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Binance Suspected Of Using Client Assets For Staking
CONTENT

  • Binance was caught in the independent disposal of client assets

  • The exchange uses custom staking funds

  • Opinions differ in the cryptocurrency community on the decision of the exchange

International consortium of news organizations developing transparency standards.

Binance Exchange Announces SUSHI Token Staking After Users Convict The Exchange Of Unilateral Use Of Assets

Binance uses SUSHI token client assets to earn money from staking. The first to notice this was a crypto investor under the nickname @ Arthur_0x on his Twitter page..

Binance Suspected Of Using ...

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According to the transaction data, Binance transferred 12 million SUSHI tokens (~ $ 30.6 million) to the Sushi smart contract for token staking. A few hours later, Binance Staking officially announced support for staking SUSHI tokens. The exchange offers up to 24.49% per annum for staking. However, Binance stressed that the rate is revised annually.

The minimum staking period is 15 days.

We will act further

By transferring 12 million SUSHI tokens, Binance, according to ethplorer.io, became the largest staker in the contract, with 21.56% of the total pledged assets.

Source: ethplorer.io

At the time of this writing, the yield on SUSHI staking on Sushiswap is 26.5% per annum (which is 2.01% more than the exchange offers).

Source: sushi.zippo.io/sushibar

Thus, if the client of the exchange does not use staking services, the exchange, in theory, itself can earn on this option. Cryptocurrency community disagrees over Binance decision.

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Binance Suspected Of Using ...

Some users believe that such a solution is much better than if the exchange used assets for trading. Also, some felt that centralized exchanges have the right to independently decide how to dispose of client assets as long as the client can access his funds. Others, on the contrary, turned out to be puzzled by the actions of the exchange, which unilaterally uses the assets of clients without prior notice..

At the same time, if all users suddenly want to withdraw SUSHI, then the exchange, according to the user under the nickname @ SamuelShadrach4, will transfer its trades to other platforms in order to hedge exchange rate risks as much as possible. Otherwise, the exchange will incur losses, he added..

In addition to SUSHI, Binance has a long history of staking services for over 20 crypto assets..

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