Binance CEO Changpeng Zhao welcomed more Ethereum-based DeFi projects to join the Binance Smart Chain (BSC) platform.
In a tweet discussion with another user, Zhao explained that this step would reduce the load on the Ethereum network, which will, in turn, lead to a reduction in Ethereum's gas fees.
Zhao later stressed that Binance Smart Chain is not a replacement or competitor to the Ethereum network and that it is compatible with it. Zhao added that Binance Smart Chain provides the smart contract creators with more options:
"BSC never aimed to replace ETH, BSC is just ETH-compatible. Smart projects are giving their users more options. Option for cheaper fees."
Zhao concluded his comments by revealing that his Binance Smart Chain transaction volume recently reached 10% of Ethereum's network a few days ago.
Binance launched the Binance Smart Chain platform on September 1, and its CEO announced the launch of a $ 100 million investment fund devoted to projects building on the Smart Chain a few days ago.
Meanwhile, in a separate tweet, Zhao talked about Binance’s decision to add the latest DeFi projects even as the company took flack for listing SushiSwap. Binance Smart Chain now hosts BurgerSwap, the latest DeFi project that saw a large number of transactions in just 24 hours.
“In the past, I have generally tried not to comment on specific projects or coins. Going forward, I will be tweeting more about projects on #BinanceSmartChain. They are not endorsements. Rather just a way to promote the community,” Zhao said.
He added that most DeFi projects fail but also noted:
“Some may offer short term gains, but they come with super high risks too. Don't invest money that you can't lose.”