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.
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.
If you are interested in trading cryptos or buying tokens as an investment, check out Binance by clicking right here. It has a huge variety of crypto products and likely has the most popular exchange in the world as measured by trading volumes.
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.”