Binance Eyes Uniswap’s Lunch With Launch of Centralized ‘Swaps’ Platform

The exchange giant is hoping to capitalize further on the DeFi boom with a new centralized trading platform that makes it a rival of the likes of Uniswap.

AccessTimeIconSep 4, 2020 at 1:00 p.m. UTC
Updated Sep 14, 2021 at 9:52 a.m. UTC

Exchange giant Binance is hoping to capitalize further on the DeFi boom with a new centralized trading platform that makes it a rival of the likes of Uniswap.

  • Binance said Friday users would be able to provide liquidity and make trades, or "swaps," initially with three trading pairs from their exchange accounts.
  • Called Binance Liquid Swap, the platform is in effect an automated market maker (AMM) exchange where smart contract-based liquidity pools set spot prices and facilitate swaps.
  • In AMM exchanges, users become liquidity providers by depositing digital assets into the pools, receiving in return interest and a cut of transaction fees.
  • This is the same model used by Uniswap and SushiSwap – two decentralized exchanges (DEXs) now at the center of the white-hot decentralized finance space.
  • In a blog post, Binance said Liquid Swap is the first AMM platform to be launched on top of a centralized exchange.
  • When asked if Binance was moving into direct competition with the likes of Uniswap and SushiSwap, a company spokesperson told CoinDesk that Liquid Swap was aimed at an audience more at home on centralized exchanges.
  • "The crypto industry is still in its early stages, and there is still a barrier of entry for decentralized products," they said.
  • With the new platform, Binance aims to offer users "a more secure and seamless product while allowing them to earn as on decentralized AMM pools," according to the spokesperson.
  • The three initial trading pairs will be USDT/BUSD, BUSD/DAI, and USDT/DAI.
  • Binance first ventured into DeFi with its decentralized exchange in April 2019, built on top of its native Binance Chain.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.