Posted 1 year ago | by Ben Armstrong

Binance Joins EOS DeFi System as a Supervisor for Smart Contract Upgrades

EOS DeFi project has gotten the help of Binance, Eosfinex, and others to oversee the process of using the blockchain’s smart contract upgrade features. These groups should add value to the entire EOS ecosystem.

EOS-based decentralized finance, or DeFi, project similar to MakerDAO (MKR), named Equilibrium, is set to add four-block producers to its governance system.

Binance will be part of an EOS decentralized exchange which will be linked to Bitfinex, Eosfinex. Other block producers EOS Nation and EOS Cannon will continue to work with the network. All of them will become governance supervisors of the system and their main purpose to sign off on smart contract upgrades for Equilibrium.

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Binance Moves Closer to EOS

According to Alex Melikhov, the CEO of Equilibrium, these new alliances will bring a distinctive feature to EOS:

“One of the main advantages of EOS lies in updatable smart contract code. In other words you can migrate to new versions of your application seamlessly without hard stop of the whole system.”

Equilibrium’s approach is not the same as Ethereum’s, in which new iterations of DeFi protocols require a complex migration procedure. In order to avoid risks in security, the old versions may be shut down, such as the case with Maker’s single collateral Dai, or they may be left to their own devices, as was case with Uniswap V1.

Decentralization and Reputation

In these systems, supervisors hold parts of a multi-signature key, that is used to authorize upgrades to the ecosystem.

Melikhov said that:

(The supervisors are) “the most known and reliable ecosystem participants who could bid their reputation on the integrity and relevance of the smart contract updates,”

The Equilibrium project introduced a new approach by, “creating a proof-of-authority framework which consists of trusted counterparts that are independent according to their background.”

To avoiding missing out on EOS’ added possibilities, these upgrade keys would not be destroyed.

BNB May Grow its Footprint

A Binance representative said that it considers EOS a “promising blockchain for DeFi development,” especially due to its cross-chain capabilities. Since EOSDT recently integrated Bitcoin (BTC) as a form of collateral.

According to the firm, it would also like to make room for the BNB token in the DeFi ecosystem:

“We hope to see our BNB token as an asset integrated into more DeFi apps, and we think it can be introduced as a new type of collateral for the EOSDT stablecoin at some point.”

About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g Binance Joins EOS DeFi System as a Supervisor for Smart Contract UpgradesBen Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of BitBoyCrypto.com. Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at BitBoy@BitBoyCrypto.com or contact him on Twitter @BitBoy_Crypto.