BNB Chain has announced a $4.4 million expansion of its liquidity support program, opening it to all sectors starting March 13, 2025. The initiative aims to fortify the BNB Chain ecosystem through sustainable liquidity.
Program Expands Beyond Memecoins
BNB Chain will now accept applications from all project types on the BNB Smart Chain, lifting the category restrictions imposed in the first round. The initiative will introduce permanent, non-withdrawable liquidity into the liquidity pools of winning projects, ensuring asset stability. This expansion signals a strategic approach to strengthening the entire BNB Chain ecosystem.
Competition Structure for Fair Play
The second round features a two-tier system based on market capitalization: projects with capitalizations under $20 million compete in the 'Burst Zone', while larger projects enter the 'Mature Zone'. Daily winners will be chosen in each zone over seven days. This system prevents competition between more established and newer projects.
Impact of Permanent Liquidity
The BNB Chain program is unique in that liquidity cannot be withdrawn from pools, creating a sustainable infrastructure. This is a significant step towards addressing one of DeFi's key challenges—liquidity sustainability. Projects often face issues due to sudden liquidity withdrawals after temporary incentives end. Upon verification, winners will be announced on BNB Chain's official channels, and liquidity will be deployed within 10 days.
The BNB Chain initiative offers new opportunities for projects on BSC, aiming to create a sustainable ecosystem with permanent liquidity support. This program moves away from short-term incentive mechanisms, building a more stable and enduring infrastructure for participants.
