Binance, the world’s largest cryptocurrency exchange, announced on Friday its decision to remove specific liquidity pools from Binance Liquid Swap. This action entails the discontinuation of several significant liquidity pools, including Bitcoin (BTC), Ethereum (ETH), BNB, Cardano (ADA), Polygon (MATIC), Solana (SOL), Shiba Inu (SHIB), and Dogecoin (DOGE).
Binance Liquid Swap allows users to contribute liquidity to these pools, becoming liquidity providers and earning transaction fees and BNB rewards while easily exchanging various cryptocurrency tokens.
Eliminating Major Liquidity Pools in BUSD Pairs
In an official announcement made on October 20, Binance unveiled its plans to discontinue certain liquidity pools on Binance Liquid Swap. The exchange will be removing several vital liquidity pools, such as BTC/BUSD, ETH/BUSD, BNB/BUSD, ADA/BUSD, MATIC/BUSD, SOL/BUSD, SHIB/BUSD, and DOGE/BUSD. This move is part of a broader strategy to entirely phase out support for the BUSD stablecoin by February 2024.
Other liquidity pools facing removal include BUSD/DAI, BUSD/USDT, FIL/BUSD, GMT/BUSD, HOOK/BUSD, LINK/BUSD, LTC/BUSD, POND/BUSD, and UNI/BUSD.
As of October 23 at 04:00 UTC, users will no longer be able to add liquidity to the aforementioned pools. Furthermore, users who have positions in these liquidity pools will receive their deposited cryptocurrency assets in their spot wallets automatically on October 27.
The announcement states, “Users can choose to redeem their assets from the above liquidity pools before 2023-10-27 04:00 (UTC). Thereafter, deposits in the liquidity pools will be calculated based on the prevailing composition ratios of the corresponding pool and automatically redeemed to users’ Spot wallets.”
Binance noted that it routinely reviews the listed liquidity pools to concentrate liquidity, mitigate slippage, and provide users with more favorable transaction prices. This proactive approach is aimed at delivering an optimized trading experience on the platform.
Binance Continues BUSD Phase-Out
Binance has been gradually winding down its support for BUSD by delisting trading pairs, discontinuing liquidity pools, and phasing out BUSD-related products and services. The market capitalization of BUSD has declined from $22.50 billion earlier this year to $2 billion.
