over a longer period. It can also help reduce the cost of your position compared to just buying a long-term option.

When to use: When you want more control over strike prices and expirations to take advantage of expected price moves and time decay across different time frames.

7. Straddle

A Straddle involves buying both a call and a put option at the same strike price and expiration date. This strategy profits when the price of the underlying asset makes a big move in either direction—up or down—because one of the options will increase significantly in value. 

However, since you are buying two options, you pay two premiums, so the price move must be large enough to overcome this cost. If the asset price does not move much, both options lose value due to time decay, and you may lose the premiums paid.

When to use: You expect big price swings but aren’t sure which way it will go.

8. Strangle

A Strangle is similar to a Straddle but involves buying a call and a put option with the same expiration date but different strike prices. Typically, the call strike is above the current market price and the put strike is below. Because these options are usually out-of-the-money, the overall cost (premiums) is lower than a Straddle. 

However, to make a profit, the underlying price must move beyond either strike by an amount large enough to cover the premiums paid. It’s a less expensive way to trade based on volatility but requires a bigger price move than a Straddle to be profitable.

When to use: You expect volatility and want a lower-cost way to trade on big price moves.

Closing Thoughts

Knowing these eight strategies on Binance Options RFQ can help you trade options better and smarter. From simple calls and puts to more advanced spreads and volatility plays, it’s important to choose the right strategy based on your risk profile and price expectations. No matter if you’re a big institution, a skilled retail trader, or a VIP client, Binance Options RFQ gives you the tools to trade efficiently.

Further Reading

What Is Binance Options RFQ? 

What Is a Credit Spread?

What Are Options Contracts?

Binance Beginner's Guide

Disclaimer: This article is for educational purposes only. 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 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 bond trading, a credit spread is the difference in yield between a safer bond (like a Treasury) and a riskier bond (like a corporate bond). The bigger the spread, the higher the perceived risk.

Narrow spreads suggest investors feel confident in the economy, while wide spreads often signal uncertainty or potential downturns.

Factors like credit ratings, interest rates, market sentiment, and bond liquidity influence the size of the spread, with lower-rated or less liquid bonds typically having wider spreads.

In options, a credit spread means selling one option and buying another to receive a net credit, limiting both potential profit and loss. Common examples include bull put spreads and bear call spreads.

Introduction

Credit spreads are an important concept in both bond investing and options trading. In the bond market, they can show how risky different bonds are and provide insights into the economy's health. This article breaks down what credit spreads are, how they work, and why they matter. We'll first discuss credit spreads in the context of bonds and then briefly explore the concept in options trading.

What Are Credit Spreads?

A credit spread is the difference in returns between two loans or bonds that will be paid back at the same time but have different credit ratings (risk levels).

In bond trading, the concept relates to comparing two bonds that mature at the same time, one from a safer borrower and one from a riskier one (such as debt issued by emerging markets or lower-rated businesses). 

The credit spread shows how much more return the riskier bond offers to make up for the extra risk. Unsurprisingly, this difference can affect how much you earn on your investment.

How Credit Spreads Work

Typically, investors compare the yield of a corporate bond with that of a government bond, such as a US Treasury note, which is considered low-risk. For example, if a 10-year US Treasury bond yields 3% and a 10-year corporate bond yields 5%, the credit spread is 2% or 200 basis points.

Many investors use credit spreads to understand not only how risky a single company’s bond is but also how healthy the overall economy is. When credit spreads are wide, it often signals economic trouble. When they’re narrow, it suggests confidence in the economy.

What affects credit spreads?

Many things can cause credit spreads to go up or down:

Credit ratings: Lower-rated bonds (like junk bonds) usually have higher yields and bigger spreads.

Interest rates: When interest rates rise, riskier bonds often see their spreads increase.

Market sentiment: When market confidence is low, even solid companies can see their bond spreads widen.

Liquidity: Bonds that are harder to trade present higher trading risks and tend to have wider spreads.

Credit spread examples

Small spread: A top-rated corporate bond pays 3.5%, and a Treasury bond pays 3.2%. The spread is 0.3% or 30 basis points. This indicates strong trust in the company.

Large spread: A lower-rated bond pays 8%, while the Treasury still pays 3.2%. The spread is 4.8% or 480 basis points. This larger spread indicates a higher risk.

What Credit Spreads Say About the Economy

Credit spreads are not only investment tools but also serve as economic indicators. During periods of economic stability, the difference in yields between government and corporate bonds tends to be small. This is because investors are confident in the economy’s ability to support corporate profits and solvency. In other words, people feel confident that companies will pay their debts.

Conversely, in times of economic downturn or uncertainty, investors want to avoid risk. They jump into safer assets like the US Treasuries, driving their yields down, while demanding higher yields for riskier corporate debt, especially lower-rated ones. This causes credit spreads to widen, which in some cases precede bear markets or recessions.

Credit Spread vs. Yield Spread

People sometimes mix up these terms. A credit spread is the difference in yields because of different credit risks. A yield spread is more general and can refer to any yield difference, including due to time to maturity or interest rates.

Credit Spreads in Options Trading

In options trading, the term "credit spread" refers to a strategy where you sell one option contract and buy another with the same expiration date but a different strike price. You get more from the option you sell than you pay for the option you buy. That difference between the contract prices (premium) is what makes the credit spread.

Here are two common types of credit spread strategies in options trading:

Bull Put Spread: This is used when you think the asset price will go up or stay the same. You sell a put option with a higher strike price and buy a put option with a lower strike price.

Bear Call Spread: This is used when you think the stock price will go down or stay below a certain level. You sell a call option with a lower strike price and buy a call option with a higher strike price.

Bear call spread example

Alice believes asset XY won’t go above $60, so she:

Sell a $55 call for $4 (she receives $400, since 1 option contract = 100 shares)

Buy a $60 call for $1.50 (she pays $150)

Alice ends up with a net credit of $2.50 per share, or $250 total. What happens next depends on where asset XYZ ends up at expiration:

If the price stays at or below $55, both options expire worthless. Alice keeps the initial $250 received.

If the asset ends between $55 and $60, the $55 call is used by the buyer, and Alice has to sell shares at $55. But her $60 call isn’t used. She still keeps some of the initial credit, depending on the final price.

If the stock goes above $60, both options are used. Alice sells shares at $55 and has to buy them back at $60, losing $500 in total. But since she received $250 upfront, her maximum loss is $250.

These trades are called credit spreads because you start off with a credit to your account when you open the position.

Closing Thoughts

Credit spreads are a helpful tool, especially for bond investors. They show how much extra return investors want for taking more risk and can also reveal how people feel about the economy. By keeping an eye on credit spreads, you can better understand the market, choose smart investments, and manage risk.

Further Reading

What Are Bonds and How Do They Work?

What Is a Yield Curve and How to Use It? 

How Can Tariffs Impact the Crypto Markets?

Interest Rates 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.

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What Is a Bitcoin Treasury Strategy?What Is a Bear Market?How Can Tariffs Impact the Crypto Markets?What Is World Liberty Financial USD (USD1)?What Is Sophon (SOPH)?

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Key Takeaways

The Sophon project is a blockchain initiative designed to facilitate consumer-focused applications within the ZKsync Elastic Chain ecosystem. 

As a Layer 2 (L2) built on ZK Stack, Sophon combines Ethereum’s security with high transaction throughput and low fees. 

Unlike many blockchains that focus on finance, Sophon is built for entertainment and lifestyle apps, like games and social platforms.

What Is Sophon?

Sophon is a ZK (zero-knowledge) chain within ZKsync’s Elastic Chain, a network of interoperable blockchains leveraging zk proofs for scalability and efficiency. Sophon prioritizes consumer-oriented applications, such as gaming, social platforms, and digital experiences. Its goal is to integrate cryptocurrency into everyday activities, making it accessible to non-crypto audiences through intuitive, user-centric platforms.

Sophon operates as a Validium, a type of L2 solution that stores data off-chain while maintaining Ethereum’s security for transaction validation. This allows Sophon to process transactions at a high throughput with minimal costs, addressing scalability challenges faced by Ethereum’s Layer 1 (L1).

How Sophon Works

ZK Stack and Elastic Chain integration

Sophon uses ZKsync’s technology, called ZK Stack, to build a fast and flexible blockchain. It’s part of the Elastic Chain, which is like a network of blockchains that share resources. This means users can move money or digital items between Sophon and other ZKsync chains easily. It also lets developers build apps that work across multiple chains, making everything more connected and scalable.

The Elastic Chain’s architecture allows Sophon to dynamically scale its capacity, accommodating growing demand for consumer applications. This is particularly relevant for resource-intensive use cases like gaming or real-time social interactions, where low latency and high throughput are critical.

Validium

Sophon’s Validium system is what makes it fast and affordable. Instead of storing every detail on Ethereum’s main network (which can be slow and expensive), Sophon handles most of the work off-chain. It only sends small proofs to Ethereum to confirm everything is correct. This keeps costs low and speeds things up, which is perfect for apps that need to process lots of actions quickly. 

Account abstraction

Sophon has a feature called account abstraction that makes using the blockchain simpler. Apps on Sophon can pay transaction fees for users, so you don’t need to worry about having crypto to cover costs. This “gasless” system makes it easier for people to try crypto apps without needing to understand how blockchain fees work.

Bridging assets

You can move crypto from Ethereum to Sophon using a bridge at portal.sophon.xyz. Some apps also let you buy SOPH tokens directly, making it easy to get started without needing to deal with other blockchains first.

Node operations

Sophon uses two kinds of nodes: Light Nodes, which are simpler and use a system called Avail to check data, and Full Nodes, which do heavier tasks like processing transactions. As of May 2025, only Sophon Labs runs the most important nodes, but the plan is to let more people join in to make the network more decentralized.

Sophon also has a Guardian Program that incentivizes participation through NFT-based memberships. These memberships, non-transferable until December 18, 2025, allow holders to run nodes or delegate to operators, contributing to network security.

Developer Support and Ecosystem

Building on Sophon

Sophon encourages developers to create high-throughput consumer applications, particularly in gaming, NFTs, and social platforms. The ZKsync CLI simplifies contract development, testing, and deployment, providing tools to streamline the process. The Sophon Foundation offers technical and financial support to developers.

Sophon Intelligence Agency (SIA)

Sophon has a $5 million program called the Sophon Intelligence Agency to support apps that use artificial intelligence (AI). It provides money and guidance to help developers build AI-powered projects, like games or tools that use smart technology to improve the user experience.

The SOPH Token

The SOPH token is the native cryptocurrency of the Sophon network, used for paying gas fees and staking to support network operations. The token has a fixed supply of 10 billion, with 57% allocated to the community through various mechanisms, including airdrops and liquidity mining programs. 

The remaining supply is distributed among node operators (20%), investors (with a three-year vesting period), the project team (four-year vesting), and ecosystem reserves for partnerships and liquidity provision.

SOPH on Binance HODLer Airdrops

On May 28, 2025, Binance announced Sophon as the 20th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from May 14 to 17 are eligible to receive SOPH airdrops. A total of 150 million SOPH tokens were allocated to the program, accounting for 1.5% of the total token supply.

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

Closing Thoughts

Sophon is a blockchain ecosystem focused on building fun and easy-to-use apps, like games and social platforms. It uses ZKsync’s technology to keep transactions fast, cheap, and secure. With the SOPH token, developer tools, and a focus on community, Sophon’s mission is to create a space where crypto feels simple and welcoming.

Further Reading

What Are Bitcoin Layer 2 Networks?

What Is ZKsync and How Does It Work?

What Is Chain Abstraction?

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Key Takeaways

A Bitcoin treasury strategy consists of a company adding bitcoin to their strategic reserves.

Some do it in a more passive way, while others use their BTC holdings to create innovative financial assets, such as convertible debt and yield-bearing instruments linked to Bitcoin’s price.

Companies can leverage their strategic Bitcoin reserves to potentially improve capital efficiency, hedge against inflation, and attract new investment opportunities.

What Is a Bitcoin Treasury Strategy?

Picture a company’s treasury as its piggy bank—it’s where they keep money to pay bills, handle unexpected costs, or fund new projects. A bitcoin treasury strategy is when a company decides to put some of that money into bitcoin (BTC) alongside or instead of traditional assets like cash, bonds, or money market funds.

Companies like Strategy, Tesla, and even GameStop started adding it to their treasuries. Strategy (formerly MicroStrategy) alone holds about 576,230 BTC, worth over $61 billion as of May 2025.

Why Companies Adopt Bitcoin Treasury Strategies

Companies adopt bitcoin treasury strategies for different reasons, each addressing specific financial and operational goals. The potential benefits include enhanced global liquidity, value preservation, capital growth, and much more.

1. Liquidity and flexibility

Bitcoin’s global fungibility and 24/7 trading can provide more liquidity and flexibility. For companies with international operations, holding bitcoin can be used to simplify cross-border transactions.

2. Hedge against inflation

Due to bitcoin’s fixed supply of 21 million coins, many argue that it can be used as a hedge against fiat currency devaluation, especially in regions with volatile economies. Unlike traditional currencies, which can be inflated by central bank policies, bitcoin’s scarcity offers an independent store of value.

3. Diversification and investment potential

By holding BTC, companies can diversify their treasury portfolios beyond low-yield bonds or cash equivalents. Bitcoin’s historical price growth (though not a guarantee of future performance) attracts companies seeking long-term capital appreciation. For instance, Michael Saylor’s shift to a bitcoin-centric treasury strategy has redefined Strategy’s valuation, with more than half of its market capitalization tied to bitcoin holdings.

4. Attracting new investors

Bitcoin treasuries allow companies to tap into institutional capital pools that would otherwise be unable to access direct crypto investments. By offering BTC-linked financial instruments, such as convertible debt or equity tied to bitcoin’s value, companies can provide indirect crypto exposure, appealing to a wider range of traditional investors.

How a Bitcoin Treasury Strategy Works

Step 1: Make a plan

Companies decide how much bitcoin to hold based on their risk tolerance, cash flow needs, and strategic goals. Some companies, like Strategy, allocate a significant portion of their reserves to bitcoin, while others, like Tesla, maintain smaller positions relative to their market cap.

Step 2: Buy bitcoin

To get bitcoin, companies might use spare cash, take out loans, or sell stock. GameStop, for instance, sold debt in March 2025 that could turn into stock to buy bitcoin, which got investors excited and boosted its share price.

Step 3: Keep it safe

Given Bitcoin’s decentralized nature, secure storage is critical. Companies usually partner with qualified custodians to protect against fraud, theft, or hacking. The 2025 Bybit hack, which resulted in a $1.5 billion loss, underscores the importance of top-notch security measures.

Step 4: Financial products

Bitcoin lets companies think outside the box. They can create new financial products tied to bitcoin’s value, such as convertible debt and yield-bearing instruments. This may increase interest in the company’s stock without the need to change its main business model.

Step 5: Ensure compliance

Crypto rules are still a work in progress, so companies have to stay on top of regulations. Ideally, they should also use “mark-to-market” accounting, which means they update bitcoin’s value on their books regularly. Price volatility can lead to unrealized gains or losses, impacting earnings and balance sheet stability.

Potential Risks

Volatility: Bitcoin’s price fluctuations can cause earnings volatility and liquidity risks. Depending on the strategy adopted, a sharp decline in bitcoin’s price could strain a company’s financial position.

Security: While bitcoin offers cross-border liquidity and flexibility, companies must remain vigilant and implement strong custodial measures to prevent hacks and fraud.

Distraction from core business: In some cases, heavy focus on bitcoin may divert management attention (and resources) from primary operations, which may raise concerns about the company’s strategic alignment.

Bitcoin Treasury Holdings of Publicly Traded Companies

Below are some examples of publicly traded companies that adopt bitcoin treasury strategies. As of May 2025, there are at least 50 public companies with more than 100 BTC:

Strategy (MSTR): Originally an analytics software firm, Strategy transformed into a bitcoin treasury company, holding 576,230 BTC worth more than $63 billion. Its current strategy focuses on providing investors with crypto exposure.

Marathon Digital Holdings (MARA): Specializing in bitcoin mining and sustainable energy solutions, Marathon holds more than 48,100 BTC worth over $5 billion.

Riot Platforms (RIOT): Focused on bitcoin mining and bitcoin-driven infrastructure, Riot holds more than 19,200 BTC worth over $2 billion at the time of writing.

Tesla (TSLA): If we consider its size and market cap, Tesla adopts a more conservative approach, with 11,509 BTC worth over $1 billion.

Closing Thoughts

Bitcoin treasury strategies are shaking up how companies handle their money, turning their cash reserves into tools for creating capital, managing cash flow, and attracting investors. By leveraging bitcoin’s unique properties, companies can potentially hedge against inflation, diversify reserves, and attract new capital. As crypto adoption continues to grow, Bitcoin treasury strategies can offer an interesting alternative to traditional treasury management.

Further Reading

What Is Bitcoin and How Does It Work?

How Can Tariffs Impact the Crypto Markets?

Who Is Michael Saylor?

What Is Cryptocurrency Mining 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.

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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.

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.