In a significant development, Binance, the world’s largest cryptocurrency exchange, declared on Friday its decision to delist various liquidity pools on Binance Liquid Swap. The move is part of Binance’s ongoing efforts to optimize liquidity, reduce slippage, and enhance the overall trading experience for its users. The affected liquidity pools include Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Polkadot (DOT), Chainlink (LINK), Polygon (MATIC), Litecoin (LTC), and Bitcoin Cash (BCH), and are set to be removed by December 22.
Binance Liquid Swap Overhaul
Binance Liquid Swap, the platform enabling users to contribute liquidity to pools and earn transaction fees and BNB rewards, is undergoing adjustments with the discontinuation of specific liquidity pools. Users engaging in liquidity provision for these affected pairs, such as ADA/ETH, ADA/USDT, BCH/BTC, DOT/BTC, DOT/USDT, ETH/DAI, LINK/ETH, LINK/USDT, LTC/BNB, LTC/BTC, LTC/ETH, LTC/USDT, MATIC/USDT, SOL/BTC, XRP/BNB, XRP/BTC, and XRP/ETH, will be unable to add liquidity after December 18 at 04:00 UTC.
User Impact and Asset Redemption
Users holding positions in the mentioned liquidity pools will have their deposited assets automatically returned to their spot wallets by December 22. Prior to this date, users have the option to redeem their assets from the affected liquidity pools. After December 22, any remaining deposits will be calculated based on the existing composition ratios of the respective pools and automatically redeemed to users’ Spot wallets.
Binance emphasized its commitment to periodically reviewing listed liquidity pools, a practice aimed at concentrating liquidity, minimizing slippage, and providing more favorable transaction prices for its user base. This strategy aligns with the exchange’s goal of delivering an optimized and efficient trading environment.
It’s worth noting that this decision follows Binance’s recent delisting of various cryptocurrencies, including Polygon (MATIC), Solana (SOL), Tron (TRX), Shiba Inu (SHIB), Bitcoin Cash (BCH), Avalanche (AVAX), and Polkadot (DOT) on December 6. Additionally, the exchange had removed significant liquidity pools, including Bitcoin (BTC), Ethereum (ETH), BNB, XRP, Cardano (ADA), Polygon (MATIC), Solana (SOL), Shiba Inu (SHIB), and Dogecoin (DOGE) in October. This move was part of Binance’s broader strategy to cease BUSD stablecoin support entirely by February 2024.
